BASSETT FURNITURE INDUSTRIES INC Segments Disclosure

18.	Segment Information

 

We report segment information consistent with the way our chief operating decision maker (the “CODM”), a single individual who serves as our Board Chair, President and Chief Executive Officer, evaluates the operating results and performance of the Company. We have strategically aligned our business into two reportable segments as defined in ASC 280, Segment Reporting, and as described below:

 

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Wholesale. The wholesale home furnishings segment is involved principally in the design, manufacture, sourcing, sale and distribution of furniture products to a network of Bassett stores (Company-owned and licensee-owned retail stores) and independent furniture retailers. Our wholesale segment includes our wood and upholstery operations, which includes Lane Venture.

 

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Retail – Company-owned stores. Our retail segment consists of Company-owned stores and includes the revenues, expenses, assets and liabilities and capital expenditures directly related to these stores and the Company-owned distribution network utilized to deliver products to our retail customers.

 

In addition to the two reportable segments described above, we include our remaining business activities and assets in a reconciling category known as Corporate and other. This category includes the shared costs of corporate functions such as treasury and finance, information technology, accounting, human resources, legal and others, including certain product development and marketing functions benefitting both wholesale and retail operations. In addition to property and equipment and various other assets associated with the shared corporate functions, the identifiable assets of Corporate and other include substantially all of our cash and our investments in CDs. We consider our corporate functions to be other business activities and have aggregated them with any of our operating segments that do not meet the requirements to be reportable segments. As of and for the periods ended November 29, 2025, November 30, 2024 and November 25, 2023, the only such operating segment included in Corporate and other is Noa Home, which was acquired on September 2, 2022. All sales reported in our Corporate and other category are attributable to Noa Home, which generated substantially all of its sales outside of the United States. During the second fiscal quarter of 2024 we concluded that Noa Home was not likely to achieve profitability in the foreseeable future and ceased operations as of November 30, 2024 after selling the remaining inventory in an orderly fashion over the second half of fiscal 2024.

 

Inter-segment net sales and cost of goods sold eliminations represent the elimination of wholesale sales to our Company-owned stores. Inter-segment gross profit elimination represents the change in the embedded wholesale profit in the Company-owned store inventory that has not been realized. These profits are recorded when merchandise is delivered to the retail consumer. The inter-segment SG&A expense elimination includes rent charged to our retail stores occupying Company-owned real estate.

 

For the purpose of evaluating segment performance and allocating resources, our CODM uses a measure of income (loss) from operations excluding special items. These excluded items include such things as asset impairment charges, restructuring charges, and other unusual or infrequent gains and losses which management does not expect to recur on a regular routine basis (see Note 14, Other Gains and Losses, for further discussion of these items). The CODM assesses performance by regularly reviewing each segment’s significant expense categories which include total cost of goods sold and total SG&A expenses. If these significant expense categories deviate from expected results, the CODM will delegate to his direct reports the task of investigating the underlying causes and, when necessary, making recommendations for remedial action to the CODM for his consideration and approval.

 

The following table presents segment results of operations for each of the last three fiscal years:

 

		Year Ended November 29, 2025
										Corporate &				Intersegment
		Wholesale				Retail				Other				Eliminations				Consolidated
Net sales to external customers		$	118,599			$	216,681			$	-			$	-			$	335,280
Intersegment sales			96,015				-				-				(96,015	)			-
Total net sales			214,614				216,681				-				(96,015	)			335,280
Cost of goods sold			138,883				103,205				-				(95,490	)			146,598
SG&A expense			40,870				113,069				27,652				(1,234	)			180,357
Income (loss) from operations excluding special items		$	34,861			$	407			$	(27,652	)		$	709				8,325
Asset impairment charges																			498
Income (loss) from operations																			7,827
Interest income																			1,979
Interest expense																			(52	)
Other loss, net																			(994	)
Income before income taxes																		$	8,760

 

		Year Ended November 30, 2024
										Corporate &				Intersegment
		Wholesale				Retail				Other				Eliminations				Consolidated
Net sales to external customers		$	120,441			$	204,563			$	4,919			$	-			$	329,923
Intersegment sales			87,021				-				-				(87,021	)			-
Total net sales			207,462				204,563				4,919				(87,021	)			329,923
Cost of goods sold			139,393				95,728				2,803				(87,416	)			150,508
SG&A expense			42,712				115,439				30,572				(1,196	)			187,527
Income (loss) from operations excluding special items		$	25,357			$	(6,604	)		$	(28,456	)		$	1,591				(8,112	)
Asset impairment charges																			5,515
Loss on contract abandonment																			1,240
Loss upon realization of cumulative translation adjustment																			962
Restructuring charges																			440
Income (loss) from operations																			(16,269	)
Interest income																			2,673
Interest expense																			(30	)
Other loss, net																			(744	)
Loss before income taxes																		$	(14,370	)

 

		Year Ended November 25, 2023
										Corporate &				Intersegment
		Wholesale				Retail				Other				Eliminations				Consolidated
Net sales to external customers		$	145,392			$	235,940			$	8,804			$	-			$	390,136
Intersegment sales			103,519				-				-				(103,519	)			-
Total net sales			248,911				235,940				8,804				(103,519	)			390,136
Cost of goods sold			171,394				111,769				4,002				(103,517	)			183,648
SG&A expense			46,818				124,707				34,728				(1,026	)			205,227
Income (loss) from operations excluding special items		$	30,699			$	(536	)		$	(29,926	)		$	1,024				1,261
Goodwill impairment charge																			5,409
Gain on revaluation of contingent consideration																			1,013
Income (loss) from operations																			(3,135	)
Interest income																			2,528
Interest expense																			(22	)
Other loss, net																			(1,859	)
Loss before income taxes																		$	(2,488	)

 

Additional information reported by segment is as follows:

 

		2025				2024				2023
Depreciation and Amortization
Wholesale		$	2,317			$	2,424			$	2,455
Retail			3,884				4,850				5,502
Corporate and other			2,600				2,644				2,184
Consolidated		$	8,801			$	9,918			$	10,141
Capital Expenditures
Wholesale		$	1,607			$	1,108			$	2,295
Retail			2,222				2,759				9,877
Corporate and other			701				1,344				5,317
Consolidated		$	4,530			$	5,211			$	17,489
Identifiable Assets
Wholesale		$	92,805			$	88,533			$	99,004
Retail			140,507				158,084				166,604
Corporate and Other			90,507				94,553				104,816
Consolidated		$	323,819			$	341,170			$	370,424

 

See Note 19 for disaggregated revenue information regarding sales of furniture and accessories by product type for the wholesale and retail segments.