Note 19 - Segment Information

12 Months Ended

Nov. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

19. Segment Information

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 30, 2024, November 25, 2023 and November 26, 2022, 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 have ceased operations as of November 30, 2024 by selling the remaining inventory in an orderly fashion over the second half of fiscal 2024.

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.

Our former logistical services segment which represented the operations of Zenith is presented as a discontinued operation in the accompanying condensed consolidated statements of operations (see Note 18).

The following table presents segment information for each of the last three fiscal years:

	2024			2023			2022
Sales Revenue
Wholesale sales of furniture and accessories	$	207,462		$	248,911		$	324,569
Less: Sales to retail segment		(87,021	)		(103,519	)		(125,889	)
Wholesale sales to external customers		120,441			145,392			198,680
Retail sales of furniture and accessories		204,563			235,940			285,119
Corporate & Other - Noa Home		4,919			8,804			1,802
Consolidated net sales of furniture and accessories	$	329,923		$	390,136		$	485,601
Income (loss) from Continuing Operations before Income Taxes
Income (loss) from Continuing Operations
Wholesale	$	25,357		$	30,699		$	41,979
Retail		(6,604	)		(536	)		19,352
Net expenses - Corporate and other		(28,456	)		(29,926	)		(30,997	)
Inter-company elimination		1,591			1,024			(64	)
Asset impairment charges		(5,515	)		-			-
Loss on contract abandonment		(1,240	)		-			-
Loss upon realization of cumulative translation adjustment		(962	)		-			-
Restructuring charges		(440	)		-			-
Gain on revaluation of contingent consideration		-			1,013			-
Goodwill impairment charge		-			(5,409	)		-
Gain on sale of real estate		-			-			4,595
Consolidated income (loss) from continuing operations		(16,269	)		(3,135	)		34,865
Interest income		2,673			2,528			302
Interest expense		(30	)		(22	)		(38	)
Other loss, net		(744	)		(1,859	)		(1,067	)
Consolidated income (loss) from continuing operations before income taxes	$	(14,370	)	$	(2,488	)	$	34,062
Depreciation and Amortization
Wholesale	$	2,424		$	2,455		$	2,410
Retail		4,850			5,502			5,750
Corporate and other		2,644			2,184			1,883
Discontinued operations		-			-			1,266
Consolidated	$	9,918		$	10,141		$	11,309
Capital Expenditures
Wholesale	$	1,108		$	2,295		$	5,509
Retail		2,759			9,877			10,549
Corporate and other		1,344			5,317			5,238
Consolidated	$	5,211		$	17,489		$	21,296
Identifiable Assets
Wholesale	$	88,533		$	99,004		$	125,433
Retail		158,084			166,604			162,222
Corporate and Other		94,553			104,816			118,618
Consolidated	$	341,170		$	370,424		$	406,273

See Note 20 for disaggregated revenue information regarding sales of furniture and accessories by product type for the wholesale and retail segments.