Ethan Allen Reports Fiscal 2025 First Quarter Results; Maintained Strong Margins and Operating Cash Flow Amid Challenging Economic Environment
Ethan Allen (NYSE: ETD) reported fiscal 2025 first quarter results with consolidated net sales of $154.3 million, down from $163.9 million year-over-year. The company maintained a strong gross margin of 60.8% and operating margin of 11.4%. Adjusted diluted EPS was $0.58. The company ended the quarter with $186.4 million in total cash and investments, up $23.2 million from last year, with no debt. During Q1, ETD paid $20.2 million in cash dividends, including a special dividend. The company's North Carolina distribution center was impacted by Hurricane Helene, resulting in a $0.3 million loss. Written orders declined in both retail (-6.8%) and wholesale (-4.8%) segments.
Ethan Allen (NYSE: ETD) ha riportato i risultati del primo trimestre fiscale 2025, con vendite nette consolidate di 154,3 milioni di dollari, in calo rispetto ai 163,9 milioni di dollari dell'anno precedente. L'azienda ha mantenuto un forte margine lordo del 60,8% e un margine operativo dell'11,4%. L'utilizzo per azione diluito rettificato è stato di 0,58 dollari. L'azienda ha concluso il trimestre con 186,4 milioni di dollari in totale di liquidità e investimenti, in aumento di 23,2 milioni di dollari rispetto all'anno scorso, senza debiti. Durante il primo trimestre, ETD ha pagato 20,2 milioni di dollari in dividendi in contante, inclusi i dividendi straordinari. Il centro di distribuzione della Carolina del Nord dell'azienda è stato colpito dall'uragano Helene, comportando una perdita di 0,3 milioni di dollari. Gli ordini scritti sono diminuiti sia nel segmento retail (-6,8%) che in quello all'ingrosso (-4,8%).
Ethan Allen (NYSE: ETD) informó los resultados del primer trimestre fiscal 2025, con ventas netas consolidadas de 154,3 millones de dólares, disminuyendo desde 163,9 millones de dólares en comparación con el año anterior. La compañía mantuvo un sólido margen bruto del 60,8% y un margen operativo del 11,4%. El EPS diluido ajustado fue de 0,58 dólares. La empresa cerró el trimestre con 186,4 millones de dólares en efectivo e inversiones totales, un aumento de 23,2 millones de dólares respecto al año pasado, sin deudas. Durante el primer trimestre, ETD pagó 20,2 millones de dólares en dividendos en efectivo, incluyendo un dividendo especial. El centro de distribución de Carolina del Norte de la empresa se vio afectado por el huracán Helene, lo que resultó en una pérdida de 0,3 millones de dólares. Los pedidos escritos disminuyeron en los segmentos minorista (-6,8%) y mayorista (-4,8%).
이선 앨런 (NYSE: ETD)은 2025 회계년도 첫 분기 실적을 보고하며 총 매출 1억 5,430만 달러를 기록했으며, 이는 작년의 1억 6,390만 달러에서 감소한 수치입니다. 회사는 60.8%의 강력한 총 이익률과 11.4%의 영업 이익률을 유지했습니다. 조정된 희석 주당순이익은 0.58달러였습니다. 회사는 분기를 1억 8,640만 달러의 현금 및 투자 자산으로 마감했으며, 이는 지난해 대비 2,320만 달러 증가한 금액으로, 부채는 없습니다. 1분기 동안 ETD는 현금 배당금으로 2,020만 달러를 지급했으며, 특별 배당금도 포함되어 있습니다. 회사의 노스캐롤라이나 물류센터는 허리케인 헬렌의 영향을 받아 30만 달러의 손실을 입었습니다. 서면 주문은 소매(-6.8%) 및 도매(-4.8%) 부문 모두에서 감소했습니다.
Ethan Allen (NYSE: ETD) a annoncé les résultats du premier trimestre fiscal 2025, avec des ventes nettes consolidées de 154,3 millions de dollars, en baisse par rapport à 163,9 millions de dollars l'année précédente. L'entreprise a maintenu une forte marge brute de 60,8% et une marge opérationnelle de 11,4%. Le BPA dilué ajusté était de 0,58 dollar. L'entreprise a terminé le trimestre avec 186,4 millions de dollars en liquidités et investissements totaux, soit une augmentation de 23,2 millions de dollars par rapport à l'année dernière, sans dettes. Au cours du premier trimestre, ETD a versé 20,2 millions de dollars en dividendes en espèces, y compris un dividende spécial. Le centre de distribution de la Caroline du Nord a été affecté par l'ouragan Helene, entraînant une perte de 0,3 million de dollars. Les commandes écrites ont diminué dans les segments de la vente au détail (-6,8%) et de la vente en gros (-4,8%).
