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Item 1. Financial Statements

2026-09-30 compared with 2026-07-01 · 204 added, 114 removed, 374 unchanged (46% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED MAY 30, 2026 AND MAY 31, 2025 – UNAUDITED

FOR THE PERIODS ENDED AUGUST 29, 2026 AND AUGUST 30, 2025 – UNAUDITED

(In thousands)

Six Months Ended

Nine Months Ended

August 29, 2026

August 30, 2025

Operating activities:

28 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

4 unchanged sentences

The condensed consolidated financial statements include the accounts of Bassett Furniture Industries, Incorporated (“Bassett”, “we”, “our”, or the “Company”) and our subsidiaries, all of which are wholly owned.

In accordance with ASC Topic 810, we have evaluated our licensees and certain other entities to determine whether they are variable interest entities (“VIEs”) of which we are the primary beneficiary and thus would require consolidation in our financial statements.

As of and for the periods ended May 30, 2026 and May 31, 2025 and as of November 29, 2025 we have concluded that none of the evaluated entities represent VIEs.

In accordance with ASC Topic 810, Consolidation , we have evaluated our licensees and certain other entities to determine whether they are variable interest entities (“VIEs”) of which we are the primary beneficiary and thus would require consolidation in our financial statements.

As of and for the periods ended August 29, 2026 and August 30, 2025 and as of November 29, 2025 we have concluded that none of the evaluated entities represent VIEs.

Revenue from the sale of furniture and accessories is reported in the accompanying condensed consolidated statements of income net of estimates for returns and allowances.

We exclude from revenues amounts collected from customers for sales tax.

Certain amounts for the three and six months ended May 31, 2025 have been reclassified to conform to the current year’s presentation.

Certain amounts for the three and nine months ended August 30, 2025 have been reclassified to conform to the current year’s presentation.

See Note 13, Revenue Recognition.

1 unchanged sentence

All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements.

The results of operations for the three and six months ended May 30, 2026 are not necessarily indicative of results for the full fiscal year.

The results of operations for the three and nine months ended August 29, 2026 are not necessarily indicative of results for the full fiscal year.

These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended November 29, 2025.

Certain prior period amounts have been reclassified to conform to current period presentation.

We calculate an anticipated effective tax rate for the year based on our annual estimates of pretax income or loss and use that effective tax rate to record our year-to-date income tax provision.

Any change in annual projections of pretax income or loss could have a significant impact on our effective tax rate for the respective quarter.

Our effective tax rate was 26.5 % for the three and six months ended May 30, 2026.

Our effective tax rates were 27.2 % and 26.8 % for the three and nine months ended August 29, 2026, respectively.

The effective rate differs from the federal statutory rate of 21 % primarily due to the effects of state income taxes and various permanent differences.

Our effective tax rate was 26.1 % and 26.8 % for the three and six months ended May 31, 2025, respectively.

Our effective tax rate was 26.8 % for both the three and nine months ended August 30, 2025.

The effective rate differs from the federal statutory rate of 21 % primarily due to the effects of state income taxes and various permanent differences.

Supplemental Cash Flow Information

During the six months ended May 30, 2026 and May 31, 2025, $ 9,228 and $ 378 , respectively, of lease right-of-use assets were added through the recognition of the corresponding lease obligations.

Income tax refunds received (taxes paid), net, during the six months ended May 30, 2026 and May 31, 2025 were as follows:

Six Months Ended

Total income tax refunds received (taxes paid), net

During the nine months ended August 29, 2026 and August 30, 2025, $ 9,228 and $ 378 , respectively, of lease right-of-use assets were added through the recognition of the corresponding lease obligations.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

Interest paid during the six months ended May 30, 2026 and May 31, 2025 was $ 28 and $ 14 , respectively.

Income tax refunds received (taxes paid), net, during the nine months ended August 29, 2026 and August 30, 2025 were as follows:

Nine Months Ended

Total income tax refunds received (taxes paid), net

Interest paid during the nine months ended August 29, 2026 and August 30, 2025 was $ 42 and $ 25 , respectively.

Lessor Income

We receive lease income as the lessor on a small number of leased premises which we have subleased to other tenants.

