Bassett Furniture Industries Inc (BSET) 2025 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Bassett Furniture second-quarter 2025 earnings conference call. (Operator Instructions) Please note that today's conference may be recorded.

您好，感謝您的支持。歡迎參加 Bassett Furniture 2025 年第二季財報電話會議。（操作員指示）請注意，今天的會議可能會被錄音。

I will now hand the conference over to your first speaker, Mr. Mike Daniel, Chief Financial Officer. Please go ahead.

現在我將會議交給第一位發言者，財務長麥克丹尼爾先生。請繼續。

Thank you, Olivia, for the introduction. Welcome to Bassett Furniture's earnings call for the second quarter of fiscal 2025 ended May 31, 2025. Joining me today is our Chairman and CEO, Rob Spilman.

謝謝奧莉維亞的介紹。歡迎參加 Bassett Furniture 截至 2025 年 5 月 31 日的 2025 財年第二季財報電話會議。今天與我一起出席的是我們的董事長兼執行長 Rob Spilman。

We issued our news release yesterday after the market closed, and it's available on our website. We will be filing our Form 10-Q, early this morning and that, too, will be on the website. After today's remarks, we will open the call up for a Q&A session. We will post a transcript of the call on Bassett's Investor website following the conference call.

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。我們將於今天早上提交 10-Q 表格，該表格也將發佈在網站上。今天的發言結束後，我們將開始問答環節。電話會議結束後，我們將在 Bassett 的投資者網站上發布通話記錄。

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. These statements are made pursuant to the Safe Harbor provision 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 take any obligation to update such forward-looking statements.

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。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。本公司不能同意或不能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 things over to Rob. Rob?

現在，我將把事情交給 Rob。搶？

Okay. Thank you, Mike. Good morning, everyone, and thank you for joining us. One year ago this quarter, Bassett announced a five-point restructuring strategy designed to grow business and improve profitability. We've been aggressively implementing that plan which included development of a pipeline of innovative products to support our reputation as a company provides quality craftsmanship in the wholesale and retail channels and custom design services. All of us at the Bassett organization remain focused on executing these initiatives to meet these goals and reduce costs.

好的。謝謝你，麥克。大家早安，感謝大家的收看。一年前這個季度，巴塞特宣布了一項旨在發展業務和提高獲利能力的五點重組策略。我們一直在積極實施該計劃，其中包括開發一系列創新產品，以維護我們作為一家在批發和零售通路提供優質工藝和客製化設計服務的公司聲譽。巴塞特組織的所有成員都將繼續致力於執行這些舉措，以實現這些目標並降低成本。

I'm happy to report that our second-quarter results have improved like last quarter, despite a very challenging sales environment that affects (technical difficulty) our entire industry. Consumer space historically weak housing market, our interest rates and uncertainty about the impact that the trade tariffs have on the cost of goods. This lack of confidence makes them very hesitant about investing in home furnishings right now. We believe that our restructuring program continues to have positive effect on our results and our future strategy.

我很高興地報告，儘管銷售環境非常具有挑戰性，影響了我們整個行業（技術難度），但我們的第二季業績與上一季相比有所改善。消費領域歷史上疲軟的房地產市場、我們的利率以及貿易關稅對商品成本影響的不確定性。這種缺乏信心的情況使得他們現在對於投資家居裝飾非常猶豫。我們相信，我們的重組計劃將繼續對我們的業績和未來策略產生積極影響。

We grew consolidated sales slightly, up 1.1% from last year's second quarter. Excluding sales from Noa Home Incorporated which closed in late 2024, consolidated revenue from the ongoing business increased 2.5%. Efforts to reduce our cost structure that began this time last year, coupled with higher levels of operating efficiency in both our wholesale and retail segments, delivered $2.5 million of operating profit or 3% of sales compared to a loss this time last year.

我們的綜合銷售額略有成長，比去年第二季成長了 1.1%。不計入 2024 年底關閉的 Noa Home Incorporated 的銷售額，持續經營業務的綜合收入增長了 2.5%。我們從去年此時開始努力降低成本結構，再加上批發和零售部門的營運效率提高，實現了 250 萬美元的營業利潤或 3% 的銷售額，而去年同期則為虧損。

Before I get to our detailed comments for the second quarter, it's important to reiterate how tough the housing and remodeling environment is in 2025. And we don't see that changing for the foreseeable future. The spring is normally the busiest time of the year for housing sales and that activity flows to the home process industry. Recent headline pointed to data from the National Association of Realtors showing existing home sales edged up 0.8% in May, ending a two-month streak of declines.

在我對第二季進行詳細評論之前，有必要重申 2025 年的住房和改造環境有多麼嚴峻。我們認為在可預見的未來這種情況不會改變。春季通常是一年中房屋銷售最繁忙的時期，而這種活動主要集中在家居加工行業。最近的頭條新聞指出，全美房地產經紀人協會的數據顯示，5 月現房銷售小幅上漲 0.8%，結束了連續兩個月的下滑。

However, that was the slowest pace for any May since 2009. Affordability remains a drag on housing. And like others, we are watching for some form of stimulus to spur mortgage activity and greater home sales and remodeling activity. Our strategic plan for this fiscal year was based on a continuation of the tepid housing market, and that is characterized the past three years.