Ethan Allen (NYSE: ETD) berichtete über die Ergebnisse des ersten Quartals des Geschäftsjahres 2025 mit konsolidierten Nettoumsätzen von 154,3 Millionen Dollar, einem Rückgang von 163,9 Millionen Dollar im Jahresvergleich. Das Unternehmen konnte einen starken Bruttomargen von 60,8% und einen Operativen Marge von 11,4% aufrechterhalten. Bereinigter verwässerter EPS betrug 0,58 Dollar. Das Unternehmen beendete das Quartal mit 186,4 Millionen Dollar an liquiden Mitteln und Investitionen, was einem Anstieg von 23,2 Millionen Dollar im Vergleich zum Vorjahr entspricht, ohne Schulden. Im ersten Quartal zahlte ETD 20,2 Millionen Dollar an Bardividenden, einschließlich einer Sonderdividende. Das Vertriebszentrum in North Carolina wurde durch den Hurrikan Helene beeinträchtigt, was zu einem Verlust von 300.000 Dollar führte. Die schriftlichen Bestellungen gingen sowohl im Einzelhandel (-6,8%) als auch im Großhandel (-4,8%) zurück.
- Strong gross margin of 60.8%
- Cash and investments increased by $23.2 million YoY to $186.4 million
- Debt-free balance sheet
- Generated $15.1 million in operating cash flow
- Reduced headcount by 8.5% YoY, improving operational efficiency
- Reduced inventory levels by $6.4 million YoY
- Net sales declined 5.8% YoY to $154.3 million
- Retail written orders decreased 6.8%
- Wholesale written orders declined 4.8%
- Operating margin decreased from 12.1% to 11.5% (adjusted)
- $0.3 million loss from Hurricane Helene damage
Insights
Ethan Allen's Q1 FY2025 results demonstrate resilience despite economic headwinds.
Key positives include operational efficiency improvements, with headcount reduction of
However, declining written orders (retail down
DANBURY, CT, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE: ETD), a leading interior design destination, today reported its results for the fiscal 2025 first quarter ended September 30, 2024.
Farooq Kathwari, Ethan Allen’s Chairman, President and CEO commented, “We are pleased with our first quarter financial and operating results amid the challenging economic environment. We continue to strengthen various areas of our vertically integrated enterprise, including our talent, product offerings, marketing, retail network, manufacturing, logistics, technology and social responsibility.”
“For the quarter ended September 30, 2024, we reported consolidated net sales of
Mr. Kathwari continued, “Strengthening our team and investing in technology is a game changer. These two important factors have helped us to operate more efficiently. As of September 30, 2024, our headcount was
“As previously disclosed, one of our distribution centers located in Old Fort, North Carolina was impacted in September by significant flooding from Hurricane Helene. The disruption impacted shipments and we suffered a loss of
“We look forward to continued progress and remain cautiously optimistic,” concluded Mr. Kathwari.
