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BASSETT, Va. - Bassett Furniture Industries, Inc. (NASDAQ:BSET) reported third-quarter earnings that fell short of analyst expectations despite posting revenue that slightly exceeded estimates, sending shares down 6.5% following the announcement.
The furniture manufacturer reported earnings per share of $0.09 for the quarter ended August 30, 2025, missing the analyst consensus of $0.13, while revenue came in at $80.1 million, marginally above the $79.93 million estimate. Revenue increased 5.9% YoY, or 7.3% when excluding sales from Noa Home Inc., which closed in late 2024.
"We’re pleased to report increases in revenue, operating income and gross margin this quarter, despite a continued challenging environment for home furnishings sales," said Robert H. Spilman, Jr., Bassett Chairman and Chief Executive Officer.
The company’s wholesale segment saw revenue increase 6.2% to $50.8 million, with operating income jumping to $8.1 million, representing 15.9% of sales compared to 9.2% in the same quarter last year. Retail revenue grew 9.8% to $51.9 million, while narrowing its operating loss to $0.3 million from $2.8 million in the prior-year period.
Gross margin improved to 56.2%, a 320-basis point increase from the same quarter last year, primarily due to improved wholesale margins. The prior year quarter was also negatively impacted by a cyber incident that suspended financial systems and manufacturing for seven days.
Selling, general and administrative expenses decreased to 55.4% of sales, down 420 basis points from the prior year, reflecting benefits from restructuring efforts, ongoing cost containment, and greater leverage of fixed costs from higher sales volumes.
Despite these operational improvements, investors appeared focused on the earnings miss, which overshadowed the revenue growth and margin improvements.
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