然而，這是自 2009 年以來 5 月最慢的成長速度。負擔能力仍然是住房的一個限制因素。和其他人一樣，我們正在關注某種形式的刺激措施，以刺激抵押貸款活動以及增加房屋銷售和改造活動。我們本財年的策略計畫是基於持續低迷的房地產市場而製定的，這也是過去三年的特徵。

The decisions and the investments we have made on new lines and product launches, expanding e-commerce capabilities and modifying our marketing activities are making a difference. That said, we have had to adjust to the impact of tariffs that depend on our supply chain and more importantly, on consumer confidence in general.

我們在新產品線和新產品發布、擴大電子商務能力和改變行銷活動方面做出的決策和投資正在產生影響。話雖如此，我們必須適應關稅的影響，這取決於我們的供應鏈，更重要的是，取決於整個消費者信心。

We are somewhat insulated versus others in the industry because almost 80% of our wholesale shipments are manufactured or assembled in our five US factories. But the fabric supply wood, componentry, and finished goods that we do import from countries like Vietnam and India, they did necessary to raise wholesale prices 3% to 5%, and in the quarter, something that we did not want to do in the current environment.

與業內其他公司相比，我們有一定的優勢，因為我們幾乎 80% 的批發貨物都是在我們位於美國的五家工廠生產或組裝的。但是，我們確實從越南和印度等國家進口了布料供應木材、零件和成品，他們確實有必要將批發價格提高 3% 至 5%，而在本季度，這是我們在當前環境下不想做的事情。

We've also been successful in working intently with various fabric vendors to mitigate the effects of tariffs on further price hikes. We're closely watching the outcome of the final trade agreements, and our teams are monitoring the tariff activity daily as these challenges affect future orders and products in transit. The dawning of Liberation Day, April 2, represented a direct line of demarcation between the more robust order base that started the year and the slowness we clearly saw in the second quarter.

我們也成功地與各種布料供應商密切合作，以減輕關稅對進一步價格上漲的影響。我們正密切關注最終貿易協定的結果，我們的團隊每天都在監控關稅活動，因為這些挑戰會影響未來的訂單和運輸中的產品。4 月 2 日解放日的到來標誌著年初更為強勁的訂單基礎與第二季明顯放緩之間的分界線。

March sales started off fine, but the rest of the quarter was down. Orders to our combined corporate and licensed store network grew by 9.6%, while our wholesale business from the open market declined by 6.6%, thus netting a 2.7% increase in all wholesale orders for the period.

3 月的銷售額一開始還不錯，但本季剩餘時間的銷售額卻出現下滑。我們的綜合企業和授權店網路的訂單成長了 9.6%，而來自公開市場的批發業務下降了 6.6%，因此本期間所有批發訂單淨增長了 2.7%。

Our core products led by our True Custom Upholstery with last year's addition of leather, drove most of the year-over-year improvement. Domestic motion and reclining product was also strong. As discussed last quarter, we recommitted to a whole home wood collections this year with three new offerings. The first, Copenhagen is retailing well, and we are very pleased with the reaction to the 35-piece Newberry collection at the April home furnishings market. Newberry will arrive in Bassett stores and independent retailers this fall followed later by the Andorra collection.

我們的核心產品以 True Custom Upholstery 為首，去年又增加了皮革產品，推動了大部分同比增長。國產運動和躺椅產品也表現強勁。正如上個季度所討論的，我們今年重新致力於推出全屋木材系列，並推出三款新產品。首先，哥本哈根的零售狀況良好，我們對 4 月家居用品市場上 35 件 Newberry 系列產品的反應感到非常滿意。Newberry 將於今年秋季登陸 Bassett 商店和獨立零售店，隨後安道爾系列也將上市。

Also in wood product, our new domestic Benchmade Hideaway dining program sold very well in wholesale this spring and we'll begin laboring our factory here in Virginia in July and August. Bolstered in part by stronger sales in Q1, corporate retail deliveries increased by 7.5% and operating performance improved significantly compared to 2024. Written sales in the stores declined by 0.8%. Most of the key performance metrics were static during the quarter, although higher close ratios and the stores kept written sales almost flat while store traffic declined.

同樣在木製品方面，我們新推出的國內 Benchmade Hideaway 餐飲系列今年春季批發銷售情況非常好，我們將於七月和八月在弗吉尼亞州的工廠開始生產。受第一季銷售強勁推動，企業零售交付量成長 7.5%，經營業績較 2024 年顯著改善。商店的書面銷售額下降了0.8%。本季大多數關鍵績效指標都保持穩定，儘管成交率較高且門市銷售額基本持平，而門市客流量有所下降。

Belt tightening from last year and restructuring in our marketing meant that we spent $1 million less in SG&A investments of $3.8 million more in delivered sales. The current pace of sales mandates that we continue to closely monitor all expenditures in the retail fleet. We've made progress on turning discontinued as is inventory into cash. And while the discounting will modestly affect retail gross margin, this plan is in place for the rest of the year.

從去年開始勒緊褲腰帶並進行行銷重組意味著我們在銷售、一般及行政管理方面的投資減少了 100 萬美元，而交付銷售額增加了 380 萬美元。目前的銷售速度要求我們繼續密切監控零售車隊的所有支出。我們在將停產庫存轉化為現金方面取得了進展。雖然折扣將對零售毛利率產生一定影響，但該計劃仍將在今年剩餘時間內實施。

Wholesale sales to customers outside the Bassett store network were a mixed bag but ultimately, down by 6.6%. I noted earlier that March was strong, and almost all of the decline here occurred in April. The decline was largely due to lower sales in our Club Level program, particularly with those accounts that generally buy containers directly from our vendors in Asia.

