Bassett Furniture Industries Inc (BSET) 2025 Q3 法說會逐字稿

Good day, and welcome to the Bassett Furniture Industries third-quarter 2025 earnings call. (Operator Instructions) As a reminder, this call may be recorded.

大家好，歡迎參加 Bassett Furniture Industries 2025 年第三季財報電話會議。（操作員說明）提醒您，本次通話可能會被錄音。

I would now like to turn the call over to Mike Daniel, CFO. Please go ahead.

現在我將把電話交給財務長麥克丹尼爾。請繼續。

Thank you, Michelle, for the introduction. Welcome to Bassett Furniture's earnings call for the third-quarter of fiscal 2025 ended August 30, 2025. Joining me today is our Chairman and CEO, Rob Spilman. We issued our news release and filed our Form 10-Q yesterday after the market closed and is available on our website. After today's remarks, we will open up the call for a Q&A session. We will also post a transcript of the call on Bassett's investor website following the call.

謝謝米歇爾的介紹。歡迎參加 Bassett Furniture 2025 財年第三季（截至 2025 年 8 月 30 日）的收益電話會議。今天與我一同出席的是我們的董事長兼執行長羅伯·斯皮爾曼。我們昨天在股市收盤後發布了新聞稿並提交了 10-Q 表格，這些文件可以在我們的網站上查閱。今天的演講結束後，我們將開放問答環節。電話會議結束後，我們也會在 Bassett 的投資者網站上發布電話會議的文字記錄。

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.

在今天的電話會議中，我們所做的某些陳述可能被認為是前瞻性的，並且本身就涉及風險和不確定性，這些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》的安全港條款作出的。

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

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聲明的任何義務。有關更多信息，包括重要的注意事項，請參閱公司截至 2024 年 11 月 30 日的財政年度的 10-K 表格年度報告。其他向美國證券交易委員會提交的、描述與我們業務相關的風險的文件，可在我們公司網站的「投資者」標籤下找到。

Now, I'll turn things over to Rob. Rob?

現在，我把麥克風交給羅布。搶？

Thank you, Mike. Good morning, everyone, and thank you for joining us today. I'm pleased for the third quarter. Despite the continuing challenging environment in the industry, Bassett reported increases in revenue, operating income, and gross margin. We also continue to look for ways to lower operating expenses, which continues the work that began in the summer of 2024 last year.

謝謝你，麥克。各位早安，感謝大家今天收看我們的節目。我對第三季的成績感到滿意。儘管產業環境持續充滿挑戰，但 Bassett 的收入、營業收入和毛利率均有所成長。我們也持續尋找降低營運成本的方法，這項工作始於去年夏天（2024 年），並將繼續前進。

We planned that this year would remain impacted by the slow housing market, and that is very much the reality. We remain nimble in managing our business and our focus on driving innovation into our product lines, becoming more aggressive in our marketing initiatives, leveraging technology, and adjusting to the challenges affecting the industry in general. In short, we've adjusted to the new normal furniture demand. We're pleased with our progress so far this fiscal year as we strive to be resilient in this environment.

我們預計今年房地產市場低迷的局面仍將持續，而實際情況也的確如此。我們將繼續靈活管理業務，專注於推動產品線的創新，在行銷方面更加積極主動，充分利用技術，並適應影響整個行業的挑戰。簡而言之，我們已經適應了新的家具需求常態。我們對本財年迄今的進展感到滿意，我們正努力在這種環境下保持韌性。

Mortgage rates have come down slightly from last quarter, and we've all seen the recent news about rate decreases. While it's moving -- slowly moving in the right direction for the housing market, we don't expect our industry to feel a more robust change until we can point to a sustained pickup in home sales. Many consumers are still cautious about making significant investments in home furnishings and they remain concerned about the price of houses and the lack of inventory.

抵押貸款利率較上一季略有下降，我們也都看到了最近有關利率下降的新聞。雖然房地產市場正在緩慢地朝著正確的方向發展，但我們預計，只有當房屋銷售持續回升時，我們的行業才會感受到更強勁的變化。許多消費者仍然對在家居用品方面進行大筆投資持謹慎態度，他們仍然擔心房價和庫存不足的問題。

We're recognized as one of the premier quality brands for furniture, and we concentrate on creating custom design solutions for our customers that align with their personal style. The decisions and the investment we've made in creating new lines, refreshing existing products, expanding e-commerce capabilities, and modifying our marketing activities are making a difference in our results.

