Bassett Furniture's Q2 revenue rises 1.1%, beats expectations

Overview

• Bassett Furniture's fiscal Q2 revenue rises 1.1%, beating analyst expectations, per LSEG data

• Diluted EPS of $0.22 beats analyst estimates

• Reports operating income of $2.5 mln from a loss of $8.5 million last year

Outlook

• Company cites weak housing market affecting consumer confidence

• Bassett sees strong U.S. manufacturing base as an advantage

• Company expects to serve wholesale and retail markets well in H2 2025

• Bassett mentions uncertainty about trade tariffs impacting costs

Result Drivers

• REVENUE GROWTH - Revenue increased by 1.1%, driven by expansion in wholesale and retail segments

• COST EFFICIENCY - Reduction in selling, general, and administrative expenses by 330 basis points due to restructuring and cost containment efforts.

• GROSS MARGIN IMPROVEMENT - Gross margin improved by 310 basis points, primarily due to the absence of prior year's inventory valuation charges.

Key Details

Analyst Coverage

• Wall Street's median 12-month price target for Bassett Furniture Industries Inc is $19.00, about 14.6% above its July 8 closing price of $16.22

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nGNX1Kb3XX