On this page of StockholderLetter.com we present the latest annual shareholder letter from BASSETT FURNITURE INDUSTRIES INC — ticker symbol BSET. Reading current and past BSET letters to shareholders can bring important insights into the investment thesis.

 •  2/11/2026 Letter Continued (Full PDF)
 •  2/6/2023 BSET Stockholder Letter
 •  2/5/2024 BSET Stockholder Letter
 •  2/14/2025 BSET Stockholder Letter
 •  More "Home Furnishings & Furniture" Category Stockholder Letters
 •  BSET Benford's Law Stock Score = 85

BSET Shareholder/Stockholder Letter Transcript:

2025 ANNUAL REPORT

Stockholders    Equity
165,107

323,819
Total Assets
Long-Term Debt
17,963
Investments
Cash and Cash Equivalents
41,277

167,327

342,165
20,360
39,551
19.15
19.09
Book Value

0.76
0.80
Cash Dividends
BALANCE SHEET DATA
(0.59)
(1.11)
(5,159)
(9,695)


183,441

370,424
17,775
52,407
20.92
0.68
0.14
(0.36)
1,225
(3,171)
1,261
(8,112)
390,136
(3,135)

2023
(16,269)
329,923
0.74


2024
Adjusted Diluted Income (Loss)
Diluted Income (Loss)
0.70
6,473
Adjusted Net Income (Loss)

6,100
Net Income (Loss)
PER SHARE DATA
8,325
Adjusted Income (Loss) From Operations
335,280
7,827

2025
Income (Loss) from Operations
Net Sales
INCOME STATEMENT DATA
Fiscal years ended November
FINANCIAL SUMMARY



195,609

406,273
17,715
61,625
21.85
2.10
6.59
6.95
21,960
65,345
30,270
34,865
485,601
2022



162,732

421,660
17,715
34,374
16.67
0.78
1.83
1.83
18,042
18,042
24,257
24,257
430,886
2021

furniture, and recommitted to the home of   ce category with our new
HomeWork product range. We introduced our US-made HideAway solid
wood dining collection; an array of new tables, chairs, and    nishes. The
best-selling HideAway table has quickly become our #1 dining table in
changes. Yet, despite the headwinds, the Bassett team was resilient. We
posted markedly improved results in 2025 and we remain committed to
continuing on that trajectory at the start of a new business year.
of these highly customizable upholstery programs posting year-over-year
growth. Our assortment of 52 Italian leathers is becoming a larger factor
in almost all of our upholstery categories     custom, motion, recliners and
accent chairs. New additions to our Club Level motion program in 2025
retailed well. Based on the reception to our new styles at the High Point
2025 as compared to 53 weeks in    scal 2024, sales increased 5.1%. We
delivered operating pro   t of $7.8 million compared to last year   s loss of
($16.3) million, and $8.3 million of operating pro   t contrasted favorably to a
2024 loss of ($8.1) million on an adjusted basis. Net income of $6.1 million
in 2025 marked a return to after-tax pro   tability.
program featuring European hardware that makes for easy-opening and
produces an industry oxymoron     a truly comfortable sleeper sofa.
continue to survive and be successful, we must be flexible, be open to
change and shift with consumers    needs and tastes. Last year at this time,
and our design services set us apart in the market. We consistently receive
an outpouring of favorable feedback from customers about our designers
in our post-purchase surveys. Our training and communication programs
coupled with our hallmark of superior service provide the foundation for
taking good care of our customers. Our merchandising team spent two
ef   ciencies, integrating technology, emphasizing new product innovation,
and adapting to a changing marketplace. We handled the disruption of
reciprocal tariffs well and, for the time being at least, have adjusted our
sourcing strategies to    t the latest pronouncements. We are hopeful to
see some stability in this regard going forward.
(continued)
calendar as compared to 2024. The combination of our innovative lines
So we   re still at it     taking costs out, driving operating
environment.
(continued)
Retail revenue grew by 8.0% as adjusted for one less week in the    scal
a leaner, smarter business remains fundamental in today   s competitive
we noted that our 2024 restructuring plan was mostly complete. Running
in 2026. And we are excited about the innovation behind our Z4 sleeper
Bassett is 125 years old and our brand is recognized for its quality. To
Furniture Market in October, Club Level motion is poised for further growth
We had a nice year in True Custom and Magni   cent Motion, with both
3.2% increase on continuing operations. Normalizing for 52 weeks in    scal
terms of unit sales.
to the mix, strategically incorporated new materials into our accent
chains. U.S. consumer sentiment indexes fell. We adapted to operational
Net sales of $335.3 million represented a 1.6% gain versus last year and a
Bassett Casegoods in 2025. We added two new whole home collections
Tariffs impacted supply
market languished at historically low levels.
Led by the success of our Copenhagen collection, we reinvigorated
In 2025, we navigated a complicated economic environment. The housing
To O u r S h a r e h o l d e r s