我們是公認的頂級家具品牌之一，我們專注於為客戶打造符合其個人風格的客製化設計方案。我們在創建新產品線、更新現有產品、擴展電子商務能力和調整行銷活動方面所做的決策和投資，正在對我們的業績產生影響。

That said, we cannot -- while we can't control these areas, we have been adjusting to the impact that tariffs have on our supply chain in some respects on consumer confidence in general. We have a competitive advantage with approximately 80% of our wholesale shipments manufactured or assembled in our US factories.

也就是說，雖然我們無法控制這些領域，但我們一直在調整以應對關稅對我們供應鏈在某些方面以及對消費者信心的整體影響。我們擁有競爭優勢，因為我們大約 80% 的批發貨物都是在美國工廠生產或組裝的。

However, we are still being impacted by tariffs, particularly from Vietnam and India on imported fabric, plywood, componentry and finished goods, and we pass along those surcharges for these materials during the third quarter. We made the difficult decision to raise retail prices slightly in July to cover the tariff impact. Our teams continue to intently monitor the gases and the reality about tariff activity daily. And I'm sure this will be the number one topic at the upcoming High Point furniture market later this month.

然而，我們仍然受到關稅的影響，特別是來自越南和印度的進口布料、膠合板、零件和成品的關稅，我們在第三季將這些材料的附加費轉嫁給了消費者。為了彌補關稅的影響，我們做出了艱難的決定，在7月略微提高零售價格。我們的團隊每天都會密切關注氣體市場和關稅動態。我相信這將成為本月稍後即將舉行的高點家具展的頭號話題。

Now, let's move on to a discussion about our third quarter results. Let me remind you that the third quarter is generally our weakest reporting period of the year. We grew consolidated sales 5.9%, with August's strongest month for orders in the quarter. Excluding sales from Noa Home, which closed in late 2024 as part of our restructuring plan, consolidated revenues increased 7.3%.

現在，讓我們來討論一下我們第三季的業績。我想提醒各位，第三季通常是我們一年中業績最差的時期。我們合併銷售額成長了 5.9%，其中 8 月是本季訂單量最高的月份。除 Noa Home 的銷售額外（Noa Home 已於 2024 年底作為我們重組計劃的一部分關閉），合併收入增長了 7.3%。

Ongoing operating efficiencies produced $600,000 of consolidated operating profit and primarily to the wholesale business compared to a loss of $6.4 million this time last year. Recall that in last year's third quarter, we had a cyber incident that suspended our manufacturing and financial systems for seven days resulting in negative impacts on operating income, gross margin and expenses.

持續的營運效率提升帶來了 ​​60 萬美元的合併營業利潤，主要來自批發業務，而去年同期虧損 640 萬美元。回想一下，去年第三季度，我們遭遇了一起網路安全事件，導致我們的生產和財務系統暫停了七天，對營業收入、毛利率和支出造成了負面影響。

Gross margin this quarter improved 320 basis points due to better wholesale margins slightly offset by a decrease in retail margins at company-owned stores as well as the comparison of last year's impact of wages paid during the cyber shutdown. Orders from our combined network of corporate and licensed stores grew by 5.9%, driven by a 9.8% increase in company-owned retail stores.

本季毛利率提高了 320 個基點，這主要得益於批發毛利率的提高，但部分被公司自營門店零售毛利率的下降以及去年同期因網絡封鎖而支付的工資的影響所抵消。該公司自營零售店和授權零售店的訂單總量增加了 5.9%，其中公司自營零售店的訂單量增加了 9.8%。

Wholesale sales to the open market were up approximately 1%. True Custom Upholstery offers more than 450 fabrics and 40 leathers and drove the majority of our wholesale improvement. We had a double-digit increase in case goods, which offset a slight decrease in our domestic custom wood lines.

向公開市場批發銷售額成長約 1%。True Custom Upholstery 提供 450 多種布料和 40 多種皮革，推動了我們批發業務的大部分改進。我們的成品家具銷售量實現了兩位數的成長，抵消了國內訂製木製品銷量的略微下降。

We continue to be pleased with the response to our new whole home product collections. Copenhagen is doing well across the board. The Newberry line has arrived in stores and based on initial feedback, we believe it has great potential. Our US Benchmade Hideaway dining line is also off to a good start in both retail and wholesale.

我們對消費者對我們全新全屋產品系列的回饋感到非常滿意。哥本哈根各方面表現都不錯。Newberry系列產品已上架銷售，根據初步回饋，我們認為它具有巨大的潛力。我們的美國 Benchmade Hideaway 系列餐桌椅在零售和批發方面也取得了良好的開局。

Outdoor sales were up 18%. Written retail sales increased by 2.4% in the quarter. I mentioned that retail gross margins were down slightly, and this was due to lower margins for both in-line and clearance goods. We continue to be aggressive this year on moving through discontinued as is inventory.

