NYSE$ETD

Ethan Allen Interiors Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Ethan Allen's Q2 2021 performance was strong, marked by increased consumer demand and improved profitability.

Ethan Allen reported a strong second quarter in fiscal year 2021, driven by heightened consumer demand for home furnishings and design services. The company saw significant growth in written orders, improved operating margins, and a strong cash position with no debt. Earnings per share increased substantially due to disciplined cost and expense controls.

  • Diluted earnings per share increased to $0.67, with adjusted EPS up 155.6% to $0.69.
  • Consolidated operating margin improved to 12.6%, with adjusted operating margin at 13.1%.
  • Retail segment written orders grew by 44.9%, and wholesale segment written orders increased by 28.1%.
  • The company ended the quarter with $80 million in cash and no outstanding debt.

Headline financials

Total Revenue

$179M

Previous: $175M+2.4%
EPS (adj)

$0.69

Previous: $0.27+155.6%
Capital Expenditures

-$5.88M

Previous: -$7.99M+26.4%
Free Cash Flow

$11M

Previous: -$901K+1321.4%
Net Income

$16.9M

Previous: $7.09M+138.3%
Operating Income

$22.6M

Previous: $9.2M+145.1%
Gross Profit

$101M

Previous: $97.5M+3.9%
Cash & Equivalents

$80M

Previous: $28.3M+182.8%
Total Assets

$636M

Previous: $622M+2.3%
Stock-Based Comp

$457K

Previous: -$28K+1732.1%

Revenue & EPS history

Ethan Allen · Revenue · Quarterly

$179M

Q2 2021+2.4%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Ethan Allen · $246M total across 2 segments · Q2 2021

  • Retail net sales
    $145M+4.1%
  • Wholesale net sales
    $102M+10.6%

Forward guidance

Ethan Allen anticipates continued growth in sales and profitability, leveraging its retail network, design professionals, vertical integration, and national distribution. The company remains focused on employee safety, investing in digital technologies, expanding its client base, and generating strong cash flow.

Tailwinds

  • Strong retail network and the personal service of interior design professionals.
  • Unique vertical integration with 75% of products made in North American manufacturing workshops.
  • National distribution and home delivery centers providing white glove service.
  • Continued investment in digital design and interactive communication technologies.
  • Refining and repositioning product offerings to reach a larger client base.

Headwinds

  • Impact of COVID-19 and its effects on production capacity and supply chain.
  • Belief that it will take the March and June quarters to catch up to the increase in customer demand.
  • Challenging COVID-19 landscape.
  • Unsettled business environment from the ongoing COVID-19 pandemic.
  • Potential disruptions in the supply chain.

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 2021

Historical avgQ2 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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