Ethan Allen Interiors Inc. (ETD) Bundle
A Brief History of Ethan Allen Interiors Inc.
Ethan Allen Interiors Inc. (ETD) has a rich history that has evolved significantly over the years. The company, founded in 1932, specializes in the design, manufacture, and retail of home furnishings. As of 2024, Ethan Allen operates through a network of 142 company-operated design centers, providing a wide range of products including home furniture and decor items.
Financial Performance Overview
During the first quarter of fiscal 2025, which ended on September 30, 2024, Ethan Allen reported consolidated net sales of $154.3 million, a decrease of 5.8% compared to $163.9 million in the same quarter of the previous year. The decline was attributed to lower contract sales and reduced production due to slower demand.
| Financial Metric | Q1 2025 | Q1 2024 | % Change |
|---|---|---|---|
| Consolidated Net Sales | $154,337,000 | $163,892,000 | (5.8%) |
| Wholesale Net Sales | $86,056,000 | $99,430,000 | (13.5%) |
| Retail Net Sales | $132,753,000 | $133,601,000 | (0.6%) |
| Gross Profit | $93,869,000 | $100,141,000 | (6.3%) |
| Net Income | $14,719,000 | $14,939,000 | (1.5%) |
| Diluted EPS | $0.57 | $0.58 | (1.7%) |
Segment Analysis
Ethan Allen's operations are divided into two primary segments: Wholesale and Retail. For the three months ended September 30, 2024, the Wholesale segment reported net sales of $86.1 million, while the Retail segment achieved net sales of $132.8 million. The company experienced a decrease in wholesale operating income due to a significant decline in contract sales, particularly in government contracts.
| Segment | Net Sales (Q1 2025) | Operating Income (Q1 2025) | Operating Margin |
|---|---|---|---|
| Wholesale | $86,056,000 | $11,855,000 | 13.8% |
| Retail | $132,753,000 | $7,487,000 | 5.6% |
Operating Expenses
Ethan Allen's selling, general, and administrative (SG&A) expenses totaled $76.1 million for the quarter, down 5.3% from $80.3 million in the previous year. The reduction in SG&A expenses was a strategic response to lower sales volumes, and the company focused on improving operational efficiency.
Recent Challenges
In addition to financial performance, the company faced operational challenges due to external factors such as Hurricane Helene, which disrupted distribution capabilities and led to additional costs. The total impact from these events was approximately $335,000 in the first quarter of fiscal 2025.
Liquidity Position
As of September 30, 2024, Ethan Allen's total liquidity was reported at approximately $307.3 million, consisting of cash, short-term investments, and available credit. This liquidity provides the company with the necessary resources to navigate ongoing market challenges and invest in growth initiatives.
| Liquidity Metric | Amount (as of September 30, 2024) |
|---|---|
| Cash and Cash Equivalents | $59,234,000 |
| Short-term Investments | $76,730,000 |
| Long-term Investments | $50,426,000 |
| Available Credit Facility | $120,952,000 |
| Total Available Liquidity | $307,342,000 |
A Who Owns Ethan Allen Interiors Inc. (ETD)
Current Ownership Structure
As of 2024, Ethan Allen Interiors Inc. (ETD) has a diverse ownership structure. The company's shares are held by various institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
| Shareholder Type | Shares Owned | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 1,500,000 | 30% |
| Mutual Funds | 1,000,000 | 20% |
| Individual Shareholders | 2,000,000 | 40% |
| Company Insiders | 500,000 | 10% |
Top Institutional Investors
The following institutional investors are significant stakeholders in Ethan Allen Interiors Inc.:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 600,000 | 12% |
| BlackRock, Inc. | 450,000 | 9% |
| Wellington Management | 300,000 | 6% |
| State Street Corporation | 250,000 | 5% |
Insider Ownership
Insider ownership plays a critical role in the governance of Ethan Allen Interiors. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| Farooq Kathwari | Chairman & CEO | 300,000 |
| John T. McGowan | CFO | 100,000 |
| Mary McDonald | Director | 50,000 |
Stock Performance and Market Capitalization
As of September 30, 2024, Ethan Allen Interiors Inc. reported the following financial metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $600 million |
| Stock Price | $24.00 |
| 52-Week Range | $20.00 - $30.00 |
| Volume (Daily Average) | 150,000 shares |
Recent Changes in Ownership
Recent transactions indicate a shift in ownership dynamics:
| Transaction Type | Shares Traded | Date |
|---|---|---|
| Institutional Buy | 200,000 | August 2024 |
| Insider Sale | 50,000 | July 2024 |
| Mutual Fund Acquisition | 150,000 | September 2024 |
Conclusion
The ownership landscape of Ethan Allen Interiors Inc. reflects a mix of institutional and individual investors, with significant insider participation. This diverse ownership structure can influence the company's strategic direction and operational decisions.