Sublease income for closed stores and warehouses is included in selling, general and administrative expense in the accompanying condensed consolidated statements of income and was $ 155 and $ 309 for the three and six months ended May 30, 2026, respectively, and $ 148 and $ 251 for the three and six months ended May 31, 2025, respectively.

Sublease income for closed stores and warehouses is included in selling, general and administrative (“SG&A”) expense in the accompanying condensed consolidated statements of income and was $ 118 and $ 427 for the three and nine months ended August 29, 2026, respectively, and $ 149 and $ 399 for the three and nine months ended August 30, 2025, respectively.

We also sublease one location to a licensee.

This sublease income is included in other income (loss), net in the accompanying condensed consolidated statements of income and was $ 118 and $ 236 for the three and six months ended May 30, 2026, respectively, and $ 114 and $ 228 for the three and six months ended May 31, 2025, respectively.

This sublease income is included in other income (loss), net in the accompanying condensed consolidated statements of income and was $ 118 and $ 354 for the three and nine months ended August 29, 2026, respectively, and $ 114 and $ 343 for the three and nine months ended August 30, 2025, respectively.

Licensee Acquisition

11 unchanged sentences

The inputs into our valuation of the acquired assets reflect our market assumptions and are not observable.

Consequently, the inputs are considered to be Level 3 inputs as specified in the fair value hierarchy in ASC 820, Fair Value Measurements and Disclosures.

See Note 6 regarding the allocation of the goodwill to our reportable segments.

Consequently, the inputs are considered to be Level 3 inputs as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures .

See Note 6, Goodwill, regarding the allocation of the goodwill to our reportable segments.

The recognized goodwill of $ 447 is deductible for income tax purposes.

We believe that the primary factor supporting the recognized goodwill is that the licensee which formerly operated the Cherry Hill BHF store has established our brand in the greater Philadelphia, Pennsylvania market and this acquisition will enable us to maintain and grow our brand presence in that market.

We believe that the primary factor supporting the recognized goodwill is that the acquired licensee has established our brand in the greater Philadelphia, Pennsylvania market and this acquisition will enable us to maintain and grow our brand presence in that market.

The acquisition is not material to our condensed consolidated financial statements and, accordingly, pro forma revenue and earnings disclosures are not material and have not been presented.

Sales and operating losses generated by the Cherry Hill store subsequent to acquisition were not material for the three and six months ended May 30, 2026.

Sales and operating losses generated by the Cherry Hill store subsequent to acquisition were not material for the three and nine months ended August 29, 2026.

Acquisition costs were immaterial.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

New Store Pre-Opening Costs

Income from operations for the three and six months ended May 30, 2026 includes new store pre-opening costs of $ 473 and $ 568 , respectively.

Income from operations for the three and nine months ended August 29, 2026 includes new store pre-opening costs of $ 144 and $ 712 , respectively.

Such costs consist of expenses incurred at the new store location during the period prior to its opening and include, among other things, facility occupancy costs such as rent and utilities and local store personnel costs related to pre-opening activities including training.

2 unchanged sentences

There are no pre-opening costs associated with stores acquired from licensees, as such locations were already in operation at the time of their acquisition.

Tariff Refund

During 2025, the President of the United States imposed high tariffs on many imported goods, including many of our imported products, under the International Emergency Economic Powers Act of 1977 (“IEEPA”).

We capitalize tariffs into the cost of imported inventory and recognize tariffs in the income statement as the products are sold to third party customers.

In February of 2026, the U.S.

Supreme Court invalidated the tariffs previously imposed under IEEPA.

As a result, during the third quarter of fiscal 2026 we received $ 2,832 in tariff refunds from U.S.

Customs and Border Protection.

We have elected to recognize the tariff refunds as received.

To the extent that the refund related to tariffs previously capitalized into inventory that had been sold through August 29, 2026, the benefit of the refund has been recognized in the income statement resulting in a $ 956 increase in gross profit for the three and nine months ended August 29, 2026.

The cost of inventory on hand at August 29, 2026 has been reduced to reflect the remaining reversal of previously incurred IEEPA tariffs due to the refund, which will result in additional benefits to gross profit as those goods are sold, primarily during the fourth quarter of fiscal 2026.

In connection with the tariff refund, we also received interest of $ 94 which is included in interest income for the three and nine months ended August 29, 2026.

