Page 1

Bassett Bassett Reports Fiscal Third Quarter Results September 30 , 2026 8:01 PM EDT BASSETT , Va . , Sept. 30 , 2026 ( GLOBE NEWSWIRE ) -- Bassett Furniture Industries , Inc. ( Nasdaq : BSET ) reported today its results of operations for its third quarter ended August 29 , 2026 . Q3 Consolidated Business Highlights : [ FY 26 vs. FY 25 , unless otherwise specified ] • ⚫ Revenues increased 3.4 % over the prior year quarter . • Received $ 2.8 million in tariff refunds from U.S. Customs and Border Protection as a result of the U.S. Supreme Court's February 2026 decision invalidating the tariffs imposed by the President in 2025 under The International Emergency Economic Powers Act of 1977 ( " IEEPA " ) . Of this amount , $ 1.0 million was recorded as an increase in gross profit for the quarter , with additional amounts to be recorded primarily in the fourth quarter of 2026. Tariff costs are capitalized into inventory at the time they are incurred and subsequently recorded in the income statement when those goods are sold to a third party . The high tariff costs recognized in the quarter were substantially offset by the refund income that the Company recorded . Bassett imports less than 25 % of its products . • Operating income was $ 2.8 million or 3.4 % of sales as compared to operating income of $ 0.6 million or 0.7 % of sales for the prior year quarter . • Gross margin of 57.5 % represented a 130 - basis point increase over the prior year due primarily to higher margins in the wholesale business from the previously discussed IEEPA tariff refund , partially offset by lower margins in the retail business . • Selling , general and administrative ( SG & A ) expenses excluding new store pre - opening costs , were 53.9 % of sales , 150 basis points lower than the prior year . • Diluted earnings per share were $ 0.24 compared to $ 0.09 per share in the prior year period . • Generated $ 6.1 million of cash from operating activities for the quarter . Fiscal 2026 Third Quarter Overview ( Dollars in millions ) Sales 3rd Quarter 2026 2025 Dollar Change % Change 3rd Quarter 2026 Operating Income ( Loss ) % of Sales 3rd Quarter 2025 % of Sales Consolidated ( 1 ) $ 82.8 $ 80.1 $ 2.7 3.4 % $ 2.8 3.4 % $ 0.6 0.7 % Wholesale $ 53.7 $ 50.8 $ 2.9 5.7 % $ 9.3 17.3 % $ 8.1 15.9 % Retail Corporate & Other ( 2 ) $ 54.2 $ 51.9 $ 2.3 4.5 % $ ( 0.3 ) -0.6 % $ ( 0.3 ) -0.6 % $ - $ $ N / A $ ( 6.6 ) N / A $ ( 7.4 ) N / A ( 1 ) Our consolidated results for the quarter include certain intercompany eliminations . 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 shared Corporate costs that are benefiting both the Wholesale and Retail segments . Comments from Rob Spilman , Bassett Chairman and CEO " 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 . SG & A expenses as a percentage of sales , excluding new store pre - opening costs associated with the Orlando store planned to open this week , decreased 150 basis points .