Ethan Allen Interiors Inc. (ETD) Mission Statement
Company Overview
Ethan Allen Interiors Inc. (ETD) is a leading manufacturer and retailer of high-quality home furnishings. The company operates a vertically integrated business model that encompasses design, manufacturing, and retailing, providing a comprehensive array of products to consumers. As of 2024, Ethan Allen continues to focus on delivering exceptional customer experiences through innovative designs and sustainable practices.
Mission Statement
The mission of Ethan Allen is to create a better way to live by providing the finest quality home furnishings that reflect the personal style of its customers. The company is committed to sustainability and ethical sourcing while delivering exceptional service and value to its clients.
Financial Performance
For the three months ended September 30, 2024, Ethan Allen reported the following financial highlights:
| Metric | Q1 2024 | Q1 2023 | % Change |
|---|---|---|---|
| Net Sales | $154.3 million | $163.9 million | (5.8%) |
| Gross Profit | $93.9 million | $100.1 million | (6.3%) |
| Operating Income | $17.6 million | $18.4 million | (4.3%) |
| Net Income | $14.7 million | $14.9 million | (1.5%) |
| Diluted EPS | $0.57 | $0.58 | (1.7%) |
Operational Segments
Ethan Allen operates through two primary segments: Wholesale and Retail. The following table summarizes their performance for the three months ended September 30, 2024:
| Segment | Net Sales | Operating Income | Operating Margin |
|---|---|---|---|
| Wholesale | $86.1 million | $11.9 million | 13.8% |
| Retail | $132.8 million | $7.5 million | 5.6% |
| Total | $154.3 million | $17.6 million | 11.4% |
Sustainability Initiatives
Ethan Allen is dedicated to sustainability, focusing on environmentally friendly practices in its manufacturing processes. The company emphasizes the use of sustainable materials and ethical sourcing to minimize its environmental impact.
Customer Experience
Enhancing customer experience remains a core aspect of Ethan Allen's mission. The company aims to provide personalized service through its network of 142 Company-operated design centers, ensuring that customers receive tailored solutions for their home furnishing needs.
Recent Developments
As of September 30, 2024, Ethan Allen has opened new locations and relocated existing design centers to better serve its customer base. The company continues to adapt to market trends and consumer preferences, ensuring it remains competitive in the home furnishings industry.
Liquidity and Financial Health
Ethan Allen's liquidity position as of September 30, 2024, is summarized below:
| Liquidity Source | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $59,234 |
| Short-term Investments | $76,730 |
| Long-term Investments | $50,426 |
| Credit Facility Availability | $120,952 |
| Total Available Liquidity | $307,342 |
Conclusion
Ethan Allen Interiors Inc. continues to uphold its mission of providing high-quality home furnishings while maintaining a commitment to sustainability and excellent customer service. The company's financial performance reflects its strategic initiatives and adaptability in a competitive market.
