Bassett Furniture Industries, Inc. reported its financial results for the third quarter of fiscal 2026, which ended on August 29, 2026. The company announced that consolidated revenues for the quarter reached $82.8 million, representing a 3.4% increase compared to the prior year period.

Operating income for the quarter was reported at $2.8 million, or 3.4% of sales. This marked a significant improvement from the prior year, where operating income was $0.6 million, or 0.7% of sales. The company attributed this improvement to sales increases in key product categories, improved expense control, and tariff refunds.

Bassett received $2.8 million in tariff refunds from U.S. Customs and Border Protection following a U.S. Supreme Court decision in February 2026 that invalidated certain tariffs. Of this amount, $1.0 million was recorded as an increase in gross profit for the quarter, with the remaining amounts expected to be recorded in the fourth quarter of 2026. The company noted that it imports less than 25% of its products.

Gross margin for the third quarter was 57.5%, a 130-basis point increase over the prior year. This increase was driven primarily by higher margins in the wholesale business due to the tariff refund, partially offset by lower margins in the retail business. Selling, general, and administrative (SG&A) expenses, excluding new store pre-opening costs, were 53.9% of sales, a 150-basis point decrease compared to the prior year.

Diluted earnings per share (EPS) for the quarter were $0.24, compared to $0.09 per share in the prior year period. The company also generated $6.1 million of cash from operating activities.

Segment performance included a 4.4% increase in written retail sales and a 7.9% increase in wholesale orders. The Lane Venture brand saw sales rise nearly 29%. E-commerce written sales increased by 48%.

Bassett Chairman and CEO Rob Spilman stated that the company is continuing to execute a plan focused on growing sales and profitability. He noted that the company plans to be more aggressive with Black Friday promotions. However, Spilman also highlighted challenges, including housing market slowdowns and higher mortgage rates, which he identified as a drag on the industry.

The company will hold a conference call to discuss its quarterly results on October 1, 2026, at 9:00 am ET.