Bassett Furniture Industries Shatters Sales Records with 3.4% Revenue Surge in Q3 2026
Bassett Furniture Industries, a leading manufacturer and retailer of high-quality furniture, has posted impressive results for the third quarter of fiscal 2026, ending August 29, 2026.
According to CEO Rob Spilman, the company saw a 3.4% increase in consolidated revenue, driven by gains in both retail and wholesale sales. This growth is attributed to increased demand across all product categories, with domestic upholstery leading the way.
The written retail sales from company-owned stores rose 4.4%, maintaining momentum from the previous quarter despite having one less week of Labor Day promotion compared to last year. Wholesale written orders also saw a significant increase of 7.9%, led by double-digit gains in domestic upholstery and the Lane Venture outdoor division.
Operating profits showed notable improvements, thanks to sales increases in key product categories, enhanced expense control, and tariff refunds that offset embedded tariff costs. The company's reliance on domestic production (less than 25% of products imported) resulted in lower tariff refunds compared to others.
Gross margins expanded by 130 basis points, primarily due to improved wholesale margins and some benefit from tariff refunds. Retail gross profit fell by 80 basis points; however, the recent pricing strategies implemented in July have started to yield positive results, as evidenced by a 9% written sales increase with improved written gross margins during the full four-week Labor Day promotion.
Bassett's management team continues to prioritize reducing operating expenses, and they are on track to meet their goal of lowering the annual run rate of expenses by an additional $1.5 million to $2 million. SG&A (excluding pre-opening costs for the Orlando store) was 150 basis points lower than last year's third quarter.
The company has also made strides in its strategic initiatives, particularly those aimed at growing sales from new and existing stores. The marketing team's optimization of the media mix continues to yield positive results, with an excellent response to their 84-page fall catalog featuring curated room layouts and styling tips along with new collections.
Bassett's e-commerce written sales soared by 48% this quarter, and website-delivered sales rose more than 42%. Average order value on the web increased by 33%, driven by stationary and motion upholstery categories. The company's technology investments have enhanced the website presentation and navigation, benefiting the user experience and driving these sales results.
The domestic custom furniture products drove the majority of written wholesale sales gain, with custom upholstery and motion upholstery in particular performing very well. Bassett's BenchMade dining program also had a nice quarter, and Lane Venture continued to thrive, with the product team seeking new expressions of comfort and innovation to add to the assortment.