對巴塞特商店網路以外客戶的批發銷售額有好有壞，但最終下降了 6.6%。我之前指出，三月表現強勁，幾乎所有的下滑都發生在四月。下降的主要原因是我們的俱樂部級計劃的銷售額下降，特別是那些通常直接從我們的亞洲供應商購買貨櫃的客戶。

There has been a natural hesitancy from these dealers to commit to imported goods in large quantities until greater clarity is obtained on the tariff question. Once again, we are looking forward to getting the large product introduction from the April show on the retail floors this fall as we felt we had a particularly strong market of placements in April.

在關稅問題得到更明確的解釋之前，這些經銷商自然不願意大量進口商品。我們再次期待今年秋季能夠在零售場所推出四月份展會上的大量產品，因為我們感覺四月份的展示市場特別強勁。

We're also encouraged by the progress from investments in our omnichannel model to enhance the retail customer experience. Written sales at bassettfurniture.com were up 31% in the second quarter versus last year despite the housing issues, and this follows an increase of 36% in Q1.

我們也對全通路模式的投資進展感到鼓舞，這有利於提升零售客戶體驗。儘管有房屋問題，bassettfurniture.com 的書面銷售額在第二季仍比去年同期成長了 31%，而第一季的增幅為 36%。

While website traffic was flat for the quarter, we have much higher levels of conversion and we're reaching customers where we don't have physical stores. We continue to tweak the technology drivers to improve traffic, the user experience, and our site conversions.

雖然本季網站流量持平，但我們的轉換率卻大幅提高，我們正在接觸沒有實體店的顧客。我們不斷調整技術驅動程式以改善流量、使用者體驗和網站轉換率。

We made changes to our marketing mix in the second quarter to drive brand awareness, introduce new product lines, and to emphasize our custom design services. Last year, we relied exclusively on digital marketing for the quarter. This spring, we had success in using direct mail for the launch of the Copenhagen line and is now part of our marketing strategy for the remainder of the year.

我們在第二季度對行銷組合進行了調整，以提高品牌知名度、推出新的產品線並強調我們的客製化設計服務。去年，我們整個季度都完全依賴數位行銷。今年春天，我們成功地利用直郵推出了哥本哈根系列，現在這已成為我們今年剩餘時間行銷策略的一部分。

We tested spot TV in key markets with mixed results. We brought back our private sale to key customers three weeks ahead of the public Memorial Day sales event, allowing them to get ahead of the rush and have more opportunity in inventory. This strategy effectively pulled our holiday business forward and resulted in a slight increase in written business for the month of May. Promotional events like July 4 are key to driving traffic, which was weak through June.

我們在主要市場測試了電視廣告，結果好壞參半。我們在陣亡將士紀念日公開銷售活動開始前三週恢復了對主要客戶的私人銷售，使他們能夠避開銷售高峰並擁有更多的庫存機會。這項策略有效地推動了我們的假期業務，並導致五月書面業務略有增加。7 月 4 日等促銷活動是推動客流量的關鍵，6 月客流量一直較弱。

Our new Bassett Custom Studio program in the open market grew by double digits as we added seven new retail stores. We also grew our business with the interior design community and are working hard to become a bigger provider to the design channel that continues to grow in importance to the entire industry.

隨著我們增加了七家新的零售店，我們在公開市場上的新 Bassett Custom Studio 計劃實現了兩位數的成長。我們也與室內設計界共同拓展業務，並正在努力成為設計通路的更大供應商，而設計通路對整個產業的重要性日益增加。

We are moving ahead with architectural plans to open in two new markets, Cincinnati and Orlando. We plan to start construction this fall in both locations and expect to have these stores open in the first quarter of fiscal 2026. Our Concord, North Carolina corporate store has been closed since April for remodeling and will reopen in October.

我們正在推動在辛辛那提和奧蘭多兩個新市場開業的建築計劃。我們計劃今年秋季在兩個地點開始施工，並預計這些商店將於 2026 財年第一季開業。我們位於北卡羅來納州康科德的公司商店自四月起因裝修而關閉，並將於十月重新開業。

Our Board of Directors will consider our regular quarterly cash dividend of $0.20 per share next week. Dividends augmented by opportunistic share repurchase remains a key piece of our capital returns to shareholders.

我們的董事會將於下週考慮每股 0.20 美元的常規季度現金股息。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 Mike for more details on our financial results. Mike?

現在，我將把話題轉回給麥克，以了解有關我們財務表現的更多詳細資訊。麥克風？

Thanks, Rob. In my commentary, the comparisons I'll discuss will be the second quarter for fiscal 2025 compared to the second quarter of fiscal 2024, unless otherwise noted. As Rob previously noted, total consolidated revenue increased $938,000 or 1.1%. And again, excluding sales from Noa Home Inc., which closed in late 2024, consolidated revenues increased 2.5%.

謝謝，羅布。在我的評論中，我將討論的比較是 2025 財年第二季與 2024 財年第二季的比較，除非另有說明。正如 Rob 之前指出的那樣，合併總收入增加了 938,000 美元，即 1.1%。同樣，不包括 2024 年底關閉的 Noa Home Inc. 的銷售額，綜合收入增長了 2.5%。

Consolidated gross margin at 55.6% represented a 310-basis-point improvement over the prior year as the company recorded $2.7 million of additional inventory valuation charges in the prior quarter. Excluding those charges, gross margin would have been essentially flat. Selling, general, and administrative expenses were 52.7% of sales, 330 basis points lower than the prior year reflecting benefits from the prior year restructuring program and ongoing cost optimization activities.