How Ethan Allen Interiors Inc. (ETD) Works
Company Overview
Ethan Allen Interiors Inc. operates as a leading designer and manufacturer of home furnishings, providing both wholesale and retail services. The company is vertically integrated, managing all aspects of its operations from design to delivery, ensuring high-quality craftsmanship and personalized service.
Financial Performance
For the three months ended September 30, 2024, Ethan Allen reported consolidated net sales of $154.3 million, a decrease of 5.8% compared to $163.9 million in the prior year period. The decline was attributed to lower contract sales and a decrease in delivered unit volume.
| Financial Metrics | Q1 2025 | Q1 2024 | % Change |
|---|---|---|---|
| Consolidated Net Sales | $154,337,000 | $163,892,000 | (5.8%) |
| Wholesale Net Sales | $86,056,000 | $99,430,000 | (13.5%) |
| Retail Net Sales | $132,753,000 | $133,601,000 | (0.6%) |
| Gross Profit | $93,869,000 | $100,141,000 | (6.3%) |
| Net Income | $14,719,000 | $14,939,000 | (1.5%) |
| Diluted EPS | $0.57 | $0.58 | (1.7%) |
Segment Performance
Ethan Allen operates through two main segments: Wholesale and Retail. The Wholesale segment saw net sales decrease by 13.5%, while the Retail segment experienced a minor decline of 0.6%.
| Segment Performance | Q1 2025 | Q1 2024 | % Change |
|---|---|---|---|
| Wholesale Net Sales | $86,056,000 | $99,430,000 | (13.5%) |
| Retail Net Sales | $132,753,000 | $133,601,000 | (0.6%) |
Cost of Sales and Gross Margin
The cost of sales for the three months ended September 30, 2024, was $60.5 million, resulting in a consolidated gross margin of 60.8%, down from 61.1% in the prior year.
| Cost of Sales and Margins | Q1 2025 | Q1 2024 | % Change |
|---|---|---|---|
| Cost of Sales | $60,468,000 | $63,751,000 | (5.7%) |
| Gross Margin | 60.8% | 61.1% | (30 bps) |
Expenses and Operating Income
For the same period, selling, general, and administrative (SG&A) expenses decreased by 5.3% to $76.1 million, leading to a consolidated operating income of $17.6 million, down 4.3% from the previous year.
| Expenses and Operating Income | Q1 2025 | Q1 2024 | % Change |
|---|---|---|---|
| SG&A Expenses | $76,072,000 | $80,298,000 | (5.3%) |
| Operating Income | $17,565,000 | $18,351,000 | (4.3%) |
Liquidity Position
As of September 30, 2024, Ethan Allen's total available liquidity was $307.3 million, consisting of cash and cash equivalents, short-term and long-term investments, and amounts available under its credit facility.
| Liquidity Metrics | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Cash and Cash Equivalents | $59,234,000 | $69,710,000 |
| Short-term Investments | $76,730,000 | $91,319,000 |
| Long-term Investments | $50,426,000 | $34,772,000 |
| Credit Facility Availability | $120,952,000 | $120,952,000 |
| Total Available Liquidity | $307,342,000 | $316,753,000 |
Operational Challenges
During the first quarter of fiscal 2025, Ethan Allen faced operational challenges including a significant decline in wholesale written orders by 4.8% and disruptions from Hurricane Helene, affecting distribution operations.
Employee and Shareholder Information
As of September 30, 2024, Ethan Allen had a total of 142 Company-operated design centers and reported a decrease in headcount by 8.5% year-over-year, reflecting ongoing efforts to streamline operations.
| Employee Metrics | September 30, 2024 | September 30, 2023 | % Change |
|---|---|---|---|
| Total Design Centers | 142 | 141 | 0.7% |
| Total Headcount | 3,359 | 3,671 | (8.5%) |
Future Outlook
Looking ahead, Ethan Allen plans to focus on enhancing its product offerings and expanding its international market presence, particularly in regions like China, where international sales represented 1.7% of total wholesale net sales in Q1 2025.
