Ethan Allen, a leading US-based interior design company and manufacturer and retailer of quality home furnishings, has reported consolidated net sales of $646.2 million in fiscal 2024 (FY24), an 18.3 per cent decline from the previous year. Retail net sales fell by 18.4 per cent to $540.6 million, while wholesale net sales dropped by 17.5 per cent to $371.1 million.

In terms of written orders, the retail segment experienced an 8.4 per cent decline, and the wholesale segment saw a 10.9 per cent decrease. Despite these declines, the company’s consolidated gross margin improved to 60.8 per cent, and the adjusted operating margin stood at 12.1 per cent. However, diluted earnings per share (EPS) fell to $2.49, down from $4.13 last year, Ethan Allen said in a press release.

The company successfully reduced inventory carrying levels by 4.8 per cent, totalling $142.0 million as of June 30, 2024.

In the fourth quarter of fiscal 2024 (Q4 FY24), Ethan Allen’s consolidated net sales were $168.6 million, a 10 per cent decrease from the same period last year. Retail net sales declined by 7.1 per cent to $145.1 million, while wholesale net sales saw a significant drop of 20.3 per cent, amounting to $91.2 million.

Retail segment written orders were slightly down by 1.3 per cent in Q4 FY24, whereas wholesale segment written orders saw a modest increase of 0.4 per cent. The consolidated gross margin for the quarter was 60.8 per cent, 70 basis points lower than the previous year. The operating margin was 13.4 per cent, with an adjusted operating margin of 13.1 per cent, compared to 16.3 per cent last year. Diluted EPS for Q4 FY24 was $0.72, down from $0.99 in the same period last year, with adjusted diluted EPS at $0.70.

“Despite lower demand and reductions in high backlog, we did well. While sales were lower, our consolidated gross margin remained strong at 60.8 per cent compared with 61.5 per cent a year ago and 54.8 per cent for the fourth quarter ended June 30, 2019,” said Farooq Kathwari, Ethan Allen’s chairman, president, and CEO.

Fibre2Fashion News Desk (DP)