the ownership of our Lane Venture division. After careful analysis, we have
made the decision to fold our Bassett Outdoor stand-alone product line
look better than ever. We will add two new locations in 2026 and relocate
one existing store.
and success of the Lane Venture division, which will appear in Bassett
stores in February. The combination of domestic upholstery capabilities,
our global materials sourcing footprint, and our domestically produced
powder-coated aluminum outdoor products give us tremendous breadth
under the umbrella of one of the outdoor industry   s best known brands    
Lane Venture.
We made meaningful progress in 2025 on positioning Bassett to weather
a marketplace where discretionary demand has moderated. We provided
appropriate stewardship of the balance sheet, generating free cash flow
in a tough business climate. Innovation, change and operating discipline
remain critical in our thinking. We have crafted a well-de   ned strategic
plan to grow and take market share in 2026, in this environment where
housing activity remains slow. We will also accomplish this objective with
a smaller dedicated team. After reducing headcount by 11% early in 2025,
leveraged in several areas within Bassett. We already implemented it    
into our sales and business intelligence platform. Our product designers
are using AI in creating new products. Our team continues to enhance the
consumer   facing e-commerce site through improvements in navigational
logic. Increased rates of conversion drove e-commerce sales up 27% in
2025.
Wholesale sales in the competitive market outside of the store network
remain crucial to our ongoing strategy. The nationwide generational trend
of the retirement of independent furniture store operators has picked
up steam in recent years and contributed to the decline in this channel
last year. The lifeblood of our open market strategy is our dedicated
distribution concepts     The Bassett Design Center (BDC) and The Bassett
Custom Studio (BCS). We were excited to sign    ve new BDC and twenty
new BCS partners in 2025.
and to continue our transformation.
America   s robust interior design channel. We have implemented new
(continued)
properly.
are building a portfolio of    table stakes    assets to address this business
Rob Spilman
shareholders.
to enhance sales we   ve been building in the boutique hotel, country
club and senior living sales channels. Under experienced leadership, we
We appreciate the support of our associates, our customers and our
2026. In a similar vein, we have started a new division, Bassett Hospitality,
programs to address the needs of the design trade and this is a priority in
added new talent over the past few years to drive improved performance
Another important element of our strategy is our accelerating pursuit of
we ended the year with another 4% fewer associates. Importantly, we have
fabric inventory and focus all of our attention towards the further growth
AI is changing the world, and we   ve been evaluating how AI can be
into Lane Venture. This will eliminate the need for a separate product and
We have now been in the outdoor furniture business for eight years with
years implementing a new visual scheme across the fleet and the stores


0.0 %

962
440

187,527
5,515
1,240
2.5 % $ (16,269 )
7,827
0.0 %
0.0 %
0.0 %
53.8 %
0.1 %
0.0 %
100.0 % $ 329,923
43.7 % 150,508
56.3 % 179,415

180,357
498

$ 335,280
146,598
188,682
2024*
1,013
5,409
205,227

-4.9 % $ (3,135 )
0.0 %
0.3 %
0.1 %
0.0 %
56.8 %
1.7 %
0.4 %
100.0 % $ 390,136
45.6 % 183,648
54.4 % 206,488
2023
2024*
2023
120,441
204,563
4,919
$ 329,923
118,599
216,681
$ 335,280
$ 390,136
235,940
8,804
145,392

