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Ethan Allen Interiors Inc. (ETH)

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Previous Close28.47
Open28.49
Bid29.14 x 800
Ask29.56 x 900
Day's Range28.49 - 29.43
52 Week Range9.08 - 29.81
Volume531,941
Avg. Volume328,248
Market Cap734.551M
Beta (5Y Monthly)1.16
PE Ratio (TTM)52.96
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield1.00 (3.51%)
Ex-Dividend DateApr 07, 2021
1y Target EstN/A
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  • Ethan Allen Provides Business Updates and Announces Earnings Release Date for Fiscal 2021 Third Quarter Results
    GlobeNewswire

    Ethan Allen Provides Business Updates and Announces Earnings Release Date for Fiscal 2021 Third Quarter Results

    DANBURY, CT, April 14, 2021 (GLOBE NEWSWIRE) -- Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE: ETH) today provided several updates on its business. Farooq Kathwari, Ethan Allen’s Chairman, President and CEO commented, “We are pleased to provide a brief overview of our continued progress resulting in strong performance in the third quarter ending March 31. While last year results were impacted with the start of the COVID-19 pandemic, we had a record increase of 51.8% in written orders in our retail division, including ecommerce, compared to the prior year third quarter ending March 31, 2020. These strong written orders also reflected a 21.9% increase compared to the fiscal 2019 third quarter. We also realized a major increase in earnings compared to the fiscal 2020 and 2019 third quarter periods. Our focus remains on increasing our production to deliver the large backlog.” Preliminary Financial Results The Company expects to report the following financial results for its fiscal third quarter ended March 31, 2021: Retail segment written orders increased 51.8% over the prior year quarter.Wholesale segment orders increased 39.0%. Excluding GSA and other government orders, wholesale segment orders increased 48.3%Consolidated net delivered sales of $177.0 million increased 18.2%Adjusted diluted EPS in the range of $0.56 to $0.58 compared to $0.02 in the prior year quarterStrong cash flow generation resulting in cash on hand of $109.0 million and no borrowings as of March 31, 2021Paid regular quarterly dividends of $6.3 million during the quarter Mr. Kathwari continued, “We ended the quarter with a strong balance sheet, including cash on hand of $109.0 million while growing our consolidated gross and operating margins through disciplined cost and expense controls. We have an opportunity to continue our growth in sales and profitability due to our strong retail network, the personal service of our interior design professionals, our unique vertical integration whereby 75% of products are made in our North American manufacturing workshops, and our national distribution centers delivering product with white glove service to our client’s home.” “As we head into the 2021 calendar year, we will remain focused on employee safety, continue investing in digital design and interactive communication technologies, growing our business and generating strong cash flow, refining and repositioning our product offerings to reach a larger client base and leveraging our vertical integration to increase production” concluded Mr. Kathwari. Fiscal Third Quarter Analyst Conference Call The Company also announced today that it will release its financial and operating results for the fiscal 2021 third quarter ended March 31, 2021, after the market closes on Thursday, April 29, 2021. Following the release, the Company will host an analyst conference call at 5:00 PM (Eastern Time) to discuss its results. The analyst conference call will be webcast live from the Company’s Investor Relations website at https://ir.ethanallen.com. To access the conference call, dial 877-705-2976 (or 201-689-8798 for international participants), and enter Meeting Number 13718964. For those unable to listen live, an archived recording of the call will be made available 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, manufacturer and retailer in the home furnishings marketplace. The Company provides complimentary interior design service to its clients and sells a full range of furniture products and decorative home accents through a retail network of approximately 300 design centers in the United States and abroad as well as online at ethanallen.com. Ethan Allen owns and operates nine manufacturing facilities, including six manufacturing plants in the United States, two manufacturing plants in Mexico and one manufacturing plant in Honduras. Approximately 75% of its products are manufactured or assembled in these North American facilities. For more information on Ethan Allen's products and services, visit www.ethanallen.com. Investor / Media Contact: Corey Whitely Executive Vice President Administration & CFO IR@ethanallen.com ABOUT NON-GAAP FINANCIAL MEASURES In this news release the Company has included a financial measure that is not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company computes the non-GAAP financial measure of adjusted diluted EPS by adjusting GAAP diluted EPS to remove the impact of certain charges and the related tax effect of these adjustments. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for, or superior to, the financial measure presented in accordance with GAAP. The Company uses this non-GAAP financial measure for financial and operational decision making and to evaluate period-to-period comparisons. The Company believes that it provides useful information about operating results, enhances the overall understanding of past financial performance and prospects, and allows for greater transparency with respect to key metrics used by management in its financial and operational decision making. FORWARD-LOOKING STATEMENTS This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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 management's beliefs and assumptions concerning future events based on information currently available to the Company relating to its future results. Such forward-looking statements are identified in this news release incorporated herein by reference by use of forward-looking words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “continue,” “may,” “will,” “short-term,” “target,” “outlook,” “forecast,” “future,” “strategy,” “opportunity,” “would,” “guidance,” “non-recurring,” “one-time,” “unusual,” “should,” “likely,” “COVID-19 impact,” 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. Actual results could differ materially from those anticipated in the forward-looking statements due to a number of risks and uncertainties including, but not limited to the following: the ongoing global COVID-19 pandemic may continue to materially adversely affect the Company’s business, its results of operations and overall financial performance; additional funding from external sources may not be available at the levels required, or may cost more than expected; declines in certain economic conditions, which impact consumer confidence and consumer spending; an overall decline in the health of the economy and consumer spending may affect consumer purchases of discretionary items; a significant shift in consumer preference toward purchasing products online; ability to maintain and enhance the Ethan Allen brand; failure to successfully anticipate or respond to changes in consumer tastes and trends; global and local economic uncertainty may materially adversely affect manufacturing operations or sources of merchandise and international operations; competition from overseas manufacturers and domestic retailers; disruptions in the supply chain; the number of manufacturing and logistics sites may increase exposure to business disruptions and could result in higher transportation costs; fluctuations in the price, availability and quality of raw materials could result in increased costs or cause production delays; current and former manufacturing and retail operations and products are subject to increasingly stringent environmental, health and safety requirements; product recalls or product safety concerns; reliance on information technology systems to process transactions, summarize results, and manage its business and that of certain independent retailers; disruptions in both primary and back-up systems; successful cyber-attacks and the ability to maintain adequate cyber-security systems and procedures; loss, corruption and misappropriation of data and information relating to customers; changes in United States trade and tax policy; reliance on certain key personnel; loss of key personnel or inability to hire additional qualified personnel; additional asset impairment charges that could reduce profitability; access to consumer credit could be interrupted; inability to maintain current design center locations at current costs; failure to successfully select and secure design center locations; changes to tax policies; hazards and risks which may not be fully covered by insurance; possible failure to protect the Company’s intellectual property; and other factors disclosed in Part I, Item 1A. Risk Factors, in the Company’s 2020 Annual Report on Form 10-K. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. Many of these factors are beyond the Company’s ability to control or predict. These forward-looking statements speak only as of the date of this news release. Other than as required by law, the Company undertakes no obligation to update or revise its forward-looking statements, whether because of new information, future events, or otherwise. Accordingly, actual circumstances and results could differ materially from those contemplated by the forward-looking statements.

