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Note 13 - Segment Information
 9 Months Ended
Aug. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

13. Segment Information

 

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 three and nine months ended August 31, 2024, the only such operating segment included in Corporate and other is Noa Home, which was acquired on September 2, 2022, subsequently closed during fiscal 2024 and substantially liquidated as of November 30, 2024. All sales reported in our Corporate and other category during fiscal 2024 were attributable to Noa Home, which generated substantially all of its sales outside of the United States.

 

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.

 

The following table presents our segment information:

 

   

Quarter Ended

    

Nine Months Ended

  
   

August 30, 2025

    

August 31, 2024

    

August 30, 2025

    

August 31, 2024

  

Sales Revenue

                                

Wholesale sales of furniture and accessories

   $ 50,787     $ 47,828     $ 157,943     $ 155,138  

Less: Sales to retail segment

     (22,575 )     (20,453 )     (70,747 )     (64,967 )

Wholesale sales to external customers

     28,212       27,375       87,196       90,171  

Retail sales of furniture and accessories

     51,891       47,256       159,417       151,478  

Corporate and other - Noa Home

     -       988       -       3,934  

Consolidated net sales of furniture and accessories

   $ 80,103     $ 75,619     $ 246,613     $ 245,583  
                                 

Income (Loss) before Income Taxes:

                                

Income (loss) from operations:

                                

Wholesale

   $ 8,055     $ 4,440     $ 25,030     $ 16,886  

Retail - Company-owned stores

     (333 )     (2,840 )     101       (6,674 )

Net expenses - Corporate and other

     (7,419 )     (6,963 )     (20,166 )     (21,500 )

Inter-company elimination

     290       246       580       867  

Asset impairment charges (see Note 10)

     -       -       -       (5,515 )

Loss on contract abandonment (see Note 10)

     -       (1,240 )     -       (1,240 )

Consolidated income (loss) from operations

     593       (6,357 )     5,545       (17,176 )
                                 

Interest income

     472       692       1,552       2,075  

Other income (loss), net

     30       (109 )     (851 )     (489 )

Consolidated income (loss) before income taxes

   $ 1,095     $ (5,774 )   $ 6,246     $ (15,590 )
                                 

Depreciation and Amortization

                                

Wholesale

   $ 563     $ 587     $ 1,749     $ 1,835  

Retail - Company-owned stores

     940       1,073       2,932       3,790  

Corporate and other

     645       662       1,945       1,988  

Consolidated

   $ 2,148     $ 2,322     $ 6,626     $ 7,613  
                                 

Capital Expenditures

                                

Wholesale

   $ 410     $ 385     $ 1,525     $ 919  

Retail - Company-owned stores

     860       510       1,641       2,680  

Corporate and other

     192       142       571       1,121  

Consolidated

   $ 1,462     $ 1,037     $ 3,737     $ 4,720  

 

   

As of

    

As of

  
   

August 30, 2025

    

November 30, 2024

  
Identifiable Assets                

Wholesale

   $ 91,063     $ 88,533  

Retail - Company-owned stores

     145,189       158,084  

Corporate and other

     87,989       94,553  

Consolidated

   $ 324,241     $ 341,170  

 

See Note 14, Revenue Recognition, for disaggregated revenue information regarding sales of furniture and accessories by product type for the wholesale and retail segments.