Bassett Q4 results show return to profitability

Company cost-cutting measures during the fiscal year have begun to materialize, benefiting the bottom line

BASSETT, Va. — Bassett Furniture reported net income of $3.2 million for its fiscal 2024 fourth quarter ended Nov. 30, a return to profitability after facing several consecutive quarterly losses during its 2024 fiscal year ended Nov. 30.

The company still had a net loss of $9.7 million, or $1.11 per share for the full year, compared with a net loss of $3.2 million, or 36 cents per share, for the full year in FY ’23. But its quarterly gain was significant, totaling $3.2 million, or 38 cents per share, compared with a net loss of $4.1 million, or 47 cents per share, the same period the year before.

The gain shows that the company’s cost-cutting measures during the year have begun to materialize in a meaningful way toward the bottom line.

Robert H. Spilman Jr.

“The steps we took in our restructuring plan helped right-size our business, and we returned to profitability in the fourth quarter,” said Robert H. Spilman Jr., Bassett chairman and chief executive officer. “We delivered strong consolidated gross margins and $0.38 in diluted earnings per share. Our team remains focused on operating efficiency, leveraging our cost structure and running a leaner business. We’re driving newness and innovation into Bassett’s product lines, e-commerce and marketing to deliver price and value for customers. We are well-positioned for the eventual housing industry turnaround and will focus on growth and productivity until it does.”

Revenues amid a still lackluster retail environment were still a challenge, totaling $84.3 million during Q4, down 11% from $94.7 million the same period in the prior year. Wholesale sales had the biggest drop of 13.7% to $52.3 million, compared with $60.6 million the same period a year earlier. By comparison, retail sales declined 8.3% to $53.1 million, from $57.9 million.

Operating income totaled $900,000 during the quarter, compared with a loss of $4.5 million the same period the prior year. The wholesale segment reported operating income of $8.5 million during the quarter, compared with operating income of $8.4 million the same period last year, while the retail segment reported $100,000 in operating income for the quarter compared with $200,000 the same period the year before.

A line item listed as corporate and other, which included the operations of Noa Home that the company announced it was closing as part of its restructuring, reported an operating loss of $7 million during the quarter, down from a loss of $7.8 million the year before.

Gross profit totaled $47.7 million during the quarter, or 56.6% of sales, compared with $51.4 million, or 54.3% of sales, the same period a year earlier. For the full year, gross profit totaled $179.4 million, or 54.4% of sales, compared with $206.5 million, or 52.9% of sales.

Thomas Russell

Home News Now Editor-in-Chief Thomas Russell has covered the furniture industry for 25 years at various daily and weekly consumer and trade publications. He can be reached at tom@homenewsnow.com and at 336-508-4616.

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