Bassett Furniture Industries Q2 2026 Financial Results

Bassett Furniture Industries (NASDAQ:BSET) reported mixed second‑quarter results for the period ending May 30, 2026. Adjusted earnings per share were $0.24, surpassing the analyst consensus of $0.23 by $0.01. Revenue declined to $83.8 million, missing the $85.6 million estimate and representing a 0.7% year‑over‑year decrease from $84.3 million in the comparable prior‑year quarter.

Operating income totaled $2.2 million, equivalent to 2.7% of sales, compared with $2.5 million in the year‑ago quarter. The prior year included a $0.7 million insurance‑proceeds gain; excluding that gain, operating income would have been $1.8 million or 2.1% of sales, indicating an adjusted improvement.

Gross margin expanded by 90 basis points to 56.5%, driven primarily by higher margins in the wholesale business. Selling, general and administrative expenses, excluding new store pre‑opening costs, were 53.3% of sales, reflecting a 20‑basis‑point improvement on an adjusted basis when the prior year’s insurance gain is excluded. The company generated $7.4 million in cash from operating activities during the quarter.

CEO and Chairman Rob Spilman said the company remains focused on implementing meaningful strategies to strengthen performance while navigating a continued soft housing market, noting that operating profit on an adjusted basis improved despite slightly lower consolidated revenue.

In the retail segment, the Memorial Day event produced a 14% increase in written sales and 4% higher foot traffic versus the prior year. Overall retail written sales rose 9.5% for the quarter, while wholesale orders increased 5.2%. E‑commerce written sales surged 40% and the average order value rose 24%.

Segment‑level revenue showed wholesale generating $53.1 million, down 2.0% year‑over‑year, whereas retail revenue grew 2.4% to $55.5 million. The company is pursuing cost‑reduction initiatives expected to deliver between $1.5 million and $2.0 million in annual expense savings by fiscal‑year end.

Following the announcement, Bassett Furniture’s shares rose 1.3% in after‑hours trading, after having closed 6% higher on the prior trading day, with the stock up approximately 6.04% at the time of reporting.