Note 12 - Segment Information

6 Months Ended

May 31, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

12. 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 three and six months ended June 1, 2024, the only such operating segment included in Corporate and other is Noa Home, which was acquired on September 2, 2022, subsequently closed during fiscal 2024 and substantially liquidated as of November 30, 2024. All sales reported in our Corporate and other category during fiscal 2024 were attributable to Noa Home, which generated substantially all of its sales outside of the United States.

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						Six Months Ended
	May 31, 2025			June 1, 2024			May 31, 2025			June 1, 2024
Sales Revenue
Wholesale sales of furniture and accessories	$	54,229		$	52,609		$	107,156		$	107,310
Less: Sales to retail segment		(24,113	)		(20,751	)		(48,172	)		(44,514	)
Wholesale sales to external customers		30,116			31,858			58,984			62,796
Retail sales of furniture and accessories		54,232			50,468			107,526			104,222
Corporate and other - Noa Home		-			1,084			-			2,946
Consolidated net sales of furniture and accessories	$	84,348		$	83,410		$	166,510		$	169,964
Income (Loss) before Income Taxes:
Income (loss) from operations:
Wholesale	$	8,290		$	5,687		$	16,975		$	12,446
Retail - Company-owned stores		482			(2,222	)		434			(3,834	)
Net expenses - Corporate and other		(6,521	)		(6,942	)		(12,747	)		(14,537	)
Inter-company elimination		246			530			290			621
Asset impairment charges (see Note 9)		-			(5,515	)		-			(5,515	)
Consolidated income (loss) from operations		2,497			(8,462	)		4,952			(10,819	)
Interest income		521			627			1,080			1,383
Other loss, net		(422	)		(276	)		(881	)		(380	)
Consolidated income (loss) before income taxes	$	2,596		$	(8,111	)	$	5,151		$	(9,816	)
Depreciation and Amortization
Wholesale	$	596		$	629		$	1,186		$	1,248
Retail - Company-owned stores		982			1,337			1,992			2,717
Corporate and other		654			661			1,300			1,326
Consolidated	$	2,232		$	2,627		$	4,478		$	5,291
Capital Expenditures
Wholesale	$	362		$	371		$	1,115		$	534
Retail - Company-owned stores		712			837			781			2,170
Corporate and other		331			399			379			979
Consolidated	$	1,405		$	1,607		$	2,275		$	3,683

	As of		As of
Identifiable Assets	May 31, 2025		November 30, 2024
Wholesale	$	89,314	$	88,533
Retail - Company-owned stores		149,197		158,084
Corporate and other		92,822		94,553
Consolidated	$	331,333	$	341,170

See Note 13, Revenue Recognition, for disaggregated revenue information regarding sales of furniture and accessories by product type for the wholesale and retail segments.