Ethan Allen Interiors (ETD) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 net sales were $646.2 million, down 18.3% year-over-year, with Q4 sales at $168.6 million, the highest quarterly delivered sales of the year despite a 10% decline.

• Gross margin remained strong at 60.8% for both Q4 and the full year, with Q4 adjusted operating margin at 13.1%.

• Ended the year with $195.8 million in cash and investments, up from $172.7 million last year, and no debt.

• Board declared a $0.40 per share special dividend and a $0.39 regular quarterly dividend, both payable August 29, 2024.

• Recognized as America's #1 premium furniture retailer by Newsweek for the second consecutive year.

Financial highlights

• Q4 diluted EPS was $0.72 (adjusted $0.70); full-year diluted and adjusted EPS was $2.49.

• Operating margin for Q4 was 13.4% (adjusted 13.1%), and for the year 12.1% (adjusted 12.1%).

• Generated $80.2 million in operating cash flow for the year; capital expenditures totaled $9.6 million.

• Paid $50.3 million in cash dividends during fiscal 2024, including a $0.50 per share special dividend in August 2023.

• Effective tax rate was 25.3% for the year.

Outlook and guidance

• Management remains cautiously optimistic for fiscal 2025, with plans for disciplined expense management and new design center openings in Albuquerque, NM and Watchung, NJ.

• Expecting improvement in State Department contract business and continued focus on new product introductions by next April.