v3.26.1
Note 12 - Segment Information
 3 Months Ended
Feb. 28, 2026
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

12. 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.

 

 

●

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 three months ended February 28, 2026 and March 1, 2025, Corporate and other included no other operating segments.

 

Inter-company net sales elimination represents the elimination of wholesale sales to our Company-owned stores. Inter-company income elimination includes the embedded wholesale profit in the Company-owned store inventory that has not been realized. These profits will be recorded when merchandise is delivered to the retail consumer. The inter-company income elimination also includes rent paid by 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. During the three months ended February 28, 2026 and March 1, 2025, there were no special items recognized in our results of operations. 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 tables present our segment information:

 

   

Quarter Ended February 28, 2026

  
                   

Corporate &

    

Intersegment

          
   

Wholesale

    

Retail

    

Other

    

Eliminations

    

Consolidated

  
                                         

Net sales to external customers

   $ 27,795     $ 52,545     $ -     $ -     $ 80,340  

Intersegment sales

     25,166       -       -       (25,166 )     -  

Total net sales

     52,961       52,545       -       (25,166 )     80,340  

Cost of goods sold

     34,467       25,477       -       (24,769 )     35,175  

SG&A expense

     10,099       28,007       6,118       (311 )     43,913  

Other segment items - new store pre-opening costs

     -       95       -       -       95  

Income (loss) from operations

   $ 8,395     $ (1,034 )   $ (6,118 )   $ (86 )     1,157  

Interest income

                                     553  

Other loss, net

                                     (192 )

Income before income taxes

                                   $ 1,518  

 

   

Quarter Ended March 1, 2025

  
                   

Corporate &

    

Intersegment

          
   

Wholesale

    

Retail

    

Other

    

Eliminations

    

Consolidated

  
                                         

Net sales to external customers

   $ 28,868     $ 53,294     $ -     $ -     $ 82,162  

Intersegment sales

     24,059       -       -       (24,059 )     -  

Total net sales

     52,927       53,294       -       (24,059 )     82,162  

Cost of goods sold

     34,191       24,937       -       (23,796 )     35,332  

SG&A expense

     10,051       28,405       6,226       (307 )     44,375  

Income (loss) from operations

   $ 8,685     $ (48 )   $ (6,226 )   $ 44       2,455  

Interest income

                                     559  

Other loss, net

                                     (459 )

Income before income taxes

                                   $ 2,555  

 

   

Quarter Ended

  
   

February 28, 2026

    

March 1, 2025

  

Depreciation and Amortization

                

Wholesale

   $ 586     $ 590  

Retail - Company-owned stores

     1,003       1,010  

Corporate and other

     647       646  

Consolidated

   $ 2,236     $ 2,246  
                 

Capital Expenditures

                

Wholesale

   $ 46     $ 754  

Retail - Company-owned stores

     631       69  

Corporate and other

     186       48  

Consolidated

   $ 863     $ 871  

 

   

As of

    

As of

  

Identifiable Assets

  

February 28, 2026

    

November 29, 2025

  

Wholesale

   $ 95,222     $ 92,805  

Retail - Company-owned stores

     141,035       140,507  

Corporate and other

     79,897       90,507  

Consolidated

   $ 316,154     $ 323,819  

 

See Note 13, Revenue Recognition, for disaggregated revenue information regarding sales of furniture and accessories by product type for the wholesale and retail segments.