FISCAL 2025 FIRST QUARTER HIGHLIGHTS*
- Consolidated net sales of
$154.3 million compared with$163.9 million a year ago- Retail net sales of
$132.8 million compared with$133.6 million - Wholesale net sales of
$86.1 million compared with$99.4 million
- Retail net sales of
- Written order trends
- Retail segment written orders were lower by
6.8% - Wholesale segment written orders declined by
4.8%
- Retail segment written orders were lower by
- Consolidated gross margin of
60.8% compared with61.1% last year - Operating margin of
11.4% ; adjusted operating margin of11.5% compared with12.1% last year primarily due to fixed cost deleveraging from lower sales - Advertising expenses were equal to
2.3% of consolidated net sales, up from2.0% in the prior year - Diluted EPS of
$0.57 compared with$0.58 ; adjusted diluted EPS of$0.58 - Generated
$15.1 million of cash from operating activities compared with$16.7 million a year ago - Paid cash dividends totaling
$20.2 million , which included a$0.40 per share special cash dividend and a regular quarterly cash dividend of$0.39 per share - Ended the quarter with
$186.4 million in total cash and investments with no debt outstanding - Reduced inventory carrying levels to
$143.2 million at September 30, 2024, down$6.4 million from a year ago - Ended the quarter with 3,347 total employees, down
8.5% from a year ago and27.9% less than at September 30, 2019 - Named America’s Best Premium Furniture Retailer for the second consecutive year by Newsweek
- Operated 173 Ethan Allen retail design centers in North America as of September 30, 2024, including 142 Company-operated and 31 independently owned and operated locations; the Company also has design centers outside of North America
- Ethan Allen’s western North Carolina distribution center sustained flooding from Hurricane Helene in September 2024 that resulted in a pre-tax charge of
$0.3 million and a temporary disruption in shipments; employees have returned to work and normal operating capacity has resumed with an expected recovery from the delayed shipments during the second quarter of fiscal 2025
* See reconciliation of GAAP to adjusted key financial measures in the back of this release. Comparisons are to the fiscal 2024 first quarter.
KEY FINANCIAL MEASURES*
| (Unaudited) | ||||||||||
| (In thousands, except per share data) | ||||||||||
| Three months ended | ||||||||||
| September 30, | ||||||||||
| 2024 | 2023 | |||||||||
| Net sales | $ | 154,337 | $ | 163,892 | ||||||
| Gross profit | $ | 93,869 | $ | 100,141 | ||||||
| Gross margin | 60.8 | % | 61.1 | % | ||||||
| GAAP operating income | $ | 17,565 | $ | 18,351 | ||||||
| Adjusted operating income* | $ | 17,797 | $ | 19,843 | ||||||
| GAAP operating margin | 11.4 | % | 11.2 | % | ||||||
| Adjusted operating margin* | 11.5 | % | 12.1 | % | ||||||
| GAAP net income | $ | 14,719 | $ | 14,939 | ||||||
| Adjusted net income* | $ | 14,892 | $ | 16,054 | ||||||
| Effective tax rate | 25.3 | % | 25.6 | % | ||||||
| GAAP diluted EPS | $ | 0.57 | $ | 0.58 | ||||||
| Adjusted diluted EPS* | $ | 0.58 | $ | 0.63 | ||||||
| Cash flows from operating activities | $ | 15,080 | $ | 16,700 | ||||||
* See reconciliation of GAAP to adjusted key financial measures in the back of this release.
BALANCE SHEET and CASH FLOW
Cash and investments totaled
Cash from operating activities totaled
Cash dividends paid were
Inventories, net totaled
Customer deposits from undelivered written orders totaled
No debt outstanding at September 30, 2024.
DIVIDENDS
On July 30, 2024, the Company’s Board of Directors declared a
More recently, on October 29, 2024, the Board of Directors declared a regular quarterly cash dividend of
CONFERENCE CALL
Ethan Allen will host a conference call with investors and analysts today, October 30, 2024, at 5:00 PM (Eastern Time) to discuss these results. The conference call will be webcast live from the Company’s Investor Relations website at https://ir.ethanallen.com.
The following information is provided for those who would like to participate in the conference call:
- U.S. Participants: 877-705-2976
- International Participants: 201-689-8798
- Meeting Number: 13748634
For those unable to listen live, an archived recording of the call will be made available on the Company’s website referenced above for up to six months.
ABOUT ETHAN ALLEN
Ethan Allen (NYSE:ETD), recently named America’s #1 Premium Furniture Retailer by Newsweek, is a leading interior design destination combining state-of-the-art technology with personal service. Our design centers, which represent a mix of Company-operated and independent licensee locations, offer complimentary interior design service and sell a full range of home furnishings, including custom furniture and artisan-crafted accents for every room in the home. Vertically integrated from product design through logistics, we manufacture about
Investor Relations Contact:
Matt McNulty
Senior Vice President, Chief Financial Officer and Treasurer
IR@ethanallen.com
ABOUT NON-GAAP FINANCIAL MEASURES
This release is intended to supplement, rather than to supersede, the Company's consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). In this release the Company has included financial measures that are derived from the consolidated financial statements but are not presented in accordance with GAAP. The Company uses non-GAAP financial measures, including adjusted operating income and margin, adjusted net income and adjusted diluted EPS (collectively “non-GAAP financial measures”). The Company computes these non-GAAP financial measures by adjusting the comparable GAAP measure to remove the impact of certain charges and gains and the related tax effect of these adjustments. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, or superior to, the financial performance measures prepared in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measure reported in accordance with GAAP is provided at the end of this release.