綜合毛利率為 55.6%，較上年同期提高了 310 個基點，因為該公司上一季記錄了 270 萬美元的額外庫存估價費用。除去這些費用，毛利率基本上持平。銷售、一般及管理費用佔銷售額的 52.7%，比上年低 330 個基點，反映了去年重組計畫和持續成本優化活動帶來的好處。

Operating income was $2.5 million or 3% of sales as compared to a prior loss of $8.5 million, which included $5.5 million of asset impairment charges and the additional inventory valuation charges previously mentioned. Diluted earnings per share were $0.22 versus a loss of $0.82

營業收入為 250 萬美元，佔銷售額的 3%，而先前的虧損為 850 萬美元，其中包括 550 萬美元的資產減損費用和前面提到的額外庫存估價費用。攤薄每股收益為 0.22 美元，而每股虧損為 0.82 美元

Now, let me cover more details on the wholesale operations. Net sales increased $1.6 million or 3% over the prior year, consisting of a 12.6% increase in shipments to our Bassett retail store network, partially offset by a 2.6% decrease in shipments to the open market and a 22% decrease in Lane Venture shipments. This was primarily related to timing of shipments for a significant customer.

現在，讓我介紹一下批發業務的更多細節。淨銷售額比前一年增加 160 萬美元，即 3%，其中包括對 Bassett 零售店網路的出貨量增加 12.6%，但部分抵消了對公開市場的出貨量減少 2.6% 和 Lane Venture 出貨量減少 22% 的影響。這主要與重要客戶的出貨時間有關。

Gross margins increased 260 basis points over the prior year, excluding the $1.7 million of additional wholesale inventory valuation charges in the prior year period. Gross margins would have decreased by 70 basis points, primarily due to the prior year reduction in the warranty and returns reserve from improved experience and administration and warranty and returns claims.

毛利率較上年同期增加 260 個基點，不包括上年同期 170 萬美元的額外批發庫存估價費用。毛利率將下降 70 個基點，主要原因是去年因經驗和管理改善以及保固和退貨索賠而減少了保固和退貨準備金。

SG&A expenses as a percentage of sales decreased 190 basis points primarily due to lower bad debt expenses, coupled with the benefit of cost reductions implemented during the second half of fiscal 2024. Wholesale backlog was $18.4 million as compared to $21.8 million on November 30, 2024, and $19.4 million at June 1, 2024.

銷售、一般及行政費用佔銷售額的百分比下降了 190 個基點，這主要是由於壞帳費用降低，再加上 2024 財年下半年實施的成本削減措施。批發積壓訂單為 1,840 萬美元，而 2024 年 11 月 30 日為 2,180 萬美元，2024 年 6 月 1 日為 1,940 萬美元。

Now, moving on to the retail store operations. Net sales increased $3.8 million or 7.5%, and written sales, the value of sales orders taken but not deliver declined 0.8%. Gross margin declined 50 basis points excluding the $500,000 of additional inventory valuation charges in the prior year period. Gross margins would have decreased by 140 basis points due to lower margins for both in-line and clearance goods, as Rob mentioned, we are more aggressive in cycling through unproductive inventory.

現在，轉向零售店營運。淨銷售額增加 380 萬美元，或 7.5%，書面銷售額（已接受但未交付的銷售訂單價值）下降 0.8%。若不計去年同期 50 萬美元的額外庫存估價費用，毛利率下降了 50 個基點。由於線上商品和清倉商品的利潤率較低，毛利率將下降 140 個基點，正如 Rob 所提到的，我們更積極地循環利用非生產性庫存。

SG&A expenses as a percentage of sales decreased 580 basis points due to several factors: improved efficiency gains in warehouse and delivery operations, lower advertising and marketing expenditures, and overall lower operating costs. Retail backlog was $34.1 million compared to $37.1 million at November 30, 2024, and $31.5 million at June 1, 2024.

銷售、一般及行政費用佔銷售額的百分比下降了 580 個基點，原因如下：倉庫和配送業務效率提高、廣告和行銷支出降低以及整體營運成本降低。零售積壓訂單為 3,410 萬美元，而 2024 年 11 月 30 日為 3,710 萬美元，2024 年 6 月 1 日為 3,150 萬美元。

Our liquidity position remains solid. We generated $7 million, I should tell you, in operating cash flow during this quarter and ended with $59.8 million of cash in short-term investments and have no outstanding debt. We've reduced our projected range of annual capital investment in our business to between $7 million and $9 million, primarily to cover remodels of existing stores, the ongoing investments in technology including e-commerce, and the two new store openings Rob mentioned.

我們的流動性狀況依然穩固。我應該告訴你們，本季我們產生了 700 萬美元的經營現金流，最終短期投資現金為 5,980 萬美元，並且沒有未償債務。我們已將業務年度資本投資預計範圍縮減至 700 萬至 900 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的持續投資以及 Rob 提到的兩家新店的開業。

We continue to pay our quarterly dividend and repurchase shares opportunistically. We spent $1.7 million on dividends, $400,000 on share buybacks in the second quarter. We remain committed to delivering shareholder returns through dividends and when appropriate share buybacks.

我們將繼續支付季度股利並適時回購股票。我們在第二季花費了 170 萬美元用於股息，40 萬美元用於股票回購。我們仍然致力於透過股利和適當時的股票回購為股東帶來回報。

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

現在我們將開始回答問題。奧利維亞，請提供操作說明。

(Operator Instructions) Brian Gordon, Water Tower Research.

