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Bassett (BSET) Q2 Earnings & Sales Lag Estimates, Down Y/Y
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Bassett Furniture Industries, Incorporated (BSET - Free Report) reported tepid second-quarter fiscal 2024 (ended Jun 1, 2024) results, with earnings and net sales missing the Zacks Consensus Estimate and declined year over year.
The company’s quarterly results were mainly impacted by the challenging housing market. Consumers are choosing to spend on experiences over home investments, which affected its quarterly performance. The downtrend was reflected in soft sales contribution from the Wholesale and Retail segments along with Noa Home.
The company announced a restructuring plan to better align its cost structure for future growth. This strategy leverages Bassett’s brand quality, design expertise and service. The focus is on driving long-term revenue growth and profitability.
Inside the Headlines
Bassett reported an adjusted loss of 19 cents per share, which was wider than the Zacks Consensus Estimate of an adjusted loss of 12 cents. In the prior-year period, the company reported adjusted earnings per share of 15 cents.
Net sales of $83.4 million lagged the consensus mark of $86.2 billion by 3.2% and declined 17% from the year-ago quarter’s level of $100.5 million.
Despite lower sales, the company maintained strong gross margins for another quarter. Adjusted gross profit margin expanded by 210 basis points (bps) year over year to 55.7%. The company is disciplined on expenses to improve operating efficiency.
Segmental Details
Wholesale: Net sales fell 14.9% from the year-ago quarter’s level to $52.6 million.
Retail: The segment's net sales dwindled 16.9% from the year-ago quarter’s figure to $50.5 million.
Corporate & Others: Net sales in the segment declined 52.2% from the year-ago quarter’s level to $1.1 million.
Financials
As of Jun 1, 2024, Bassett had cash and equivalents worth $42.6 million, down from $52.4 million recorded at the end of the fiscal 2023. Short-term investments at the end of the second quarter of fiscal 2024 were $17.8 million, at par with the fiscal 2023 end.
Long-term debt (a portion of operating lease obligations) totaled $90.6 million, down from $97.4 million recorded at the fiscal 2023 end.
Net cash used in operations in the reported quarter totaled $1.9 million against $8.9 million reported in the year-ago period.
Culp, Inc. (CULP - Free Report) reported mixed results in fourth-quarter fiscal 2024 (ended Apr 28, 2024). Its adjusted loss was narrower than the Zacks Consensus Estimate while net sales marginally missed the same. On a year-over-year basis, net sales declined and the adjusted loss widened.
The quarterly results reflect softness in industry demand for the company’s reportable businesses due to ongoing macroeconomic headwinds and the timing of orders, due to many larger customers experiencing prolonged conditions beginning in January. Nonetheless, initiatives to lower manufacturing costs and execute operational excellence aided the bottom line to some extent. Culp intends to work on its restructuring plan as it believes this will enable it to grow more efficiently and profitably, with a lower level of fixed costs.
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
The upside was primarily backed by sustained demand strength and increased booking volumes. The company reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in both price and occupancy. It reported strength in pricing for the North America, Australia and Europe segments for the third and fourth quarters of 2024 on a year-over-year basis. Management expects net yields to exceed 10% and drive double-digit returns on invested capital.
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, missing the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands including BUBBA, Caldwell, Grilla, and Hooyman. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. The bottom line was negatively impacted by the amortization of tariff and freight costs stemming from higher inventory purchases, which occurred in first-half fiscal 2024, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in fiscal 2022.
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Bassett (BSET) Q2 Earnings & Sales Lag Estimates, Down Y/Y
Bassett Furniture Industries, Incorporated (BSET - Free Report) reported tepid second-quarter fiscal 2024 (ended Jun 1, 2024) results, with earnings and net sales missing the Zacks Consensus Estimate and declined year over year.
The company’s quarterly results were mainly impacted by the challenging housing market. Consumers are choosing to spend on experiences over home investments, which affected its quarterly performance. The downtrend was reflected in soft sales contribution from the Wholesale and Retail segments along with Noa Home.
The company announced a restructuring plan to better align its cost structure for future growth. This strategy leverages Bassett’s brand quality, design expertise and service. The focus is on driving long-term revenue growth and profitability.
Inside the Headlines
Bassett reported an adjusted loss of 19 cents per share, which was wider than the Zacks Consensus Estimate of an adjusted loss of 12 cents. In the prior-year period, the company reported adjusted earnings per share of 15 cents.
Net sales of $83.4 million lagged the consensus mark of $86.2 billion by 3.2% and declined 17% from the year-ago quarter’s level of $100.5 million.
Despite lower sales, the company maintained strong gross margins for another quarter. Adjusted gross profit margin expanded by 210 basis points (bps) year over year to 55.7%. The company is disciplined on expenses to improve operating efficiency.
Segmental Details
Wholesale: Net sales fell 14.9% from the year-ago quarter’s level to $52.6 million.
Retail: The segment's net sales dwindled 16.9% from the year-ago quarter’s figure to $50.5 million.
Corporate & Others: Net sales in the segment declined 52.2% from the year-ago quarter’s level to $1.1 million.
Financials
As of Jun 1, 2024, Bassett had cash and equivalents worth $42.6 million, down from $52.4 million recorded at the end of the fiscal 2023. Short-term investments at the end of the second quarter of fiscal 2024 were $17.8 million, at par with the fiscal 2023 end.
Long-term debt (a portion of operating lease obligations) totaled $90.6 million, down from $97.4 million recorded at the fiscal 2023 end.
Net cash used in operations in the reported quarter totaled $1.9 million against $8.9 million reported in the year-ago period.
Zacks Rank & Recent Consumer Discretionary Releases
Bassett currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Culp, Inc. (CULP - Free Report) reported mixed results in fourth-quarter fiscal 2024 (ended Apr 28, 2024). Its adjusted loss was narrower than the Zacks Consensus Estimate while net sales marginally missed the same. On a year-over-year basis, net sales declined and the adjusted loss widened.
The quarterly results reflect softness in industry demand for the company’s reportable businesses due to ongoing macroeconomic headwinds and the timing of orders, due to many larger customers experiencing prolonged conditions beginning in January. Nonetheless, initiatives to lower manufacturing costs and execute operational excellence aided the bottom line to some extent. Culp intends to work on its restructuring plan as it believes this will enable it to grow more efficiently and profitably, with a lower level of fixed costs.
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
The upside was primarily backed by sustained demand strength and increased booking volumes. The company reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in both price and occupancy. It reported strength in pricing for the North America, Australia and Europe segments for the third and fourth quarters of 2024 on a year-over-year basis. Management expects net yields to exceed 10% and drive double-digit returns on invested capital.
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, missing the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands including BUBBA, Caldwell, Grilla, and Hooyman. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. The bottom line was negatively impacted by the amortization of tariff and freight costs stemming from higher inventory purchases, which occurred in first-half fiscal 2024, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in fiscal 2022.