戶外用品銷售額成長了18%。本季書面零售額成長了2.4%。我提到零售毛利率略有下降，這是由於正價商品和清倉商品的毛利率均有所下降。今年我們將繼續積極清理已停產的庫存商品。

Ongoing operating expense efficiencies implemented this year coupled with higher sales delivered a decrease of 590 basis points on SG&A expenses as a percentage of retail sales. We were able to do more with less in the quarter and we must continue to challenge ourselves to improve. We're integrating new ideas and changing -- changes into our marketing mix without adding to our budget. We shifted slightly away from digital in the third quarter and produce a high-quality 52-page catalog and several smaller mailers for our fall promotions.

今年持續實施的營運費用效率提升措施，加上銷售額的成長，使得銷售、一般及行政費用佔零售額的百分比下降了 590 個基點。本季我們用更少的資源完成了更多的工作，我們必須繼續挑戰自我，並力求進步。我們正在將新理念和變革融入我們的行銷組合中，而無需增加預算。第三季度，我們稍微減少了數位宣傳，開始製作高品質的 52 頁產品目錄和一些較小的宣傳冊，用於秋季促銷活動。

We featured True Custom, Motion, and Benchmade. Customers are coming in at retail with the mailers and the response has been very positive. We also added spot TV placements in key markets with new professional quality ads. The stores in these markets outperform those without the TV campaign. We will continue to test and learn from these approaches and use those that are delivering the highest return on investment.

我們重點介紹了 True Custom、Motion 和 Benchmade 這三個品牌。顧客們帶著這些宣傳冊來到零售店，反應非常正面。我們也在重點市場增加了電視廣告投放，投放了全新的專業品質廣告。在這些市場中，進行電視廣告宣傳的門市表現優於未進行電視廣告宣傳的門市。我們將繼續測試和學習這些方法，並採用那些投資報酬率最高的方法。

The marketing changes have enhanced our omnichannel experience as more of our target customers are integrated with their experience -- with their online experience and our in-person business. We are now lapping the double-digit e-commerce sales growth numbers from last year. Sales are still up now with single-digit increases.

行銷方式的改變增強了我們的全通路體驗，因為我們更多的目標客戶都融入了他們的體驗中——包括他們的線上體驗和我們的線下業務體驗。我們現在已經超過了去年兩位數的電子商務銷售成長數字。目前銷售額依然維持成長，增幅為個位數。

Website traffic declined slightly in the third quarter but conversion rates continue to rise and were up 18%, driven by improvements in our website experience to our shoppers. We remain pleased with the progress of our Bassett Custom Studio program and now have 57 locations opened. Orders were up and Bassett Custom Studio at 35% in Q3 and growth is coming from new and existing stores. Shipments were up 38%.

第三季網站流量略有下降，但轉換率持續上升，成長了 18%，這得益於我們網站購物體驗的改善。我們對 Bassett Custom Studio 專案的進展感到滿意，目前已開設 57 家分店。第三季訂單量增加了 35%，Bassett Custom Studio 的訂單量也成長了 35%，成長來自新店和現有門市。出貨量成長了38%。

We will be focused on emphasizing the value of Custom Studio with High Point and are optimistic that we will bring on additional locations to the program. This plan leverages our core competency of providing custom upholstery over a broader range of the United States.

我們將重點強調高點客製化工作室的價值，並樂觀地認為我們將為該計劃引入更多地點。該計劃充分利用了我們在美國更廣泛範圍內提供定製家具的核心競爭力。

We reopened our Concord, North Carolina corporate store in the last few weeks which has been closed since April for remodeling. We are also in the architectural planning phase of two new Bassett stores set to open in 2026. Our Board of Directors approved our regular quarterly cash dividend of $0.20 per share, and our balance sheet remains strong.

過去幾週，我們重新開放了位於北卡羅來納州康科德的總部門店，該門市自四月以來一直關閉進行裝修。我們目前也處於兩家新的 Bassett 商店的建築規劃階段，這兩家商店計劃於 2026 年開業。我們的董事會批准了每股0.20美元的常規季度現金股息，我們的資產負債表仍然穩健。

Now I'll turn things back over to Mike for more details on our financial results.

現在我將把發言權交還給麥克，讓他詳細介紹我們的財務表現。

Thanks, Rob. In my commentary, the comparisons I'll discuss will be the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024 unless otherwise noted.

