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Mar 31, 2022

Ethan Allen Q3 2022 Earnings Report

Reported double-digit growth in sales, income, and earnings per share.

Key Takeaways

Ethan Allen reported an 11.7% increase in sales to $197.7 million, with gross margin increasing to 60.4% and operating margin rising to 16.5%, resulting in diluted EPS of $0.97, a 59.0% increase. The company ended the quarter with a strong balance sheet, including $104.6 million in cash and investments and no debt.

Consolidated net sales increased 11.7% to $197.7 million.

Retail net sales increased 17.9% to $166.7 million.

Wholesale net sales increased 12.3% to $121.0 million.

Diluted EPS increased 59.0% to $0.97 compared to $0.61.

Total Revenue
$198M
Previous year: $177M
+11.7%
EPS
$0.93
Previous year: $0.58
+60.3%
Gross Margin
60.4%
Gross Profit
$119M
0
Cash and Equivalents
$95M
Previous year: $109M
-12.8%
Free Cash Flow
$12M
Previous year: $31.7M
-62.2%
Total Assets
$715M
Previous year: $688M
+4.0%

Ethan Allen

Ethan Allen

Forward Guidance

Ethan Allen expects to see softening consumer interest in home furnishings and remains focused on maintaining strong marketing programs, differentiation of relevant offerings, strong and talented associates, and control over manufacturing and logistics. They remain cautiously optimistic.

Positive Outlook

  • Maintaining strong marketing programs
  • Differentiation of relevant offerings
  • Strong and talented associates
  • Control over our manufacturing
  • Control over our logistics

Challenges Ahead

  • Record inflation
  • Rising interest rates
  • Supply chain challenges
  • Global unrest
  • Softening consumer interest in home furnishings