FORWARD-LOOKING STATEMENTS
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Generally, forward-looking statements represent management’s beliefs and assumptions concerning current expectations, projections or trends relating to results of operations, financial results, financial condition, strategic initiatives, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, investments, future economic indicators, business conditions and industry performance. Such forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These forward-looking statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “continue,” “may,” “will,” “short-term,” “target,” “outlook,” “forecast,” “future,” “strategy,” “opportunity,” “would,” “guidance,” “non-recurring,” “one-time,” “unusual,” “should,” “likely,” “pandemic,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. The Company derives many of its forward-looking statements from operating budgets and forecasts, which are based upon detailed assumptions. While the Company believes that its assumptions are reasonable, it cautions that it is difficult to predict the impact of known factors and it is impossible for the Company to anticipate all factors that could affect actual results and matters that are identified as “short-term,” “non-recurring,” “unusual,” “one-time,” or other words and terms of similar meaning may in fact recur in one or more future financial reporting periods.
Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that are expected. Actual results could differ materially from those anticipated in the forward-looking statements due to a number of risks and uncertainties including, but not limited to, the risks and uncertainties disclosed in Part I, Item 1A. Risk Factors, in the Company’s 2024 Annual Report on Form 10-K and other factors identified in its reports filed with the Securities and Exchange Commission (the “SEC”), available on the SEC's website at www.sec.gov.
All forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements, as well as other cautionary statements. A reader should evaluate all forward-looking statements made in this release in the context of these risks and uncertainties. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. Many of these factors are beyond the Company’s ability to control or predict. The Company is including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. The forward-looking statements included in this release are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law.
| Ethan Allen Interiors Inc. | ||||||
| Condensed Consolidated Statements of Comprehensive Income | ||||||
| (Unaudited) | ||||||
| (In thousands, except per share data) | ||||||
| Three months ended September 30, | ||||||
| 2024 | 2023 | |||||
| Net sales | $ | 154,337 | $ | 163,892 | ||
| Cost of sales | 60,468 | 63,751 | ||||
| Gross profit | 93,869 | 100,141 | ||||
| Selling, general and administrative expenses | 76,072 | 80,298 | ||||
| Restructuring and other charges, net of gains | 232 | 1,492 | ||||
| Operating income | 17,565 | 18,351 | ||||
| Interest and other income, net | 2,198 | 1,785 | ||||
| Interest and other financing costs | 60 | 61 | ||||
| Income before income taxes | 19,703 | 20,075 | ||||
| Income tax expense | 4,984 | 5,136 | ||||
| Net income | $ | 14,719 | $ | 14,939 | ||
| Net income per diluted share | $ | 0.57 | $ | 0.58 | ||
| Diluted weighted average common shares | 25,618 | 25,618 | ||||
| Ethan Allen Interiors Inc. | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (Unaudited) | ||||||
| (In thousands) | ||||||
| September 30, | June 30, | |||||
| ASSETS | 2024 | 2024 | ||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 59,234 | $ | 69,710 | ||
| Investments, short-term | 76,730 | 91,319 | ||||
| Accounts receivable, net | 6,855 | 6,766 | ||||
| Inventories, net | 143,204 | 142,040 | ||||
| Prepaid expenses and other current assets | 27,329 | 22,848 | ||||
| Total current assets | 313,352 | 332,683 | ||||
| Property, plant and equipment, net | 213,875 | 215,258 | ||||
| Goodwill | 25,388 | 25,388 | ||||
| Intangible assets | 19,740 | 19,740 | ||||
| Operating lease right-of-use assets | 111,977 | 114,242 | ||||
| Deferred income taxes | 874 | 824 | ||||
| Investments, long-term | 50,426 | 34,772 | ||||
| Other assets | 2,072 | 2,010 | ||||
| Total ASSETS | $ | 737,704 | $ | 744,917 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued expenses | $ | 27,221 | $ | 27,400 | ||
| Customer deposits | 74,054 | 73,471 | ||||
| Accrued compensation and benefits | 19,522 | 20,702 | ||||
| Current operating lease liabilities | 27,854 | 27,387 | ||||
| Other current liabilities | 8,664 | 4,736 | ||||
| Total current liabilities | 157,315 | 153,696 | ||||
| Operating lease liabilities, long-term | 98,468 | 100,897 | ||||
| Deferred income taxes | 2,872 | 3,035 | ||||
| Other long-term liabilities | 4,398 | 4,373 | ||||
| Total LIABILITIES | 263,053 | 262,001 | ||||
| Shareholders’ equity | ||||||
| Ethan Allen Interiors Inc. shareholders’ equity | 474,725 | 482,980 | ||||
| Noncontrolling interests | (74 | ) | (64 | ) | ||
| Total shareholders’ equity | 474,651 | 482,916 | ||||
| Total LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 737,704 | $ | 744,917 | ||
Reconciliation of Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with GAAP, the Company uses non-GAAP financial measures, including adjusted operating income and margin, adjusted net income and adjusted diluted EPS. The reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in tables below.