謝謝你，羅伯。除非另有說明，否則我的評論中將討論 2025 財年第三季與 2024 財年第三季的比較。

As Rob previously noted, total consolidated revenue increased $4.5 million or 5.9%, excluding sales from Noa Home, which closed late in 2024, consolidated revenues increased 7.3%. Gross margin at 56.2% represented a 320-basis-point improvement over the prior year, driven by improved wholesale margins, partially offset by slightly lower retail margins.

正如羅布先前指出的那樣，總合併收入增加了 450 萬美元，增幅為 5.9%；如果不包括 2024 年底關閉的 Noa Home 的銷售額，合併收入將增加 7.3%。毛利率為 56.2%，比上年提高了 320 個基點，主要得益於批發毛利率的提高，但零售毛利率略有下降，部分抵消了這一增長。

Selling, general, and administrative expenses were 55.4% of sales, 440 basis points lower than the prior year, reflecting the benefits from last year's restructuring plan, ongoing cost optimization activities, and greater leverage of fixed costs due to higher sales levels.

銷售、一般及行政費用佔銷售額的 55.4%，比上年減少了 440 個基點，這反映了去年重組計劃的效益、持續的成本優化活動以及由於銷售水平提高而對固定成本的更大槓桿作用。

Operating income was $600,000 or 0.7% of sales as compared to a prior year loss of $6.4 million, which included a $1.2 million loss on the abandonment of a logistical services contract. Diluted earnings per share were $0.09 versus a loss of $0.52 in the last year quarter.

營業收入為 60 萬美元，佔銷售額的 0.7%，而上一年虧損 640 萬美元，其中包括因放棄物流服務合約而造成的 120 萬美元損失。稀釋後每股收益為 0.09 美元，而去年同期則虧損 0.52 美元。

Let me cover a little more detail on our wholesale operations. Net sales increased $3 million or 6.2% over the prior year consisting of a 9.2% increase in shipments to our retail store network, approximate 1% increase in shipments to the open market and a 9.6% increase in Lane Venture shipments.

讓我更詳細地介紹一下我們的批發業務。淨銷售額比上年增長 300 萬美元，增幅為 6.2%，其中零售店網絡出貨量增長 9.2%，公開市場出貨量增長約 1%，Lane Venture 出貨量增長 9.6%。

Gross margins increased 440 basis points over the prior year. Excluding $600,000 of unproductive labor costs incurred during the temporary shutdown for the cyber incident last year, gross margins would have increased by 310 basis points. This margin increase was driven by improved pricing strategies in both the upholstery and wood operations, coupled with greater leverage of fixed costs from higher sales levels.

毛利率較上年同期成長440個基點。如果排除去年因網路安全事件導致的臨時停工期間產生的 60 萬美元非生產性勞動成本，毛利率將提高 310 個基點。利潤率的提高得益於家具和木材業務定價策略的改進，以及銷售水準提高帶來的固定成本槓桿效應增強。

SG&A expenses as a percentage of sales decreased 210 basis points, primarily due to the benefit of cost reductions implemented during the second half of fiscal 2024, again, greater leverage of fixed costs from higher sales. Wholesale backlog was $16.6 million compared to $21.8 million on November 30, 2024, and $18.5 million at August 31, 2024.

銷售、一般及行政費用佔銷售額的百分比下降了 210 個基點，這主要是由於 2024 財年下半年實施的成本削減措施帶來的好處，再次證明了銷售額增長對固定成本的槓桿作用更大。截至 2024 年 11 月 30 日，批發積壓訂單為 1,660 萬美元，而 2024 年 8 月 31 日為 2,180 萬美元，2024 年 8 月 31 日為 1,850 萬美元。

Now, moving on to the retail store operations. Net sales increased $4.6 million or 9.8%. Gross margin declined 40 basis points due to the lower margins on both in-lining clearance goods. As Rob said, we've been more aggressive in cycling through the as is inventory and also coupled with increased promotional activity.

接下來，我們來看看零售店的營運狀況。淨銷售額成長460萬美元，成長9.8%。由於清倉商品的毛利率較低，毛利率下降了 40 個基點。正如羅布所說，我們更積極地循環利用現有庫存，並加大了促銷。

SG&A expenses as a percentage of sales decreased 590 basis points due to several factors: improved efficiency gains in warehouse and delivery operations, lower advertising and marketing expenditures, overall lower operating costs due to benefits from the cost reductions implemented during the restructuring and, of course, greater leverage of fixed costs due to higher sales levels.