  • Ethan Allen Opens New Design Centers and Strengthens North American Manufacturing
    GlobeNewswire

    Ethan Allen Opens New Design Centers and Strengthens North American Manufacturing

    DANBURY, CT, March 31, 2021 (GLOBE NEWSWIRE) -- Ethan Allen has continued to strengthen its retail position by relocating and redesigning multiple Design Centers during the past 12 months. The company also continues to strengthen its manufacturing in North America, where about 75% of its products are made. These moves capitalize on the brand’s ongoing commitment to combining technology with personal service and growing its strong North American manufacturing base. New and relocated Design Centers opened in past 12 months include San Mateo, California; Green Bay, Wisconsin; Oxnard, California; Towson, Maryland; Alpharetta, Georgia; and last week, in Portland, Oregon. “Ethan Allen has evolved into an all-in-one, whole-home custom design house,” stated Farooq Kathwari, Chairman and CEO of Ethan Allen Interiors Inc. “Our newest Design Centers truly bring the full Ethan Allen experience to life. They also put the talent of our more than 1,200 interior design professionals front and center. These moves capitalize on our ongoing commitment to combining personal service with technology. They showcase our unparalleled selection, the customizations that we can create in our North American workshops, and the interior design possibilities that define our brand.” Mr. Kathwari added: "We are fortunate to have maintained and grown our North American workshops where customization helps us create relevant and quality products, putting us in a better position to serve our clients." Ethan Allen's Design Centers have evolved into true interior design studios, with technology-driven projections and dedicated workstations that foster collaboration between designers and clients. Each workstation highlights the breadth of selection within a home furnishings category, including available custom fabrics, leathers, finishes, and options, where relevant. Clients can also use touchscreens located throughout the store to perform product research at their own pace. In addition, all Design Centers feature client/designer workstations powered by Ethan Allen’s 3D Room Planner technology, which transforms 2D floor plans into high-definition, 360° fully immersive walkthroughs of a completely designed space. Each workstation utilizes large screens that bring these digital design plans to life, whether clients are designing a single room or an entire home, so clients can see an incredibly realistic version of their designed space before placing their order. Kathwari expressed optimism about where Ethan Allen is headed. “I am confident that our focus on providing relevant product offerings, maintaining and expanding manufacturing in North America, and continually evolving our Design Center concept will continue to help us provide excellent service and will propel us to further success in 2021 and beyond." ABOUT ETHAN ALLENEthan Allen Interiors Inc. (NYSE: ETH) is a leading interior design company and manufacturer and retailer of quality home furnishings. We offer complimentary interior design service to our clients and sell a full range of furniture products and decorative accessories through ethanallen.com and a network of approximately 300 Design Centers in the U.S. and abroad. Approximately 75% of our products are made in our North American plants. For more information on Ethan Allen's products and services, visit www.ethanallen.com. CONTACT:Geri MoranVice President, Marketing & Public Relations203.743.8374geri.moran@ethanallen.com