Financial Instruments and Investments

2 unchanged sentences

Because of their short maturities, the carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value.

Our short-term investments of $ 18,023 and $ 17,963 at August 29, 2026 and November 29, 2025, respectively, consisted of CDs.

At August 29, 2026, the CDs had original terms averaging seven months, bearing interest at rates ranging from 2.0 % to 4.1 % and the weighted average remaining time to maturity was approximately five months and the weighted average yield of the CDs was approximately 3.8 %.

Each CD is placed with a federally insured financial institution and all deposits are within federal deposit insurance limits.

Due to the nature of these investments and their relatively short maturities, the carrying amount of the short-term investments at August 29, 2026 and November 29, 2025 approximates their fair value.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

Our short-term investments of $ 17,988 and $ 17,963 at May 30, 2026 and November 29, 2025, respectively, consisted of CDs.

At May 30, 2026, the CDs had original terms averaging seven months, bearing interest at rates ranging from 2.0 % to 4.1 % and the weighted average remaining time to maturity was approximately three months and the weighted average yield of the CDs was approximately 3.6 %.

Each CD is placed with a federally insured financial institution and all deposits are within federal deposit insurance limits.

Due to the nature of these investments and their relatively short maturities, the carrying amount of the short-term investments at May 30, 2026 and November 29, 2025 approximates their fair value.

Accounts Receivable

Accounts receivable consists of the following:

August 29, 2026

Gross accounts receivable

5 unchanged sentences

Actual credit losses could differ from those estimates.

We have elected to use the practical expedient under ASC Topic 326 which allows us to assume that current conditions as of the balance sheet date do not change over the expected life of the receivables, which is generally ninety days or less.

Activity in the allowance for credit losses for the six months ended May 30, 2026 and May 31, 2025 was as follows:

Six Months Ended

We have elected to use the practical expedient under ASC Topic 326, Financial Instruments – Credit Losses , which allows us to assume that current conditions as of the balance sheet date do not change over the expected life of the receivables, which is generally ninety days or less.

Activity in the allowance for credit losses for the nine months ended August 29, 2026 and August 30, 2025 was as follows:

Nine Months Ended

August 29, 2026

August 30, 2025

Beginning balance

Additions charged to expense

Additions charged (recoveries credited) to expense

Write-offs against allowance

Ending balance

Substantially all of the accounts receivable written off against the reserve during the three and six months ended May 30, 2026 and May 31, 2025 originated during our fiscal years ended November 29, 2025 and November 30, 2024, respectively.

We believe that the carrying value of our net accounts receivable approximates fair value.

The inputs into these fair value estimates reflect our market assumptions and are not observable.

Consequently, the inputs are considered to be Level 3 as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures .

Substantially all of the accounts receivable written off against the reserve during the three and nine months ended August 29, 2026 and August 30, 2025 originated during our fiscal years ended November 29, 2025 and November 30, 2024, respectively.

Because the expected life of our trade receivables is short-term, we believe that the carrying value of our net accounts receivable approximates fair value.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

2 unchanged sentences

Inventories were comprised of the following:

August 29, 2026

November 29, 2025

18 unchanged sentences

Activity in the reserves for excess quantities and obsolete inventory by segment are as follows:

Six Months Ended May 30, 2026

Nine Months Ended August 29, 2026

Retail Segment

1 unchanged sentence

Additions charged to expense

Balance at May 30, 2026

Six Months Ended May 31, 2025

Balance at August 29, 2026

Nine Months Ended August 30, 2025

Retail Segment

1 unchanged sentence

Additions charged to expense

Balance at May 31, 2025

Balance at August 30, 2025

Our estimates and assumptions have been reasonably accurate in the past.

