Bassett Furniture Industries Inc (BSET) 2025 Q1 法說會逐字稿

Good day and thank you for standing by. Welcome to the Bassett Furniture Industries' first-quarter 2025 earnings call. (Operator Instructions) Please be advised today's conference is being recorded. I would not like to hand the conference over to your speaker today, Dru Ingram, Vice President and Controller, please go ahead.

您好，感謝您的支持。歡迎參加 Bassett Furniture Industries 2025 年第一季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。我不想把今天的會議交給你們的發言人、副總裁兼財務長 Dru Ingram，請繼續。

Thank you, Kevin for the introduction. Welcome to Bassett Furniture's earnings call for the first quarter ending March 1, 2025. I'm Dru Ingram, Bassett's Controller. I am sitting in this morning for our CFO Mike Daniel, who's out for an unexpected event in his immediate family. Please keep Mike and his family in your thoughts.

謝謝凱文的介紹。歡迎參加 Bassett Furniture 截至 2025 年 3 月 1 日的第一季財報電話會議。我是巴塞特的控制員德魯·英格拉姆。今天早上我出席我們財務長麥克丹尼爾的會議，他因直系親屬有意外事件而外出。請永遠記得麥克和他的家人。

Joining me today is our Chairman and CEO, Rob Spilman. We issued our news release yesterday after the market closed and it's available on our website. After today's remarks, we will open up a call for question-and-answer session. We will post the transcript of the call on Bassett's investor website within 48 hours of this call.

今天與我一起出席的是我們的董事長兼執行長 Rob Spilman。我們在昨天市場收盤後發布了新聞稿，您可以在我們的網站上查閱。今天的發言結束後，我們將開始問答環節。我們將在通話結束後 48 小時內將通話記錄發佈在 Bassett 的投資者網站上。

Due to calendar shifts, our first quarter of the fiscal year had 13 weeks as compared to 14 weeks in fiscal 2024. During today's call, certain statements we make may be considered forward-looking and inherently involve risks and uncertainties that could cause actual results to differ materially from management's present view.

由於日曆變化，我們本財年第一季有 13 週，而 2024 財年有 14 週。在今天的電話會議中，我們所做的某些陳述可能被視為前瞻性的，並且本質上涉及風險和不確定性，可能導致實際結果與管理層目前的觀點有重大差異。

These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. The company cannot agree to or cannot guarantee the accuracy of any forecast or estimate, nor does it undertake any obligation to update such forward-looking statements.

這些聲明是根據 1995 年私人證券訴訟改革法案的安全港條款做出的。本公司無法同意或保證任何預測或估計的準確性，也不承擔更新此類前瞻性陳述的任何義務。

For more information, including important cautionary notes, please see the company's annual report on Form 10-K for the fiscal year ending November 30, 2024. Other filings with the SEC describing risks related to our business are available on our corporate website under the Investor tab.

如欲了解更多資訊（包括重要警告），請參閱本公司截至 2024 年 11 月 30 日的財政年度的 10-K 表年度報告。向我們提交給美國證券交易委員會的其他文件描述了與我們業務相關的風險，可以在我們公司網站的「投資者」標籤下找到。

Now I'll turn it over to Rob for comments about our first quarter. Rob?

現在我將把話題交給 Rob，請他對我們的第一季發表評論。搶？

Thank you, Dru, and good morning everyone. We are pleased to report improved operating results for our first quarter of 2025. The streamlining of our cost structure that began last year, coupled with higher levels of operating efficiency in both our wholesale and retail segments, combined to produce $4.8 million of improvement in operating profits.

謝謝你，Dru，大家早安。我們很高興地報告 2025 年第一季的經營業績有所改善。我們從去年開始精簡成本結構，加上批發和零售部門營運效率的提高，共同帶來了 480 萬美元的營業利潤成長。

As I said last quarter, our strategic plan for 2025 was designed to weather another year of tepid demand and to keep us disciplined and focused on growth. Our management team is running with a leaner mindset, and we are accelerating new ideas and innovative products to position us well and providing quality home furnishings and design services.

