v3.25.4
Note 18 - Segment Information
 12 Months Ended
Nov. 29, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

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:

 

 

●

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 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.