Bassett Furniture Indus Reports Q2 2026 Results: Full Earnings Call Transcript

Bassett Furniture Indus (NASDAQ: BSET ) reported second-quarter financial results on Thursday.

The transcript from the company's second-quarter earnings call has been provided below.

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For comprehensive financial data and transcripts, visit View the webcast at Summary Bassett Furniture Industries saw improved operating profit on adjusted basis despite a slight decrease in consolidated revenue, with retail written sales up 9.5% and wholesale orders up 5.2% in Q2 2026.

Consolidated gross margins grew by 90 basis points, driven by better wholesale margins, though retail margins fell due to aggressive clearance strategies.

Plans to increase retail gross margins by 200-250 basis points in mid-July were announced.

Notable strategic initiatives include expanding retail locations with new store openings in Cincinnati and Orlando, enhancing e-commerce with a 40% increase in written web sales, and integrating AI for personalized marketing.

Management remains focused on reducing SG&A expenses, targeting $1.5 to $2 million annual savings, and increasing sales per store to leverage fixed costs.

The company has a strong liquidity position with $53.9 million in cash and short-term investments, and plans for $10 to $12 million in capital expenditures for 2026.

Full Transcript OPERATOR Good day and thank you for standing by.

Welcome to the Bassett Furniture Industries Q2 2026 earnings conference call.

At this time, all participants are in a listen-only mode.

After the speaker's presentation, there will be a question and answer session.

To ask a question during this session, you will need to press star 11 on your telephone.

You will then hear an automated message advising your hand is raised.

To withdraw your question, please press star 11 again.

Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Mike Daniels, CFO.

Sir, please go ahead.

Mike Daniel, Senior Vice President And Chief Financial Officer Thank you, Michelle, for the introduction.

Welcome to Bassett Furniture Industries earnings call for the second quarter of fiscal 2026, which ended May 30.

Joining me today is our Chairman and CEO, Rob Spillman.

We issued our news release and Form 10-Q yesterday after the market closed and it's available on our website.

After today's remarks, Rob and I will open up for questions.

We will also post a transcript of this call on Bassett's investor relations website following the call.

During this call, certain statements we make may be considered forward-looking statements and inherently involve risks and uncertainties that could cause actual results to differ materially from management's present view.

These statements are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995.

The company cannot guarantee the accuracy of any forecast or estimate, nor does it undertake any obligation to update such forward-looking statements.

Other filings with the SEC describing risks related to our business are available on our corporate website under the Investors tab.

Now I'll turn things over to Rob.

Rob.

Rob Spillman, Chairman and CEO All right, thank you, Mike, and good morning, everyone.

I'll start with some insights on the second quarter and Mike will get into more of the financial details.

I'll also discuss our strategic initiatives to drive further growth at Bassett.

Operating profit on an adjusted basis improved in the second quarter on slightly lower consolidated revenue.

As we move through the quarter, positive traffic during April and May contributed to retail written sales being up 9.5%.