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Bassett Furniture (BSET)
NASDAQ:BSET
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Bassett Furniture
(NASDAQ:BSET)
Rating:56Neutral
Price Target:
$17.50
▲(6.38% Upside)
Bassett Furniture (BSET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$144.77M
Dividend Yield4.86%
Average Volume (3M)46.46K
Price to Earnings (P/E)58.6
Beta (1Y)0.54
Revenue Growth-7.22%
EPS GrowthN/A
CountryUS
Employees1,228
SectorConsumer Cyclical
Sector Strength75
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.22
Shares Outstanding8,689,582
10 Day Avg. Volume24,939
30 Day Avg. Volume46,464
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit1.01
Enterprise Value/Ebitda65.72
Forecast
1Y Price Target
$17.50Price Target Upside6.38% Upside
Rating ConsensusHold
Number of Analyst Covering1
Bassett Furniture Business Overview & Revenue Model
Company DescriptionBassett Furniture Industries, Inc. is a leading manufacturer and retailer of high-quality home furnishings in the United States. Founded in 1902 and headquartered in Bassett, Virginia, the company specializes in crafting custom furniture, including sofas, chairs, dining sets, and bedroom furniture. Bassett operates through a combination of company-owned and franchised retail stores as well as an extensive online presence, catering to a diverse customer base seeking stylish and durable home décor solutions.
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 Earnings Call Summary
Earnings Call Date:Jul 09, 2025
(Q2-2025)
| % Change Since: -2.03%|
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 financial challenges, particularly in profitability and revenue growth. The income statement indicates operational inefficiencies with a negative EBIT margin. The balance sheet is moderately leveraged, posing potential risks if debt is not managed carefully. Cash flow generation has recently improved but sustaining this trend is crucial.Income Statement
The income statement shows significant challenges in terms of profitability. The TTM (Trailing-Twelve-Months) EBIT margin is negative, indicating operational inefficiencies. The gross profit margin remains stable, but the net profit margin is low and impacted by net losses in previous periods. Revenue has decreased from prior years, reflecting a challenging market environment.45
Neutral
Balance Sheet
The balance sheet reveals a moderate financial position. The debt-to-equity ratio is relatively high, suggesting significant leverage, but stockholders' equity remains stable. The equity ratio is acceptable, indicating a reasonable portion of assets financed by equity. However, the high debt levels pose a potential risk if not managed carefully.60
Neutral
Cash Flow
Cash flow analysis indicates a mixed situation. The operating cash flow to net income ratio is favorable, showing good cash generation relative to net income. However, free cash flow has fluctuated, with recent improvement in the TTM period. The free cash flow to net income ratio is healthy, but capital expenditures continue to impact cash reserves.55
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 329.92M | 390.14M | 485.60M | 486.53M | 385.86M |
| Gross Profit | 179.41M | 206.49M | 248.34M | 222.83M | 222.30M |
| EBITDA | -4.42M | 7.67M | 36.98M | 40.60M | -3.26M |
| Net Income | -9.70M | -3.17M | 25.36M | 18.04M | -10.42M |
Balance Sheet | |||||
| Total Assets | 341.17M | 370.42M | 406.27M | 421.66M | 402.55M |
| Cash, Cash Equivalents and Short-Term Investments | 59.91M | 70.18M | 79.34M | 52.09M | 63.51M |
| Total Debt | 106.44M | 116.18M | 116.30M | 133.53M | 139.05M |
| Total Liabilities | 173.84M | 186.98M | 210.66M | 258.93M | 244.52M |
| Stockholders Equity | 167.33M | 183.44M | 195.61M | 162.73M | 158.03M |
Cash Flow | |||||
| Free Cash Flow | -1.16M | 1.24M | -24.27M | 3.81M | 30.65M |
| Operating Cash Flow | 4.05M | 18.72M | -2.97M | 14.56M | 36.67M |
| Investing Cash Flow | -8.77M | -17.76M | 65.84M | -11.57M | -3.75M |
| Financing Cash Flow | -8.12M | -10.23M | -35.56M | -14.42M | -6.82M |
Bassett Furniture Technical Analysis
Neutral
16.45
Price Trends
16.55
Positive
16.60
Positive
15.46
Positive
Market Momentum
-0.12
Negative
49.11
Neutral
85.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSET, the sentiment is Neutral. The current price of 16.45 is below the 20-day moving average (MA) of 16.98, below the 50-day MA of 16.55, and above the 200-day MA of 15.46, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 49.11 is Neutral, neither overbought nor oversold. The STOCH value of 85.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $188.47M | 14.07 | 9.48% | 2.02% | 7.24% | -9.51% | |
75 Outperform | $129.84M | 6.63 | 20.52% | 1.24% | -9.84% | -20.47% | |
74 Outperform | $756.54M | 14.78 | 10.69% | 6.42% | -4.89% | ― | |
71 Outperform | $1.59B | 16.42 | 9.84% | 2.23% | 3.04% | -16.49% | |
61 Neutral | $17.23B | 11.50 | -5.97% | 3.09% | 1.49% | -16.00% | |
56 Neutral | $144.77M | 58.58 | 1.46% | 4.86% | -7.22% | ― | |
48 Neutral | $105.47M | ― | -5.55% | 9.22% | -3.89% | -391.05% |
* Consumer Cyclical Sector Average
Performance Comparison
BSET
Bassett Furniture
16.45
4.33
35.73%
ETD
Ethan Allen
29.88
1.10
3.82%
FLXS
Flexsteel
35.21
-3.05
-7.97%
HOFT
Hooker Furniture
9.98
-3.88
-27.99%
LZB
La-Z-Boy Incorporated
38.66
-3.40
-8.08%
VIRC
Virco Manufacturing
8.07
-8.88
-52.39%
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.
Executive/Board ChangesBusiness Operations and Strategy
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.