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1. Company Snapshot

1.a. Company Description

Bassett 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.

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1.b. Last Insights on BSET

Bassett Furniture Industries' recent performance was impacted by a challenging industry landscape. Despite Q3 earnings meeting estimates at $0.09 per share, compared to a loss of $0.52 per share a year ago, retail profitability remains a concern. The company's recovery is underway, with improving sales, margins, and cash flow following restructuring and cost controls. However, valuation metrics reveal asset and sales-based discounts, while earnings multiples are elevated, reflecting a turnaround premium. A quarterly dividend of $0.20 per share was declared.

1.c. Company Highlights

2. Bassett Furniture Industries' Q3 2025 Earnings: A Resilient Performance

Bassett Furniture Industries reported a 5.9% increase in consolidated sales for the third quarter of 2025, with revenues reaching a level that, excluding sales from Noah Home which closed in late 2024, would have been 7.3% higher. The company achieved a consolidated operating profit of $600,000, a significant improvement from the $6.4 million loss in the same period last year. Gross margin improved by 320 basis points, primarily due to better wholesale margins. Earnings per share (EPS) came in at $0.09, in line with analyst estimates. The company's liquidity position remains solid, with $54.6 million in cash and short-term investments and no outstanding debt.

Publication Date: Oct -28

📋 Highlights
  • Increased Consolidated Sales: Consolidated sales rose 5.9% YoY, with an adjusted 7.3% growth excluding Noah Home's sales.
  • Operating Profit Turnaround: Consolidated operating profit reached $600,000, reversing a $6.4M loss in the prior year period.
  • Gross Margin Expansion: Gross margin improved 320 basis points, driven by stronger wholesale margins despite retail margin declines.
  • Strong Liquidity Position: $54.6 million in cash and short-term investments, with no debt and reduced annual capital investment to $5–7 million.
  • Tariff-Driven Strategic Shifts: Tariffs disrupted pricing and supply chains, prompting product line streamlining and focus on domestic upholstery advantages.

Segment Performance

The wholesale business was a key driver of the company's improvement, with sales to the open market up 1%, driven by a 9.8% increase in company-owned retail stores. True custom upholstery was a major contributor to the wholesale improvement, with a double-digit increase in case goods. Written retail sales increased by 2.4% in the quarter, while outdoor sales were up 18%. However, retail gross margins were down slightly due to lower margins for in-line and clearance goods.

Operational Efficiencies

The company implemented ongoing operating expense efficiencies, resulting in a 590 basis point decrease in SG&A expenses as a percentage of retail sales. According to Mike Daniel, CFO, "We've looked at our pricing strategies, which is hard to do with tariffs going on." The company is focusing on its product line, selling fewer products, and achieving efficiencies from its upholstery operation.

Valuation and Outlook

With a P/E Ratio of 16.92 and a Dividend Yield of 5.28%, the company's valuation appears reasonable. Analysts estimate revenue growth at 3.0% for next year. The company's ROE is 4.67%, and ROIC is 2.48%, indicating a decent return on equity. The EV/EBITDA ratio is 17.03, which may indicate a relatively high valuation for the company's earnings before interest, taxes, depreciation, and amortization. Overall, Bassett Furniture Industries' resilient performance and solid liquidity position are positives, but the uncertainty around tariffs remains a challenge.

3. NewsRoom

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MLKN vs. BSET: Which Stock Should Value Investors Buy Now?