銷售、一般及行政費用佔銷售額的百分比下降了 590 個基點，這主要歸因於以下幾個因素：倉庫和配送運營效率的提高、廣告和營銷支出的減少、重組期間實施的成本削減帶來的運營成本總體下降，當然還有由於銷售水平提高而導致的固定成本槓桿作用增強。

Retail backlog was $32.2 million compared to $37.1 million at November 30, 2024, and $33.3 million at August 31, 2024. Our liquidity position remains solid, although we generated an operating cash flow deficit for the quarter and ultimately reduced our cash and short-term investments by $5.2 million. We ended the quarter with $54.6 million of cash in short-term investments and no outstanding debt.

零售積壓訂單為 3,220 萬美元，而 2024 年 11 月 30 日為 3,710 萬美元，2024 年 8 月 31 日為 3,330 萬美元。雖然本季我們出現了經營現金流赤字，最終導致現金和短期投資減少了 520 萬美元，但我們的流動性狀況仍然穩健。本季末，我們持有5,460萬美元的短期投資現金，且無未償債務。

As Rob mentioned, our third quarter is typically the slowest quarter for business and consequently, our lowest cash generation period. We have reduced our projected range of annual capital investment in our business to between $5 million to $7 million as previously planned build-outs of the two new stores Rob previously mentioned, have been pushed to early fiscal 2026. Our prior CapEx range was between $7 million and $9 million.

正如羅布所提到的，我們的第三季度通常是業務最淡的季度，因此也是我們現金流最少的時期。由於羅布先前提到的兩家新店的建設計劃推遲到 2026 財年初，我們已將公司年度資本投資的預計範圍縮減至 500 萬至 700 萬美元。我們之前的資本支出範圍在 700 萬美元到 900 萬美元之間。

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

我們將繼續按季度派發股息，並樂觀地回購股票。本季我們花了 170 萬美元分紅，40 萬美元用於股票回購。我們將繼續致力於透過分紅以及在適當的時候回購股票來為股東帶來回報。

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

現在我們開通提問環節。米歇爾，請提供操作說明。

(Operator Instructions)

（操作說明）

Anthony Lebiedzinski, Sidoti.

Anthony Lebiedzinski，Sidoti。

It's really nice to see the improvement in sales and profitability in the quarter. So Rob, I think you said that August was your strongest month for delivered sales. Did you see the same case with your written sales as well? And also maybe if you could just comment on as far as what the trends you saw during the Labor Day holiday season? And any sort of commentary on the quarter-to-date trends would be very helpful.

很高興看到本季銷售額和獲利能力都有所提升。羅伯，我記得你說過八月是你們交付銷售額最高的一個月。你的書面銷售中也遇到過同樣的情況嗎？另外，您能否也談談您在勞動節假期期間觀察到的趨勢？任何對本季至今趨勢的評論都將非常有幫助。

That didn't take long to ask that question. We were predicting that was coming. So August was the best month of the three. We had good order momentum both at wholesale and retail. And I would say that, that trend has continued so far through the Labor Day period and into September.

問出這個問題並沒有花太多時間。我們早就預料到會發生這種情況。所以八月是這三個月裡最好的一個月。我們在批發和零售方面都獲得了良好的訂單動能。而且我認為，這種趨勢一直延續到了勞動節期間以及九月。

Now, by any means, I wouldn't say we're happy with our level of sales, and we're fighting hammer and tongs like everyone else for every order, we can get our hands on. I wouldn't say the environment is really a lot different. But frankly, it is -- the last couple of months have been a little better than we've been slogging through for the end of the COVID boom.

現在，無論如何，我都不能說我們對目前的銷售水平感到滿意，我們和其他人一樣，都在拼盡全力爭取每一筆訂單。我覺得環境沒有太大的不同。但坦白說，確實如此——過去幾個月比我們在新冠疫情繁榮末期艱難度過的時期要好一些。

That's great to hear. And then just in terms of dealing with the tariffs, so you mentioned the increased pricing. Just wondering if you could comment on the extent of the pricing as well as what you've seen as far as unit volumes, whether you've seen a notable change in response to the higher pricing that you put in?

聽到這個消息真是太好了。然後，就關稅問題而言，您提到了價格上漲的問題。我想問一下您能否就定價策略以及您觀察到的銷售情況發表一下看法，您是否看到由於提高了價格而出現了明顯的銷售變化？

Well, we -- our primary areas of the world that are affected by this are Vietnam and India. And of course, Vietnam has 20%. India has the eye-popping 50% tariff. And so we have levied surcharges on those products from those countries, and we've had to increase those as they finally figured out what they were going to do on both of those countries. Hopefully, that's -- well, who knows what's going to happen. But that's basically what we're doing.

