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Bassett Furniture (BSET)
NASDAQ:BSET
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Bassett Furniture (BSET) AI Stock Analysis

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BSET

Bassett Furniture

(NASDAQ:BSET)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
$17.00
▲(11.55% Upside)
Bassett Furniture's overall stock score reflects a moderate recovery in financial performance, with notable improvements in revenue growth and operational profits. The valuation is attractive with a high dividend yield, but technical indicators suggest a lack of strong momentum. The earnings call provided a positive outlook with strategic initiatives to address industry challenges, contributing to a cautiously optimistic view.

Bassett Furniture (BSET) vs. SPDR S&P 500 ETF (SPY)

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 primarily generates revenue through the sale of its furniture products, which include both standard and custom-made items. The company's revenue model is based on direct sales from its retail outlets and e-commerce platform, where customers can explore and purchase a wide range of furniture styles. Key revenue streams include sales of upholstered furniture, case goods, and accessories. Additionally, Bassett benefits from a strong brand reputation and customer loyalty, which are enhanced by its focus on quality craftsmanship and design. The company also engages in strategic partnerships with designers and home décor professionals to expand its market reach and drive additional sales. Factors contributing to Bassett's earnings include the growth of the housing market, consumer trends favoring home improvement, and effective marketing strategies that emphasize the brand's unique value propositions.

Bassett Furniture Key Performance Indicators (KPIs)

Any
Any
Revenue By Type
Revenue By Type
Chart Insights
Data provided by:Main Street Data

Bassett Furniture Earnings Call Summary

Earnings Call Date:Oct 08, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Positive
The earnings call highlighted improvements in revenue and operational profits, alongside challenges from tariffs and slightly declining retail margins. Despite these challenges, the company demonstrated resilience through increased e-commerce conversions and the expansion of the Bassett Custom Studio program.
Q3-2025 Updates
Positive Updates
Revenue and Gross Margin Increase
Consolidated sales grew by 5.9%, with a 320 basis point improvement in gross margin due to better wholesale margins.
Operational Profit Turnaround
Achieved $600,000 in consolidated operating profit, a significant improvement from a $6.4 million loss in the same period last year.
Growth in Retail and Wholesale Sales
Orders increased by 5.9% overall, with company-owned retail stores seeing a 9.8% rise. Wholesale sales to the open market grew by approximately 1%.
E-commerce and Conversion Rates
Despite a slight decline in website traffic, conversion rates increased by 18%, indicating an improvement in the website experience.
Bassett Custom Studio Expansion
Orders in the Bassett Custom Studio program grew by 35% in Q3, with shipments up 38%.
Negative Updates
Impact of Tariffs
Tariffs from Vietnam and India affected the supply chain, leading to surcharges being passed on to consumers and a slight increase in retail prices.
Retail Margin Decline
Retail gross margins declined slightly due to lower margins on clearance goods and increased promotional activity.
Reduced Liquidity
Operating cash flow deficit led to a $5.2 million reduction in cash and short-term investments.
Company Guidance
During the Bassett Furniture Industries Third Quarter 2025 Earnings Call, the company provided a detailed overview of its financial performance and strategic initiatives. The guidance highlighted a 5.9% increase in consolidated sales, with a 9.8% rise in company-owned retail stores and a 1% increase in wholesale sales. The gross margin improved by 320 basis points, reaching 56.2%, primarily due to better wholesale margins and ongoing operating efficiencies, which resulted in a $600,000 operating profit compared to a $6.4 million loss in the previous year. The company noted its ability to manage operating expenses, achieving a 590 basis point decrease in SG&A expenses as a percentage of retail sales. Bassett also reported a 35% increase in orders from its Bassett Custom Studio program and an 18% rise in conversion rates on its website. The company emphasized its strategic focus on innovation, marketing initiatives, and leveraging technology to adapt to industry challenges, particularly the impact of tariffs from countries like Vietnam and India, which influenced product pricing. The guidance also included updates on the company's dividend, cash position, and plans for new store openings in 2026, signaling cautious optimism despite the challenging market environment.

