Ethan Allen Reports Financial and Operating Results for 2023 & Q4

August 3, 2023  by HFBusiness Staff in Business Strategy, Industry   

Farooq Kathwari, Ethan Allen’s Chairman, President and CEO commented, “We are pleased with our financial and operating results for the fiscal 2023 full year and fourth quarter ended June 30, 2023.”

“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. 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, 2023, 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.”

Mr. Kathwari continued, “I would like to thank our team for continuing to develop a strong entrepreneurial enterprise with a focus on great quality, service and strong financial results. As we enter the post COVID-19 era, we believe we are well positioned. During the last three years we have strengthened major areas of our 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. 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 last three years,” concluded Mr. Kathwari.

FULL FISCAL YEAR 2023 HIGHLIGHTS*

~ Ethan Allen launched its next reinvention with the grand reopening of the Danbury Connecticut Design Center as an Interior Design Destination

~ Opened multiple new design centers during fiscal 2023 that showcase the Company’s unique vision of American style while combining complimentary interior design services with technology

~ Named one of America’s Top 10 Retailers by Newsweek, including recognition as the #1 retailer of Premium Furniture

~ For the fourth year in a row, Ethan Allen’s upholstery manufacturing operation in Mexico has been named “Empresa Socialmente Responsable” (Environmentally and Socially Responsible) by the Mexican Center for Corporate Philanthropy and the Alliance for Corporate Social Responsibility.