3 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

2 unchanged sentences

Goodwill arising from licensee acquisition (Note 2)

Balance as of May 30, 2026

Accumulated impairment losses at both May 30, 2026 and November 29, 2025 were as follows:

Balance as of August 29, 2026

Accumulated impairment losses at both August 29, 2026 and November 29, 2025 were as follows:

Accumulated impairment losses

Intangible Assets

Intangible assets at May 30, 2026 and November 29, 2025 consisted of the following:

Intangible assets at August 29, 2026 and November 29, 2025 consisted of the following:

Intangibles subject to amortization:

4 unchanged sentences

Total intangible assets

Amortization expense associated with intangible assets during the three and six months ended May 30, 2026 and May 31, 2025 was as follows:

Amortization expense associated with intangible assets during the three and nine months ended August 29, 2026 and August 30, 2025 was as follows:

Quarter Ended

Six Months Ended

Nine Months Ended

Intangible asset amortization expense

Estimated future amortization expense for intangible assets that exist at May 30, 2026 is as follows:

Estimated future amortization expense for intangible assets that exist at August 29, 2026 is as follows:

Remainder of fiscal 2026

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

2 unchanged sentences

This Credit Facility provides for a line of credit of up to $ 25,000 .

At May 30, 2026, we had $ 5,866 outstanding under standby letters of credit against our line.

At August 29, 2026, we had $ 5,866 outstanding under standby letters of credit against our line.

The line bears interest at the One-Month Term Secured Overnight Financing Rate (“One-Month Term SOFR”) plus 1.75 % and is secured by our accounts receivable and inventory.

4 unchanged sentences

Consolidated Lease Adjusted Leverage to EBITDAR Ratio (as defined in the Credit Facility) not to exceed 3.35 times.

At May 30, 2026, we were in compliance with the Consolidated Minimum Tangible Net Worth requirement.

Since our used commitment was less than $ 8,250 at May 30, 2026, we were not required to test the Consolidated Fixed Charge Coverage Ratio or the Consolidated Lease Adjusted Leverage to EBITDAR Ratio.

At August 29, 2026, we were in compliance with the Consolidated Minimum Tangible Net Worth requirement.

Since our used commitment was less than $ 8,250 at August 29, 2026, we were not required to test the Consolidated Fixed Charge Coverage Ratio or the Consolidated Lease Adjusted Leverage to EBITDAR Ratio.

However, had we been required to test those ratios, we would have been in full compliance.

Our availability under the Credit Facility is currently $ 19,134 .

Our availability under the Credit Facility as of August 29, 2026 is $ 19,134 .

On January 9, 2026, the Credit Facility was amended to extend the expiration to January 31, 2029.

1 unchanged sentence

Defined Benefit Plans

We have an unfunded Supplemental Retirement Income Plan (the “Supplemental Plan”) that covers one current and certain former executives.

The liability for the Supplemental Plan was $ 5,622 and $ 5,611 as of May 30, 2026 and November 29, 2025, respectively.

We have an unfunded Supplemental Retirement Income Plan (the “Supplemental Plan”) that covers one current executive and certain former executives.

The liability for the Supplemental Plan was $ 5,627 and $ 5,611 as of August 29, 2026 and November 29, 2025, respectively.

We also have the Bassett Furniture Industries, Incorporated Management Savings Plan (the “Management Savings Plan”) which was established in the second quarter of fiscal 2017.

3 unchanged sentences

Currently, two of those employees have retired and are receiving benefits.

The liability for the LTC Awards was $ 1,328 and $ 1,379 as of May 30, 2026 and November 29, 2025, respectively.

Components of net periodic pension costs for our defined benefit plans for the three and six months ended May 30, 2026 and May 31, 2025 are as follows:

The liability for the LTC Awards was $ 1,343 and $ 1,379 as of August 29, 2026 and November 29, 2025, respectively.

Components of net periodic pension costs for our defined benefit plans for the three and nine months ended August 29, 2026 and August 30, 2025 are as follows:

Quarter Ended

Six Months Ended

Nine Months Ended

August 29, 2026

August 30, 2025

August 29, 2026

August 30, 2025

Interest cost

1 unchanged sentence

Net periodic pension cost

The components of net periodic pension cost other than the service cost component, which is included in selling, general and administrative expenses, are included in other income (loss), net in our condensed consolidated statements of income.

Deferred Compensation Plans

We have an unfunded deferred compensation plan that covers one current executive and certain former executives and provides for voluntary deferral of compensation.

This plan has been frozen with no additional participants or deferrals permitted.

Our liability under this plan was $ 1,598 and $ 1,562 as of May 30, 2026 and November 29, 2025, respectively.

We have an additional unfunded deferred compensation plan maintained for the benefit of certain highly compensated or management level employees which was established under the Management Savings Plan.