（操作員指示） Brian Gordon，水塔研究。

Congratulations on what I think has been good quarter in a very tough environment. I guess my first question is with the seven new design studio signed up, where does that put you right now in terms of the total? And where do you think that might land by end of year?

我認為，在非常艱難的環境下，我們取得了一個良好的季度業績，對此我表示祝賀。我想我的第一個問題是，目前已經有七家新設計工作室簽約，就總數而言，你們現在處於什麼位置？您認為到今年年底這結果會如何？

Brian, this is Rob. That puts us, I think, at 54 of these -- that studios . Boy, that's a good question in terms of the pace of this, I really believe that the pace will -- that we just revealed will be reflective of the ongoing pace. So you can extrapolate from there. The really good news on this thing is that well, one, it's not a steep barrier of entry for the dealer, as we've said before.

布萊恩，這是羅布。我認為，這意味著我們有 54 個這樣的工作室。夥計，就這個速度而言，這是一個很好的問題，我真的相信這個速度——我們剛剛透露的速度將反映正在進行的速度。所以你可以從那裡推斷。這件事的真正好消息是，首先，正如我們之前所說的，這對經銷商來說並不是一個很高的進入門檻。

Also, once he makes that initial inventory of the display floor samples, you really -- all the inventory purchases are sold orders. It really leverages our service capabilities and the fact that we can get these custom orders out of the factory set quickly. So the salespeople don't have to wait if they're paid on delivered sales. They don't have to wait on this forever because we can get it out quickly. So without a big inventory investment and with a lot of turn on this, we feel really good about how this thing is going to play out over time.

此外，一旦他對展示樣品進行了初步盤點，那麼所有庫存採購都是銷售訂單。它確實充分利用了我們的服務能力，以及我們可以快速從工廠獲得這些客製化訂單的事實。因此，如果銷售人員根據已交付的銷售額獲得報酬，他們就不必等待。他們不必永遠等待，因為我們可以很快將其拿出來。因此，無需大量的庫存投資，並且有很多轉變，我們對這件事的長期發展感到非常滿意。

And yes, we'd love to have more of them. But more importantly is the monitoring the success and the performance of the ones that we've opened because if that -- if we're successful there, then you've got something that will stand the test of time. And we do a lot of work on just gauging how these guys are doing, the ones that have opened, and that's what is really exciting to us because it's working.

是的，我們希望有更多這樣的人。但更重要的是監控我們所開設的課程的成功和表現，因為如果我們在那裡取得成功，那麼你就得到了經得起時間考驗的東西。我們做了很多工作來評估這些已經開業的商店的經營狀況，這對我們來說真的令人興奮，因為它正在發揮作用。

So we -- it's going to be something that we talk about for some time. And -- but that pace of six, seven, eight a quarter, I think, would be -- is attainable and one that, at least for the foreseeable future, we can execute on.

所以我們——這將是我們討論一段時間的事情。而且 — — 但我認為，每季六、七、八次的速度是可以實現的，而且至少在可預見的未來，我們可以執行。

Thank you for that update. And you alluded to what I was going to ask for my follow up. How -- what kind of metrics can you share about how these design studios are actually maturing and what that actually looks like over time?

感謝您的更新。您暗示了我將要問的後續問題。您能分享哪些指標來表明這些設計工作室實際上如何成熟，以及隨著時間的推移它們實際上是什麼樣子的？

Well, we obviously look at how much volume they are producing from that 1,000 square foot footprint. And so we haven't shared that externally. And we haven't boiled that down because you are inside someone else's furniture store and sometimes getting the data that we can get with our own stores is a little more difficult.

嗯，我們顯然會看看他們在 1,000 平方英尺的佔地面積內生產了多少產量。因此我們沒有對外分享這一點。我們還沒有將其歸結為因為你在別人的家具店內，有時獲取我們在自己的商店中可以獲得的數據會更加困難。

But let's just say that our dealer base is pleased with that, and we're pleased with what's happening. We have been talking about a more granular set of metrics that we can trump it and that we can hopefully attract new dealers with. And we're in the lab right now working on that.

但我們可以這麼說，我們的經銷商對此感到滿意，我們對正在發生的事情感到滿意。我們一直在討論一套更細緻的指標，以便我們能夠超越它，並希望能夠吸引新的經銷商。我們現在正在實驗室裡研究這個問題。

Great. Thank you. If I can get in maybe one more question before turning it over. The last several markets, you've definitely been highlighting the design trade as a major initiative. Could you talk about how that's going? And then maybe as a quick follow up to that, has there been any differences that you've seen since the tariffs with the design trade side of the business versus the stores and design studios and third party?

偉大的。謝謝。如果可以的話，在翻頁之前我可能還能再問一個問題。在過去的幾個市場中，您肯定一直強調設計貿易是一項重要舉措。能談談進展如何嗎？然後也許作為對此的快速跟進，自從徵收關稅以來，您是否發現設計貿易業務與商店、設計工作室和第三方業務之間存在任何差異？

We are scratching the surface on the design trade. And our focus has been on retail and on our dedicated distribution, our galleries [basket design centers] and the custom studios we just talked about. And appropriately so, we've got capital invested and network and all of those things. And I would say that we have -- we are somewhat late to the party on this whole migration of the business to the design trade, which according to the officials down at High Point, over 60% of the attendees now are from our designers.

