Bassett Furniture Reports 15.4% Decline in Net Sales for Fiscal Year Ending November 30, 2024

Bassett Furniture Industries, Incorporated reported a significant decline in financial performance for the fiscal year ending November 30, 2024, with net sales of $329.9 million, down 15.4% from $390.1 million in the previous year. The company experienced a loss from continuing operations of $16.3 million, compared to a loss of $3.1 million in fiscal 2023. This downturn was attributed to decreased wholesale shipments and retail sales, alongside increased costs associated with asset impairments and restructuring efforts.

The company’s wholesale segment saw net sales drop to $207.5 million, a 16.7% decrease from $248.9 million in the prior year. Retail sales also fell by 13.3%, totaling $204.6 million compared to $235.9 million in fiscal 2023. The decline in sales was compounded by a 2.8% decrease in written sales orders and a reduction in customer traffic, prompting Bassett to evaluate its store count and performance on a market-by-market basis. The company opened two new stores during the year but anticipates fewer stores in the future as it seeks to optimize its retail presence.

Strategically, Bassett made the decision to cease operations of its subsidiary Noa Home, a mid-priced e-commerce furniture retailer, which had been operating at a loss since its acquisition in 2022. The liquidation of Noa Home's assets was substantially completed by the end of fiscal 2024, resulting in non-cash charges of $2.4 million related to asset impairments. The company also recognized a $962,000 charge for cumulative translation losses associated with Noa Home's closure.

Operationally, Bassett employed 1,228 individuals as of November 30, 2024, a reduction of 161 employees from the previous year, primarily due to workforce reductions in manufacturing and retail support functions. The company reported a wholesale backlog of $21.8 million, indicating a slight increase from $18.5 million in the prior year. Despite the challenges, Bassett noted a greater than 20% increase in e-commerce sales in the latter half of the fiscal year, driven by enhancements to its digital platform.

Looking ahead, Bassett anticipates continued challenges in the retail environment, particularly with fluctuating consumer demand and competitive pressures. The company plans to invest in its digital outreach strategies and improve its in-store customer experience while managing costs and optimizing its operational structure. The outlook remains cautious as Bassett navigates the complexities of the home furnishings market and seeks to stabilize its financial performance.