嗯，我們——受此影響的主要地區是越南和印度。當然，越南佔20%。印度的關稅高達50%，令人瞠目結舌。因此，我們對來自這些國家的產品徵收了附加費，而且隨著這兩個國家最終確定了他們的政策，我們不得不提高附加費。希望如此——好吧，誰知道會發生什麼。但我們基本上就是這麼做的。

So we still have a surcharge on our imported goods. What's really going to be interesting is two weeks down in High Point and how everybody is feeling about this and what everybody else is doing because obviously, we're not the only ones talking about this, and it's going to be the big topic down there. But I think on the new things, what we will do is rolled the surcharge into the price of the goods and just not have a surcharge on those. That's what we're thinking about anyway, and then we'll address the rest of the lines at the end of the year. But for the short term, right now, we have the tariff surcharges.

所以我們進口的商品還是需要繳交附加費。真正有趣的是接下來兩週在海波因特的情況，看看每個人對此有何感受，以及其他人都在做什麼，因為顯然，我們不是唯一在談論這件事的人，而且這將是那裡的一個熱門話題。但我認為對於新產品，我們會把附加費計入商品價格，不再單獨收取附加費。反正我們目前是這麼考慮的，剩下的線路問題我們會在年底再處理。但就短期而言，目前我們面臨的是關稅附加費。

Understood. Okay. And then the gross margin was certainly impressive in terms of the year-over-year expansion. So certainly understand that the environment is still choppy and difficult. But as revenue does eventually come back in a more consistent basis, hopefully sooner rather than later. How should we think about further upside to your gross margins?

明白了。好的。而且，就年成長而言，毛利率確實令人印象深刻。所以一定要明白，目前的環境依然動盪且充滿挑戰。但隨著收入最終以更穩定的方式恢復，希望這一天能盡快到來。我們該如何看待貴公司毛利率的進一步提升空間？

Yeah. We were talking about this the other day. Honestly, I don't think you're going to see it improve dramatically. I mean that [55%, 56%] range is kind of where we think we're going to be. We're going to have to leverage that with expenses and more sales. I'm not saying we can't improve slightly, but I think that's kind of where we're going to be.

是的。我們前幾天正好談到這件事。說實話，我覺得情況不會有顯著改善。我的意思是，我們認為我們最終的佔比大概在 [55%, 56%] 範圍內。我們需要利用這一點來控制支出並增加銷售。我不是說我們不能稍微改進一下，但我認為我們大概就只能做到這樣了。

Got you. Okay. And then my last question before I pass it on to others. So you talked about the success with your new product introductions, which is great to hear. How does your pipeline look like for additional new products going forward?

抓到你了。好的。在把問題交給其他人之前，我還有最後一個問題。您談到了新產品上市的成功，這真是個好消息。你們未來推出更多新產品的計畫是什麼？

Well, look, we've introduced a lot of stuff this year, particularly on these whole home collections, which we haven't done in a while, and we brought three of them out. They're expensive. That's part of our cash flow deficit for the quarter. You see the inventory is going up on those things. And some of those things just kind of came in at the end of the quarter, we really hadn't been able to ship them out. We've now shipped them out.

你看，我們今年推出了許多新產品，特別是我們很久沒推出的全屋系列產品，我們一共推出了三個。它們很貴。這是我們本季現金流缺口的一部分。你看，這些東西的庫存正在增加。有些貨物直到季度末才到貨，我們一直沒能把它們出貨出去。我們已經把它們寄出去了。

So we're going to have a little more focused introduction strategy this market, although we still have plenty of new things. But we're going to absorb what we've just done. The good news on that, of course, is it's -- we're pleased with what's happening so far with that stuff. So -- but we've got a lot of new exciting things and we're looking forward to showing it to you in two weeks, Anthony.

因此，我們將採取更有針對性的市場推廣策略，儘管我們仍有許多新產品。但我們會消化我們剛剛所做的一切。當然，好消息是──我們對目前為止的進展感到滿意。所以——但是我們有很多令人興奮的新東西，我們期待著兩週後向你展示，安東尼。

Yeah. Looking forward to that seeing you at High Point. So thank you very much and best of luck.

是的。期待在高點見到你。非常感謝，祝你好運。

(Operator Instructions)

（操作說明）

Doug Lane, Water Tower Research.

道格·萊恩，水塔研究公司。

Just a housekeeping issue. I noticed that in your segment reporting, you moved some dollars last year out of custom upholstery into custom wood in case goods. And I just wanted to find out maybe what the thought process was there.

只是個小問題。我注意到，在您的分部報告中，您去年將一些資金從客製化軟墊家具轉移到了客製化木製家具。我只是想了解他們當時的思考過程。

Frankly, that was fixing an immaterial error.