我們對設計產業仍處於初步了解階段。我們的重點是零售和專門的分銷、我們的畫廊（籃子設計中心）以及我們剛才談到的客製化工作室。而理所當然的是，我們已經投入了資本、建立了網路以及所有這些東西。我想說的是，我們在業務轉移到設計行業的整個過程中有些晚了，根據 High Point 的官員的說法，現在超過 60% 的與會者都是我們的設計師。

So this is a big shift in the higher end, and there's a whole section of talent down there now that is dedicated to the design trade. So what's exciting for us is that what we do every day in the stores and on our dedicated distribution, in other words, make things one at a time and on a custom basis quickly. We do COM. We do a lot of things that designers use every day.

所以這是高端領域的巨大轉變，現在有大量的人才專注於設計產業。因此，令我們興奮的是，我們每天在商店和專門的分銷商所做的事情，換句話說，就是快速地、一次製作一件產品並進行客製化。我們做 COM。我們做了很多設計師每天都會用到的東西。

So the progress is always slower than we want. I will say the sales in that trade were up double digits for the quarter. So that's good. But we are doing things with our systems with management and bringing on a couple of new folks to get really noticed in this area. So stay tuned on that because we really think we can grow that channel.

所以進展總是比我們想要的慢。我想說的是，該行業的銷售額本季成長了兩位數。這很好。但我們正在透過管理體係做一些事情，並引進一些新人來真正關注這個領域。因此請繼續關注，因為我們確實認為我們可以發展該管道。

As far as the tariffs, I don't think the tariff has been particularly impactful to the design trade. As a matter of fact, I would say, less so than retail. The retail is so cost-conscious and such a tight set of operating metrics. We don't see that as much in the design trade. The design trade needs to have one great product line and two great service and communication. Those are kind of the basic tenets of being successful there. But they're not slicing that onion down to the penny like we see in retail, which is tough on the retail side.

就關稅而言，我認為關稅對設計貿易並沒有特別的影響。事實上，我想說，與零售業相比，情況更是如此。零售業非常注重成本，並且有一套非常嚴格的營運指標。在設計產業中我們很少見到這樣的情況。設計產業需要有一條優秀的產品線和兩條優秀的服務和溝通。這些是在那裡取得成功的基本原則。但他們並沒有像零售業那樣把洋蔥切成每一分錢，這對零售業來說是困難的。

So I can't really -- I don't think the tariff has really impacted the design business very much.

所以我真的不能——我不認為關稅對設計業務有太大影響。

Okay. Thank you. That's very helpful. Best of luck with the quarter.

好的。謝謝。這非常有幫助。祝本季好運。

Anthony Lebiedzinski, Sidoti.

安東尼·萊比津斯基，西多蒂。

Thank you for taking the questions. Great to see you guys reporting a year over year sales gain even in a tough environment. So first just a follow-up about the shipments that you guys talked about. You had a nice increase in shipments to your Bassett stores and a decrease in the open market. I think Mike, you said that some of it was timing related to a significant customer. So should we see a reversal of that timing in the third quarter? Or how should we think about that?

感謝您回答這些問題。很高興看到你們在艱難的環境下仍實現了銷售額同比增長。首先，我想跟進一下你們談到的出貨情況。您對巴塞特商店的出貨量大幅增加，但公開市場的出貨量卻有所減少。我認為麥克，你說過其中一些是與重要客戶相關的時間。那麼我們是否應該在第三季看到這種時間逆轉呢？或者我們該如何思考這個問題？

Let me just clarify the significant customer that I was referring to related to Lane Venture shipments only, which not the rest of the open market. We just wanted to put some color beside the fact that we had a 22% decrease in Lane Venture.

讓我澄清一下，我提到的重要客戶僅與 Lane Venture 的出貨有關，而與其他公開市場無關。我們只是想對 Lane Venture 下滑 22% 的事實做些說明。

Got you.

明白了。

And we saw that as somewhat of an anomaly based on the orders we received at Lane Venture in the second quarter, which were much, much better than a 22% decline.

根據 Lane Venture 第二季收到的訂單情況，我們認為這有點異常，訂單量比 22% 的降幅要好得多。

Yes.

是的。

So anyway, Mike and I debated about whether we should include that because it is somewhat -- but since we have been reporting on Lane Venture and pulling that out, he went out and we did it. So the question is, are we going to see a correction in the open market? And it has improved somewhat since then -- since the second quarter, even though business remains very tough.

所以無論如何，麥克和我爭論我們是否應該將其包括在內，因為它有點 - 但因為我們一直在報道 Lane Venture 並將其刪除，所以他出去了，我們也這樣做了。所以問題是，我們會看到公開市場的調整嗎？自那時起，儘管業務仍然非常艱難，但自第二季以來，情況有所改善。

And what I said in my remarks, Anthony, the biggest real factor, not including Lane Venture in the quarter with the open market was the Club Level. And a lot of these guys, we -- 30%, 40% of our business in Club Level is container direct. And the rest we warehouse, and they buy one at a time. And we really had to fall off in the container direct Club Level business in the quarter.

安東尼，我在發言中說過，最大的真正因素（不包括 Lane Venture 在公開市場的季度）是俱樂部層級。其中很多，我們俱樂部層級的業務有 30% 到 40% 是貨櫃直達業務。其餘的我們存放在倉庫中，他們一次購買一個。本季度，我們的貨櫃直達俱樂部級業務確實遭遇下滑。

And a lot of these guys were going, well, we're just going to wait and see how these tariffs play out before we commit to having goods on the water that may have a -- at the time, of course, I think it was 46% on April 2 of Vietnam, which obviously, that's changed this end. But -- so that whole period there was detrimental to the open market shipments.