These non-GAAP measures are derived from the consolidated financial statements but are not presented in accordance with GAAP. The Company believes these non-GAAP measures provide a meaningful comparison of its results to others in its industry and prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, its financial performance measures prepared in accordance with GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than the Company does, limiting the usefulness of those measures for comparative purposes. Despite the limitations of these non-GAAP financial measures, the Company believes these adjusted financial measures and the information they provide are useful in viewing its performance using the same tools that management uses to assess progress in achieving its goals. Adjusted measures may also facilitate comparisons to historical performance.
The following tables provide a reconciliation of non-GAAP financial measures used in this release to the most directly comparable GAAP financial measures:
| (Unaudited) | |||||||||||||
| (In thousands, except per share data) | Three months ended | ||||||||||||
| September 30, | |||||||||||||
| 2024 | 2023 | % Change | |||||||||||
| Consolidated Adjusted Operating Income / Operating Margin | |||||||||||||
| GAAP Operating income | $ | 17,565 | $ | 18,351 | (4.3 | %) | |||||||
| Adjustments (pre-tax)* | 232 | 1,492 | |||||||||||
| Adjusted operating income* | $ | 17,797 | $ | 19,843 | (10.3 | %) | |||||||
| Consolidated Net sales | $ | 154,337 | $ | 163,892 | (5.8 | %) | |||||||
| GAAP Operating margin | 11.4 | % | 11.2 | % | |||||||||
| Adjusted operating margin* | 11.5 | % | 12.1 | % | |||||||||
| Consolidated Adjusted Net Income / Adjusted Diluted EPS | |||||||||||||
| GAAP Net income | $ | 14,719 | $ | 14,939 | (1.5 | %) | |||||||
| Adjustments, net of tax* | 173 | 1,115 | |||||||||||
| Adjusted net income | $ | 14,892 | $ | 16,054 | (7.2 | %) | |||||||
| Diluted weighted average common shares | 25,618 | 25,618 | |||||||||||
| GAAP Diluted EPS | $ | 0.57 | $ | 0.58 | (1.7 | %) | |||||||
| Adjusted diluted EPS* | $ | 0.58 | $ | 0.63 | (7.9 | %) | |||||||
* Adjustments to reported GAAP financial measures including operating income and margin, net income and diluted EPS have been adjusted by the following: | ||||||||
| (Unaudited) | Three months ended | |||||||
| (In thousands) | September 30, | |||||||
| 2024 | 2023 | |||||||
| Hurricane Helene impact | $ | 335 | $ | - | ||||
| Orleans, Vermont flood | 18 | 2,096 | ||||||
| Gain on sale-leaseback transaction | (218 | ) | (655 | ) | ||||
| Severance and other charges | 97 | 51 | ||||||
| Adjustments to operating income | $ | 232 | $ | 1,492 | ||||
| Related income tax effects on non-recurring items(1) | (59 | ) | (377 | ) | ||||
| Adjustments to net income | $ | 173 | $ | 1,115 | ||||
(1) Calculated using the marginal tax rate for each period presented
FAQ
What was Ethan Allen's (ETD) revenue in Q1 fiscal 2025?
How much dividend did ETD pay in Q1 fiscal 2025?
What was ETD's cash position as of September 30, 2024?
How did Hurricane Helene impact ETD's operations in Q1 2025?