5,357
12,118
(4,919 )
(1,842 )
$ 214,614 $ 207,462 $ 248,911 $ 7,152
(96,015 )
(87,021 )
(103,519 )
(8,994 )
2025
NM
NM
-100.0 %
-100.0 %
NM
-3.8 %
-91.0 %
-100.0 %
$ (13,134 )
(1,013 )
962
440
(5,409 )
(17,700 )
5,515
1,240
418.9 %
-100.0 %
NM
NM
-100.0 %
-8.6 %
NM
NM
-15.4 %
-18.0 %
-13.1 %
-13.3 %
-44.1 %
(31,377 )
(3,885 )
Gross margins for the year ended November 29, 2025 increased 190 basis points from 2024. Gross margins in the prior year
were adversely impacted by increased inventory valuation charges of $1,729 in the wholesale segment, $472 in the retail
segment and $500 in the Noa Home operation, as well as $609 of unproductive labor costs incurred during a temporary
shutdown resulting from a cybersecurity incident. Excluding the above-mentioned additional inventory valuation charges and
unproductive labor costs in 2024, gross margins would have increased 90 basis points primarily due to improved margins in
the wholesale segment, partially offset by lower margins in the retail operations.
2
1
Total sales revenue for the year ended November 29, 2025, increased $5,357 or approximately 1.6% from the prior year
period primarily due to increases in delivered retail sales partially offset by decreases in wholesale shipments to the open
market and lost sales from the closure of Noa Home at the end of fiscal 2024. Excluding the lost sales from Noa Home, total
sales revenue increased 3.1%.
-15.4 %
-17.2 %
-16.7 %
-15.9 %
(24,951 )
1.6 % $ (60,213 )
5.9 %
-100.0 %
-1.5 %
3.4 % $ (41,449 )
10.3 %
16,498
Comparative Change
2024 vs 2023
2023 vs 2022
Dollars
Percent
Dollars
Percent
*53 weeks for fiscal 2024 as compared with 52 weeks for fiscal 2025 and 2023.
Sales Revenue
Wholesale sales of furniture and
accessories
Less: Sales to retail segment
Wholesale sales to external
customers
Retail sales of furniture and
accessories
Corporate & Other - Noa Home
Consolidated net sales of furniture
and accessories
Our consolidated net sales by segment were as follows:

(962 )
(440 )

