Bassett Furniture Industries (BSET) Q3 2026 earnings summary

Executive summary

• Consolidated revenue increased 3.4% year-over-year to $82.8 million, driven by gains in both retail and wholesale segments, with domestic upholstery leading growth.

• Written retail sales from company-owned stores rose 4.4%, and retail net sales increased 4.5%, maintaining momentum despite a shorter Labor Day promotion period.

• E-commerce written sales surged 48% year-over-year, and website-delivered sales rose over 42%, with average web order value up 33%.

• Operating income rose to $2.8 million (3.4% of sales), up from $593,000 (0.7% of sales) last year, a 369% increase year-over-year.

• Net income for the quarter was $2.1 million, with diluted EPS of $0.24, up from $0.09 last year.

Financial highlights

• Total consolidated revenue was $82.8 million, up $2.7 million or 3.4% year-over-year.

• Gross margin improved by 130 basis points to 57.5%, primarily due to tariff refunds and improved wholesale margins.

• Operating income was $2.8 million (3.4% of sales), up from $593,000 (0.7% of sales) last year.

• Diluted EPS increased to $0.24 from $0.09 year-over-year.

• SG&A expenses (excluding pre-opening costs) were 53.9% of sales, 150 basis points lower than last year.

Outlook and guidance

• Two new stores planned for FY 2027, with one being a reposition (net increase of one store).

• Black Friday promotions expected to be more aggressive but not materially impact margins.

• Management expects continued gross margin benefits from the remaining tariff refund in Q4 2026.

• Capital expenditures for the full year are projected at $9–11 million.

• Management remains optimistic but cautious due to ongoing housing market malaise, high inflation, and industry challenges.