Ethan Allen’s profits beat 2022 levels despite fourth quarter dip

DANBURY, Conn. — Top 100 retailer Ethan Allen generated more net income and earnings per share in FY2023 than it did in FY2022.

For the full year, the Danbury, Conn.-based retailer picked up $791.382 million in net sales, down 3.23% from $817.762 million in FY2022. Net income for the full year totaled $105.81 million, or $4.03 adjusted per diluted share, an increase of 2.4% from $103.28 million, or $3.93 adjusted per share in 2022.

In the quarter ended June 30, Ethan Allen posted net sales of $187.375 million, down 18.42% from $229.683 over the same timeframe in 2022. Net income totaled $25.41 million, or 96 cents adjusted per diluted share, down 19.4% from $31.52 million, or $1.25 adjusted per share in 2022.

“We are pleased with our financial and operating results for the fiscal 2023 full year and fourth quarter ended June 30. For the fiscal year, we reported consolidated net sales of $791.4 million, gross margin of 60.7%, adjusted operating margin of 16.9% and adjusted diluted EPS of $4.03,” said Farooq Kathwari, Ethan Allen’s chairman, president and CEO. “We continue to generate strong operating cash flow and as of June 30, 2023, we had total cash and investments of $172.7 million and no debt.

“For our fourth quarter ended June 30, we delivered consolidated net sales of $187.4 million, gross margin of 61.5%, adjusted operating margin of 16.3% and adjusted diluted EPS of $0.96. During our fiscal year ended June 30, 2023, we distributed $46.4 million of cash dividends. We are also pleased to announce that yesterday our Board approved a special cash dividend of $0.50 per share and our regular quarterly cash dividend of $0.36 per share, both payable on August 31, 2023.”

Kathwari said Ethan Allen is well-positioned because it spent the past three years strengthening major areas of its vertically integrated enterprise, including talent, marketing, service technology and social responsibility.

“Our focus moving forward will continue to strengthen the various areas of our vertically integrated structure, including developing a strong team which is entrepreneurial and disciplined, enhancing our product offerings under the umbrella of Classics with a Modern Perspective, repositioning our retail network as an Interior Design Destination and ongoing investments in technology to further enhance our marketing, our North American manufacturing and our logistics,” Kathwari said.

“While we understand the challenges of a slower economy and the reduction of consumer focus on the home that had occurred due to the COVID-19 pandemic, we remain cautiously optimistic due to our many initiatives over the past three years.”

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