Bassett Furniture Reports $1.9 Million Net Income in Q2 2025, Significant Recovery from Prior Year

Bassett Furniture Industries, Inc. reported its financial results for the second quarter and first half of fiscal 2025, revealing a net income of $1.9 million, or $0.22 per share, for the quarter ending May 31, 2025. This marks a significant recovery from a net loss of $7.2 million, or $(0.82) per share, in the same quarter of the previous year. For the six months ended May 31, 2025, the company achieved a net income of $3.8 million, or $0.43 per share, compared to a net loss of $8.4 million, or $(0.96) per share, in the prior year. Total net sales for the quarter increased by 1.1% to $84.3 million, while sales for the six months decreased by 2.0% to $166.5 million, reflecting the impact of an additional week in the prior year’s results.

The company’s gross profit for the quarter rose to $46.9 million, representing a gross margin of 55.6%, up from 52.5% in the prior year. This improvement was attributed to a reduction in the cost of goods sold, which decreased by 5.6% for the quarter. Selling, general, and administrative (SG&A) expenses also declined by 4.9% to $44.4 million, contributing to the overall profitability. Notably, Bassett did not incur any asset impairment charges in the current quarter, contrasting with $5.5 million in charges recorded in the same quarter last year.

Operationally, Bassett's retail segment saw a 7.5% increase in sales, driven by a strong performance in its Company-owned stores, which accounted for a significant portion of total sales. The wholesale segment, however, experienced a decline in sales to external customers, down 5.5% compared to the previous year. The company reported a 35% increase in e-commerce sales for the first half of the fiscal year, indicating a growing online presence despite overall sales challenges.

Looking ahead, Bassett Furniture remains focused on enhancing its operational efficiency and expanding its market presence. The company has plans to invest in its website and improve customer engagement, which is expected to drive further growth in e-commerce sales. Additionally, with a strong cash position of $39.4 million and available credit of $16.8 million, Bassett is well-positioned to navigate market challenges and capitalize on future opportunities. The company continues to monitor market conditions and consumer demand closely, aiming to adapt its strategies accordingly.