BASSETT, Va., July 10, 2024 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (NASDAQ:BSET) reported today its results of operations for its second quarter ended June 1, 2024. The Company also announced a restructuring plan designed to improve long-term operational and financial performance. Q2 Consolidated Business Highlights: [FY 24 vs. FY 23, unless otherwise specified] Revenues decreased 17%. When comparing to the first quarter of 2024, revenues increased 3.8%, normalizing the first quarter for the extra week due to our fiscal calendar. Operating loss of $8.5 million which included asset impairment charges of $5.5 million and additional inventory valuation charges of $2.7 million. Gross margin of 52.5%, which included the increased inventory valuation charges noted above. Excluding the inventory valuation charges, gross profit margin would have been 55.7% (see Table 5). Loss per share of $0.82 vs. diluted earnings per share $0.24. Generated $5.8 million of operating cash flow for the quarter. Fiscal 2024 Second Quarter Overview (Dollars in millions)   Sales   Operating Income (Loss)   2nd Qtr   Dollar %   2nd Qtr % of   2nd Qtr % of     2024     2023     Change Change     2024   Sales     2023   Sales Consolidated (1) $ 83.4   $ 100.5     $ (17.1 ) -17.0 %   $ (8.5 ) -10.2 %   $ 2.5   2.5 %                         Wholesale $ 52.6   $ 61.8     $ (9.2 ) -14.9 %   $ 5.7   10.8 %   $ 7.0   11.3 %                         Retail $ 50.5   $ 60.8     $ (10.3 ) -16.9 %   $ (2.2 ) -4.4 %   $ 0.8   1.3 %                         Corporate & Other (2) $ 1.1   $ 2.3     $ (1.2 ) -52.2 %   $ (6.9 ) N/A   $ (6.9 ) N/A (1) Our consolidated results include certain intercompany eliminations as well as asset impairment charges of $5.5 million which are not allocated to our segment operating results. See Table 4, "Segment Information" below for an illustration of the effects of these items on our consolidated sales and operating income.     (2) Corporate and Other includes the operations of Noa Home Inc. along with the shared Corporate costs that are benefiting both the Wholesale and Retail segments.     "Excluding the additional inventory valuation charges that we recorded, we were pleased with another quarter of strong gross margins, despite lower sales," said Robert H. Spilman, Jr., Bassett Chairman and Chief Executive Officer. "The environment for housing remains challenging and consumers are choosing to invest in experiences over their homes, a change from the Covid period. We continue to be disciplined on expenses to improve operating efficiency." Restructuring Plan The Company also announced a restructuring plan to more right-size its cost structure and to prepare it for topline growth. The comprehensive strategy builds on the strength of Bassett's brand quality, design expertise and service, and focuses on driving revenue growth and profitability long-term. The five-point plan includes: Drive organic growth through Bassett-branded retail locations, omni-channel capabilities, and enhanced customization positioning to expand dedicated distribution footprint. Rationalize US wood manufacturing from two locations into one primary location, supported by a small satellite operation. Optimize inventory and drop unproductive lines. Improve overall cost structure and invest capital in refurbishment of current retail locations. Close the Noa Home e-commerce business. "Bassett Furniture has a long history of weathering economic cycles, such as the inflationary environment and slow housing market we're experiencing in 2024 – factors that led to soft demand in our second quarter," explained Spilman. "The business climate has remained difficult through the first six months of this year and may not improve in the near future. Accordingly, we are committed to returning to profitability by running a leaner operation, with priority focus on both our inventory position and the overall cost structure. We believe that our restructuring plan, expected to improve our bottom line between $5.5 million and $6.5 million on an annual basis, coupled with our solid balance sheet, puts us in a position to be a considerably stronger company when customer demand inevitably improves. I'm particularly pleased that our Board believes in our ability to improve operations and continue our strong cash generation by increasing our quarterly dividend by 11%." Conference Call and Webcast The Company will hold a conference call to discuss its quarterly results on July 11, 2024, at 9:00 am ET. The public is invited to listen to the conference call by webcast, accessible through the Company's investor relations website, https://investors.bassettfurniture.com/. Participants can also listen to the conference call via https://edge.media-server.com/mmc/p/332ii2e5. A replay and transcript of the conference call will be available on demand on the investor relations site. About Bassett Furniture Industries, Inc. Bassett Furniture Industries, Inc. (NASDAQ:BSET) is a leading manufacturer and marketer of high-quality home furnishings. With 88 company- and licensee-owned stores at the time of this release, Bassett has leveraged its strong brand name in furniture into a network of corporate and licensed stores that focus on providing consumers with a friendly environment for buying furniture and accessories. Bassett's retail strategy includes stylish, custom-built furniture that features the latest on-trend furniture styles, free in-home design visits, and coordinated decorating accessories. Bassett also has a traditional wholesale business with more than 700 accounts on the open market, across the United States and internationally. For more information, visit the Company's website at bassettfurniture.com. (BSET-E) Forward-Looking StatementsCertain of the statements in this release, particularly those preceded by, followed by or including the words "believes," "plans," "expects," "anticipates," "intends," "should," "estimates," or similar expressions, or those relating to or anticipating financial results or changes in operations for periods beyond the end of the second fiscal quarter of 2024, constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended. For those statements, Bassett claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. In many cases, Bassett cannot predict what factors would cause actual results to differ materially from those indicated in the forward-looking statements. Expectations included in the forward-looking statements are based on preliminary information, as well as certain assumptions which management believes to be reasonable at this time. The following important factors affect Bassett and could cause actual results to differ materially from those indicated in the forward looking statements: the effects of national and global economic or other conditions and future events on the retail demand for home furnishings and the ability of Bassett's customers and consumers to obtain credit; the success of marketing, logistics, retail and other initiatives; and the economic, competitive, governmental and other factors identified in Bassett's filings with the Securities and Exchange Commission. Any forward-looking statement that Bassett makes speaks only as of the date of such statement, and Bassett undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indication of future performance, unless expressed as such, and should only be viewed as historical data. Contacts: J. Michael Daniel Senior Vice President and Chief Financial Officer (276) 629-6614 – Investors Peter D. Morrison Vice President of Communications (276) 629-6450 – Media   Table 1 BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations - unaudited (In thousands, except for per share data)                           Quarter Ended   Six Months   June 1, 2024   May 27, 2023   June 1, 2024   May 27, 2023     Percent of     Percent of     Percent of     Percent of   Amount Net Sales   Amount Net Sales   Amount Net Sales   Amount Net Sales                         Net sales of furniture and accessories $ 83,410   100.0 %   $ 100,519   100.0 %   $ 169,964   100.0 %   $ 208,217   100.0 % Cost of furniture and accessories sold   39,650   47.5 %     47,686   47.4 %     78,337   46.1 %     98,187   47.2 % Gross profit   43,760   52.5 %     52,833   52.6 %     91,627   53.9 %     110,030   52.8 %                         Selling, general and administrative expenses   46,707   56.0 %     51,366   51.1 %     96,931   57.0 %     105,861   50.8 % Asset impairment charges   5,515   6.6 %     -   0.0 %     5,515   3.2 %     -   0.0 % Gain on revaluation of contingent consideration   -   0.0 %     1,013   1.0 %     -   0.0 %     1,013   0.5 % Income (loss) from operations   (8,462 ) -10.1 %     2,480   2.5 %     (10,819 ) -6.4 %     5,182   2.5 %                         Interest income   627   0.8 %     569   0.6 %     1,383   0.8 %     721   0.3 % Other loss, net   (276 ) -0.3 %     (505 ) -0.5 %