Bassett Furniture beats Q1 estimates, shares rise 4.4%

Published 02/04/2025, 21:35
Updated 02/04/2025, 21:36
Bassett Furniture beats Q1 estimates, shares rise 4.4%

MARTINSVILLE, Virginia - Bassett Furniture Industries, Inc. (NASDAQ:BSET) reported better-than-expected first quarter results on Thursday, sending shares up 4.4% in early trading.

The furniture manufacturer and retailer posted adjusted earnings per share of $0.21 for the quarter ended March 1, 2025, surpassing analyst estimates of $0.03. Revenue came in at $82.2 million, above the consensus forecast of $80.17 million.

Compared to the same quarter last year, which had an extra week, revenue decreased 5.1%. However, when normalizing for the additional week in Q1 2024, sales increased 2.2% YoY.

Gross margin improved to 57.0%, up 170 basis points from the prior year, driven by better wholesale margins. Operating income was $2.5 million or 3.0% of sales, compared to a loss of $2.4 million in Q1 2024.

"We’re pleased that with consolidated margin improvements in the first quarter, Bassett delivered diluted earnings per share of $0.21," said Robert H. Spilman, Jr., Bassett Chairman and Chief Executive Officer. "We reduced our cost structure to operate with greater efficiency while we accelerate product innovation to drive higher sales."

The company noted that selling, general and administrative expenses decreased to 54.0% of sales, 400 basis points lower than last year, despite the revenue decline. Bassett said it continues to realize benefits from its 2024 restructuring plan.

Looking ahead, management stated its 2025 strategic plan aims to weather another year of tepid demand for home furnishings while focusing on growth initiatives like new product collections and e-commerce sales.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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