正如我上個季度所說，我們的 2025 年策略計畫旨在度過另一年的低迷需求，並讓我們保持紀律並專注於成長。我們的管理團隊正以精簡的思維方式運作，我們正在加速推出新想法和創新產品，以使我們處於有利地位並提供優質的家居裝飾和設計服務。

We're incorporating more technology into the customer experience and fine tuning our marketing. We planned for housing sales to remain slow, and we're working to react quickly to the ups and downs of economic data and changes from Washington.

我們正在將更多的技術融入客戶體驗中並對我們的行銷進行微調。我們預計房屋銷售將保持緩慢增長，並且我們正在努力對經濟數據的起伏和華盛頓的變化做出快速反應。

Last week's report that consumer confidence was plummeting was disconcerting, but we believe the steps we've taken will help us run efficiently, and get through this tough furniture economy.

上週有關消費者信心暴跌的報告令人不安，但我們相信，我們採取的措施將幫助我們高效運營，並度過艱難的家具經濟時期。

Let's move to the results of our first quarter. Consolidated sales were down by 5.1% for the first quarter, which was due largely to the comparison of 13 weeks this year to last year's fiscal 14 weeks.

讓我們來看看第一季的業績。第一季綜合銷售額下降了 5.1%，這主要是因為今年有 13 週，而去年財年有 14 週。

On a normalized basis, sales revenue for the first quarter increased 2.2%. We had a strong December and January, due in part to the shorter time frame between Black Friday and Christmas. The sales environment was a little more challenging in February.

以正常化計算，第一季銷售收入成長2.2%。12 月和 1 月的銷售表現強勁，部分原因是黑色星期五和聖誕節之間的時間間隔較短。二月的銷售環境更具挑戰性。

Our President's Day promotional event was not as successful as last year. And we've since seen the industry get more aggressive with discounts and credit promotions. Wholesale orders were down by 8.4% for the quarter or 1.4% normalized for the extra week.

我們的總統日促銷活動不如去年成功。從那時起，我們就看到該行業在折扣和信用促銷方面變得更加積極。本季度批發訂單下降了 8.4%，或以額外一周計算正常下降了 1.4%。

On a normalized basis compared to last year, orders from our store network increased 4.2%, with December and January posting higher increases, and February reporting a decrease due to a very aggressive promotional environment around President's Day.

與去年同期相比，我們門市網路的訂單量正常化後成長了 4.2%，其中 12 月和 1 月的增幅較大，而 2 月的訂單量則因總統日期間非常積極的促銷環境而出現下降。

Orders from our traditional wholesale business, however, decreased 10% on a normalized basis, with February being the slowest month of the quarter. Orders from our outdoor furniture business were essentially flat on a normalized basis.

然而，我們傳統批發業務的訂單量正常化下降了 10%，其中 2 月是本季訂單量最慢的月份。我們的戶外家具業務的訂單基本上保持穩定。

We were pleased that on a normalized basis written sales in our corporate stores for the quarter increased 5.4%, even with the softer February sales. Although retail gross margins fell modestly, cost reductions from our retail warehouse consolidation program and lower marketing expense contributed to our improved results.

我們很高興看到，儘管 2 月銷售額有所下降，但本季我們公司門市的正常銷售額仍成長了 5.4%。儘管零售毛利率略有下降，但我們的零售倉庫整合計劃帶來的成本降低以及行銷費用的降低有助於我們業績的改善。

Our retail warehouse consolidation plan is ongoing, and we expect additional improvement in this regard as the year progresses. I'm especially excited with even more progress coming from our e-commerce, and our drive to improve Bassett's omnichannel model.

我們的零售倉庫整合計畫正在進行中，我們預計隨著時間的推移，這方面將會得到進一步的改善。我對我們的電子商務取得的更多進展以及我們改進巴塞特全通路模式的努力感到特別興奮。

The investments that we made and will continue to make in bassettfurniture.com are responsible for Q1 e-commerce sales being up 36%. While we have not seen higher web traffic so far this year, a higher rate of conversion is currently contributing to sales growth.

我們對 bassettfurniture.com 進行的投資以及將繼續進行的投資，使得第一季電子商務銷售額成長了 36%。雖然今年到目前為止我們還沒有看到更高的網路流量，但更高的轉換率目前正在促進銷售成長。

We expect that with continued investments in omnichannel, we have opportunities for growth in traffic and conversions for the remainder of the year. We are being more prescriptive in our marketing efforts. While we reduce marketing and advertising costs this quarter, we are disciplined about getting better returns from these investments.