很多人都在說，好吧，我們只是要等著看這些關稅如何發揮作用，然後再承諾向水路運輸貨物，當時，當然，我認為 4 月 2 日越南的關稅是 46%，這顯然已經改變了這一局面。但是——整個時期對公開市場出貨量都是不利的。

Now look, it's still tough out there for the open market guys, too. These independent retailers are not immune from this. And so we have to fight like the Dickens to keep this channel growing, and -- but we feel pretty good about where we're headed with that and better, hopefully, than we just showed you.

現在看看，對於公開市場參與者來說，情況仍然很艱難。這些獨立零售商也未能倖免。因此，我們必須像狄更斯一樣奮力拼搏，保持這個頻道不斷發展，但我們對目前的發展方向感到非常滿意，並且希望比我們剛剛向你們展示的更好。

And Anthony, if you remember Rob's comments on the pace during the quarter, he spoke about Liberation Day in the demarcation and how April was really soft. And I think it was that related solely to Club Level, Rob?

安東尼，如果你還記得羅布對本季速度的評論，他談到了分界線的解放日，以及四月份的銷售情況如何非常疲軟。我認為這僅與俱樂部級別有關，羅布？

Yeah, primarily.

是的，主要是。

So the pace of the business in May, while not great, was not like it was in April, and that's kind of carried over into the third quarter.

因此，五月的業務節奏雖然不是很好，但也不像四月那麼快，而且這種趨勢延續到了第三季。

Right. Okay. So May was relatively better. So that's encouraging to hear. Now in terms of the plans for discounting that you talked about a bit here. So how should we think about the impact on margins overall? I mean, you had a slight sequential decline from first quarter to second quarter. Will we see more of that type of a margin decline sequentially in the third quarter? Or just directionally, maybe you can help us out as how to think about that?

正確的。好的。所以五月相對來說比較好。聽到這個消息真是令人鼓舞。現在就您在這裡談到的折扣計劃而言。那我們該如何看待其對整體利潤率的影響呢？我的意思是，從第一季到第二季度，出現了輕微的連續下降。我們是否會看到第三季利潤率出現更多連續下降？或者只是從方向上來說，也許您可以幫助我們思考如何解決這個問題？

Well, we've been trying to model that internally, Anthony, because we really -- we want to get this inventory as clean as we can. And so, part of that sequential -- and we're talking about the retail price margin now, not the consolidated. So ultimately, that affects the consolidated, but it's not the wholesale gross margin.

嗯，安東尼，我們一直在嘗試在內部對此進行建模，因為我們真的 - 我們希望盡可能清理這些庫存。因此，作為連續的一部分——我們現在談論的是零售價格利潤率，而不是合併價格利潤率。因此，最終，這會影響合併毛利率，但不會影響批發毛利率。

So yeah, we did have a decline. And we don't think we will see a lot more detriment to moving these goods out of some of these retail warehouses than we've seen, but it could be -- it's hard for me to just give you a number. But I don't think it's going to be significant, but it could affect it slightly.

是的，我們確實出現了下滑。我們認為，將這些貨物從一些零售倉庫中轉移出去不會造成比我們看到的更多的損害，但也可能——我很難給你一個數字。但我不認為這會產生重大影響，但可能會產生輕微影響。

We're running a clearance event right now, and we did a direct mail piece. As a matter of fact, it came to my mailbox at the house last night. So we're running that and -- but we think it's a prudent exercise to be clean and then have a good balance sheet.

我們現在正在進行清倉活動，並且我們進行了直郵寄送。事實上，它昨晚就已經到達我家的信箱了。所以我們正在這樣做——但我們認為，保持廉潔並擁有良好的資產負債表是一種謹慎的做法。

Understood.

明白了。

Keep in mind, we're trying to turn inventory into cash. And as Rob said it, clean means actually more cash on the balance sheet.

請記住，我們正在努力將庫存轉化為現金。正如羅布所說，清潔實際上意味著資產負債表上有更多的現金。

That makes a lot of sense, certainly. And then looking at your new store plans, so you're looking to do Cincinnati and Orlando. Beyond that, how do you guys think about the store base, let's say, two, three, five years from now? I mean, like how do you guys see the store base going forward? And kind of any particular markets that you would like to be in that you're not in already?

這確實很有道理。然後看看你的新店計劃，你打算去辛辛那提和奧蘭多。除此之外，你們對未來兩年、三年或五年後的門市規模有何看法？我的意思是，你們如何看待商店基礎的未來發展？您想進入哪些尚未進入的特定市場？

Sure. There are. And we look at this a lot of ways. One, where do we have stores and where can we leverage existing investments in infrastructure and distribution and all that kind of stuff. And so that certainly is a factor, there are markets that I got to admit that are fairly bereft of opportunities for us to sell furniture except with the store or through the design trade, given that the demise of the independent retailer that we are seeing around the country have seen for some time or the years, I'm talking about with the high barriers of entry, the cost of real estate.

