Note 11 - Segment Information

3 Months Ended

Mar. 02, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

11. Segment Information

We have strategically aligned our business into three 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.

● Corporate and other – Corporate and other 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 our other insignificant operating segment, Noa Home, which was acquired on September 2, 2022.

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
	March 2, 2024			February 25, 2023
Sales Revenue
Wholesale sales of furniture and accessories	$	54,700		$	69,884
Less: Sales to retail segment		(23,762	)		(30,099	)
Wholesale sales to external customers		30,938			39,785
Retail sales of furniture and accessories		53,754			64,962
Corporate and other		1,862			2,951
Consolidated net sales of furniture and accessories	$	86,554		$	107,698
Income (Loss) from Operations
Wholesale	$	6,760		$	8,994
Retail - Company-owned stores		(1,612	)		1,530
Net expenses - Corporate and other		(7,595	)		(7,771	)
Inter-company elimination		90			(51	)
Consolidated	$	(2,357	)	$	2,702
Depreciation and Amortization
Wholesale	$	619		$	606
Retail - Company-owned stores		1,380			1,299
Corporate and other		665			435
Consolidated	$	2,664		$	2,340
Capital Expenditures
Wholesale	$	163		$	637
Retail - Company-owned stores		1,333			1,282
Corporate and other		580			1,422
Consolidated	$	2,076		$	3,341

	As of		As of
Identifiable Assets	March 2, 2024		November 25, 2023
Wholesale	$	98,491	$	99,004
Retail - Company-owned stores		167,849		166,604
Corporate and other		95,105		104,816
Consolidated	$	361,445	$	370,424

See Note 12, Revenue Recognition, for disaggregated revenue information regarding sales of furniture and accessories by product type for the wholesale and retail segments.