我們預計，隨著對全通路的持續投資，我們在今年剩餘時間內將有機會實現流量和轉換率的成長。我們的行銷工作正在變得更加規範。雖然我們本季減少了行銷和廣告成本，但我們堅持從這些投資中獲得更好的回報。

Direct mail was especially effective in supporting the launch of our whole home Copenhagen line, and allows us to reinforce newness and our design services. We plan to incorporate direct mail more frequently in our promotional mix and in digital outreach activities for the remainder of the year.

直郵對於支持我們推出整個哥本哈根家居系列特別有效，並使我們能夠強化新穎性和設計服務。我們計劃在今年剩餘時間內將直郵更頻繁地納入我們的促銷組合和數位推廣活動中。

We continue to focus on our sales efforts outside of the store network. We reached a milestone when we signed dealer number 50 to our Bassett Custom Studio program in February. The 1,000 square foot concept from the recently acclaimed best custom upholstery company in the industry by furniture today is gathering steam.

我們將繼續專注於門市網路以外的銷售工作。當我們在二月與第 50 家 Bassett Custom Studio 專案經銷商簽約時，我們達到了一個里程碑。這家最近被《家具》雜誌譽為業內最佳客製化室內裝潢公司的 1,000 平方英尺概念如今正逐漸流行起來。

Part of the momentum we are seeing is attributable to last year's addition of 50 leather options to our true custom upholstery program. We are also about to unveil a new product visualization and B2B ordering system that will simplify the experience for the retail salespeople and their clients at the store level.

我們所看到的勢頭部分歸功於去年我們真正的定制內飾計劃增加了 50 種皮革選擇。我們也即將推出新的產品視覺化和 B2B 訂購系統，這將簡化商店層級零售銷售人員及其客戶的體驗。

With the April high point furniture market around the corner, we continue to integrate greater innovation and newness into our product line to drive higher sales. Three new efforts are particularly noteworthy. First, the hideaway BenchMade domestic dining program. An extensive collection of tables and chairs and solid maple that features self-storing table leaves and an enhanced array of upholstered dining chairs.

隨著四月家具市場高峰即將到來，我們將繼續將更多的創新和新穎性融入我們的產品線，以推動更高的銷售量。其中有三項新措施尤其值得關注。首先，隱藏的BenchMade家庭餐飲計劃。種類繁多的桌椅和實心楓木，配有可自收的桌板和一系列增強的軟墊餐椅。

This program offers tremendous value in today's marketplace. Next are the two whole home product collections, Andorra and Newberry, which will launch later this year. Both feature transitional styling and exciting combinations of finishes and materials.

該計劃在當今市場上具有巨大的價值。接下來是兩個整體家居產品系列，安道爾和紐貝裡，將於今年稍後推出。兩者都具有過渡風格以及令人興奮的飾面和材料組合。

And third, we are building on our program of accent furniture to enhance our retail displays. These products feature stone, metal, woven material and leather combinations that are also conducive for web sales and round out design projects.

第三，我們正在建立重點家具計劃，以增強我們的零售展示。這些產品採用石材、金屬、編織材料和皮革組合而成，也有利於網路銷售和完善設計項目。

Tariffs have been top of mind across the industry for several months, culminating with President Trump's Rose Garden announcement 17 hours ago. Although 79% of our wholesale shipments in the first quarter were manufactured or assembled in the US, many materials such as fabrics or plywood used in the manufacturing process will now be exposed to tariffs, as will the remaining 21% that we bring in fully assembled.

幾個月來，關稅一直是整個行業的焦點，17 小時前川普總統在玫瑰園宣布這一消息後，關稅問題達到了頂峰。儘管我們第一季 79% 的批發發貨量是在美國製造或組裝的，但製造過程中使用的許多材料（例如織物或膠合板）現在將面臨關稅，我們完全組裝的其餘 21% 也面臨關稅。

While the reciprocal tariffs are now known, there are additional tariffs on certain materials used in the manufacture of some of our products. The entire industry is working with outside experts to gain clarity on this unusual situation. We will determine what this means for our pricing structure on goods that are affected over the next several days.

