Ethan Allen Comments on Business in Advance of its International Conference, Announces Earnings Release Date for Fiscal 2018 First Quarter Results
(Thomson Reuters ONE) -
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 85(th) 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(at)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
Unternehmensinformation / Kurzprofil:
Datum: 12.10.2017 - 12:30 Uhr
Sprache: Deutsch
News-ID 563497
Anzahl Zeichen: 9650
contact information:
Town:
DANBURY
Kategorie:
Business News
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