Ethan Allen Provides Business Updates
Ethan Allen Interiors, Inc. (“Ethan Allen” or the “Company”) provided several updates on its business.
Preliminary Financial Results
The Company expects to report the following financial results for its first quarter ended September 30, 2020:
– Consolidated net sales of $151.1 million
– Retail segment written orders continued to accelerate with growth of 10.8% over the prior year
– Wholesale segment orders, while benefitting from the strong retail growth, were down 0.4% due to the timing of GSA and other government orders that were negatively impacted by COVID-19 pandemic related disruptions. Excluding GSA and other government orders, Wholesale segment orders booked were up 9.2% for the quarter.
– Consolidated gross margin of 56.8%
– Adjusted diluted EPS in the range of $0.34 to $0.36
– Paid off all of the remaining $50 million in debt during the quarter using available cash
– Ended the quarter with cash on hand of $62.0 million as of September 30, 2020
– On August 4, 2020, the Company’s Board of Directors reinstated the regular quarterly cash dividend and declared a regular quarterly cash dividend of $0.21 per share, payable in October 2020
Farooq Kathwari, Ethan Allen’s Chairman, President and CEO commented, “Our fundamentals remain strong. Retail written orders and backlogs continue to grow, with significant growth both in our design centers and from our e-commerce business. With our manufacturing production now reaching pre-COVID-19 levels, we are increasing capacity and production. Our unique vertical structure, whereby we produce about 75% of what we sell, mostly on a custom made-to-order basis in our own North American manufacturing plants, allows us to maintain stronger service levels with greater control over inventory. We plan to continue our marketing efforts and are well positioned to grow with our relevant offerings as well as our complimentary personal interior design service combined with technology and in-home white-glove delivery.”
“Our teams remain focused on serving our clients and keeping our workplaces safe. I am personally proud of the incredible effort and positive attitude put forth by our associates under the most trying of circumstances,” concluded Mr. Kathwari.
For the full release, click here.
About Ethan Allen
Ethan Allen Interiors Inc. (NYSE: ETH) is a leading interior design company and manufacturer and retailer of quality home furnishings. The Company offers complimentary interior design service to its clients and sells a full range of furniture products and decorative accessories through ethanallen.com and a network of approximately 300 design centers in the United States and abroad. Ethan Allen owns and operates nine manufacturing facilities including six manufacturing plants in the United States, two manufacturing plants in Mexico and one manufacturing plant in Honduras. Approximately 75% of its products are made in its North American plants. For more information on Ethan Allen’s products and services, visit www.ethanallen.com.
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Source: Ethan Allen Interiors, Inc.