DANBURY, Conn. — Business at Ethan Allen Interiors contracted in both the retail and wholesale segments during the second quarter.
Farooq Kathwari, Ethan Allen’s chairman, president and CEO, said in the earnings release, “We are pleased with our performance that saw incremental consumer interest return back to the home amidst a challenging political and economic environment.”
He added that Ethan Allen’s ability to manufacture approximately 75% of its furniture in its own North American facilities “is a major advantage.”
The business ended the quarter with total cash and investments of $184.2 million, up $16.4 million from the year-ago quarter. There was no debt outstanding at the close of the period.
For the second quarter, ended Dec. 31, 2024, net sales were down 6% to $157.3 million. Retail net sales declined 3.5% to $134.3 million and wholesale net sales were down 4.2% to $86.5 million. Written orders fell 15.8% in the retail segment and 14.3% in the wholesale segment.
Inventory levels have stabilized as the company aligns its inventory with incoming order trends. Net inventories totaled $142.2 million at Dec. 31, 2024, which was consistent with June 30, 2024.
Adjusted operating margin during Q2 was 11.5% compared with 12.8% last year. Net income dropped 13.8% to $15 million, or 59 cents per diluted share.
Ethan Allen paid $10 million in cash dividends during the second quarter. On Jan. 28, the company’s board approved a regular quarterly cash dividend of 39 cents per share, payable on Feb. 26.
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