  • GlobeNewswire

    Ethan Allen Reports Fiscal 2021 Second Quarter Results

    DANBURY, CT, Jan. 28, 2021 (GLOBE NEWSWIRE) -- Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE: ETH) today reported its business and financial results for the fiscal 2021 second quarter ended December 31, 2020. Farooq Kathwari, Ethan Allen’s Chairman, President and CEO commented, “we performed very well during the second quarter despite the unsettled business environment from the ongoing COVID-19 pandemic. The increased consumer focus on the home has continued to generate a heightened level of demand for our product offerings and design services. Our fundamentals continue to be strong, with written orders and backlogs from both operating segments reporting double-digit growth. We ended the quarter with a strong balance sheet, including cash on hand of $80 million and no outstanding debt, and a major increase in earnings per share through disciplined cost and expense controls. We are also pleased that our January retail written orders continue the upward trend.” FISCAL 2021 SECOND QUARTER HIGHLIGHTS* Diluted earnings per share (“EPS”) of $0.67; adjusted EPS of $0.69 increased 155.6%Consolidated operating margin of 12.6% compared with 5.3%; adjusted operating margin of 13.1% compared with 5.4%Retail segment written order growth of 44.9%Wholesale segment written orders increased 28.1%; excluding GSA and other government orders, wholesale segment orders grew 39.7%Consolidated net sales increased 2.4% to $178.8 millionConsolidated gross margin of 56.7%; adjusted gross margin expanded 80 basis points to 56.9%Strong cash flow helped end the quarter with cash on hand of $80.0 million, up 182.7% from a year ago, and no debtPaid regular quarterly cash dividend of $5.3 million during the quarter * See reconciliation of U.S. GAAP to adjusted key financial measures in the back of this press release. Comparisons are to the second quarter of fiscal 2020. Mr. Kathwari continued, “with our well-known and desired Ethan Allen brand strongly resonating with consumers during these uncertain times, we were able to accelerate the pace of written orders, produce double-digit consolidated operating margin and generate cash. We continued to focus on prudent expense management as we navigate the challenging COVID-19 landscape and remain focused on providing a safe environment for employees and customers. In this stronger-than-expected demand environment, our supply chain team is demonstrating agility and flexibility to increase production capacity and receipt of inventory. Due to the impact of COVID-19 and its effects on production capacity and our supply chain, we believe it will take the March and June quarters to catch up to the increase in customer demand.” “We believe we have an opportunity to continue our growth in sales and profitability due to our strong retail network, the personal service of our interior design professionals, our unique vertical integration whereby 75% of products are made in our North American manufacturing workshops, and our national distribution and home delivery centers delivering product with white glove service to our customer’s home. As we head into the 2021 calendar year, we will remain focused on employee safety, continue investing in digital design and interactive communication technologies, growing our business and generating strong cash flow, refining and repositioning our product offerings to reach a larger client base, and leveraging our vertical integration,” Mr. Kathwari concluded. KEY FINANCIAL MEASURES* (Unaudited)(In thousands, except per share data) Three months ended Six months ended December 31, December 31, 2020 2019 % Change 2020 2019 % ChangeNet sales$178,826 $174,574 2.4%$329,884 $348,495 (5.3%) GAAP gross profit$101,332 $97,521 3.9%$187,102 $191,315 (2.2%)Adjusted gross profit*$101,721 $97,910 3.9%$187,491 $195,844 (4.3%)GAAP gross margin 56.7% 55.9% 56.7% 54.9% Adjusted gross margin* 56.9% 56.1% 56.8% 56.2% GAAP operating income$22,555 $9,204 145.1%$34,236 $27,845 23.0%Adjusted operating income*$23,367 $9,488 146.3%$35,671 $21,701 64.4%GAAP operating margin 12.6% 5.3% 10.4% 8.0% Adjusted operating margin* 13.1% 5.4% 10.8% 6.2% GAAP diluted EPS$0.67 $0.27 148.1%$1.04 $0.79 31.6%Adjusted diluted EPS*$0.69 $0.27 155.6%$1.05 $0.62 69.4% Cash flows from operating activities$23,728 $(8)nm $65,918 $23,388 181.8% * See reconciliation of U.S. GAAP to adjusted key financial measures in the back of this press release FISCAL 2021 SECOND QUARTER FINANCIAL RESULTS Consolidated Net sales were $178.8 million, an increase of 2.4% compared to the same prior year period. The Company experienced a strong pace of written orders during the quarter and its manufacturing facilities continued to make good progress ramping up production to meet this demand and work through existing backlog after the temporary plant closures in the fourth quarter of fiscal 2020. However, given the production cycle from written order to delivery, net sales grew only 2.4% compared with 44.9% growth in retail written orders and 28.1% growth in wholesale written orders. Gross profit increased 3.9% to $101.3 million compared with the prior year period due to stronger