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Dec 31, 2023
Ethan Allen Q2 2024 Earnings Report
Ethan Allen's Q2 2024 results were characterized by lower sales, strong gross and operating margins, and a robust balance sheet.
Key Takeaways
Ethan Allen reported a decrease in net sales by 17.7% to $167.3 million, alongside a diluted EPS of $0.68. Despite lower sales, the company maintained a strong gross margin of 60.2% and ended the quarter with $167.8 million in cash and investments.
Consolidated net sales decreased by 17.7% to $167.3 million.
Retail net sales were lower by 19.0% at $139.2 million.
Consolidated gross margin was 60.2%, a decrease of 80 basis points compared to the previous year.
The company ended the quarter with $167.8 million in cash and investments and no debt.
Revenue by Segment
Forward Guidance
Ethan Allen is cautiously optimistic about its future performance, focusing on its strong interior design-based enterprise, technology utilization, and North American manufacturing and logistics.
Positive Outlook
- Strong interior design-based enterprise.
- Utilization of technology.
- Investment in North American manufacturing and logistics.
- 75% of products are made in North American facilities with 75% custom orders.
- Strong logistics network delivers products to clients' homes at one delivered price.
Challenges Ahead
- Lower sales reflect post-pandemic economy.
- Retail segment written orders decreased 9.4%.
- Wholesale segment written orders decreased 10.9%.
- Gross margin decreased due to deleveraging from lower unit volumes and changes in sales and product mix.
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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