雖然現在已知互惠關稅，但對於我們某些產品製造中使用的某些材料還有額外的關稅。整個行業正在與外部專家合作，以弄清楚這一不尋常的情況。我們將在接下來的幾天內確定這對受影響商品的定價結構意味著什麼。

We do firmly believe that the announced tariff policies will not positively influence the American consumer to invest in home furnishings until the effects of these policies are fully implemented and understood.

我們堅信，在這些政策的效果得到全面實施和理解之前，所宣布的關稅政策不會對美國消費者對家居裝飾的投資產生積極影響。

On March 13, we announced that our Board of Directors approved a regularly quarterly dividend of $0.20 per share. Dividends augmented by opportunistic share repurchases remain a key piece of our capital returns to shareholders.

3 月 13 日，我們宣布董事會批准每股 0.20 美元的定期季度股息。透過機會性股票回購增加的股利仍然是我們向股東提供資本回報的關鍵部分。

Now I'll turn things back over to Dru for more details on our financials. Dru?

現在我將把話題轉回給 Dru，以了解有關我們財務狀況的更多詳細資訊。德魯？

Thanks, Rob. In my commentary, the comparisons I will discuss will be the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024, unless otherwise noted. And as Rob mentioned earlier, there was an additional week from the prior year period compared to 13 weeks in the reported quarter.

謝謝，羅布。在我的評論中，我將討論的比較是 2025 財年第一季與 2024 財年第一季的比較，除非另有說明。正如 Rob 之前提到的，與報告季度的 13 週相比，今年比去年同期多了一周。

For the first quarter, total consolidated revenue declined $4.4 million or 5.1%, primarily due to the additional week in the prior year quarter. On a normalized basis, sales revenue increased $1.8 million or 2.2%. This includes a normalized 4.2% increase in wholesale shipments and 6.8% increase in retail delivered sales through our company owned stores.

第一季度，總合併收入下降 440 萬美元，降幅 5.1%，主要原因是去年同期多了一週。以正常標準計算，銷售收入增加了 180 萬美元，即 2.2%。其中包括批發出貨量標準化成長 4.2% 和透過我們公司自有商店的零售交付銷售額成長 6.8%。

Solid gross margins increased to 170 basis points due primarily to better margins in the wholesale segment. SG&A expenses were 54% of sales, which was 400 basis points lower than last year, as we reap the benefits of last year's restructuring. We reported consolidated operating income of $2.5 million compared to a loss of $2.4 million. Diluted earnings per share were $0.21 versus a loss of $0.14.

穩健的毛利率上升至 170 個基點，主要由於批發部門利潤率的增加。銷售、一般及行政費用佔銷售額的 54%，比去年低 400 個基點，因為我們從去年的重組中獲益。我們報告的綜合營業收入為 250 萬美元，而虧損為 240 萬美元。每股攤薄收益為 0.21 美元，而每股虧損為 0.14 美元。

Let me cover more details on the wholesale operations. Net sales decreased $1.8 million or 3.2% from the prior year period due primarily to the additional week in the prior year quarter. On a comparable basis, sales revenue increased 4.2% or $2.1 million consisting of a 6.1% increase in shipments to the retail store network, and an 11% increase in Lane Venture shipments, partially offset by 2.2% decrease in shipments to the open market.

讓我介紹一下批發業務的更多細節。淨銷售額較去年同期減少 180 萬美元，或 3.2%，主要原因是去年同期多出了一周。在可比較基礎上，銷售收入成長 4.2% 或 210 萬美元，其中零售店網路出貨量成長 6.1%，Lane Venture 出貨量成長 11%，但公開市場出貨量下降 2.2% 部分抵銷了這一成長。

Gross margin increased 250 basis points over the prior year period, primarily due to improved margins in our Bassett Custom Upholstery business for manufacturing efficiency gains. Increased margins in our Lane Venture operations due to improved customer mix and improved margins in our imported club-level business.

毛利率較上年同期增加 250 個基點，主要由於我們的 Bassett Custom Upholstery 業務的利潤率因製造效率的提高而提高。由於客戶結構改善以及進口俱樂部級業務利潤率提高，我們的 Lane Venture 業務利潤率有所提高。

SG&A expenses as a percent of sales decreased 150 basis points, primarily due to the benefit of cost reductions implemented during the second half of fiscal 2024. Wholesale backlog at the quarter end was $19.5 million compared to $21.8 million at the end of last year and $19.5 million at the end of Q1 2024.

