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Mar 31, 2020
Ethan Allen Q3 2020 Earnings Report
Ethan Allen reported financial results negatively impacted by lower order backlog and COVID-19 disruptions.
Key Takeaways
Ethan Allen's Q3 2020 results were negatively impacted by a lower order backlog from the transition to a membership model and disruptions from COVID-19. Despite challenges, the company saw strong order growth in the first two months of the quarter and managed to generate about 35% of written orders in April compared to the previous year, even with design center closures. The company has taken steps to conserve cash, including suspending dividends and share repurchases.
Net sales decreased by 15.8% to $149.8 million compared to the same period last year.
Gross margin improved to 56.1% compared to 55.3% in the prior year.
Diluted EPS was ($0.01), while adjusted EPS was $0.02 compared to $0.31 in the prior year.
Cash on hand was $116.9 million as of March 31, 2020, with long-term debt of $100 million.
Forward Guidance
The Company began reopening design centers in a number of U.S. states since May 1, 2020 and began resuming production in some of its North American manufacturing plants in a limited capacity to work through existing backlog and to be in a position to service expected demand as the economy begins to reopen for business.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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