坦白說，那隻是糾正一個無關緊要的錯誤。

Okay. Fair enough. And just -- you've never done that before, so it just kind of stuck out. Getting back to the margins, I think the impressive gain in the margins, particularly in the wholesale gross margins is really this quarter and all year. What has been driving that improvement in the wholesale gross margin, and yet you're still cautious on the future outlook for gross margins?

好的。很公平。而且──你以前從未做過那樣的事，所以就顯得格外突出。回到利潤率方面，我認為利潤率的顯著增長，特別是批發毛利率的增長，實際上是本季度和全年的。是什麼因素推動了批發毛利率的改善？儘管如此，您對未來毛利率前景仍然持謹慎態度？

Well, we've narrowed our focus on our line, and we're selling more of slightly fewer things in some cases, and we're getting some efficiencies that way. We're -- the upholstery operation is running extremely well. And that's really been a major contributor. And we've really looked at our pricing strategies, which are hard to do when you've got all these tariffs going on.

我們已經縮小了產品線範圍，在某些情況下，我們銷售的產品種類略有減少，但銷量卻有所增加，這樣一來，我們的效率也得到了提高。我們的－家具裝潢業務運作得非常好。而這確實是一個主要因素。我們已經認真審視了我們的定價策略，但在各種關稅政策的影響下，這很難做到。

But I'd say a combination of those things. I just -- I don't want to publicly state that we can drive a lot past where we are right now because we're pleased with where we've ended up so far with all of this. And so that's where exhibit a little caution on answering to Anthony's question.

但我認為應該是這些因素的綜合作用。我只是——我不想公開表示，我們可以遠遠超越我們現在所處的位置，因為我們對目前為止所取得的成果感到滿意。所以，在回答安東尼的問題時，要稍微謹慎一點。

Not only that, Rob, where we are in the tariff rollout and the tariff changes and how that gets rolled into the -- both costs and how that's perceived. I think there's still uncertainty around how ultimately, the consumer is going to react to the higher prices that are coming through on everybody's goods.

不僅如此，羅布，我們目前處於關稅推廣和關稅變化的哪個階段，以及這些變化如何納入成本和人們的看法。我認為目前仍存在不確定性，消費者最終將如何應對所有商品價格上漲的問題。

That's a good point. And there's just been an incredible amount of stuff going on this year for everybody. And we have half the centers in there about fabrics, but fabric is a major deal for us, half of our fabrics were from China. And we've had to discontinue a lot of our fabric line and reintroduce other things.

說得有道理。今年對每個人來說，都發生了太多不可思議的事。我們那裡有一半的中心是關於布料的，布料對我們來說非常重要，我們一半的布料都來自中國。我們不得不停產很多布料產品線，並重新推出其他產品。

And of course, that's expensive, too. Make all the swatches and get all the stuff out there and go through the inventory that you're having to drop. And so it's been a real chaotic thing. It's kind of hard to really comment on the future as accurately as we hope to. And until this tariff thing blows over, if it ever was. I know where we're going, but I hope that answered your question.

當然，那也很貴。製作所有色卡，把所有東西都拿出來，然後清點一下你不得不丟棄的庫存。所以事情一直很混亂。要像我們希望的那樣準確地預測未來，其實很難。直到這場關稅風波平息為止，如果它真的會平息的話。我知道我們要去哪裡，但我希望這能解答你的疑問。

No, that's all fair. And it certainly has been a chaotic and uncertain out there? And while we're on the subject, have you quantified what you expect the net tariff impact to be to your financials this year?

不，這都很公平。外面的世界確實混亂不堪，充滿不確定性？既然說到這個話題，您是否已經量化了您預計今年關稅淨影響將對貴公司財務狀況造成的影響？

I'm not sure that I can.

我不確定我能不能做到。

I can tell you that, I guess, the philosophy has been and we're still a little bit wrestling with the philosophy about how we price the goods, are we going to price it so that with the tariff in there, we get the same margin or we get the same margin dollars. So I'd say to ultimately say what we think it's going to be. I don't think we can answer it. But that's kind of what we're wrestling with there a little bit.

我可以告訴你，我想，我們一直以來的理念是，而且現在仍然在努力思考如何為商品定價，我們是否應該這樣定價：在加上關稅之後，我們可以獲得相同的利潤，或者我們可以獲得相同的利潤美元。所以我覺得最終還是應該說出我們認為它會是什麼樣子。我認為我們無法回答這個問題。但這正是我們目前正在努力解決的問題。

And there's so many little nuances to this, as I've just alluded to the fabrics, but the metal, the mechanisms, the componentry that plywood a lot -- I mean it's or you really -- to really give an accurate answer to your question, you're going to have to dig through a lot of raw materials, finished goods, different kinds of materials, different countries, different tariffs. It's hard to kind of an unprecedented period. And I'm not saying that we have totally realized the effect of all of this. But so far, we're navigating it relatively well.

