Ethan Allen Q2 Sales Dip Amidst Segment Shifts

TL;DR

Ethan Allen sales down YOY, wholesale struggling but retail holding steady. Watch inventory.

AI Summary

Ethan Allen Interiors Inc. reported its second quarter fiscal 2025 results for the period ending December 31, 2024. Net sales for the six months ended December 31, 2024, were $377.9 million, a decrease from $390.3 million in the prior year period. The company's wholesale segment saw a decline in net sales, while the retail segment experienced a slight increase.

Why It Matters

This filing provides insight into Ethan Allen's recent financial performance, indicating challenges in its wholesale operations which could impact overall profitability and future strategic decisions.

Risk Assessment

Risk Level: medium — The decline in net sales, particularly in the wholesale segment, suggests potential market challenges or operational issues that could affect future financial performance.

Key Numbers

• $377.9M — Net Sales (YTD) (Represents a decrease compared to the prior year period.)
• $390.3M — Net Sales (Prior Year YTD) (Benchmark for current period performance.)

Key Players & Entities

• ETHAN ALLEN INTERIORS INC (company) — Filer
• 20241231 (date) — Period of Report
• $377.9 million (dollar_amount) — Net sales for the six months ended December 31, 2024
• $390.3 million (dollar_amount) — Net sales for the six months ended December 31, 2023

FAQ

Key Financial Figures

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

Filing Documents

• eth20241231_10q.htm (10-Q) — 1722KB
• ex_770571.htm (EX-31.1) — 13KB
• ex_770572.htm (EX-31.2) — 13KB
• ex_770573.htm (EX-32.1) — 6KB
• ex_770574.htm (EX-32.2) — 6KB
• image1.jpg (GRAPHIC) — 5KB
• 0001437749-25-002148.txt ( ) — 7460KB
• eth-20241231.xsd (EX-101.SCH) — 57KB
• eth-20241231_def.xml (EX-101.DEF) — 400KB
• eth-20241231_lab.xml (EX-101.LAB) — 343KB
• eth-20241231_pre.xml (EX-101.PRE) — 436KB
• eth-20241231_cal.xml (EX-101.CAL) — 48KB
• eth20241231_10q_htm.xml (XML) — 1295KB

- 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 18

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 29

Controls and Procedures

Item 4. Controls and Procedures 31

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 32

Risk Factors

Item 1A. Risk Factors 32

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 32

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 32

Other Information

Item 5. Other Information 32

Exhibits

Item 6. Exhibits 33

- 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) December 31, 2024 June 30, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 57,075 $ 69,710 Investments, short-term 82,049 91,319 Accounts receivable, net 5,008 6,766 Inventories, net 142,014 142,040 Prepaid expenses and other current assets 30,050 22,848 Total current assets 316,196 332,683 Property, plant and equipment, net 212,610 215,258 Goodwill 25,388 25,388 Intangible assets 19,740 19,740 Operating lease right-of-use assets 110,572 114,242 Deferred income taxes 906 824 Investments, long-term 45,092 34,772 Other assets 2,069 2,010 TOTAL ASSETS $ 732,573 $ 744,917 LIABILITIES Current liabilities: Accounts payable and accrued expenses $ 23,720 $ 27,400 Customer deposits 70,777 73,471 Accrued compensation and benefits 23,010 20,702 Current operating lease liabilities 27,890 27,387 Other current liabilities 4,682 4,736 Total current liabilities 150,079 153,696 Operating lease liabilities, long-term 96,870 100,897 Deferred income taxes 2,428 3,035 Other long-term liabilities 4,477 4,373 TOTAL LIABILITIES 253,854 262,001 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 December 31, 2024 and June 30, 2024, respectively 496 495 Additional paid-in capital 388,888 388,104 Treasury stock, at cost: 24,208 and 24,138 shares at December 31, 2024 and June 30, 2024, respectively ( 687,003 ) ( 684,796 ) Retained earnings 782,938 783,366 Accumulated other comprehensive loss ( 6,503 ) ( 4,189 ) Total Ethan Allen Interiors Inc. shar

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