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Bassett Furniture (BSET)
NASDAQ:BSET
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Bassett Furniture
(NASDAQ:BSET)
Rating:58Neutral
Price Target:
$20.00
▲(9.29%Upside)
Bassett Furniture (BSET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$166.60M
Dividend Yield4.37%
Average Volume (3M)66.76K
Price to Earnings (P/E)67.3
Beta (1Y)0.46
Revenue Growth-7.22%
EPS GrowthN/A
CountryUS
Employees1,228
SectorConsumer Cyclical
Sector Strength66
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.22
Shares Outstanding8,704,115
10 Day Avg. Volume149,663
30 Day Avg. Volume66,757
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)0.89
Price to Sales (P/S)0.00
P/FCF Ratio-7.21
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit1.29
Enterprise Value/Ebitda-18.76
Forecast
1Y Price Target
$16.50Price Target Upside-9.84% Downside
Rating ConsensusHold
Number of Analyst Covering1
Bassett Furniture Business Overview & Revenue Model
Company DescriptionBassett Furniture Industries, Incorporated engages in the manufacture, marketing, and retail of home furnishings in the United States and internationally. It operates through three segments: Wholesale, Retail company-owned Stores, and Logistical Services. The company engages in the design, manufacture, sourcing, sale, and distribution of furniture products to a network of company-owned retail stores and licensee-owned stores, and independent furniture retailers; and wood and upholstery operations. As of November 27, 2021, it operated a network of 63 company-owned stores and 34 licensee-owned stores. It also provides shipping, and warehousing services to customers in the furniture industry. In addition, the company owns and leases retail store properties; and distributes its products through other multi-line furniture stores, Bassett galleries or design centers, mass merchants, and specialty stores, as well as sells its products online. Bassett Furniture Industries, Incorporated was incorporated in 1902 and is based in Bassett, Virginia.
How the Company Makes MoneyBassett Furniture generates revenue through the sale of its furniture products via multiple channels. The company operates a network of company-owned retail stores and licenses its brand to independent stores, ensuring a broad market presence. Additionally, Bassett engages in wholesale distribution to independent furniture retailers and sells directly to consumers through its e-commerce platform. The company also offers custom design services, which provide added value and attract a customer base seeking personalized home furnishings. Key revenue streams include direct retail sales, wholesale distribution, and online sales, with strategic partnerships and licensing agreements enhancing its market reach and brand visibility.
Bassett Furniture Earnings Call Summary
Earnings Call Date:Jul 09, 2025
(Q2-2025)
| % Change Since: 7.71%|
Next Earnings Date:Sep 25, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment. While there were clear improvements in financial performance, e-commerce growth, and cost reductions, significant challenges remain due to the tough sales environment, declines in open market sales, and the impact of tariffs.Q2-2025 Updates
Positive Updates
Improved Financial Performance
Bassett Furniture Industries reported a 1.1% increase in consolidated sales compared to the prior year, with an operating profit of $2.5 million or 3% of sales, contrasting with a loss in the previous year. Diluted earnings per share were $0.22 versus a loss of $0.82.
Growth in E-commerce
Written sales at bassettfurniture.com were up 31% in the second quarter versus last year, following an increase of 36% in Q1, despite the housing issues.
Successful Cost Reduction
Selling, general, and administrative expenses were 52.7% of sales, 330 basis points lower than the prior year, reflecting benefits from the prior year restructuring program and ongoing cost optimization activities.
Expansion in Retail and Design Studios
Bassett added seven new retail stores and plans to open two new markets in Cincinnati and Orlando. The new Bassett custom studio program in the open market grew by double digits.
Negative Updates
Challenging Sales Environment
The company faced a very challenging sales environment with a weak housing market, high interest rates, and uncertainty about trade tariffs impacting consumer confidence in home furnishings.
Decline in Open Market Sales
Wholesale sales to customers outside the Bassett store network were down by 6.6%, largely due to lower sales in the club level program and hesitancy from dealers due to tariff uncertainties.
Impact of Tariffs
Tariffs impacted the supply chain and consumer prices, necessitating a 3% to 5% increase in wholesale prices, which was not ideal in the current environment.