銷售、一般及行政費用佔銷售額的百分比下降了 150 個基點，這主要得益於 2024 財年下半年實施的成本削減。本季末的批發積壓訂單為 1,950 萬美元，而去年底為 2,180 萬美元，2024 年第一季末為 1,950 萬美元。

Now moving on to our retail operations. Net sales decreased $460,000 or 90 basis points due primarily to the additional week in the prior year quarter. On a comparable basis, sales revenue increased 6.8% or $3.4 million.

現在轉向我們的零售業務。淨銷售額下降 46 萬美元或 90 個基點，主要原因是去年同期多出了一周。以可比較價格計算，銷售收入成長 6.8% 或 340 萬美元。

Written sales, orders written but not delivered, declined 2.1% from the first quarter last year. On a normalized basis, written sales were up 5.4%. Gross margin for the quarter declined 80 basis points due to lower margins for inline and clearance goods as we became slightly more aggressive in cycling through unproductive inventory, which was part of our five point restructuring plan from 2024.

書面銷售額（已簽訂但未交付的訂單）較去年第一季下降 2.1%。以正常標準計算，書面銷售額成長了5.4%。本季毛利率下降了 80 個基點，因為我們在循環利用非生產性庫存方面變得更加積極，導致內銷和清倉商品的利潤率下降，這是我們 2024 年五點重組計劃的一部分。

SG&A expenses as some sales were down 370 basis points, primarily due to the benefit of cost reductions implemented during the second half of fiscal 2024 coupled with lower advertising and marketing costs and efficiency gains in our warehouse and delivery operations.

部分銷售額的銷售、一般及行政費用下降了 370 個基點，這主要歸因於 2024 財年下半年實施的成本削減，加上廣告和行銷成本降低以及倉庫和配送業務效率的提高。

Retail backlog at the end of the first quarter was $36.1 million compared to $37 million at the end of last year and $31.3 million at the end of Q1 '24. Our liquidity position remains solid. Although we generated a slight operating cash flow deficit for the quarter, it represented an improvement of $7.7 million over the prior year.

第一季末的零售積壓訂單為 3,610 萬美元，而去年末為 3,700 萬美元，2024 年第一季末為 3,130 萬美元。我們的流動性狀況依然穩固。儘管本季我們的營運現金流略有赤字，但與前一年相比仍改善了 770 萬美元。

Our first quarters typically our lowest of the four quarters for cash generations. We ended the quarter with $56.4 million in cash and short-term investments and have no outstanding debt.

我們的第一季通常是四個季度中現金產生量最低的季度。本季末，我們擁有 5,640 萬美元的現金和短期投資，並且沒有未償債務。

This year, we have projected a range of capital investment in our business of between $8 million and $12 million, primarily to cover remodels of existing stores, investments in technology, including e-commerce, and potential store openings. We continue to pay our quarterly dividend and repurchase shares opportunistically. We spent $1.7 million on dividends and $721,000 on share buybacks in Q1.

今年，我們預計業務資本投資將在 800 萬美元至 1200 萬美元之間，主要用於現有商店的改造、包括電子商務在內的技術投資以及潛在的商店開設。我們將繼續支付季度股利並適時回購股票。我們在第一季花費了 170 萬美元用於股息，721,000 美元用於股票回購。

We remain committed to stockholder returns through dividends and paybacks. Through our restructuring, we made the necessary changes to our operations to return to profitability. As Rob said, we believe we have positioned Bassett will to weather today's challenges, and we are committed to investing in our business in a cautious, smart, and calculated fashion while providing our stockholders with a reasonable return.

我們仍然致力於透過股息和回報為股東帶來回報。透過重組，我們對營運進行了必要的改變，以恢復獲利能力。正如羅布所說，我們相信我們已經做好了巴塞特應對當今挑戰的準備，我們致力於以謹慎、明智和深思熟慮的方式投資我們的業務，同時為我們的股東提供合理的回報。

Now we'll open up the line for questions. Kevin, please provide instructions to do so.

現在我們將開始回答問題。凱文，請提供操作說明。

(Operator Instructions) Anthony Lebiedzinski, Sidoti and Company.