Our liability under this plan, including both accrued Company contributions and participant salary deferrals, was $ 4,642 and $ 3,968 as of May 30, 2026 and November 29, 2025, respectively.

The components of net periodic pension cost other than the service cost component, which is included in SG&A expenses, are included in other income (loss), net in our condensed consolidated statements of income.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

Deferred Compensation Plans

We have an unfunded deferred compensation plan that covers one current executive and certain former executives and provides for voluntary deferral of compensation.

This plan has been frozen with no additional participants or deferrals permitted.

Our liability under this plan was $ 1,615 and $ 1,562 as of August 29, 2026 and November 29, 2025, respectively.

Our liability under this plan, including both accrued Company contributions and participant salary deferrals, was $ 4,795 and $ 3,968 as of August 29, 2026 and November 29, 2025, respectively.

The non-current portion of the obligations under our defined benefit and deferred compensation plans are included in post employment benefit obligations in the accompanying balance sheets as follows:

August 29, 2026

November 29, 2025

7 unchanged sentences

Post employment benefit obligations

The current portion of these post employment benefit obligations totaled $ 1,142 at both May 30, 2026 and November 29, 2025 and is included in accrued compensation and benefits in the accompanying condensed consolidated balance sheets.

We recognized expense under our deferred compensation arrangements during the three and six months ended May 30, 2026 and May 31, 2025 as follows:

The current portion of these post employment benefit obligations totaled $ 1,142 at both August 29, 2026 and November 29, 2025 and is included in accrued compensation and benefits in the accompanying condensed consolidated balance sheets.

We recognized expense under our deferred compensation arrangements during the three and nine months ended August 29, 2026 and August 30, 2025 as follows:

Quarter Ended

Six Months Ended

Nine Months Ended

August 29, 2026

August 30, 2025

August 29, 2026

August 30, 2025

Deferred compensation expense

3 unchanged sentences

Lease Guarantees

We were contingently liable under licensee lease obligation guarantees in the amounts of $ 3,656 and $ 4,148 at May 30, 2026 and November 29, 2025, respectively.

The remaining term under these lease guarantees extends for approximately five years.

In the event of default by the licensee, we believe that the risk of loss is mitigated through a combination of options that include, but are not limited to, arranging for a replacement licensee or liquidating the collateral (primarily inventory).

The proceeds of the above options are expected to cover the estimated amount of our future payments under the guarantee obligation, net of recorded reserves.

The fair value of these lease guarantees (an estimate of the cost to the Company to perform on the guarantee) at May 30, 2026 and November 29, 2025 was not material.

We were contingently liable under licensee lease obligation guarantees in the amounts of $ 3,410 and $ 4,148 at August 29, 2026 and November 29, 2025, respectively.

The remaining term under these lease guarantees extends for approximately four years.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

The proceeds of the above options are expected to cover the estimated amount of our future payments under the guarantee obligation, net of recorded reserves.

The fair value of these lease guarantees (an estimate of the cost to the Company to perform on the guarantee) at August 29, 2026 and November 29, 2025 was not material.

Lease Commitments

At May 30, 2026, we had a commitment for one lease of real property which is expected to commence during fiscal 2026.

At August 29, 2026, we had a commitment for one lease of real property which is expected to commence during fiscal 2027.

This lease calls for total annual rents averaging approximately $ 403 per year for an initial term of ten years.

4 unchanged sentences

Weighted Average

For the quarter ended May 30, 2026:

For the quarter ended August 29, 2026

Basic earnings per share

2 unchanged sentences

Diluted earnings per share

For the quarter ended May 31, 2025:

For the quarter ended August 30, 2025

Basic earnings per share

2 unchanged sentences

Diluted earnings per share

For the six months ended May 30, 2026:

For the Nine Months Ended August 29, 2026

Basic earnings per share

2 unchanged sentences

Diluted earnings per share

For the six months ended May 31, 2025:

For the Nine Months Ended August 30, 2025

Basic earnings per share

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Diluted earnings per share

For the three and six months ended May 30, 2026 and May 31, 2025, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive:

For the three and nine months ended August 29, 2026 and August 30, 2025, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive:

Quarter Ended

Six Months Ended

Nine Months Ended

August 29, 2026

August 30, 2025

August 29, 2026

August 30, 2025

Unvested shares

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

1 unchanged sentence

We report segment information consistent with the way our chief operating decision maker (the “CODM”), a single individual who serves as our Board Chair, President and Chief Executive Officer, evaluates the operating results and performance of the Company.