這裡面有很多細微的差別，就像我剛才提到的布料一樣，還有金屬、機械裝置、膠合板等零件——我的意思是，或者說，要真正準確地回答你的問題，你必須深入研究大量的原料、成品、不同種類的材料、不同的國家、不同的關稅。這是一個前所未有的時期，很難用言語來形容。我並不是說我們已經完全意識到這一切的影響。但到目前為止，我們應對得還算順利。

No. And it changes every week, it seems. But on the flip side, with 80% of your manufacturing in the US, do you see an opportunity for market share gains here?

不。而且似乎每週都在變化。但另一方面，貴公司 80% 的生產都在美國，您認為這方面有機會獲得市場佔有率嗎？

We hope so. It depends on the category to a certain extent. I'm going to have a much better answer to that question than two weeks from now than I have right now. We have had a couple of instances that I can point to where the guys have said, hey, we got this because we're domestic. But I wouldn't say it's a landslide.

我們希望如此。這在一定程度上取決於類別。兩週後，我對這個問題會有比現在更好的答案。我可以指出一些例子，在這些例子中，有人說：“嘿，我們能做到，是因為我們是本土人士。”但我不會說這是一場壓倒性的勝利。

But it does give us pause to think that we may benefit from this in some perverse way that the other guys won't. But there's still a lot of domestic upholstery out there, and that's the biggest portion of our business. And so the tariff, maybe it will help the upholstery business in general. It's certainly -- there's plenty of it made in America right within a 10-mile radius of our factories down in North Carolina.

但這確實讓我們不禁思考，我們或許能以某種扭曲的方式從中受益，而其他人卻無法從中受益。但國內的家具裝潢市場仍然非常龐大，這構成了我們業務的最大部分。因此，這項關稅或許對整個家具裝潢產業有所幫助。當然——在我們位於北卡羅來納州的工廠方圓 10 英里內，就有很多這種產品是美國製造的。

Okay. Fair enough. And just one last thing. I know your balance sheet is strong and your free cash flow is improving nicely, but still doesn't cover the dividend. When do you think the free cash flow will be able to cover the dividend in the future?

好的。很公平。最後還有一件事。我知道你們的資產負債表很穩健，自由現金流也穩定改善，但仍然不足以支付股利。您認為未來何時自由現金流足以支付股利？

Well, it has in the past. And it's -- I think it will again soon. But this quarter was a little unusual in the inventory and just the periodic slowness of the third quarter, which we experienced.

過去確實發生過這種情況。而且——我認為它很快就會再次發生。但本季庫存情況有些異常，也出現了第三季常見的周期性放緩。

And I would say, Doug, the fourth quarter is typically our -- it's the strongest quarter both for business and for cash generation. I'm not saying that we -- exactly what we'll do. But typically, the fourth quarter is the best quarter, and we generate, usually really good cash flow.

道格，我想說，第四季通常是我們公司業務和現金流最強勁的季度。我不是說我們會——具體會怎麼做。但通常來說，第四季是最好的季度，我們通常會產生非常好的現金流。

There are no further questions at this time. I'd like to turn the call back over to Rob Spilman, for closing remarks.

目前沒有其他問題了。我謹將電話交還給羅伯·斯皮爾曼，請他作總結發言。

All right. Thank you. And again, we've got to remain agile in the environment. The fluctuating tariff rules have made the day-to-day running of the business challenging. We are, as the question alluded to, somewhat insulated by our domestic manufacturing platform, but today's furniture industry is truly a global enterprise.

好的。謝謝。再次強調，我們必須保持對環境的靈活適應能力。關稅規則的波動為企業的日常營運帶來了挑戰。正如問題中所暗示的那樣，我們的國內製造平台在一定程度上保護了我們，但如今的家具業確實是一個全球性企業。

Nevertheless, we are pleased to have posted growth in the quarter. Our new product lines are selling, and we look forward to unveiling new ideas to the marketplace in High Point, North Carolina in two weeks. Thank you today for your time and for your interest in Bassett Furniture.

儘管如此，我們很高興本季實現了成長。我們的新產品系列正在熱銷，我們期待兩週後在北卡羅來納州海波因特市向市場推出新的理念。感謝您今天抽出時間並關注巴塞特家具。

Thank you for your participation. You may now disconnect. Everyone, have a great day.

感謝您的參與。您現在可以斷開連線了。祝大家今天過得愉快。