當然。有。我們從很多角度來看這個問題。第一，我們在哪裡有商店，我們可以在哪裡利用現有的基礎設施和分銷投資等等。所以這當然是一個因素，我必須承認，有些市場除了透過商店或設計貿易外，幾乎沒有我們銷售家具的機會，因為我們在全國各地看到的獨立零售商已經消亡了一段時間或幾年，我指的是進入門檻高，房地產成本高。

So we look at those markets like, okay, if we got an open market strategy here, who are we going to sell? And I've made a couple of trips lately, and you go around and you go, there's not a whole lot of opportunities in some of these markets. So we look at that. We also look at the executional risk, the capital, the size company we are, the environment we're in. So we're conservative and appropriately.

因此，我們看待這些市場的方式是，好吧，如果我們在這裡有一個開放的市場策略，我們將向誰銷售？最近我去過好幾次，走遍了各個地方，發現有些市場沒有太多機會。所以我們來看看。我們也會考慮執行風險、資本、公司規模以及所處的環境。所以我們是保守且適當的。

So I think if you look at two, three, four stores a year for us, that's a pace that we can absorb. Four is a lot. Two is not that many. It's somewhere in between. But it's not like we're looking at a 20-store rollout or anything like that, and we won't be. Now in the meantime, we're trying to find the good -- the guy who sells nice furniture and there has been a huge migration to the lower end in this industry.

因此我認為，如果我們每年開設兩家、三家或四家店，這就是我們可以承受的速度。四個已經很多了。兩個不算多。它處於兩者之間。但我們不會考慮開設 20 家門市或類似的事情，我們也不會這麼做。同時，我們正在努力尋找好的——銷售精美家具的人，而這個行業已經大量轉向低端市場。

So there is just a tonne of low-end furniture being sold out there, what we call low-end anyway. So the guys who sell nicer furniture are fewer and farther between and our guys are making a major presentation to one of those people this morning as we speak. And so we still -- we can't run all over the place lickety-split to all these stores. So these independent dealers who sell nicer furniture are important to us. So we look at that, too.

因此，市場上販售的只是大量低端家具，也就是我們所說的低端家具。因此，銷售優質家具的人越來越少，而我們的員工今天早上正在向其中一位顧客進行重要的演講。因此，我們仍然不能迅速跑遍所有商店。因此，這些銷售優質家具的獨立經銷商對我們來說很重要。所以我們也考慮這一點。

So it's kind of a Ouija board of all this stuff and -- but the good thing about the design channel is you can really do that anywhere. And there are designers out there in every market, a lot of them. Some of them are kind of inconsequential and work out their dining room table and then other ones are more substantial.

所以它就像是一個包含所有這些東西的通靈板——但設計管道的好處是你真的可以在任何地方做到這一點。每個市場都有設計師，而且數量很多。其中一些是無關緊要的，只是在餐桌上工作，而另一些則更為重要。

So you've kind of got to weed through all that. But that's how we look at it. I hope I answered your question, but it's not an easy answer. But we -- as a matter of fact, we've got a Board meeting next week, and this is the big topic as we look at where we go and how we serve each market, and it's an ongoing process.

所以你必須把這些都剔除掉。但我們就是這樣看待它的。我希望我回答了你的問題，但這不是一個容易回答的問題。但事實上，我們下週要召開董事會會議，這是一個重要主題，我們將研究我們的發展方向和如何服務每個市場，這是一個持續的過程。

But Anthony, I think what we're -- one thing we're saying, we do want to grow the number. And Rob, correct me if I'm wrong here, but grow the number of stores over time. So while we're saying two to three stores, I think we're saying two to three net stores.

但是安東尼，我認為我們——我們要說的一件事是，我們確實希望增加這個數字。羅布，如果我錯了，請糾正我，但隨著時間的推移，商店的數量會增加。因此，雖然我們說的是兩到三家商店，但我認為我們說的是兩到三家淨商店。

Yeah. No, we definitely want to do that.

是的。不，我們絕對想這樣做。

All right. Well, that all sounds great. Well, thank you very much, and best of luck.

好的。嗯，聽起來很棒。好吧，非常感謝，祝你好運。

Thank you, Anthony, Brian, and everyone else has been on the call. And we announced our restructure a year ago, and we think we've set the company on the right course to meet the challenges that we've already talked about with housing the consumer confidence. We really hadn't prepared to call the tariff activity added issues. And -- but we're working through that on a daily basis. And hopefully, soon, we will have complete clarity on that issue that affects our supply chain.

謝謝安東尼、布萊恩以及所有參加電話會議的其他人。我們在一年前宣布了重組，我們認為我們已經讓公司走上了正確的道路，以應對我們已經討論過的與維護消費者信心有關的挑戰。我們確實還沒有準備好將關稅活動稱為附加問題。而且──但我們每天都在努力解決這個問題。希望我們很快就能徹底弄清楚影響我們供應鏈的問題。

We are pleased with our progress in the second quarter. We're optimistic that the investments we've made in our new product lines and our emphasis on integrating Basset further into the interior design community will provide competitive advantages through -- for the future. We continue to manufacture almost 80% of our product here in the US, remain intensely focused on operating efficiencies and cost reductions to deliver for our customers and shareholders.

我們對第二季的進展感到滿意。我們樂觀地認為，我們對新產品線的投資以及我們對將 Basset 進一步融入室內設計社群的重視將為未來帶來競爭優勢。我們繼續在美國生產近 80% 的產品，並繼續高度重視營運效率和成本削減，以便為我們的客戶和股東提供服務。

Thank you for your interest in Bassett Furniture.

感謝您對 Bassett Furniture 的關注。

This concludes today's conference call. Thank you for your participation, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。