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Earnings analysis · 10-Q

BSET earnings analysis

Filed September 30, 2026 · Our reading of the company's report

The latest report

Bassett reported a solid third quarter, with revenue up 3.4% to $82.838 million, gross margin up to 57.5% and operating income increasing to $2.782 million. Wholesale drove the improvement, while retail sales grew but…

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Bassett reported a solid third quarter, with revenue up 3.4% to $82.838 million, gross margin up to 57.5% and operating income increasing to $2.782 million. Wholesale drove the improvement, while retail sales grew but remained modestly unprofitable; results also benefited from $956,000 of tariff-refund income. Operating cash flow improved to $8.013 million year to date and liquidity was adequate, but housing demand, fuel costs, weaker backlog and the nonrecurring nature of tariff benefits temper the outlook.

Read the original on SEC.gov

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $43 Operating expenses $54 Left as operating profit $3

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

Retail—Company-owned stores 47.3% Wholesale 46.9% Corporate and other 5.8%

Shares of the segments disclosed in this filing, largest first.

What stood out

  • Revenue and operating margin improved

    Third-quarter revenue increased 3.4% year over year to $82.838 million, while gross margin expanded 130 basis points to 57.5% and operating income rose 369.1% to $2.782 million.

  • Wholesale performance strengthened

    Wholesale revenue increased 5.7% to $53.692 million, with operating income rising 15.7% to $9.317 million. Lane Venture shipments increased 44% year over year, including shipments to Company-owned stores and wholesale customers.

  • Retail loss narrowed

    Company-owned retail revenue grew 4.5% to $54.235 million, while the operating loss narrowed to $253,000 from $333,000. Retail SG&A as a percentage of sales declined 130 basis points due to sales leverage and lower advertising costs.

  • Operating cash flow improved

    Operating cash flow for the first nine months increased to $8.013 million from $5.726 million, a $2.287 million improvement, driven by improved income, tariff refunds and working-capital management.

  • Liquidity remains adequate

    Cash and cash equivalents plus short-term investments totaled $53.395 million at August 29, 2026. Credit-facility availability was $19.134 million, and the facility expires January 31, 2029.

  • Digital and written sales gained

    Web written sales orders increased 39% and delivered sales increased 34% for the first nine months. Management also reported a 4.6% increase in retail written sales year to date.

What to watch

  • Tariff benefit may not recur

    The quarter benefited from $956,000 of tariff-refund income recognized in gross profit, while total refunds received were $2.832 million. Additional amounts are expected to be recorded primarily in the fourth quarter, making the margin benefit potentially nonrecurring.

  • Retail profitability remains weak

    Retail remained unprofitable, recording a $253,000 operating loss in the quarter and a $1.618 million operating loss for the first nine months, compared with nine-month operating income of $101,000 in the prior year.

  • Backlog remains below fiscal year-end

    Wholesale backlog declined to $16.917 million from $19.519 million at November 29, 2025, while retail backlog was $33.512 million versus $34.402 million at fiscal year-end. This indicates limited order visibility despite higher quarterly sales.

  • Housing and credit headwinds

    Management cited slower housing activity, high mortgage rates, elevated home prices and economic uncertainty as factors reducing furniture demand. The filing also identifies increased interest rates as a risk to consumers' access to affordable credit.

  • Input and freight costs

    Higher fuel costs increased outbound freight expenses, and the company has exposure to raw-material and fuel prices. The filing specifically identifies wood, woven fabric, foam and diesel fuel as cost sensitivities.

  • Retail real-estate exposure

    The company had $3.410 million of guaranteed licensee lease obligations and $73.165 million of unamortized right-of-use assets at August 29, 2026, which could face impairment or cash-payment exposure if stores close or real-estate markets weaken.

Management's outlook

No quantitative revenue or EPS guidance was provided. Management expects full-year capital expenditures of $9 million to $11 million and expects a new Orlando, Florida store to open in early October 2026.

Earlier filings 1

10-Q · July 1, 2026

Bassett Furniture Industries reported a slight revenue decline in Q2 2026 compared to the previous year, with revenue at $83.75 million, down 0.7%. The company saw an EPS increase to $0.24 from $0.22 last year,…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.