（操作員指示）Anthony Lebiedzinski，Sidoti and Company。

Hey, good morning and thank you for taking the questions, and my sympathies to Mike and his family. So I guess, first, and by the way, Rob, thanks for providing the color about the monthly trends. So just wondering, since then -- as far as with consumer confidence, dropping as you noted, have you guys seen any meaningful change in the trends in your business, since the quarter end of -- just curious to get your high level thoughts about that.

嘿，早安，感謝您回答問題，我向麥克和他的家人表示慰問。所以我想，首先，順便說一句，羅布，謝謝你提供有關月度趨勢的詳細資訊。所以我只是想知道，從那時起——就消費者信心而言，正如您所說，自本季度末以來，你們的業務趨勢是否發生了任何有意義的變化——我只是好奇地想听聽您對此的高層看法。

Well, Anthony, good morning. I would say, when after the election, we saw a spike in sales and activity. Our Black Friday was good, as we've noticed last quarter, and then December and January, we're pretty strong. But as we've gotten further into the year, I would say that our business has falling off that pace, but back really to last year's pace that we saw in the first part of last year.

嗯，安東尼，早安。我想說，選舉結束後，我們看到了銷售和活動的激增。我們的「黑色星期五」表現不錯，正如我們上個季度所注意到的，然後是 12 月和 1 月，我們的表現相當強勁。但隨著時間的流逝，我想說我們的業務已經放慢了速度，但實際上已經回到了去年上半年的水平。

So we're on a year-over-year basis, I think we're kind of trending where we were a year ago, with the notable bump that we got post-election and November, December and January.

因此，與去年同期相比，我認為我們的趨勢與一年前差不多，但在選舉後以及 11 月、12 月和 1 月出現了明顯的增長。

That's very helpful, yeah, yeah, yes, that certainly makes sense. Yeah, thanks for providing that color. So as far as your inventory, it was up sequentially from last -- I'm sorry, from the end of the fiscal year. Just wondering if you could comment on the health of that inventory. And just wondering if you guys perhaps brought in some additional inventory to try to get ahead of the tariffs.

這非常有幫助，是的，是的，是的，這當然有道理。是的，感謝您提供這種顏色。就您的庫存而言，它是從上一財年末開始連續增加的。只是想知道您是否可以評論一下庫存的健康狀況。我只是想知道你們是否可能引進了一些額外的庫存，以試圖領先於關稅。

Well, we really didn't consciously bring in extra inventory for the tariffs, but those collections that I mentioned, the Copenhagen, which we did last year and it's selling well, and then one of those whole home collections, the Andorra.

嗯，我們確實沒有刻意為關稅引進額外的庫存，但是我提到的那些系列，哥本哈根，是我們去年做的，而且賣得很好，然後是整個家居系列之一，安道爾。

We brought in anticipation of the spring season and that those were really the primary drivers of increased inventory, and frankly, I'm now that we know what happened yesterday, I'm glad we did bring in that Andorra ahead of the spring season, so that's basically the -- what happened.

我們對春季的到來充滿期待，而這些確實是庫存增加的主要驅動力，坦率地說，我現在知道昨天發生了什麼，我很高興我們在春季到來之前就引入了安道爾，所以這基本上就是發生的事情。

And of course, now we got a new ball game, so we'll be certainly discussing that today and in the next several days, but that was really the driver.

當然，現在我們面臨新的比賽，所以我們今天和接下來的幾天肯定會討論這個問題，但這才是真正的驅動力。

Gotcha. So speaking of the new ball game, as far as the announcement, yesterday, I know it's still fresh, but just kind of initial kind of thoughts as to kind of the strategy, where you guys go from here. Just wondering if any of those imported products, could they be manufactured in the US or is that just not feasible? We would love to hear your thoughts on that.

明白了。所以說到新的球賽，就昨天的公告而言，我知道它仍然很新鮮，但只是對某種策略的初步想法，以及你們下一步將如何發展。只是想知道這些進口產品是否可以在美國生產，或者這是否不可行？我們很想聽聽您對此的想法。

I think for us that's not feasible. What we can do, of course, I mean, as I mentioned, 79% went in the box in the US, so we do have a solid domestic footprint. And so we'll be looking at our mix, and we'll be looking at really what the full effects of the tariffs are and we can certainly emphasize -- excuse me, the domestic product, more purposely and more prominently if we choose to do so.