(7,170 )
(5,017 )
(1,240 )
-0.8 % $ 24,096
0.3 %
0.0 %
0.0 %
1.4 %
52.6 %
0.0 %
0.0 %
1.6 % $ (60,213 )
-2.6 % (33,140 )
5.2 % (27,073 )
Comparative Change
2025 vs 2024
2024 vs 2023
Dollars Percent
Dollars
Percent
100.0 % $ 5,357
47.1 %
(3,910 )
52.9 %
9,267
*53 weeks for fiscal 2024 as compared with 52 weeks for fiscal 2023 and 2022.
SG&A
Asset impairment charges
Loss on contract abandonment
Loss upon realization of
cumulative translation
adjustment
Restructuring charges
Goodwill impairment charge
Gain on revaluation of
contingent consideration
Income (loss) from continuing
operations
Net sales
Cost of goods sold
Gross profit
2025
Net sales revenue, cost of furniture and accessories sold, selling, general and administrative (   SG&A   ) expense, other
charges, and income from operations were as follows for the years ended November 29, 2025, November 30, 2024 and
November 25, 2023:
In addition to the furniture that we manufacture domestically, we source most of our formal bedroom and dining room
furniture (casegoods) and certain leather upholstery offerings from several foreign plants, primarily in Vietnam. Over 75%
of our wholesale revenues are derived from products that are manufactured in the United States using a mix of domestic and
globally sourced components and raw materials.
We have factories in Newton, North Carolina that manufacture both stationary and motion upholstered furniture for inside
the home along with our outdoor furniture offerings. We have a factory in Martinsville, Virginia that assembles and finishes
our custom bedroom and dining offerings. We also have a facility in Haleyville, Alabama where we manufacture aluminum
frames for our outdoor furniture.
During the fourth quarter of fiscal 2022 we acquired Noa Home Inc. (   Noa Home   ). A mid-priced e-commerce furniture
retailer headquartered in Montreal, Canada, Noa Home had operations in Canada, Australia, Singapore and the United
Kingdom. After nearly two years of operating losses, we concluded during the second quarter of 2024 that Noa Home was
not likely to achieve profitability at any time in the foreseeable future and decided to cease operations by selling the inventory
in an orderly fashion. As of the end of 2024, we had substantially completed the liquidation of Noa Home   s assets and
liabilities. In the second quarter of 2024 we recognized non-cash charges totaling $2,401 related to the impairment of certain
long-lived assets of Noa Home and the establishment of a reserve against Noa Home   s remaining inventory at that time. Upon
substantially completing the liquidation of Noa Home at the end of the fourth quarter of 2024, we recognized a charge of
$962 associated with the transfer of the cumulative translation losses out of accumulated other comprehensive income.
We introduced a new web platform late in 2023 that leverages world class features including enhanced customer research
capabilities and streamlined navigation. Since the debut of the new site, we have seen increased engagement with the brand
through a greater number of page views per customer along with more time spent on the site. We have also seen an increase
in average order value that has resulted in increased e-commerce revenue. While traffic to the website decreased 8% during
2025, sales conversion rates increased 28% resulting in a 25% increase in total web sales. Although e-commerce sales
continue to be small relative to in-store sales, we will continue to invest in ongoing improvements to the aesthetics and user
experience on our website while not compromising on our in-store experience or the quality of our in-home makeover
capabilities.
We consider our website to be the front door to our brand experience where customers can research our furniture and
accessory offerings and subsequently buy online or engage with an in-store design consultant. We know that we are driving
a significant percentage of the retail foot traffic to our store network and our open market customers through engagement
with www.bassettfurniture.com. Digital outreach strategies have been the primary vehicle for brand advertising and customer
acquisition. We began supplementing the digital outreach strategy with added direct mail and television late in 2024 and
expect to continue with a balanced blend of both digital and traditional direct mail and television in 2026.
Bassett also has a significant traditional wholesale business with more than 1,000 open market accounts. Most of the open
market sales are through Bassett Design Centers and Bassett Custom Studios which function as a store within a multi-line
store featuring the Company   s custom furniture capabilities. The wholesale business, including the Lane Venture outdoor
brand, also services general furniture stores and a growing number of interior design firms through a network of over 30
independent sales representatives who have stated geographical territories. These sales representatives are compensated based
on a standard commission rate.
Approximately 60% of our wholesale sales arise from our network of 86 Company-owned and licensee-owned Bassett Home
Furnishings (   BHF   ) stores. Our store program is designed to provide a single source home furnishings retail store with a
unique combination of stylish, quality furniture and accessories with a high level of customer service. The stores highlight
our custom furniture design and manufacturing capabilities, free in-home or virtual design visits (   home makeovers   ) and
coordinated decorating accessories. Our philosophy is based on building strong long-term relationships with each
customer. Salespeople are referred to as    Design Consultants    and are trained to evaluate customer needs and provide
comprehensive solutions for their home decor. Until a rigorous training and design certification program is completed,
Design Consultants are not authorized to perform in-home or virtual design services for our customers.
Analysis of Continuing Operations
The following discussion provides an analysis of our results of operations and reasons for material changes therein for fiscal
year 2025 as compared to fiscal year 2024. For additional analysis of the fiscal year 2024 results as compared to fiscal year
2023, see    Analysis of Continuing Operations    in Part II, Item 7, Management   s Discussion and Analysis of Financial
Condition and Results of Operations in the Company   s 2024 Annual Report on Form 10-K, filed with the SEC on February
10, 2025.
Overview
Management   s Discussion and Analysis of Financial Condition and Results of Operations     Continued
(Amounts in thousands except share and per share data)
Bassett is a leading retailer, manufacturer and marketer of branded home furnishings. We were founded in 1902 and
incorporated under the laws of Virginia in 1930. Our rich 123-year history has instilled the principles of quality, value, and
integrity in everything we do, while simultaneously providing us with the expertise to respond to ever-changing consumer
tastes and meet the demands of a global economy.
Management   s Discussion and Analysis of Financial Condition and Results of Operations
(Amounts in thousands except share and per share data)



 2/11/2026 Letter Continued (Full PDF)