Fiscal third quarter 2026
Filed Sep 30, 2026Bassett Reports Fiscal Third Quarter Results
Consolidated sales increased 3.4%, operating income rose to $2,782 (in thousands) from $593 (in thousands), and gross margin improved to 57.5%. Results also benefited from $1.0 million of IEEPA tariff refunds recorded in gross profit, while retail remained loss-making and management cited housing slowness and higher mortgage rates.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $82.84M | – | 3.4% |
| Q3 2026 cost of goods soldGAAP | 35.22M | – | – |
| Q3 2026 gross profitGAAP | 47.62M | – | – |
| Q3 2026 gross marginGAAP | 57.5% | – | 130-basis point increase |
| Q3 2026 selling, general and administrative expensesGAAP | 44.69M | – | – |
| Q3 2026 selling, general and administrative expenses as a percentage of salesGAAP | 53.9% | – | 150 basis points lower |
| Q3 2026 new store preopening costsGAAP | 144K | – | – |
| Q3 2026 income from operationsGAAP | 2.78M | – | – |
| Q3 2026 operating marginGAAP | 3.4% | – | – |
| Q3 2026 interest incomeGAAP | 480K | – | – |
| Q3 2026 other income (loss), netGAAP | −375K | – | – |
| Q3 2026 income before income taxesGAAP | 2.89M | – | – |
| Q3 2026 income tax expenseGAAP | 786K | – | – |
| Q3 2026 net incomeGAAP | $2.10M | – | – |
| Q3 2026 net income marginGAAP | 2.5% | – | – |
| Q3 2026 basic and diluted earnings per shareGAAP | $0.24 | – | – |
| Nine months 2026 net salesGAAP | $246.9M | – | – |
| Nine months 2026 cost of goods soldGAAP | 106.8M | – | – |
| Nine months 2026 gross profitGAAP | 140.1M | – | – |
| Nine months 2026 gross marginGAAP | 56.7% | – | – |
| Nine months 2026 selling, general and administrative expensesGAAP | 133.2M | – | – |
| Nine months 2026 new store preopening costsGAAP | 712K | – | – |
| Nine months 2026 income from operationsGAAP | 6.18M | – | – |
| Nine months 2026 interest incomeGAAP | 1.48M | – | – |
| Nine months 2026 other income (loss), netGAAP | −480K | – | – |
| Nine months 2026 income before income taxesGAAP | 7.18M | – | – |
| Nine months 2026 income tax expenseGAAP | 1.93M | – | – |
| Nine months 2026 net incomeGAAP | $5.26M | – | – |
| Nine months 2026 basic and diluted earnings per shareGAAP | $0.61 | – | – |
| Q3 2026 cash from operating activitiesGAAP | $6.1M | – | – |
| Nine months 2026 net provided by operating activitiesGAAP | 8.01M | – | – |
| Nine months 2026 purchases of property and equipmentGAAP | −6.88M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| WholesaleWholesale orders were up nicely, showing a 7.9% increase. All wholesale channels showed a sales increase, with the Lane Venture brand up almost 29%. | $53.69M | – | 5.7% |
| RetailWritten retail sales increased 4.4%, and e-commerce written sales were up 48% this quarter. | $54.23M | – | 4.5% |
| Wholesale sales to external customersWholesale sales include sales to the retail segment, which were eliminated in consolidated net sales. | $28.60M | – | – |
| ConsolidatedBoth retail and wholesale sales increased. | $82.84M | – | 3.4% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Nine months 2026 cash dividends: (5,179) (in thousands); nine months 2025: (5,210) (in thousands).
- Nine months 2026 repurchases of common stock: (779) (in thousands); nine months 2025: (1,522) (in thousands).
- Nine months 2026 issuance of common stock: 265 (in thousands); nine months 2025: 249 (in thousands).
- Nine months 2026 taxes paid related to net share settlement of equity awards: (76) (in thousands); nine months 2025: (136) (in thousands).
What drove it
- The Company received $2.8 million in tariff refunds from U.S. Customs and Border Protection following the U.S. Supreme Court’s February 2026 decision invalidating IEEPA tariffs imposed in 2025.
- $1.0 million of the tariff refunds was recorded as an increase in gross profit during the quarter; additional amounts are to be recorded primarily in the fourth quarter of 2026.
- The quarter's gross-margin increase was driven primarily by higher wholesale margins from the IEEPA tariff refund, partly offset by lower retail margins.
- Operating-profit improvement reflected sales increases in key product categories, improved expense control, and tariff refunds that offset tariff costs embedded in the balance sheet.
- The Company cited strong response to its 84-page fall catalog, improved website navigation and visual presentation, and a 48% increase in e-commerce written sales.
- The Company plans to be more aggressive on Black Friday promotions to drive traffic at retail and via the website.
Concerns
- Retail operating loss excluding new store pre-opening costs was (109) (in thousands), compared with (333) (in thousands) in the prior-year quarter.
- Retail gross margins were lower year over year.
- New store pre-opening costs were 144 (in thousands) in the quarter and 712 (in thousands) for the nine months.
- Other income (loss), net was (375) (in thousands) in the quarter, compared with 30 (in thousands) in the prior-year quarter.
- Management identified housing slowness and even higher mortgage rates as a drag on the industry.
- Management is watching the impact of global issues on the business.
What to watch
- The amount of tariff-refund income recorded primarily in the fourth quarter of 2026.