我認為對我們來說這是不可行的。當然，我們可以做的是，正如我所提到的，79% 的銷量都銷往了美國，所以我們確實在國內擁有穩固的市場地位。因此，我們將審視我們的組合，我們將真正審視關稅的全部影響，如果我們選擇這樣做，我們當然可以更有目的、更突出地強調——對不起，國內產品。

But we have some nice selling imported products and a couple that we introduced last year that are making a difference. So we've got to really study that, and -- but we do have some flexibility given that we have five factories in the US, and we can do some things. It's not as they were totally relying on imports.

但我們有一些暢銷的進口產品，以及去年推出的一些正在產生影響的產品。所以我們必須認真研究這一點，但考慮到我們在美國有五家工廠，我們確實有一定的彈性，我們可以做一些事情。這並不是說他們完全依賴進口。

Understood, yes. Well, thank you very much, and best of luck.

明白了，是的。好吧，非常感謝，祝你好運。

Thank you, Anthony.

謝謝你，安東尼。

Brian Gordon, Water Tower Research.

布萊恩·戈登（Brian Gordon），水塔研究公司。

Good morning everyone. And I would also want to offer my sympathies to Mike and his family. I guess, my question is sort of on the gross margins. I mean they were very impressive in the quarter, and I'm wondering how sustainable these could be, especially given the majority of your production being domestic, even if there is an impact from the tariffs on that 21% of the business. It feels like, I mean, assuming demand holds up reasonably well, that we could see these levels continuing through the rest of the year.

大家早安。我還想向麥克和他的家人表示慰問。我想，我的問題是關於毛利率的。我的意思是，他們在本季度的表現非常令人印象深刻，我想知道這些表現的可持續性如何，特別是考慮到你們的大部分生產都是在國內進行的，即使關稅對這 21% 的業務產生了影響。我的意思是，假設需求保持得相當好，我們可以看到這些水平將持續到今年剩餘時間。

Well, morning, Brian. This is Rob. The -- look, these are as high gross margin levels we've ever achieved or right up there with it. And we -- as Dru mentioned in his remarks, the wholesale segment really contributed to that.

早安，布萊恩。這是羅布。你看，這是我們曾經達到的最高的毛利率水平，或者說是與之相當的水平。正如德魯在演講中提到的那樣，批發部門確實對此做出了貢獻。

And our retail margins were down slightly but not very much, and of course we had the corresponding reduction in the SG&A expenses. I don't see our gross margins going any higher than this in the short term, and that's because we want to keep our retail inventory lean.

我們的零售利潤率略有下降，但下降幅度不大，當然銷售、一般及行政費用也相應減少。我認為我們的毛利率短期內不會高於這個水平，這是因為我們希望保持零售庫存精簡。

Anthony asked about increasing inventory, and I failed to mention that our retail inventory did go up some and some of that is goods that we want to move out. So we want to continue to keep that cash flowing, of course, and then the wildcard is, of course, as of yesterday knowing now what's going on with the imports, how do we react to that.

安東尼詢問了增加庫存的情況，而我沒有提到我們的零售庫存確實增加了一些，其中一些是我們想要移出的商品。因此，我們當然希望繼續保持現金流動，然後，當然，未知因素是，截至昨天，我們知道進口情況如何，我們該如何應對。

If it stays like it is, we're going to have to increase prices at some level on this stuff, and we don't. That's what today's about. We're really kind of huddling up and seeing, so I don't see a big diminution in our gross margin coming, but I don't see it getting higher than it currently is or was for this quarter.

如果情況繼續這樣發展，我們將不得不在一定程度上提高這類產品的價格，但我們沒有這麼做。這就是今天要講的內容。我們確實在聚在一起觀察，所以我不認為我們的毛利率會大幅下降，但我也不認為它會比目前或本季更高。

Got it, thank you. That's very helpful in terms of like the near term strategy for addressing the tariffs, are you thinking about surcharges or list price increases or any other sort of mitigation strategy like that?

知道了，謝謝。這對於解決關稅問題的短期策略非常有幫助，您是否考慮過附加費或提高標價或任何其他類似的緩解策略？

We're thinking about everything, but we don't know the answer. We have been reaching out to our best customers and talking to them about this, what's their point of view, what do they see happening from our competitors, that kind of stuff.

