Bassett Furniture Net Income Drops 40% to $1.1M in Q1 FY2026
Bassett Furniture Industries (NASDAQ: BSET), a Virginia-based home furnishings manufacturer and retailer, reported net income of $1.1 million for the three months ending February 28, 2026, down from $1.9 million in the year-ago quarter.
Bassett Furniture Industries (NASDAQ: BSET), a Virginia-based home furnishings manufacturer and retailer, reported net income of $1.1 million for the three months ending February 28, 2026, down 40% from $1.9 million in the year-ago quarter. Revenue for the period slipped 2.2% to $80.3 million from $82.2 million. Read more earnings reports.
The company posted operating income of $1.2 million, down from $2.5 million in the prior-year quarter. Gross profit declined to $45.2 million from $46.8 million, while gross margin compressed slightly to 56.2% from 57.0%.
Cost Structure and Profitability
Cost of goods sold for the quarter totaled $35.2 million, essentially flat compared to $35.3 million a year earlier. Selling, general and administrative expenses remained elevated at $43.9 million, down modestly from $44.4 million in the prior-year period.
The company recorded income tax expense of $402,000 versus $701,000 a year earlier. Diluted earnings per share came in at $0.13, down from $0.21 in the year-ago quarter, based on 8.7 million diluted weighted average shares outstanding compared to 8.7 million a year prior.
Balance Sheet and Liquidity
Total assets stood at $316.2 million as of February 28, 2026, down from $323.8 million at the end of the prior quarter on November 29, 2025. Cash and cash equivalents decreased to $33.0 million from $41.3 million over the same period.
Inventory rose to $65.7 million from $61.8 million at the end of November. Accounts receivable edged up to $14.7 million from $14.4 million. The company maintained short-term investments of $18.0 million, unchanged from the prior quarter.
Total stockholders' equity slipped to $164.4 million from $165.1 million. Current liabilities declined to $71.8 million from $77.0 million at November 29, 2025.
Cash Flow
Cash used in operations totaled $5.5 million for the quarter, compared to cash used of $52,000 in the year-ago period. Cash used in investing activities was $888,000 versus $882,000 a year earlier. Financing activities consumed $1.9 million, compared to $2.6 million in the prior-year quarter.
Key Financial Metrics
| Metric | Q1 FY2026 (Feb 28, 2026) | Q1 FY2025 (Mar 1, 2025) | Change |
|---|---|---|---|
| Revenue | $80.3 million | $82.2 million | -2.2% |
| Gross Profit | $45.2 million | $46.8 million | -3.5% |
| Operating Income | $1.2 million | $2.5 million | -52.9% |
| Net Income | $1.1 million | $1.9 million | -39.8% |
| Diluted EPS | $0.13 | $0.21 | -38.1% |
| Total Assets | $316.2 million | $323.8 million* | -2.4% |
| Cash & Equivalents | $33.0 million | $41.3 million* | -20.1% |
*As of November 29, 2025
The company had 8.6 million shares outstanding as of the end of the quarter. Bassett Furniture is classified as an accelerated filer and operates as a small business under regulatory definitions.