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Bassett Furniture (BSET)
NASDAQ:BSET
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Bassett Furniture
(NASDAQ:BSET)
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Rating:66Neutral
Price Target:
$17.00
▲(3.66% 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.
Positive Factors
Revenue Growth
The increase in sales and gross margin reflects Bassett's ability to adapt and grow in a challenging market, indicating a strong market position and effective cost management.
E-commerce Expansion
Improved e-commerce conversion rates highlight Bassett's successful digital strategy, enhancing customer engagement and potentially increasing online sales.
Custom Studio Growth
The growth in the Custom Studio program underscores Bassett's innovation and ability to meet consumer demand for personalized furniture, strengthening its competitive edge.
Negative Factors
Impact of Tariffs
Tariffs create cost pressures and pricing challenges, potentially affecting profit margins and consumer demand, posing a risk to long-term profitability.
Retail Margin Decline
Declining retail margins suggest challenges in maintaining pricing power, which could impact overall profitability if not addressed.
Reduced Liquidity
Reduced liquidity limits financial flexibility and could constrain Bassett's ability to invest in growth opportunities or weather economic downturns.
Bassett Furniture (BSET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$143.49M
Dividend Yield4.59%
Average Volume (3M)25.04K
Price to Earnings (P/E)18.5
Beta (1Y)0.36
Revenue Growth-2.74%
EPS GrowthN/A
CountryUS
Employees1,228
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.09
Shares Outstanding8,685,710
10 Day Avg. Volume32,440
30 Day Avg. Volume25,043
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)0.80
Price to Sales (P/S)0.40
P/FCF Ratio-114.95
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit0.99
Enterprise Value/Ebitda16.49
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 primarily through the sale of its furniture products, which include both standard and custom-made items. The company operates a dual revenue model – direct sales through its own retail stores and wholesale distribution to independent retailers. Key revenue streams include in-store sales, online sales, and custom orders, which allow customers to personalize their furniture selections. Additionally, Bassett has established partnerships with various suppliers and manufacturers to enhance its product offerings and streamline production processes. The company also benefits from seasonal promotions and financing options that encourage customer purchases, further contributing to its earnings.
Bassett Furniture Key Performance Indicators (KPIs)
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
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
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
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.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 330.95M | 329.92M | 390.14M | 485.60M | 430.89M | 337.67M |
| Gross Profit | 186.43M | 179.41M | 206.49M | 248.34M | 221.09M | 174.10M |
| EBITDA | 11.16M | -4.42M | 7.67M | 44.14M | 37.39M | -3.26M |
| Net Income | 7.78M | -9.70M | -3.17M | 65.34M | 18.04M | -10.42M |
Balance Sheet | ||||||
| Total Assets | 324.24M | 341.17M | 370.42M | 406.27M | 421.66M | 402.55M |
| Cash, Cash Equivalents and Short-Term Investments | 54.63M | 59.91M | 70.18M | 79.34M | 52.09M | 63.51M |
| Total Debt | 92.75M | 106.44M | 116.18M | 116.30M | 133.53M | 139.05M |
| Total Liabilities | 158.52M | 173.84M | 186.98M | 210.66M | 258.93M | 244.52M |
| Stockholders Equity | 165.72M | 167.33M | 183.44M | 195.61M | 162.73M | 158.03M |
Cash Flow | ||||||
| Free Cash Flow | 7.87M | -1.16M | 1.24M | -24.27M | 3.81M | 30.65M |
| Operating Cash Flow | 12.10M | 4.05M | 18.72M | -2.97M | 14.56M | 36.67M |
| Investing Cash Flow | -7.28M | -8.77M | -17.76M | 65.84M | -11.57M | -3.75M |
| Financing Cash Flow | -8.70M | -8.12M | -10.23M | -35.56M | -14.42M | -6.82M |
Bassett Furniture Technical Analysis
Positive
16.40
Price Trends
15.81
Positive
15.78
Positive
15.99
Positive
Market Momentum
0.12
Positive
52.97
Neutral
48.34
Neutral
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 16.4 is below the 20-day moving average (MA) of 16.92, above the 50-day MA of 15.81, and above the 200-day MA of 15.99, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 52.97 is Neutral, neither overbought nor oversold. The STOCH value of 48.34 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.63B | 18.26 | 8.82% | 2.39% | 1.78% | -25.36% | |
66 Neutral | $143.49M | 18.50 | 4.70% | 4.59% | -2.74% | ― | |
66 Neutral | $616.82M | 13.13 | 9.96% | 7.86% | -4.61% | -25.66% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $1.34B | -50.57 | -1.95% | 4.16% | 4.34% | -141.36% | |
49 Neutral | $127.28M | -4.21 | -11.27% | 7.20% | -12.09% | -204.66% | |
42 Neutral | $180.04M | -2.52 | ― | ― | -16.95% | -88.00% |
* Consumer Cyclical Sector Average
BSET
Bassett Furniture
16.59
3.43
26.06%
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LZB
La-Z-Boy Incorporated
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SNBR
Sleep Number
9.99
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-34.79%
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.