tiprankstipranks
Trending News
More News >
Bassett Furniture (BSET)
NASDAQ:BSET
US Market
Advertisement

Bassett Furniture (BSET) AI Stock Analysis

Compare
211 Followers

Top Page

BSET

Bassett Furniture

(NASDAQ:BSET)

Rating:58Neutral
Price Target:
$20.00
▲(14.74%Upside)
The overall stock score of 58 reflects financial challenges and a high valuation, tempered by positive technical momentum and improvements mentioned in the earnings call. The company's operational inefficiencies and high P/E ratio weigh heavily on the score, while recent strides in cost reduction and e-commerce growth provide some optimism.

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

Bassett Furniture Business Overview & Revenue Model

Company DescriptionBassett Furniture Industries, Inc. (BSET) is a leading manufacturer and retailer of home furnishings, known for its high-quality, stylish furniture products. Based in Bassett, Virginia, the company operates through a network of company-owned and licensed stores under the Bassett Home Furnishings brand, as well as through partnerships with a variety of independent furniture retailers. Bassett's core offerings include a wide range of furniture for the living room, dining room, bedroom, and home office, along with custom upholstery options and home accessories.
How the Company Makes MoneyBassett Furniture generates revenue through the sale of its furniture products via multiple channels. The company operates a network of company-owned retail stores and licenses its brand to independent stores, ensuring a broad market presence. Additionally, Bassett engages in wholesale distribution to independent furniture retailers and sells directly to consumers through its e-commerce platform. The company also offers custom design services, which provide added value and attract a customer base seeking personalized home furnishings. Key revenue streams include direct retail sales, wholesale distribution, and online sales, with strategic partnerships and licensing agreements enhancing its market reach and brand visibility.

Bassett Furniture Earnings Call Summary

Earnings Call Date:Jul 09, 2025
(Q2-2025)
|
% Change Since: 2.59%|
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
45
Neutral
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.
Balance Sheet
60
Neutral
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.
Cash Flow
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue329.92M390.14M485.60M486.53M385.86M
Gross Profit179.41M206.49M248.34M222.83M222.30M
EBITDA-4.42M7.67M36.98M40.60M-3.26M
Net Income-9.70M-3.17M25.36M18.04M-10.42M
Balance Sheet
Total Assets341.17M370.42M406.27M421.66M402.55M
Cash, Cash Equivalents and Short-Term Investments59.91M70.18M79.34M52.09M63.51M
Total Debt106.44M116.18M116.30M133.53M139.05M
Total Liabilities173.84M186.98M210.66M258.93M244.52M
Stockholders Equity167.33M183.44M195.61M162.73M158.03M
Cash Flow
Free Cash Flow-1.16M1.24M-24.27M3.81M30.65M
Operating Cash Flow4.05M18.72M-2.97M14.56M36.67M
Investing Cash Flow-8.77M-17.76M65.84M-11.57M-3.75M
Financing Cash Flow-8.12M-10.23M-35.56M-14.42M-6.82M

Bassett Furniture Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price17.43
Price Trends
50DMA
16.67
Positive
100DMA
16.49
Positive
200DMA
15.27
Positive
Market Momentum
MACD
0.61
Positive
RSI
50.21
Neutral
STOCH
27.85
Neutral
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 17.43 is below the 20-day moving average (MA) of 17.46, above the 50-day MA of 16.67, and above the 200-day MA of 15.27, indicating a neutral trend. The MACD of 0.61 indicates Positive momentum. The RSI at 50.21 is Neutral, neither overbought nor oversold. The STOCH value of 27.85 is Neutral, 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 (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$191.05M14.269.48%1.93%7.24%-9.51%
75
Outperform
$129.84M6.6320.52%1.21%-9.84%-20.47%
71
Outperform
$759.34M13.2412.09%6.56%-6.32%-18.35%
70
Outperform
$1.58B16.339.84%2.24%3.04%-16.49%
58
Neutral
$151.46M61.291.46%4.59%-7.22%
57
Neutral
HK$26.04B4.10-2.03%5.50%-0.23%-68.02%
49
Neutral
$120.02M-5.55%8.02%-3.89%-391.05%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BSET
Bassett Furniture
17.43
4.76
37.57%
ETD
Ethan Allen
29.86
1.09
3.79%
FLXS
Flexsteel
36.83
0.05
0.14%
HOFT
Hooker Furniture
11.47
-2.55
-18.19%
LZB
La-Z-Boy Incorporated
38.39
-4.55
-10.60%
VIRC
Virco Manufacturing
8.25
-8.01
-49.26%

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.Date of analysis: Jul 12, 2025