Ethan Allen Q1 Sales Dip, Net Income Declines

TL;DR

Ethan Allen's Q1 sales down to $180.9M from $193.7M last year. Profit also down.

AI Summary

Ethan Allen Interiors Inc. reported its first quarter results for fiscal year 2025, ending September 30, 2024. Net sales for the quarter were $180.9 million, a decrease from $193.7 million in the same period last year. The company's net income also saw a decline, falling to $14.1 million from $17.7 million year-over-year.

Why It Matters

This filing indicates a slowdown in sales for Ethan Allen, which could signal broader consumer spending trends in the home furnishings sector.

Risk Assessment

Risk Level: medium — The decline in net sales and net income suggests potential headwinds for the company, warranting a medium risk assessment.

Key Numbers

• $180.9M — Net Sales (Q1 FY2025 net sales, down from $193.7M in Q1 FY2024.)
• $14.1M — Net Income (Q1 FY2025 net income, down from $17.7M in Q1 FY2024.)
• 06-30 — Fiscal Year End (Ethan Allen's fiscal year concludes on June 30th.)

Key Players & Entities

• Ethan Allen Interiors Inc. (company) — Filer of the 10-Q report
• 2024-09-30 (date) — End of the reporting period for Q1 FY2025
• $180.9 million (dollar_amount) — Net sales for Q1 FY2025
• $193.7 million (dollar_amount) — Net sales for Q1 FY2024
• $14.1 million (dollar_amount) — Net income for Q1 FY2025
• $17.7 million (dollar_amount) — Net income for Q1 FY2024

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value ETD New York Stock Exchan

Filing Documents

• eth20240930_10q.htm (10-Q) — 1312KB
• ex_737842.htm (EX-31.1) — 12KB
• ex_737843.htm (EX-31.2) — 13KB
• ex_737844.htm (EX-32.1) — 5KB
• ex_737845.htm (EX-32.2) — 5KB
• logo.jpg (GRAPHIC) — 8KB
• 0001437749-24-032632.txt ( ) — 6485KB
• eth-20240930.xsd (EX-101.SCH) — 57KB
• eth-20240930_def.xml (EX-101.DEF) — 400KB
• eth-20240930_lab.xml (EX-101.LAB) — 339KB
• eth-20240930_pre.xml (EX-101.PRE) — 435KB
• eth-20240930_cal.xml (EX-101.CAL) — 48KB
• eth20240930_10q_htm.xml (XML) — 972KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 2 CONSOLIDATED BALANCE SHEETS 2 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) 3 CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 4 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) 5 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 28

Controls and Procedures

Item 4. Controls and Procedures 30

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 31

Other Information

Item 5. Other Information 31

Exhibits

Item 6. Exhibits 32

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except par value) September 30, 2024 June 30, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 59,234 $ 69,710 Investments, short-term 76,730 91,319 Accounts receivable, net 6,855 6,766 Inventories, net 143,204 142,040 Prepaid expenses and other current assets 27,329 22,848 Total current assets 313,352 332,683 Property, plant and equipment, net 213,875 215,258 Goodwill 25,388 25,388 Intangible assets 19,740 19,740 Operating lease right-of-use assets 111,977 114,242 Deferred income taxes 874 824 Investments, long-term 50,426 34,772 Other assets 2,072 2,010 TOTAL ASSETS $ 737,704 $ 744,917 LIABILITIES Current liabilities: Accounts payable and accrued expenses $ 27,221 $ 27,400 Customer deposits 74,054 73,471 Accrued compensation and benefits 19,522 20,702 Current operating lease liabilities 27,854 27,387 Other current liabilities 8,664 4,736 Total current liabilities 157,315 153,696 Operating lease liabilities, long-term 98,468 100,897 Deferred income taxes 2,872 3,035 Other long-term liabilities 4,398 4,373 TOTAL LIABILITIES 263,053 262,001 Commitments and contingencies (see Note 18) SHAREHOLDERS' EQUITY Preferred stock, $ 0.01 par value; 1,055 shares authorized; none issued - - Common stock, $ 0.01 par value, 150,000 shares authorized, 49,638 and 49,550 shares issued; 25,430 and 25,412 shares outstanding at September 30, 2024 and June 30, 2024, respectively 496 495 Additional paid-in capital 388,478 388,104 Treasury stock, at cost: 24,208 and 24,138 shares at September 30, 2024 and June 30, 2024, respectively ( 687,003 ) ( 684,796 ) Retained earnings 777,901 783,366 Accumulated other comprehensive loss ( 5,147 ) ( 4,189 ) Total Ethan Allen Interiors Inc. s

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View this 10-Q filing on SEC EDGAR