Bassett Furniture Financial Statement Overview

Summary
Bassett Furniture is showing signs of recovery with improved revenue growth and operating cash flow. While profitability margins and return on equity are still low, they have improved from previous periods. The company's balance sheet remains stable with moderate leverage, but challenges in free cash flow generation persist. Continued focus on operational efficiency and cash flow management will be crucial for sustained improvement.
Income Statement
65
Positive
Bassett Furniture shows a modest revenue growth of 1.37% TTM, indicating a slight recovery from previous declines. The gross profit margin is healthy at 56.33%, reflecting efficient cost management. However, the net profit margin is low at 2.35%, and EBIT margin is weak at 0.68%, suggesting challenges in operational efficiency. The improvement from negative margins in the previous annual report is a positive sign.
Balance Sheet
70
Positive
The company maintains a moderate debt-to-equity ratio of 0.56 TTM, indicating a balanced approach to leveraging. Return on equity is low at 4.67%, but it has improved from negative figures in the previous year, showing progress in generating returns for shareholders. The equity ratio is stable, suggesting a solid capital structure.
Cash Flow
60
Neutral
Operating cash flow has improved significantly, covering 16.51% of net income, up from previous periods. However, free cash flow growth is negative, and the free cash flow to net income ratio is 0.65, indicating some challenges in converting profits into free cash flow. The improvement in operating cash flow is a positive development.
BreakdownTTMDec 2024Dec 2019Dec 2018Dec 2017Dec 2016
Income Statement
Total Revenue330.95M329.92M452.09M456.86M452.50M432.04M
Gross Profit186.43M179.41M272.84M277.27M274.92M264.52M
EBITDA11.16M-4.42M12.99M26.48M42.15M39.20M
Net Income7.78M-9.70M-1.93M8.22M18.26M15.83M
Balance Sheet
Total Assets324.24M341.17M275.77M291.64M293.75M278.27M
Cash, Cash Equivalents and Short-Term Investments54.63M59.91M37.12M56.11M77.07M58.27M
Total Debt92.75M106.44M0.00292.00K3.73M7.11M
Total Liabilities158.52M173.84M97.10M101.33M102.29M97.56M
Stockholders Equity165.72M167.33M178.67M190.31M191.46M180.71M
Cash Flow
Free Cash Flow7.87M-1.16M-7.57M10.40M20.88M17.56M
Operating Cash Flow12.10M4.05M9.81M28.70M36.38M39.06M
Investing Cash Flow-7.28M-8.77M-11.17M-30.69M-6.13M-20.83M
Financing Cash Flow-8.70M-8.12M-12.42M-18.49M-11.44M-19.35M

Bassett Furniture Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.24
Price Trends
50DMA
16.15
Negative
100DMA
16.25
Negative
200DMA
15.76
Negative
Market Momentum
MACD
-0.22
Positive
RSI
42.27
Neutral
STOCH
11.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSET, the sentiment is Negative. The current price of 15.24 is below the 20-day moving average (MA) of 15.65, below the 50-day MA of 16.15, and below the 200-day MA of 15.76, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 42.27 is Neutral, neither overbought nor oversold. The STOCH value of 11.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$695.96M13.5910.69%7.01%-4.89%-19.26%
66
Neutral
$132.54M17.094.70%5.25%-2.74%
64
Neutral
$1.31B14.559.09%2.73%2.18%-22.35%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
53
Neutral
$1.15B45.68-1.18%4.48%5.37%-127.27%
46
Neutral
$96.75M-6.33%10.51%-6.46%-1110.82%
46
Neutral
$148.69M9.10%-14.40%-2.14%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BSET
Bassett Furniture
15.24
1.82
13.56%
ETD
Ethan Allen
27.37
-0.72
-2.56%
MLKN
MillerKnoll
16.63
-7.09
-29.89%
HOFT
Hooker Furniture
8.75
-6.15
-41.28%
LZB
La-Z-Boy Incorporated
32.20
-6.72
-17.27%
SNBR
Sleep Number
6.68
-7.64
-53.35%

Bassett Furniture Corporate Events

Executive/Board Changes
Bassett Furniture Elects New Leadership on July 22
Neutral
Jul 22, 2025

On July 22, 2025, Bassett Furniture announced the election of Mr. Goergen. This decision may impact the company’s leadership dynamics and influence its strategic direction.

Business Operations and StrategyExecutive/Board Changes
Bassett Furniture Amends By-Laws for Governance Flexibility
Neutral
Jul 22, 2025

On July 16, 2025, Bassett Furniture‘s Board of Directors approved an amendment to the company’s By-Laws, allowing for a flexible range of seven to ten directors, with the current number set at nine. This change reflects the company’s strategic move to enhance governance flexibility and potentially improve decision-making processes.

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.Date of analysis: Oct 10, 2025