DANBURY, CT October 12, 2017 (GLOBE NEWSWIRE) --
Ethan Allen Interiors Inc. ("Ethan Allen" or "the Company")
(NYSE:ETH) commented today, in advance of its International
Conference, on its business and preliminary financial results for
its fiscal 2018 first quarter, which ended on September 30,
2017.
"We are looking forward to celebrating our
85th anniversary
next week during our international conference, which will be
attended by more than 550 associates from our North American and
international retail locations, and from our manufacturing and
logistics operations. During the conference, we will be
recognizing more than 230 of our top interior designers and
discussing our business and current initiatives," said Farooq
Kathwari, Chairman and CEO of Ethan Allen. "Although both our
written and delivered sales were impacted by the hurricanes, we
experienced good order growth during the first quarter of fiscal
2018."
The Company's preliminary results reflect that
total written orders for the retail segment increased 1.7% for the
quarter, which follows an 8.1% increase in the prior year first
quarter. The Company estimates total written orders would have
increased 2.5% without the disruption from the hurricanes.
Wholesale segment orders were very strong this quarter due to the
increased retail written orders, plus an additional $12.4 million
of wholesale orders from the U.S State Department Packaged Home
program.
The hurricanes disrupted several key markets in
which the Company operates: 15 Design Centers in Florida, including
11 company-operated locations, plus five company-operated Design
Centers in the coastal Carolinas were affected by Hurricane Irma;
and 11 Design Centers in Texas, with five independently operated
locations in the Houston market, were impacted by Hurricane Harvey.
Design Centers and delivery centers were closed anywhere from a
couple of days to more than a week, with an effect on both written
orders and net delivered sales. Hurricane Harvey also disrupted the
Company's wholesale logistics, as the temporary shutdown of railway
shipping through Houston impacted shipments from the Company's
upholstery plant in Mexico, and ocean freight arrivals were delayed
into the Port of Houston.
Mr. Kathwari further commented, "Additionally, our
written, delivered and profitability were affected by first run
production of floor samples for Passport, a new product assortment
launching in November. First run production and strong orders from
the U.S. State Department also resulted in production and shipping
delays." Mr. Kathwari added, "Going into the second quarter, our
retail division backlog is up 11.6% and the wholesale backlog is up
61.6% from June 30, 2017. We are well positioned to clear up these
high backlogs during the second quarter."
The Company expects to report consolidated net
sales of $181.3 million for the first quarter, wholesale net sales
of $111.6 million, and retail net sales of $141.6 million. The
Company expects a gross margin of 55.3% for the first quarter, an
adjusted operating margin of approximately 6.8%, and an adjusted
EPS in the range of $0.27 to $0.28. The Company estimates that the
hurricanes and first run production of new products disrupted
consolidated net sales by approximately 7% to 8%, brought down
gross margin from 56.0% to 55.3%, and reduced adjusted EPS by $0.14
to $0.15.
The Company will release its first quarter fiscal
2018 financial results after the market closes on Wednesday,
October 25, 2017, and will host an analyst conference call to
discuss the Company's business and financial highlights that
afternoon at 5:00 PM ET. This call will be webcast from the "Events
and Presentations" page at http://www.ethanallen.com/investors. To
access the conference call, dial 844-822-0103 (or 614-999-9166 for
international callers), and enter conference ID 50728592. For those
unable to listen live, the call will be archived on the company's
website for at least 60 days.
About Ethan Allen
Ethan Allen Interiors Inc. (NYSE: ETH) is a
leading interior design company and manufacturer and retailer of
quality home furnishings. The company offers complimentary interior
design service to its clients and sells a full range of furniture
products and decorative accessories through ethanallen.com and a
network of approximately 300 Design Centers in the United States
and abroad. Ethan Allen owns and operates nine manufacturing
facilities including six manufacturing plants and one sawmill in
the United States plus one plant each in Mexico and Honduras.
Approximately seventy-five percent of its products are made in its
North American plants. For more information on Ethan Allen's
products and services, visit www.ethanallen.com.
Ethan Allen Interiors Inc.
Investor / Media Contact:
Corey Whitely
Executive Vice President, Administration
Chief Financial Officer and Treasurer
ir@ethanalleninc.com
Forward-Looking
Information
This press release and any related webcasts,
conference calls, and other related discussions should also be read
in conjunction with the Company's Annual Report on Form 10-K for
the year ended June 30, 2017 (the "2017 Form 10-K") and other
reports filed with the Securities and Exchange Commission.
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), which represent our
management's beliefs and assumptions concerning future events based
on information currently available to us relating to our future
results. Such forward-looking statements are identified in this
press release and in documents incorporated herein by reference by
use of forward-looking words such as "anticipate", "believe",
"plan", "estimate", "expect", "intend", "will", "may", "continue",
"project", "target", "outlook", "forecast", "guidance", and similar
expressions and the negatives of such forward-looking words. These
forward-looking statements are subject to management decisions and
various assumptions about future events, and are not guarantees of
future performance. A number of risks and uncertainties could cause
actual results to differ materially from those anticipated in the
forward-looking statements, including, but not limited to: changes
in global or regional political or economic conditions, including
changes in governmental and central bank policies; our ability to
secure debt or other forms of financing; the effect of operating
losses on our ability to pay cash dividends; changes in business
conditions in the furniture industry, including changes in consumer
spending patterns, tastes and demand for home furnishings;
competition from overseas manufacturers and domestic retailers and
competitive factors such as changes in products or marketing
efforts of others; effects of our brand awareness and marketing
programs, including changes in demand for our existing and new
products; our ability to locate new design center sites and/or
negotiate favorable lease terms for additional design centers or
for the expansion of existing design centers; fluctuations in
interest rates and the cost, availability and quality of raw
materials; pricing pressures; the effects of labor strikes; weather
conditions that may affect sales; volatility in fuel, utility,
transportation and security costs; the potential effects of natural
disasters affecting our suppliers or trading partners; the effects
of terrorist attacks or conflicts or wars involving the United
States or its allies or trading partners; and those matters
discussed in "Item 1A - Risk Factors" of our 2017 Form 10-K and
elsewhere in this press release and our SEC filings. Accordingly,
actual circumstances and results could differ materially from those
contemplated by the forward-looking statements.
Given the risks and uncertainties surrounding
forward-looking statements, you should not place undue reliance on
these statements. Many of these factors are beyond our ability to
control or predict. Our forward-looking statements speak only as of
the date of this press release. Other than as required by law, we
undertake no obligation to update or revise forward-looking
statements, whether as a result of new information, future events,
or otherwise.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ethan Allen Interiors Inc. via Globenewswire
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