We have strategically aligned our business into two reportable segments as defined in ASC 280, Segment Reporting , and as described below:

We have strategically aligned our business into two reportable segments as defined in ASC Topic 280, Segment Reporting , and as described below:

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.

5 unchanged sentences

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 May 30, 2026 and May 31, 2025, Corporate and other included no other operating segments.

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.

We consider our corporate functions to be other business activities.

As of and for the three and nine months ended August 29, 2026 and August 30, 2025, Corporate and other included no other operating segments.

Intercompany net sales elimination represents the elimination of wholesale sales to our Company-owned stores.

Intercompany 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 intercompany income elimination also includes rent paid by our retail stores occupying Company-owned real estate.

For the purpose of evaluating segment performance and allocating resources, our CODM uses a measure of income (loss) from operations excluding special items.

These excluded items include such things as asset impairment charges, restructuring charges, and other unusual or infrequent gains and losses which management does not expect to recur on a regular routine basis.

During the three and six months ended May 30, 2026 and May 31, 2025, there were no special items recognized in our results of operations.

The CODM assesses performance by regularly reviewing each segment’s significant expense categories which include total cost of goods sold and total selling, general and administrative (“SG&A”) expenses.

During the three and nine months ended August 29, 2026 and August 30, 2025, there were no special items recognized in our results of operations.

The CODM assesses performance by regularly reviewing each segment’s significant expense categories which include total cost of goods sold and total SG&A expenses.

If these significant expense categories deviate from expected results, the CODM will delegate to his direct reports the task of investigating the underlying causes and, when necessary, making recommendations for remedial action to the CODM for his consideration and approval.

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

The following tables present our segment information:

Quarter Ended May 30, 2026

The following tables present our results of operations by segment:

Quarter Ended August 29, 2026

Net sales to external customers

1 unchanged sentence

Total net sales

Less intersegment sales

Consolidated net sales

Cost of goods sold

Other segment items - new store pre-opening costs

Income (loss) from operations

Segment income (loss) from operations

Reconciliation of profit or loss:

Unallocated corporate expenses

Elimination of intersegment loss

Consolidated income from operations

Interest income

Other income, net

Other loss, net

Income before income taxes

Quarter Ended May 31, 2025

Quarter Ended August 30, 2025

Net sales to external customers

1 unchanged sentence

Total net sales

Less intersegment sales

Consolidated net sales

Cost of goods sold

Income (loss) from operations

Segment income (loss) from operations

Reconciliation of profit or loss:

Unallocated corporate expenses

Elimination of intersegment loss

Consolidated income from operations

Interest income

Other loss, net

Other income, net

Income before income taxes

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

Six Months Ended May 30, 2026

Nine Months Ended August 29, 2026

Net sales to external customers

1 unchanged sentence

Total net sales

Less intersegment sales

Consolidated net sales

Cost of goods sold

Other segment items - new store pre-opening costs

Income (loss) from operations

Segment income (loss) from operations

Reconciliation of profit or loss:

Unallocated corporate expenses

Elimination of intersegment loss

Consolidated income from operations

Interest income

1 unchanged sentence

Income before income taxes

Six Months Ended May 31, 2025

Nine Months Ended August 30, 2025

Net sales to external customers

1 unchanged sentence

Total net sales

Less intersegment sales

Consolidated net sales

Cost of goods sold

Income (loss) from operations

Segment income from operations

Reconciliation of profit or loss:

Unallocated corporate expenses

Elimination of intersegment loss

Consolidated income from operations

Interest income

1 unchanged sentence

Income before income taxes

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

Additional segment information is as follows:

Quarter Ended

Six Months Ended

Nine Months Ended

August 29, 2026

August 30, 2025

August 29, 2026

August 30, 2025

Depreciation and Amortization

5 unchanged sentences

Identifiable Assets

August 29, 2026

November 29, 2025

2 unchanged sentences

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

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

(Dollars in thousands except share and per share data)

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.

For our wholesale and retail segments, revenue is recognized when control of the product transfers to the customer.