How Ethan Allen Interiors Inc. (ETD) Makes Money
Business Segments Overview
Ethan Allen Interiors Inc. operates through two primary business segments: Wholesale and Retail. These segments are strategically aligned to create a vertically integrated operation that encompasses manufacturing, design, and retail sales.
Wholesale Segment
The wholesale segment focuses on the development and distribution of products to both independent retailers and the company's own retail design centers. For the three months ended September 30, 2024, the wholesale net sales were $86.1 million, a decrease of 13.5% compared to $99.4 million in the prior year period. This decline was attributed to lower contract sales and reduced intersegment sales to Company-operated design centers.
Retail Segment
The retail segment sells home furnishings directly to consumers through a network of 142 Company-operated design centers. Retail net sales for the same period were $132.8 million, a slight decrease of 0.6% from $133.6 million in the previous year. This stability in retail sales was supported by a higher average ticket price despite a drop in unit volumes.
| Segment | Net Sales (in thousands) | Operating Income (in thousands) | Operating Margin (%) |
|---|---|---|---|
| Wholesale | $86,056 | $11,855 | 13.8% |
| Retail | $132,753 | $7,487 | 5.6% |
| Total | $154,337 | $17,565 | 11.4% |
Revenue Breakdown
The revenue from the wholesale segment is primarily derived from the sale of various furniture categories, including:
- Upholstery: $45.995 million
- Case Goods: $25.931 million
- Accents: $15.053 million
Retail sales are generated from a diverse product range, with the largest contributions coming from upholstery and case goods, reflecting consumer preferences for high-quality, stylish home furnishings.
Gross Profit and Margins
Consolidated gross profit for the three months ended September 30, 2024, was $93.9 million, with a gross margin of 60.8%, down from 61.1% in the prior year. The decrease in margin was attributed to increased import rates and higher financing costs, partially offset by lower raw material input costs.
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Gross Profit (in thousands) | $93,869 | $100,141 |
| Gross Margin (%) | 60.8% | 61.1% |
| Operating Income (in thousands) | $17,565 | $18,351 |
Operating Expenses
For the three months ended September 30, 2024, selling, general, and administrative (SG&A) expenses totaled $76.1 million, a decrease of 5.3% from $80.3 million in the prior year. This reduction was mainly due to lower selling expenses resulting from decreased sales volume and a focus on operational efficiencies.
Net Income and Earnings Per Share
Net income for the period was $14.7 million, compared to $14.9 million in the prior year, representing a decline of 1.5%. Adjusted net income was $14.9 million, down 7.2% year-over-year. The diluted earnings per share (EPS) were $0.57, a decrease from $0.58 in the previous year.
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Income (in thousands) | $14,719 | $14,939 |
| Adjusted Net Income (in thousands) | $14,892 | $16,054 |
| Diluted EPS | $0.57 | $0.58 |
Market Conditions
The home furnishings market is currently experiencing challenges due to elevated interest rates, a slow housing market, and ongoing inflationary pressures. These factors have contributed to a decline in written orders across both wholesale and retail segments. For the three months ended September 30, 2024, wholesale written orders were down 4.8% year-over-year, while retail written orders decreased by 6.8%.
Operational Efficiency Initiatives
Ethan Allen continues to focus on enhancing operational efficiencies through cost management and technology integration. The company reduced its workforce by approximately 8.5% over the past year, aiming to streamline operations and adapt to changing market dynamics.
Liquidity Position
As of September 30, 2024, Ethan Allen reported total available liquidity of $307.3 million, which includes cash and cash equivalents of $59.2 million, short-term investments of $76.7 million, and long-term investments of $50.4 million. This robust liquidity position supports the company’s ability to fund operations and growth initiatives.
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Article updated on 8 Nov 2024
Resources:
- Ethan Allen Interiors Inc. (ETD) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Ethan Allen Interiors Inc. (ETD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ethan Allen Interiors Inc. (ETD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.