Bassett Furniture Industries Incorporated (BSET) Q2 2024 Earnings Report

Next: Q3 2024

Bassett Furniture

BSET

$15.26 -2.27%

Exchange: NASDAQ | Sector: Consumer Cyclical | Industry: Furnishings Fixtures Appliances

Q2 2024

Published: Jul 11, 2024

Earnings Highlights

Revenue of $83.41M down 17% year-over-year
EPS of $-0.82 decreased by 441.7% from previous year
Gross margin of 52.5%
Net income of -7.20M
""We are executing a restructuring strategy ... designed to grow our business and to get the most out of our revenue and our working capital to drive profitability."" - Rob Spilman, Jr.

BSET

Bassett Furniture Industries Incorporated

Period Q2 2024

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

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

Decreasing

83.41M

QoQ: -3.63% | YoY: -17.02%

Gross Profit

Decreasing

43.76M

52.46% margin

QoQ: -8.58% | YoY: -17.17%

Operating Income

Decreasing

-2.95M

QoQ: -25.03% | YoY: -749.12%

Net Income

Decreasing

-7.20M

QoQ: -503.60% | YoY: -446.87%

EPS

Decreasing

-0.82

QoQ: -485.71% | YoY: -441.67%

Revenue Trend

Margin Analysis

Financial Highlights

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 operating cash flow was generated, supporting capital expenditures and dividend payments.
5. Balance Sheet Strength: Ending Q2 with $60.5 million in cash and short-term investments, maintaining a current ratio of 2.02, demonstrating solid short-term liquidity.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	83.41M	-17.02%	-3.63%
Gross Profit	43.76M	-17.17%	-8.58%
Operating Income	-2.95M	-749.12%	-25.03%
Net Income	-7.20M	-446.87%	-503.60%
EPS	-0.82	-441.67%	-485.71%

Key Financial Ratios

Gross Profit Margin

Good

52.50%

Gross profit margin is healthy and competitive within industry standards

Operating Profit Margin

Weak

-0.04%

Operating margin is below industry norms, profitability concerns

Net Profit Margin

Weak

-0.09%

Net profit margin is below industry norms, profitability concerns

Return on Assets

Weak

-0.02%

Return on assets suggests inefficient capital allocation

Return on Equity

Weak

-0.04%

Return on equity suggests inefficient capital allocation

Current Ratio

Healthy

2.02

Current ratio shows adequate liquidity to meet short-term obligations

Debt to Equity

Elevated

0.64

Debt-to-equity shows significant leverage, monitor debt levels

P/E Ratio

Negative

-4.57x

Negative earnings make P/E ratio not meaningful

Price to Book

Undervalued

0.77x

Trading below book value, potential value opportunity or distressed

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q2 2025	84.35	0.22	+1.1%	View
Q1 2025	82.16	0.21	-5.1%	View
Q4 2024	84.34	1.47	-10.9%	View
Q3 2024	75.62	-0.51	-13.3%	View
Q2 2024	83.41	-0.82	-17.0%	View

Bassett Furniture (BSET) Q2 2024 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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