Bassett Furniture Industries Reports Fourth Quarter Results

February 4, 2026  by Karen Parrish in Business Strategy, Industry   

Q4 Consolidated Business Highlights: [FY 25 vs. FY 24, unless otherwise specified]

Revenues increased 5.1% from the prior year quarter. Excluding sales from Noa Home Inc., which closed in late 2024, consolidated revenues increased 6.4%.

Operating income was $2.3 million or 2.6% of sales as compared to operating income of $0.9 million or 1.1% of sales for the prior year quarter. Excluding the asset impairment charge of $0.5 million in the current year quarter, operating income would have been $2.8 million or 3.2% of sales. Excluding the loss on the realization of cumulative translation adjustments associated with Noa Home Inc. of $1.0 million and the restructuring charge of $0.4 million in the prior year quarter, operating income would have been $2.3 million or 2.8% of prior year sales.

Gross margin of 56.3% represented a 30-basis point decrease over the prior year primarily due to lower margins in the retail business, partially offset by improved margins in the wholesale business.

Selling, general and administrative expenses were 53.2% of sales, 60 basis points lower than the prior year, reflecting benefits from the prior year restructuring plan and on-going cost containment activities coupled with greater leverage of fixed costs from higher sales levels.

Diluted earnings per share was $0.18 as compared to $0.38 per share in the prior year period. The prior year period included a $2.6 million tax benefit related to the capital loss associated with our cumulative investment in Noa Home Inc. in 2022. Excluding this tax benefit, the prior year earnings per share would have been $0.08.

Generated $7.8 million in operating cash flow.

 “Bassett finished the year with a solid fourth quarter, increasing consolidated revenue and operating profit,” said Rob Spilman, Bassett chairman and CEO. “Likewise, we ended the full year with improved results, and we remain committed to that trajectory for this year. We’re still in the restructuring mindset – taking costs out, driving operating efficiencies, integrating technology, emphasizing new product innovation and adapting to a changing marketplace. Our well-defined strategic plan for 2026 is designed to grow and take market share in an environment where housing activity is projected to remain slow and discretionary demand has moderated.”

“Two years ago, we committed to driving innovation in Bassett Casegoods as our wood business needed to be reinvented,” said Spilman. “We are pleased with our progress, with sales up over 50% for the quarter. Our upholstery business continued to be solid, with our True Custom and Magnificent Motion programs posting nice gains.”

“We recently formed the Bassett Hospitality Division, hiring a leader with extensive experience selling to country clubs, senior living facilities, boutique hotels, and related commercial areas,” continued Spilman. “This is a natural extension of our brand where we can offer quick custom solutions from our domestic manufacturing facilities. We are excited about this new venture but recognize it will take some time for it to be the contributor to our wholesale sales that we expect.”

“Our leaner organization and business model position us well to weather the current marketplace and ongoing challenges with housing,” Spilman concluded. “We’re investing smartly and evolving to meet the needs of both the trade and consumers.”

Conference Call and Webcast

The Company will hold a conference call to discuss its quarterly results on February 5, 2026, at 9:00 am ET. The public is invited to listen to the conference call by webcast, accessible through the Company’s investor relations website, https://investors.bassettfurniture.com/. Participants can also listen to the conference call via https://edge.media-server.com/mmc/p/jru7fi2w. A replay and transcript of the conference call will be available on demand on the investor relations site.