The following is a summary of the Bassett Furniture Industries, Incorporated (BSET) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Consolidated gross margin for Q3 was 53%, an improvement of 1.4% from the previous year.

• Total revenue declined by $11.6 million or 13%, with a 16% decrease in wholesale sales and a 10% decrease in retail sales.

• Operating loss was reported at $6.4 million, compared to a loss of $3.2 million in Q3 2023.

• Unproductive labor costs due to a cybersecurity incident affected profitability by approximately $609,000.

Business Progress:

• Implemented a five-point restructuring plan intended to improve long-term operational and financial performance. Key initiatives include optimizing inventory, consolidating U.S. wood manufacturing, and upgrading omnichannel capabilities.

• Opened nine new Bassett Custom Studio dealers, expanding the dedicated distribution footprint.

• Significant e-commerce growth achieved, though it remains a small part of overall retail revenue.

• Plans to launch three major collections covering bedroom, dining, and occasional and entertainment product offerings starting this fall through spring 2025.

Opportunities:

• Enhancements in omnichannel capabilities and e-commerce are poised to strengthen the Bassett brand, complementing in-home makeover proficiency and potentially boosting sales.

• The launch of new product collections and designs is likely to attract more customers and enhance market competitiveness.

Risks:

• The culmination of recent external events such as Hurricane Helene and the East Coast dock strike, along with operational disruptions from a cyberattack, have impacted distribution and operational efficiency.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.