Note 13 - Revenue Recognition

3 Months Ended

Mar. 01, 2025

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

13. Revenue Recognition

We recognize revenue when we transfer promised goods or services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. For our wholesale and retail segments, revenue is recognized when the risks and rewards of ownership and title to the product have transferred to the buyer. At wholesale, transfer occurs and revenue is recognized upon the shipment of goods to independent dealers and licensee-owned BHF stores. At retail, transfer occurs and revenue is recognized upon delivery of goods to the customer. All wholesale and retail revenues are recorded net of estimated returns and allowances based on historical patterns. We typically collect a significant portion of the purchase price from our retail customers as a deposit upon order, with the balance typically collected at the time delivery is scheduled. These customer deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $25,352 and $25,742 as of March 1, 2025 and November 30, 2024, respectively. Substantially all of the customer deposits held as of November 30, 2024 related to performance obligations that were satisfied during the current year-to-date period and have therefore been recognized in revenue for the three months ended March 1, 2025.

Sales commissions are expensed as part of selling, general and administrative expenses at the time revenue is recognized because the amortization period would have been one year or less. Sales commissions at wholesale are accrued upon the shipment of goods. Sales commissions at retail are accrued at the time a sale is written (i.e. – when the customer’s order is placed) and are carried as prepaid commissions in other current assets until the goods are delivered and revenue is recognized. At March 1, 2025 and November 30, 2024, our balance of prepaid commissions included in other current assets was $2,805 and $2,928, respectively.

We exclude from revenue all amounts collected from customers for sales tax. We do not disclose amounts allocated to remaining unsatisfied performance obligations as they are expected to be satisfied within one year or less.

Disaggregated revenue information for sales of furniture and accessories by product category for the three months ended March 1, 2025 and March 2, 2024, excluding intercompany transactions between our segments, is a follows:

	Quarter Ended
	March 1, 2025								March 2, 2024
	Wholesale		Retail		Corporate & Other		Total		Wholesale		Retail		Corporate & Other (2)		Total
Bassett Custom Upholstery	$	18,849	$	29,494	$	-	$	48,343	$	20,375	$	29,803	$	-	$	50,178
Bassett Leather		4,112		1,927		-		6,039		3,955		827		-		4,782
Bassett Custom Wood		3,308		7,706		-		11,014		3,751		8,198		-		11,949
Bassett Casegoods		2,599		6,652		-		9,251		2,857		7,385		-		10,242
Accessories, mattresses and other (1)		-		7,515		-		7,515		-		7,541		1,862		9,403
Consolidated net sales of furniture and accessories	$	28,868	$	53,294	$	-	$	82,162	$	30,938	$	53,754	$	1,862	$	86,554

(1) Includes the sale of goods other than Bassett-branded products, such as accessories and bedding, and also includes the sale of furniture protection plans.

(2) Corporate and other for the three months ended March 2, 2024 includes the sales of Noa Home, which was closed during fiscal 2024 and substantially liquidated as of November 30, 2024.