DANBURY, Conn. — Ethan Allen Interiors reported an increase in net sales and net income for its first fiscal quarter ended Sept. 30.
The company said that consolidated sales were $214.5 million, up 17.7% from the $182.3 million reported for the same period last year.
Net income was $29.9 million, or $1.17 per share, up 48.1% from the $20.2 million, or 79 cents per share reported the same period last year.
“We are pleased with our fiscal 2023 first-quarter results,” said Farooq Kathwari, chairman, president and chief executive officer. “Our sales increased 17.7% to $214.5 million and our diluted earnings per share increased by 48.1% to $1.17. We are also pleased to generate strong operating cash flow of $38.4 million during the quarter and returned $20.9 million to shareholders through cash dividends. We benefited from efficiencies throughout our vertically integrated structure and a higher backlog of orders.”
Other highlights on the quarterly report were as follows:
+ The company reported a 7.4% increase in written retail orders compared with the pre-pandemic first quarter of fiscal 2020; they were down 8.6% compared with the first quarter of fiscal 2022.
+ Wholesale segment written orders were 0.1% lower than the first quarter of fiscal 2020 and declined 7.2% from a year ago.
+ The company’s consolidated gross margin increased to 60.4%, up from 59.9% a year ago. It said this was due to a change in sales mix with the retail segment becoming a larger portion of sales, a favorable product mix, product pricing actions taken and higher manufacturing productivity and efficiency.
+ The company generated $38.4 million of cash from operating activities; cash and short-term investments totaled $142.4 million with no debt outstanding.
+ The company ended the quarter with $167.7 million in inventory, down $8.8 million from June 30, 2022.
“Moving forward we are well-positioned to manage the challenging trends within the global economy,” Kathwari added. “As we celebrate 90 years of innovation, our focus is on the continued strengthening of our vertically integrated structure. This includes our interior design network with major advancements in technology, accelerating introductions of relevant offerings, expanding our marketing and continuing to invest in our North American manufacturing and logistics. About 75% of our products are made in our North American workshops.”