Strong Financial Performance Despite Challenges
Ethan Allen reported consolidated net sales of $157.3 million, operating income of $18.2 million, and an operating margin of 11.5%. The company also achieved a gross margin of 60.3% and diluted EPS of $0.59, with strong operating cash flow and an increase in cash to $184.2 million.
Significant Growth in Retail and Wholesale Orders
Retail segment orders grew by 15.8%, while Wholesale segment orders increased by 14.3%, driven by promotional activity, strong financing programs, and heightened interest in home furnishings.
Improved Written Order and Backlog Positions
The quarter concluded with a strong December, aided by special promotions, with the Wholesale backlog at $57.7 million, up 5% from a year ago.
Strong Balance Sheet and No Debt
Ethan Allen ended the quarter with $184.2 million in cash and investments, no outstanding debt, and generated $11.6 million of cash from operating activities.
Increased Marketing Initiatives
Marketing spend increased by 15%, from 2% to 2.5% of sales, to attract new customers and leverage new forms of marketing.