NYSE$ETD

Ethan Allen Interiors Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Ethan Allen's financial performance declined due to the implementation of the Ethan Allen Member Program and cautious consumer spending.

Ethan Allen reported a decrease in net sales and earnings per share for the second quarter of fiscal year 2020, primarily due to the transition to a membership model and cautious consumer spending. While gross margin improved, operating income decreased due to lower sales volume and increased advertising costs.

  • Consolidated net sales decreased by 11.5% compared to the same quarter last year.
  • Diluted earnings per share decreased to $0.27 compared to $0.45 a year ago.
  • The company's transition to the Ethan Allen Member Program impacted sales and profitability.
  • The company repurchased 545,727 shares and increased the share repurchase authorization to 3 million shares.

Headline financials

Total Revenue

$175M

Previous: $197M-11.5%
EPS (adj)

$0.27

Previous: $0.46-41.3%
Capital Expenditures

-$7.99M

Previous: -$4.95M-61.2%
Free Cash Flow

-$901K

Previous: $7.24M-112.5%
Net Income

$7.09M

Previous: $12.2M-41.9%
Operating Income

$9.2M

Previous: $16.1M-42.9%
Gross Profit

$97.5M

Previous: $109M-10.4%
Cash & Equivalents

$28.3M

Previous: $38.8M-27.0%
Total Assets

$622M

Previous: $534M+16.4%
Stock-Based Comp

-$28K

Previous: $316K-108.9%

Revenue & EPS history

Ethan Allen · Revenue · Quarterly

$175M

Q2 2020-11.5%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Ethan Allen · $231M total across 2 segments · Q2 2020

  • Retail net sales
    $139M
  • Wholesale net sales
    $91.9M

Forward guidance

The implementation of the Ethan Allen Member Program was expected to impact sales and profitability during the initial year and, in particular, for the quarters ending December 31, 2019 and March 31, 2020.

Tailwinds

  • Strengthen product offerings, projection and marketing.
  • Continue strong marketing in various mediums including television, digital, radio and print
  • Unique vertical structure continues to provide strong operating leverage
  • Continue to strategically repurchase shares.
  • Continue to strengthen talent, marketing, retail network, products, manufacturing, logistics and technology

Headwinds

  • Impact our sales and profitability during the initial year
  • Impact sales and profitability in the quarters ending December 31, 2019 and March 31, 2020.
  • Retail consumers remained cautious with discretionary spending.
  • Global economic uncertainty
  • Transitioning its business from a promotional to a membership model

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 Q2 2020

Historical avgQ2 2020

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro