Fri, Aug 23, 8:02 PM (144 days ago)
Ethan Allen Interiors Inc. reported a challenging fiscal year ending June 30, 2024, with net sales of $646.2 million, down 18.3% from the previous year. This decline was attributed to decreased demand, lower unit volumes, and a strong prior-year comparison. Gross margins remained stable at 60.8%, supported by reduced raw material costs and disciplined expense management. Operating income fell to $78.0 million, a 43.2% decrease, reflecting lower sales and higher SG&A expenses, which totaled $315.1 million. The adjusted diluted EPS was $2.49, down 39.7%. Ethan Allen maintained a robust balance sheet, with cash and equivalents of $69.7 million and no outstanding debt. The company generated $80.2 million in operating cash flow while paying $50.3 million in dividends. The wholesale backlog decreased to $53.5 million, nearing pre-pandemic levels, while the company plans to expand its retail design center footprint. Key risks include economic downturns affecting consumer spending, supply chain disruptions, and competitive pressures. The company remains focused on leveraging its vertical integration and enhancing customer experience through technology and design services.