Bassett Furniture Industries reported slightly lower second-quarter fiscal 2026 revenue but improved adjusted operating performance, with diluted earnings per share rising to $0.24 from $0.22, helped by higher wholesale margins and a 90-basis-point increase in gross margin to 56.5%. Consolidated revenue was $83.8 million, down 0.7%, as a 6.3% decline in external wholesale sales was partly offset by a 2.4% increase in retail sales from company-owned stores. Demand trends improved late in the quarter, with retail written sales up 9.5% and wholesale orders up 5.2%, and management noted encouraging Memorial Day and June trends heading into the third quarter. The company plans to raise retail gross margins by 200 to 250 basis points in mid-July and expects capital spending to rise to $10 million to $12 million this year, up from $4.5 million last year, driven by new store openings and a new showroom. Bassett ended the quarter with $53.9 million in cash and short-term investments after generating $7.4 million in operating cash flow, and it remains focused on store expansion, e-commerce growth, and wholesale initiatives.
Bassett Furniture IndustriesRetail written sales up 9.5% and wholesale orders up 5.2%, with encouraging Memorial Day and June trends.