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Bear of the Day: Bassett Furniture (BSET)

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Key Takeaways

  • Bassett Furniture is a Zacks Rank #5 (Strong Sell) as the housing market remains depressed.
  • While the market is challenging, Bassett still grew revenue in the third quarter by 5.9%.
  • One estimate has been cut for 2025 and 2026 in the last 60 days.

Bassett Furniture Industries, Inc. (BSET - Free Report) is waiting for the housing market recovery. Will it come in 2026? This Zacks Rank #5 (Strong Sell) is in the bottom 7% of Zacks Ranked Industries.

Bassett Furniture Industries operates 86 company and licensee-owned stores in the United States that sell home furnishings, including custom furniture design, free in-home design visits, and coordinated decorating accessories. It sells about 60% of its products through the stores but it also has a large traditional wholesale business with more than 1,000 open market accounts.

The wholesale business, including the Lane Venture outdoor brand, also services general furniture stores and a growing number of interior design firms.

Additionally, Bassett sells directly to consumers on its website.

Bassett Furniture Posts a Strong Third Quarter

On Oct 8, 2025, Bassett Furniture reported its third quarter 2025 results and met the Zacks Consensus of $0.09. It had beat the prior two quarters.

Revenue rose 5.9% year-over-year. Excluding sales from Noa Home Inc., which closed in late 2024, consolidated revenue jumped 7.3%.

Gross margin improved 320 basis points to 56.2% due, in part, to improved margins in the wholesale business.

This was a strong quarter for a company that has struggled in recent years due to the difficult market environment. When home sales drop, so do furniture sales.

Earnings to Jump in 2025 and 2026

Earnings have been negative in the last 2 years, but analysts believe it will be positive in 2025 and 2026.

Earnings are expected to rise 268% in 2025 to $0.81 from a loss of $0.48 last year. In 2026, analysts see another 34.6% earnings growth to $1.09.

Why is it a Zacks Rank #5 (Strong Sell) if Earnings Are Turning Around?

The Zacks Rank is based on changes to analyst earnings estimates. In the case of the Strong Sell stocks, it means the analysts are cutting estimates.

For Bassett Furniture, 1 estimate was cut for 2025 and 2026 in the last 60 days. The cut pushed the Zacks Consensus down in both years.

This is what it looks like on the 5-year price and consensus chart.

Zacks Investment Research
Image Source: Zacks Investment Research

Bassett Furniture Shares are Up in 2025

Despite the challenging market conditions, shares of Bassett are actually up 22% year-to-date and have gained 13.5% in the last month.

Zacks Investment Research
Image Source: Zacks Investment Research

Bassett manufactures about 75% of its furniture in the United States so it would avoid a lot of tariffs.

Bassett also is shareholder friendly and pays a dividend which is currently yielding a juicy 4.9%. They are rewarding you for your patience.

The stock is cheap. Bassett trades with a forward price-to-earnings (P/E) ratio of just 15. A P/E of 15 and under usually means a stock is a value.

For investors looking to get into the furniture industry, you might want to wait to see if the turnaround in earnings is real next year.


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