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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.
Ethan Allen
Ethan Allen
Ethan Allen Revenue by Segment
Revenue by Segment
Retail Net Sales Revenue
CapyFin.comWholesale Net Sales Revenue
CapyFin.com 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.
- Operating margin decreased due to fixed cost deleveraging from lower consolidated net sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income