- The planned October 15 debut of the new 44,000-square-foot showroom at the High Point Market.
- Retail traffic and website demand under more aggressive Black Friday promotions.
- Whether Labor Day momentum continues after written retail sales increased 9% during the full four-week Labor Day promotion.
- Wholesale order performance, including Lane Venture, after wholesale orders increased 7.9% and Lane Venture was up almost 29%.
Balance sheet and cash flow
- Cash and cash equivalents were $35,372 (in thousands) at August 29, 2026, compared with $41,277 (in thousands) at November 29, 2025.
- Short-term investments were 18,023 (in thousands) at August 29, 2026, compared with 17,963 (in thousands) at November 29, 2025.
- Inventories, net were 59,279 (in thousands) at August 29, 2026, compared with 61,790 (in thousands) at November 29, 2025.
- Total assets were $312,141 (in thousands) at August 29, 2026, compared with $323,819 (in thousands) at November 29, 2025.
- Total current liabilities were 69,363 (in thousands) at August 29, 2026, compared with 76,984 (in thousands) at November 29, 2025.
- Long-term portion of operating lease obligations was 65,052 (in thousands) at August 29, 2026, compared with 69,353 (in thousands) at November 29, 2025.
- Total stockholders' equity was 164,928 (in thousands) at August 29, 2026, compared with 165,107 (in thousands) at November 29, 2025.
- Nine months 2026 net cash used in investing activities was (7,966) (in thousands), compared with (4,145) (in thousands) for the nine months ended August 30, 2025.
- Nine months 2026 net cash used in financing activities was (5,952) (in thousands), compared with (6,719) (in thousands) for the nine months ended August 30, 2025.
- Nine months 2026 change in cash and cash equivalents was (5,905) (in thousands), compared with (5,138) (in thousands) for the nine months ended August 30, 2025.
Analysis
Bassett delivered a stronger fiscal third quarter, with net sales of $82,838 (in thousands), up 3.4% from $80,103 (in thousands). Both operating segments grew, as wholesale sales increased 5.7% to $53,692 (in thousands) and retail sales increased 4.5% to $54,235 (in thousands). Written retail sales increased 4.4%, wholesale orders increased 7.9%, and e-commerce written sales increased 48%. The full four-week Labor Day promotion produced a 9% increase in written sales.
Profitability improved materially. Gross profit was 47,616 (in thousands) and gross margin was 57.5%, compared with 44,994 (in thousands) and 56.2% in the prior-year quarter. The Company attributed the 130-basis point gross-margin increase primarily to higher wholesale margins from tariff refunds, partly offset by lower retail margins. Operating income was 2,782 (in thousands), or 3.4% of sales, versus 593 (in thousands), or 0.7% of sales. SG&A expenses were 53.9% of sales versus 55.4%, while new store pre-opening costs were 144 (in thousands).
The tariff recovery was an important contributor to the quarter. Bassett received $2.8 million in refunds, with $1.0 million recorded as an increase in gross profit in the third quarter and additional amounts expected to be recorded primarily in the fourth quarter of 2026. Retail remained a pressure point, reporting an operating loss excluding new store pre-opening costs of (109) (in thousands), although this improved from a loss of (333) (in thousands). Wholesale operating income rose to 9,317 (in thousands) from 8,055 (in thousands), while Corporate and Other costs declined to (6,620) (in thousands) from (7,419) (in thousands).
For the nine months, net sales were $246,931 (in thousands), compared with $246,613 (in thousands), while income from operations increased to 6,182 (in thousands) from 5,545 (in thousands). Net income for the nine months was $5,256 (in thousands), compared with $4,573 (in thousands), and basic and diluted earnings per share were $0.61 versus $0.53. Net provided by operating activities was 8,013 (in thousands), while purchases of property and equipment were (6,875) (in thousands).
The release provided no formal financial guidance. Management described a plan to grow sales and profitability and improve operating efficiency, alongside more aggressive Black Friday promotions. Attention is on fourth-quarter recognition of tariff refunds, performance from the new 44,000-square-foot High Point showroom, and whether sales momentum can persist amid housing slowness, higher mortgage rates, and global issues.
Management, verbatim
We are pleased to report a 3.4% increase in consolidated revenue bolstered by increases in both retail and wholesale sales. Operating profit showed nice improvement thanks to sales increases in key product categories, improved expense control, and tariff refunds that offset tariff costs that were embedded in our balance sheet.
Rob Spilman, Bassett Chairman and CEO
Written retail sales increased 4.4%, continuing the positive momentum from the second quarter in spite of one less week of the Labor Day promotion in the quarter compared to last year.
Rob Spilman, Bassett Chairman and CEO
As for challenges, housing slowness and even higher mortgage rates remain a drag on our industry. We’re watching the impact of global issues on our business and are optimistic that we can effectively manage through these challenges in the fourth quarter.
Rob Spilman, Bassett Chairman and CEO
Not in the filing
stated, not guessed- Formal forward financial guidance for revenue, gross margin, operating expenses, tax rate, earnings, or cash flow was not provided.
- Previous-period outlook was not provided.
- Non-GAAP revenue, earnings, operating income, EPS, or cash-flow measures were not provided.
- Free cash flow was not reported.
- Debt balance was not reported.
- A reported income-tax rate was not provided.
- Prior-quarter comparisons for reported income-statement and segment metrics were not provided.
- Quarterly capital expenditures were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.