Company Guidance
In the second quarter of fiscal 2025, Bassett Furniture Industries reported a slight increase in consolidated sales by 1.1% compared to the previous year, and a 2.5% increase when excluding sales from the closed Noah Home, Inc. The company achieved an operating profit of $2.5 million, representing 3% of sales, reversing a previous year's loss. Despite challenging market conditions, including a weak housing market and high interest rates, the company noted a 9.6% increase in orders from their corporate and licensed store network, although wholesale orders from the open market declined by 6.6%. The company also reported an increase in corporate retail deliveries by 7.5% and a significant increase in written sales at bassettfurniture.com by 31%. Efforts to reduce costs resulted in a 330 basis point decrease in selling, general, and administrative expenses, while consolidated gross margin improved by 310 basis points to 55.6%. The company plans to open two new stores in Cincinnati and Orlando and maintain a solid liquidity position with $59.8 million in cash and no outstanding debt.Bassett Furniture Financial Statement Overview
Summary
Bassett Furniture faces significant challenges with declining revenues and profitability, highlighted by negative profit margins. The balance sheet displays moderate leverage, but negative return on equity signals profitability issues. While cash flow is positive, efficiency improvements are needed.Income Statement
Bassett Furniture shows a concerning trend with declining revenues and negative profit margins. The TTM revenue of $290.2M reflects a substantial drop from previous years, including $485.6M in FY 2022. The gross profit margin remains relatively high at 61.5% TTM. However, the net profit margin is negative at -2.3% for the TTM, indicating challenges in maintaining profitability. The negative EBIT and EBITDA margins further highlight operational inefficiencies.45
Neutral
Balance Sheet
Bassett Furniture's balance sheet reveals a moderately leveraged position with a debt-to-equity ratio of 0.61 TTM, which is reasonable within the industry. The equity ratio stands at 49.7% TTM, indicating a balanced approach between debt and equity financing. However, the return on equity is negative at -4.0% TTM, reflecting profitability challenges that could hinder shareholder returns.60
Neutral
Cash Flow
The company's cash flow position shows a mixed picture. While Bassett Furniture has managed to generate positive operating cash flow of $11.7M TTM, free cash flow remains positive at $7.7M TTM. The free cash flow to net income ratio is negative, given the negative net income, suggesting room for improvement in converting net earnings to cash.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 325.53M | 329.92M | 390.14M | 485.60M | 486.53M | 385.86M |
| Gross Profit | 178.38M | 179.41M | 206.49M | 248.34M | 222.83M | 222.30M |
| EBITDA | -143.00K | -4.42M | 7.67M | 36.98M | 40.60M | -3.26M |
| Net Income | -6.65M | -9.70M | -3.17M | 25.36M | 18.04M | -10.42M |
Balance Sheet | ||||||
| Total Assets | 335.79M | 341.17M | 370.42M | 406.27M | 421.66M | 402.55M |
| Cash, Cash Equivalents and Short-Term Investments | 56.42M | 59.91M | 70.18M | 79.34M | 52.09M | 63.51M |
| Total Debt | 101.51M | 106.44M | 116.18M | 116.30M | 133.53M | 139.05M |
| Total Liabilities | 168.99M | 173.84M | 186.98M | 210.66M | 258.93M | 244.52M |
| Stockholders Equity | 166.80M | 167.33M | 183.44M | 195.61M | 162.73M | 158.03M |
Cash Flow | ||||||
| Free Cash Flow | 7.73M | -1.16M | 1.24M | -24.27M | 3.81M | 30.65M |
| Operating Cash Flow | 11.74M | 4.05M | 18.72M | -2.97M | 14.56M | 36.67M |
| Investing Cash Flow | -7.30M | -8.77M | -17.76M | 65.84M | -11.57M | -3.75M |
| Financing Cash Flow | -8.95M | -8.12M | -10.23M | -35.56M | -14.42M | -6.82M |
Bassett Furniture Technical Analysis
Positive
18.30
Price Trends
16.46
Positive
16.16
Positive
15.04
Positive
Market Momentum
0.42
Negative
63.43
Neutral
85.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSET, the sentiment is Positive. The current price of 18.3 is above the 20-day moving average (MA) of 15.85, above the 50-day MA of 16.46, and above the 200-day MA of 15.04, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 63.43 is Neutral, neither overbought nor oversold. The STOCH value of 85.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSET.
Bassett Furniture Risk Analysis
Bassett Furniture disclosed 9 risk factors in its most recent earnings report. Bassett Furniture reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bassett Furniture Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $209.14M | 15.61 | 9.48% | 2.11% | 7.24% | -9.51% | |
76 Outperform | $126.53M | 6.46 | 20.52% | 1.24% | -9.84% | -20.47% | |
71 Outperform | $771.04M | 13.44 | 12.09% | 5.23% | -6.32% | -18.35% | |
68 Neutral | $1.64B | 17.03 | 9.84% | 2.24% | 3.04% | -16.49% | |
63 Neutral | $16.85B | 11.25 | -7.01% | 2.93% | 1.72% | -24.85% | |
58 Neutral | $166.60M | 67.30 | 1.46% | 4.37% | -7.22% | ― | |
50 Neutral | $117.67M | ― | -5.55% | 8.24% | -3.89% | -391.05% |
* Consumer Cyclical Sector Average
Performance Comparison
BSET
Bassett Furniture
18.30
5.05
38.11%
ETD
Ethan Allen
29.81
2.89
10.74%
FLXS
Flexsteel
37.87
2.46
6.95%
HOFT
Hooker Furniture
11.17
-2.67
-19.29%
LZB
La-Z-Boy Incorporated
39.22
-0.58
-1.46%
VIRC
Virco Manufacturing
7.92
-8.09
-50.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.