Nov -10

Source: zacks.com

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Contrasting Leggett & Platt (NYSE:LEG) and Bassett Furniture Industries (NASDAQ:BSET)

Oct -26

Source: defenseworld.net

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Bassett Announces Regular Quarterly Dividend

Oct -16

Source: globenewswire.com

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Bassett Furniture: Buy Now, Sit Back, and Collect Dividends

Oct -11

Source: marketbeat.com

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Bassett Furniture: A Solid Recovery Already Priced In

Oct -09

Source: seekingalpha.com

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Bassett Furniture Industries, Incorporated (BSET) Q3 2025 Earnings Call Transcript

Oct -09

Source: seekingalpha.com

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Bassett Furniture (BSET) Q3 Earnings Meet Estimates

Oct -08

Source: zacks.com

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Bassett Reports Fiscal Year 2025 Third Quarter Results

Oct -08

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.42%)

6. Segments

Retail

Expected Growth: 3%

Bassett Furniture Industries' Retail segment growth is driven by increasing demand for home furnishings, expansion of its store footprint, and strategic marketing initiatives. Additionally, the company's focus on providing a personalized shopping experience, investing in e-commerce capabilities, and offering competitive pricing also contribute to its growth.

Wholesale

Expected Growth: 4%

Bassett Furniture Industries' 4% wholesale growth is driven by increasing demand for custom furniture, expansion of its wholesale network, and strategic partnerships with leading retailers. Additionally, the company's focus on product innovation, quality, and customer service has led to higher sales volumes and market share gains.

Corporate and Other Segment

Expected Growth: 5%

The 5% growth in Bassett Furniture Industries' Corporate and Other Segment is driven by increased demand for home furnishings, strategic investments in e-commerce and digital marketing, expansion of the company's retail store footprint, and cost savings initiatives. Additionally, the segment benefits from a strong brand reputation and a diversified product portfolio.

7. Detailed Products

Upholstered Furniture

Customizable sofas, loveseats, chairs, and sectionals designed for comfort and style

Casegoods

Dressers, nightstands, beds, and dining room furniture crafted from solid wood and other premium materials

Accents and Accessories

Decorative items such as lamps, rugs, and wall art designed to complement Bassett's furniture collections

Home Decor

Custom window treatments, bedding, and other decorative elements to enhance the home's aesthetic

Design and Planning Services

Expert design consultations and space planning to help customers create their ideal home environments

8. Bassett Furniture Industries, Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Bassett Furniture Industries, Incorporated is medium. While there are some substitutes available in the market, they are not a significant threat to the company's business.

Bargaining Power Of Customers

The bargaining power of customers for Bassett Furniture Industries, Incorporated is low. The company has a strong brand presence and a wide range of products, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Bassett Furniture Industries, Incorporated is medium. While the company has some negotiating power, suppliers also have some bargaining power due to the high demand for raw materials.

Threat Of New Entrants

The threat of new entrants for Bassett Furniture Industries, Incorporated is low. The company has a strong brand presence and a large market share, making it difficult for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry for Bassett Furniture Industries, Incorporated is high. The company operates in a highly competitive industry with many established players, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.78%
Debt Cost 3.95%
Equity Weight 61.22%
Equity Cost 12.35%
WACC 9.09%
Leverage 63.34%

11. Quality Control: Bassett Furniture Industries, Incorporated passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Bassett Furniture

A-Score: 5.4/10

Value: 5.9

Growth: 1.3

Quality: 4.4

Yield: 9.0

Momentum: 7.0

Volatility: 5.0

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Hooker Furnishings

A-Score: 4.9/10

Value: 9.8

Growth: 1.0

Quality: 5.0

Yield: 9.0

Momentum: 1.5

Volatility: 3.3

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Stock-Card
Interface

A-Score: 4.9/10

Value: 5.5

Growth: 5.4

Quality: 5.7

Yield: 0.0

Momentum: 8.5

Volatility: 4.3

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Virco Mfg

A-Score: 4.2/10

Value: 6.7

Growth: 8.3

Quality: 5.5

Yield: 1.0

Momentum: 0.0

Volatility: 3.7

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American Woodmark

A-Score: 4.0/10

Value: 7.0

Growth: 6.0

Quality: 4.9

Yield: 0.0

Momentum: 1.5

Volatility: 4.7

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MasterBrand

A-Score: 3.6/10

Value: 6.8

Growth: 4.7

Quality: 4.4

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.61$

Current Price

15.61$

Potential

-0.00%

Expected Cash-Flows