Q2 2026 Bassett Furniture Industries Inc Earnings Call Transcript
Key Points
- Operating profit on an adjusted basis improved in the second quarter despite slightly lower consolidated revenue.
- Retail written sales increased by 9.5% during the quarter, with a strong Memorial Day promotion boosting sales by 14%.
- Wholesale orders rose by 5.2% for the second quarter, indicating positive demand trends.
- Consolidated gross margins grew by 90 basis points, driven by improvements in wholesale margins.
- E-commerce performance was strong, with written web sales up by 40%, marking seven of the last eight quarters with increases exceeding 20%.
- Consolidated revenue decreased by $500,000 or 0.7%, with a decline in sales to external wholesale customers.
- Retail gross margins fell by 120 basis points due to aggressive pricing of clearance inventory.
- SG&A expenses remained high, partly due to unforeseen expenses such as fuel surcharges.
- Wholesale shipments decreased by 2% as the increase in written sales was back-end loaded.
- New store preopening costs impacted SG&A, with expenses related to new locations in Cincinnati and Orlando.
Good day, and thank you for standing by. Welcome to the Bassett Furniture Industries Q2 2026 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mike Daniel, CFO. Sir, please go ahead.
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 Spilman. 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 Basset'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
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