Ethan Allen Comments on Business in advance of
Investor Meeting and Announces Earnings Release Date for Fiscal
2017 Results
DANBURY, CT July 17, 2017 (GLOBE NEWSWIRE) --
Ethan Allen Interiors Inc. ("Ethan Allen" or the "Company")
(NYSE:ETH) commented today, in advance of its Investor Meeting, on
its recent and upcoming business objectives as well as its
preliminary financial results for the 2017 fiscal year, which ended
on June 30, 2017.
"We look forward to discussing our progress and
initiatives at the forthcoming Investor Meeting," said Farooq
Kathwari, Chairman and CEO of Ethan Allen. "Fiscal 2017 was a 'year
of action' where we completed many initiatives and also launched
major new initiatives. Topics of the meeting will include the
repositioning of our offerings, our expanded marketing, investments
in new Design Centers around the country, investments in
technology, the launch of the Ethan Allen | Disney magical home
program and the recent launch of the 'Ethan Allen design studio' on
Amazon."
Mr. Kathwari added, "During our fourth quarter,
retail written orders in April decreased 7.1% and then
progressively increased by 7.0% in May and 6.9% in June, resulting
in a 1.9% increase for the quarter compared to the same period in
the prior year. So far in July, written orders have continued a
strong positive trend."
Net sales and projected earnings for the fourth
quarter, ending June 30, 2017, were impacted by several factors,
including very tough comparatives with the prior year quarter when
retail net sales increased 7.6%, wholesale net sales increased
9.6%, and adjusted EPS increased 32.6%. Net sales in the prior year
quarter also reflected shipments of new product introductions,
which also resulted in stronger margins at the wholesale level.
Additionally, during the current year fourth quarter, national
advertising increased 27.5% over the prior year period, reflecting
the Company's continued focus on brand building and driving traffic
and sales.
Mr. Kathwari further stated, "While these many
initiatives, coupled with a substantial expansion of our
advertising, have resulted in increased operating expenses compared
to the prior year, they are now substantially completed. We are
well positioned for our fiscal 2018 and remain cautiously
optimistic."
Based on preliminary financial information, the
Company expects to report fiscal year 2017 consolidated net sales
of $763.4 million compared to $794.2 in the prior year, wholesale
net sales of $453.3 million, and retail net sales of $603.7
million.
The company expects an adjusted gross margin of
55.6% for the fourth quarter and 55.8% for the full fiscal year, an
adjusted operating margin of approximately 9.5% for the fourth
quarter and 8.5% for the fiscal year, and adjusted EPS for the
fourth quarter in the range of $0.41 to $0.42 and for the full
fiscal year in the range of $1.44 to $1.45.
During the fourth quarter, the Company paid $5.3
million in dividends, an increase of 11.6%, and for the full fiscal
year paid dividends of $20.0 million, an increase of 20.3%, over
the prior year period. The Company repurchased 250,000 shares
for $6.9 million during the fourth quarter and 360,000 shares for
$10.2 million for the fiscal year.
The Company will release its fiscal year 2017
financial results after the market closes on Wednesday, July 26,
2017, and will host an analyst conference call to discuss the
company's business and financial highlights that afternoon, at 5:00
PM ET. A live webcast may be accessed 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 provide conference ID 50728591. For
those unable to listen to the live broadcast, a webcast replay will
be archived on the company's website for at least 60 days.
The Company's Investor Meeting is scheduled for
Wednesday, July 19, 2017, at 10:00 AM ET. A link to a live
webcast of the meeting will be available on the "Events and
Presentations" page at http://ethanallen.com/investors. A replay
will be archived on the company's website for at least 60 days.
For information on registering to attend the meeting, contact
ir@ethanallen.com.
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 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, 2016 (the "2016 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 Annual Report on Form
10-K for the year ended June 30, 2016, 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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