Ethan Allen Comments on Business in Advance of Investor Meeting
06 April 2018 - 6:15AM
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Ethan Allen Comments on Business in Advance
of Investor Meeting
DANBURY, CT April 5, 2018 (GLOBE NEWSWIRE) - In
advance of its April 10, 2018 Investor Meeting, Ethan Allen
Interiors Inc. ("Ethan Allen" or "the Company") (NYSE:ETH)
commented today on expected sales results for the quarter ended
March 31, 2018.
"We look forward to discussing our initiatives to
grow and service our business," said Farooq Kathwari, Chairman and
CEO. He further stated, "The initiatives include our focus as a
premier interior design destination, expanding our fashionable and
relevant offerings, leveraging our vertically integrated
manufacturing and logistics and, most importantly, increasing our
marketing."
During the third quarter, retail division written
orders increased 2.6% with strong acceleration in March increasing
6.9% over the prior year. Wholesale orders increased by 14%, helped
by strong orders from the U.S. government. Backlog remains high,
with wholesale increasing 70% and retail division increasing 15%
compared to the previous year.
The Company expects consolidated net sales for the
quarter of $181.3 million, a slight increase over the prior year
period. Wholesale shipments increased by 7.2% to $118.8 million.
Retail division shipments were impacted by the timing of receipt of
products, and declined 3.6% to $136.9 million. Gross margins are
expected to be lower due to a higher mix of wholesale to retail and
increases in raw material costs especially in the upholstery
manufacturing; operating expenses are expected to be higher due to
an increase in marketing expenditures. The Company has also
implemented a price increase as of April 1, 2018.
Mr. Kathwari concluded, "We are well positioned to
grow our sales and profits, as many of our major initiatives are in
place, and remain cautiously optimistic."
The Company's Investor Meeting is scheduled for
Tuesday, April 10, 2018, at 9:30 a.m. 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, 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
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