In terms of written order trends, the retail segment saw a slight increase of 0.8 per cent compared to the pre-pandemic fiscal 2019 figures, but it was down 12.3 per cent compared to fiscal 2022. The wholesale segment experienced a decrease in written orders by 2.1 per cent compared to fiscal 2019 and down 9.0 per cent from the previous year.

The company has seen an improvement in consolidated gross margin, rising to 60.7 per cent. Their adjusted operating margin has also increased, improving to 16.9 per cent.

Earnings per share (EPS) for FY23 were reported at $4.13, up from $4.05, with the adjusted diluted EPS of $4.03 marking a 2.5 per cent increase.

In the fourth quarter of fiscal 2024 (Q4 FY24), Ethan Allen has reported consolidated net sales of $187.4 million, representing an 18.4 per cent decrease. Retail net sales decreased by 17.2 per cent to $156.2 million, and wholesale net sales were down by 16.7 per cent to $114.5 million.

The retail segment's written orders in Q4 FY24 decreased 1.2 per cent compared to the pre-pandemic fourth quarter of fiscal 2019 and were down 12.5 per cent compared to the fourth quarter of fiscal 2022. Similarly, the wholesale segment's written orders decreased 2.5 per cent compared to the fourth quarter of fiscal 2019 and were down 14.7 per cent from a year ago.

The company's consolidated gross margin in Q4 FY24 improved to 61.5 per cent from 58.2 per cent a year ago. The operating margin stood at 16.9 per cent, with the adjusted operating margin of 16.3 per cent compared with 18.5 per cent last year.

Diluted EPS for Q4 FY24 was reported at $0.99, down from $1.23. The adjusted diluted EPS of $0.96 represents a 23.2 per cent decrease. The company generated $26.3 million of cash from operating activities, compared to $29.4 million a year ago.

The company also reported reduced inventory levels, down $27.3 million or 15.5 per cent to $149.2 million as of June 30, 2023, from a year ago.

“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 per cent, adjusted operating margin of 16.9 per cent 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,” said Farooq Kathwari, Ethan Allen’s chairman, president, and CEO.

Fibre2Fashion News Desk (DP)