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Dec 31, 2020
Ethan Allen Q2 2021 Earnings Report
Ethan Allen's Q2 2021 performance was strong, marked by increased consumer demand and improved profitability.
Key Takeaways
Ethan Allen reported a strong second quarter in fiscal year 2021, driven by heightened consumer demand for home furnishings and design services. The company saw significant growth in written orders, improved operating margins, and a strong cash position with no debt. Earnings per share increased substantially due to disciplined cost and expense controls.
Diluted earnings per share increased to $0.67, with adjusted EPS up 155.6% to $0.69.
Consolidated operating margin improved to 12.6%, with adjusted operating margin at 13.1%.
Retail segment written orders grew by 44.9%, and wholesale segment written orders increased by 28.1%.
The company ended the quarter with $80 million in cash and no outstanding debt.
Revenue by Segment
Forward Guidance
Ethan Allen anticipates continued growth in sales and profitability, leveraging its retail network, design professionals, vertical integration, and national distribution. The company remains focused on employee safety, investing in digital technologies, expanding its client base, and generating strong cash flow.
Positive Outlook
- Strong retail network and the personal service of interior design professionals.
- Unique vertical integration with 75% of products made in North American manufacturing workshops.
- National distribution and home delivery centers providing white glove service.
- Continued investment in digital design and interactive communication technologies.
- Refining and repositioning product offerings to reach a larger client base.
Challenges Ahead
- Impact of COVID-19 and its effects on production capacity and supply chain.
- Belief that it will take the March and June quarters to catch up to the increase in customer demand.
- Challenging COVID-19 landscape.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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