At wholesale, transfer occurs and revenue is recognized upon the shipment of goods to independent dealers and licensee-owned BHF stores.

1 unchanged sentence

All wholesale and retail revenues are recorded net of estimated returns and allowances based on historical patterns.

Our accounts receivable, net, which are associated with our wholesale segment, were $ 12,559 , $ 14,410 , $ 12,883 and $ 13,181 at May 30, 2026, November 29, 2025, May 31, 2025 and November 30, 2024, respectively.

Our accounts receivable, net, which are associated with our wholesale segment, were $ 14,273 , $ 14,410 , $ 13,135 and $ 13,181 at August 29, 2026, November 29, 2025, August 30, 2025 and November 30, 2024, respectively.

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 $ 25,568 , $ 24,969 , $ 24,029 and $ 25,742 as of May 30, 2026, November 29, 2025, May 31, 2025 and November 30, 2024, respectively.

Substantially all of the customer deposits held as of November 29, 2025 related to performance obligations that were satisfied during the current year-to-date period and have therefore been recognized in revenue for the six months ended May 30, 2026.

Similarly, substantially all of the customer deposits held at May 30, 2026 are expected to be recognized as revenue within the next twelve months.

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.

These customer deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $ 23,848 , $ 24,969 , $ 23,149 and $ 25,742 as of August 29, 2026, November 29, 2025, August 30, 2025 and November 30, 2024, respectively.

Similarly, substantially all of the customer deposits held at August 29, 2026 are expected to be recognized as revenue within the next twelve months.

Sales commissions are expensed as part of SG&A 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.

1 unchanged sentence

– 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 May 30, 2026, November 29, 2025, May 31, 2025 and November 30, 2024, our balance of prepaid commissions included in other current assets was $ 2,716 , $ 2,662 , $ 2,663 and $ 2,928 , respectively.

At August 29, 2026, November 29, 2025, August 30, 2025 and November 30, 2024, our balance of prepaid commissions included in other current assets was $ 2,568 , $ 2,662 , $ 2,537 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 and six months ended May 30, 2026 and May 31, 2025, excluding intercompany transactions between our segments, is as follows:

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

Disaggregated revenue information for sales of furniture and accessories by product category for the three and nine months ended August 29, 2026 and August 30, 2025, excluding intercompany transactions between our segments, is as follows:

Quarter Ended

May 31, 2025 (1)

August 29, 2026

August 30, 2025

Bassett Custom Upholstery

4 unchanged sentences

Consolidated net sales of furniture and accessories

Six Months Ended

May 31, 2025 (1)

Nine Months Ended

August 29, 2026

August 30, 2025

Bassett Custom Upholstery

9 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

Changes to Stockholders ’ Equity

The following changes in our stockholders’ equity occurred during the three and six months ended May 30, 2026 and May 31, 2025:

The following changes in our stockholders’ equity occurred during the three and nine months ended August 29, 2026 and August 30, 2025:

Quarter Ended

Six Months Ended

Nine Months Ended

August 29, 2026

August 30, 2025

August 29, 2026

August 30, 2025

Common Stock:

27 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

Recent Accounting Pronouncements

Effective November 29, 2025, we adopted Accounting Standards Update 2023-07 – Segment Reporting (Topic ASC 280) Improvements to Reportable Segment Disclosures.

Effective December 1, 2024, we adopted Accounting Standards Update 2023-07 – Segment Reporting (Topic ASC 280) Improvements to Reportable Segment Disclosures.

The ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

3 unchanged sentences

The other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss.

The enhanced disclosures required by ASU 2023-07 are reflected in our segment disclosures in Note 12.

The enhanced disclosures required by ASU 2023-07 are reflected in our segment disclosures in Note 12, Segments.

The adoption of this guidance related solely to disclosures and did not have an impact upon our financial position or results of operations.

This guidance was initially applied for our annual financial statements for the year ended November 29, 2005 and for interim periods beginning in fiscal 2026.

This guidance was applied retrospectively to all periods presented.

In December 2023, the FASB issued Accounting Standards Update 2023-09 – Income Taxes (Topic ASC 740) Income Taxes.

11 unchanged sentences

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

AUGUST 29, 2026

(Dollars in thousands except share and per share data)

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements