BSET
Bassett Furniture
Q2 2025 Report
Bassett Furniture Industries Incorporated (BSET) Q2 2025 Financial Results Analysis...
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Executive Summary
Bassett Furniture Industries (BSET) reported a challenging second quarter for fiscal 2024 with a significant decline in revenue. The company saw total revenues decrease by 17% year-over-year to $83.4 million, primarily due to macroeconomic pressures affecting consumer spending. Notably, both wholesale and retail segments faced declines, with retail operations significantly impacted by elevated fixed costs and changing consumer preferences. Bassett's management has initiated a strategic restructuring plan aimed at optimizing their operational footprint and inventory management to enhance long-term profitability.
Despite the decline in revenues, consolidated gross margins improved to 55.7%, reflecting proactive pricing strategies and inventory valuation adjustments. Management expressed confidence in their restructuring actions designed to enable future growth and stabilization within the home furnishings market.
Key Performance Indicators
Revenue
83.41M
QoQ: -3.63% | YoY:-17.02%
Gross Profit
43.76M
52.46% margin
QoQ: -8.58% | YoY:-17.17%
Operating Income
-2.95M
QoQ: -25.03% | YoY:-749.12%
Net Income
-7.20M
QoQ: -503.60% | YoY:-446.87%
EPS
-0.82
QoQ: -485.71% | YoY:-441.67%
Revenue Trend
Margin Analysis
Key Insights
1. **Revenue Performance**: Q2 2024 revenue was $83.41 million, down 17% from Q2 2023 ($100.5 million). 2. **Profitability**: Operating loss reached $8.5 million compared to an operating income of $2.5 million in the same quarter last year. Net loss for Q2 2024 totaled $7.2 million, translating to an EPS of -$0.82. 3. **Margins**: Gross margin stood at 55.7%, supported by improved pricing strategies despite extraordinary charges related to inventory reserves. 4. **Cash Flow**: $5.8 million in op...