我們思考一切，卻不知道答案。我們一直在與我們最好的客戶聯繫並與他們討論這個問題，了解他們的觀點是什麼，他們認為我們的競爭對手會做什麼，諸如此類的事情。

So we're going to have to reach a conclusion on that. But frankly since 4:00 PM yesterday we've been talking about this and we've been getting ready for this call. So when we get up, we're going to have a big meeting so but it's an unusual time to say the least.

所以我們必須就此得出結論。但坦白說，從昨天下午 4 點開始我們就一直在討論這個問題，並且一直在為這次電話會議做準備。所以當我們起床時，我們將要召開一個重要會議，但至少可以說這是一個不尋常的時間。

Yeah, certainly. Could you talk a little bit more about your plans for new store openings and maybe your targets for the design studios and how many, and in an ideal situation would you like to be at by the end of this year?

是的，當然。您能否再多談談您開設新店的計劃，以及您對設計工作室的目標，以及在理想情況下您希望在今年年底前開設多少個設計工作室？

Well, if I tell you a number, you won't remember it. So on the design studios, but we do see additional white space for us to grow this program and I would say significantly, so that's a big focus, and of course, all that's domestic product. So we'll be pushing that hard at the market coming up and between now and then. What was the second part of that the --

好吧，如果我告訴你一個數字，你不會記住它。因此，在設計工作室方面，我們確實看到了額外的空白空間，可以讓我們發展這個項目，而且我想說，這是一個很大的進步，所以這是一個重點，當然，所有這些都是國內產品。因此，我們將在即將到來的市場以及現在和將來大力推動這一進程。第二部分是什麼--

I was just asking about new stores as well.

我剛才也在詢問有關新店的情況。

New stores, right?

新店吧？

I think the number was like maybe two.

我認為這個數字大概是兩個。

Yeah, that's right. We actually are in the throws. Jay, our General Counsel sitting in here, and he's been working with a couple of landlords. We usually don't reveal where they are until we get closer to the thing and get the thing signed. But we do -- we will sign a couple of new leases in the next -- in a very short amount of time.

是的，沒錯。我們實際上處於投擲狀態。我們的總法律顧問傑伊坐在這裡，他一直在與幾位房東合作。我們通常不會透露它們的位置，直到我們接近該物品並獲得簽名為止。但我們確實會在很短的時間內簽署幾份新的租約。

It's going to take some time to retrofit the store and turn it into a Bassett footprint. And so we're thinking probably very late in this year or early next year, but both are new markets for us, one of which we've been in before, so we're excited about that.

改造這家商店並將其變成巴塞特的足跡需要一些時間。因此，我們考慮可能在今年年底或明年年初，但這兩個市場對我們來說都是新市場，其中一個我們之前已經進入過，所以我們對此感到很興奮。

Yeah, thank you. So that's basically all the questions I have at this point. So good luck for the quarter.

是的，謝謝。這就是我現在所有的問題。祝本季好運。

Hey, thank you, Brian. We'll be talking to you.

嘿，謝謝你，布萊恩。我們會和你談話。

And I'm not showing any further questions this time. I like turn the call back over to Rob.

這次我不會再提出任何其他問題。我想把電話轉回羅布。

Well, thank you Kevin, and thank you everyone for tuning in today. And we are pleased with the quarter and our progress. But certainly the environment out there is not getting simpler, it's getting more complex, and we are going to deal with that and persevere through this.

好吧，謝謝凱文，也謝謝大家今天的收聽。我們對本季和我們的進展感到滿意。但可以肯定的是，外面的環境並沒有變得更簡單，反而變得更加複雜，我們將應對這個問題並堅持下去。

And we like what we've done with our cost structure, and we feel our product line is strong, and we're just going to focus on dealing with this new environment and heading into hopefully a successful market in April. So thank you for your interest in Bassett and have a good day.

我們對我們的成本結構所做的調整感到滿意，我們認為我們的產品線很強大，我們只需要專注於應對這種新環境，並希望在四月進入一個成功的市場。感謝您對巴塞特的關注，祝您有美好的一天。

Hello ladies and gentlemen, that's include today's presentation. You may now disconnect and have a wonderful day.

女士們、先生們，大家好，這就是今天的演講。現在您可以斷開連接並享受美好的一天。