NYSE$ETD

Ethan Allen Interiors Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported first quarter results, impacted by COVID-19 related production and supply chain disruptions, but showed resilience through strong margins and cost containment.

Ethan Allen reported a decrease in net sales due to COVID-19 impacts but improved gross and operating margins. Retail written orders increased, and the company repaid all outstanding debt, ending the quarter with a strong cash position.

  • Consolidated net sales decreased to $151.1 million due to COVID-19 related disruptions.
  • Consolidated gross margin increased to 56.8% despite production challenges.
  • Retail written orders increased by 10.8%, indicating strong demand.
  • The company repaid $50 million in debt and ended the quarter with $62.0 million in cash.

Headline financials

Total Revenue

$151M

Previous: $174M-13.1%
EPS (adj)

$0.36

Previous: $0.35+2.9%
Capital Expenditures

-$2.44M

Previous: -$3.41M+28.6%
Free Cash Flow

$6.91M

Previous: $10.7M-35.3%
Net Income

$9.35M

Previous: $14.1M-33.7%
Operating Income

$11.7M

Previous: $18.6M-37.3%
Gross Profit

$85.8M

Previous: $93.8M-8.6%
Cash & Equivalents

$62M

Previous: $45.9M+35.1%
Total Assets

$623M

Previous: $654M-4.8%
Stock-Based Comp

$254K

Previous: $151K+68.2%

Revenue & EPS history

Ethan Allen · Revenue · Quarterly

$151M

Q1 2021-13.1%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Ethan Allen · $215M total across 2 segments · Q1 2021

  • Retail net sales
    $118M-14.0%
  • Wholesale net sales
    $97.3M

Forward guidance

Ethan Allen is cautiously optimistic heading into the fall and winter months, based on current demand trends, but recognizes the pandemic is still upon us and much uncertainty exists on a variety of fronts.

Tailwinds

  • Strong retail written orders and backlogs reporting double-digit growth.
  • Increased demand for products in design centers and online.
  • Manufacturing production expected to return to pre-COVID-19 levels by the end of the second quarter.
  • Strong cash flow from operations and a strong balance sheet.
  • Reinstated quarterly cash dividend of $0.21 per share.

Headwinds

  • Uncertainty due to the ongoing COVID-19 pandemic.
  • Potential for continued operational challenges.
  • Possible economic disruptions in international markets.
  • Risk of fluctuations in raw material prices.
  • Exposure to business disruptions at manufacturing and logistics sites.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.3%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-1.4%

Avg return

30 days after

50%

32 / 64 earnings

Positive

+21.7%

Q1 2013

Best reaction

-14.7%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.9%-8.8%-7.1%
Q2 2026-6.2%-3.4%-5.7%
Q1 2026-9.8%-12.2%-13.1%
Q3 2025-11.7%-10.5%-10.7%
Q2 2025+11.0%+7.2%-0.2%
Q1 2025-6.2%-4.5%+4.2%
Q4 2024+4.2%-0.4%+2.3%
Q3 2024-14.7%-15.2%-15.7%
Q2 2024+0.2%+3.7%+6.6%
Q1 2024-9.5%-7.1%-1.8%
Q4 2023+13.9%+12.2%+1.2%
Q3 2023+4.0%+2.5%-0.6%
Q2 2023-5.5%-3.2%+3.8%
Q1 2023+9.4%+14.3%+28.0%
Q4 2022+11.4%+12.0%+3.0%
Q3 2022-11.0%-6.3%-11.5%
Q2 2022+1.3%+4.9%+6.6%
Q1 2022-4.1%+2.6%-1.9%
Q4 2021+6.1%+10.5%-2.7%
Q3 2021-8.8%-1.5%-8.3%
Q2 2021-3.4%-0.8%+4.7%
Q1 2021-1.7%+2.8%+14.2%
Q4 2020+7.7%+5.7%+18.2%
Q3 2020-14.7%-5.4%+8.9%
Q2 2020-6.5%-10.0%-17.5%
Q1 2020+0.2%-1.1%-12.8%
Q4 2019-11.8%-15.9%-17.5%
Q3 2019+9.6%+11.8%+6.0%
Q2 2019-4.2%+0.7%+5.2%
Q1 2019-1.1%-2.8%+1.9%
Q4 2018-4.5%-4.7%-3.0%
Q3 2018-1.7%-3.4%+3.9%
Q2 2018-7.4%-7.8%-7.8%
Q1 2018-0.5%-7.2%-9.6%
Q4 2017+3.7%+2.9%-10.8%
Q3 2017-6.8%-1.3%-11.9%
Q2 2017-11.0%-13.0%-14.2%
Q1 2017-1.0%+0.0%+14.1%
Q4 2016-3.7%-1.7%-4.1%
Q3 2016+11.0%
Q2 2016+0.4%
Q1 2016-5.4%
Q4 2015+10.5%
Q3 2015-2.4%
Q2 2015-13.5%
Q1 2015+2.0%
Q4 2014+0.9%
Q3 2014+5.1%
Q2 2014+7.4%
Q1 2014+2.9%
Q4 2013-3.0%
Q3 2013-2.6%
Q2 2013+2.1%
Q1 2013+21.7%
Q4 2011+6.6%
Q4 2010+6.6%
Q4 2012-5.6%
Q3 2011-4.6%
Q3 2012+1.6%
Q2 2011+3.3%
Q2 2012+3.3%
Q1 2012+4.7%
Q1 2011+4.7%
Q3 2010+8.4%

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