net sales within both the wholesale and retail segments combined with an improved wholesale gross margin. Wholesale gross profit increased year over year primarily due a 10.5% increase in net sales and improved operating efficiencies, which led to gross margin expansion despite plant shutdowns and restrictions related to the ongoing COVID-19 pandemic. Retail gross profit increased due to a 4.1% increase in net shipments. Gross margin was 56.7% compared with 55.9% a year ago. On an adjusted basis, the current year consolidated gross margin was 56.9% compared to a prior year gross margin of 56.1%. The increase in consolidated gross margin was due to higher productivity in wholesale manufacturing and a change in the sales mix. Retail sales, as a percentage of total consolidated sales, were 81.0% compared with 79.7% a year ago, which positively impacted consolidated gross margin. The wholesale gross margin expanded due to benefits being realized from the prior year optimization project and increased productivity. Operating expenses decreased to $78.8 million, or 44.1% of net sales, compared with $88.3 million, or 50.6% of net sales last year. The 10.8% decrease in operating expenses was primarily due to lower selling costs and a reduction in general and administrative expenses from less headcount. Retail selling expenses were lower due to less designer selling expenses and lower compensation due to headcount reductions. Wholesale selling costs were down due to a reduction in advertising spending and lower compensation costs due to headcount reductions. General and administrative expenses decreased due to lower compensation costs, reduced travel expenses, occupancy cost savings and lower regional management expenses. Operating income was $22.6 million compared with $9.2 million in the prior year period. Higher consolidated net sales of $4.3 million or 2.4% coupled with disciplined cost and expense controls, including strong cost containment measures and expense management, drove operating income growth. The Company’s ability to operate the business with headcount down 19.2% year over year helped improve consolidated operating income and margin. Income tax expense was $5.3 million, an increase of $3.1 million from a year ago due to the $12.9 million increase in income before income taxes. The Company’s effective rate was 23.9% compared with 23.5% last year. Diluted EPS was $0.67, up 148.1%, compared with $0.27 in the prior year comparable period. Adjusted diluted EPS was $0.69, up 155.6%, and driven by improved net sales, gross margin and cost containment measures. Wholesale Segment Net sales increased 10.5% to $101.6 million primarily due to a 19.7% increase in sales to its Company-operated design centers combined with 33.3% growth in sales to its North American retail network. These increases were partially offset by a 33.4% decline in contract business sales, including the GSA contract and a 15.4% decrease in sales to its international retail network primarily as a result of COVID-19 related economic disruptions. Operating income was $12.7 million or 12.5% of net sales, an increase compared with $5.7 million or 6.2% of net sales last year largely due to an increase in net sales of $9.7 million or 10.5% and 7.7% less operating expenses. The Company was able to reduce operating expenses primarily due to lower headcount, less marketing costs and actions taken to control and minimize expenditures. Retail Segment Net sales from Company-operated design centers increased 4.1% to $144.8 million. There was a 3.7% increase in net sales in the United States, while net sales from Canadian design centers increased 15.4%. Since all design centers have re-opened, whether in-person, by appointment only, or virtually, the Company has continued to experience strong order trends with written orders up 44.9%, driven by increased demand for products in the home furnishings category. In addition, the Company’s e-commerce business was a strong contributor to retail net sales, growing by 115% year over year, as online traffic continues to increase. There were 144 Company-operated design centers as of December 31, 2020, the same as at the end of the prior year period. Operating income was $9.9 million, or 6.8% of sales, compared with a loss of $0.1 million, or 0.1% of sales, for the prior year period. The retail operating margin increased 690 basis points primarily due to the 4.1% increase in net sales and an 11.9% decrease in operating expenses from lower selling, administrative, occupancy and regional management costs. The decreases within retail operating expenses were due to strong cost control measures implemented, including a 42.2% reduction in retail headcount from a year ago. FISCAL 2021 YEAR-TO-DATE FINANCIAL RESULTS Consolidated Net sales were $329.9 million, a decrease of 5.3% compared to the same prior year period. While written orders accelerated with retail segment orders up 25.1% and wholesale segment orders up 10.7% during the first six months of fiscal 2021 compared to the prior year period, net sales were down 5.3% primarily due to the continued impact of COVID-19, which caused temporary design center closures in the fourth quarter of fiscal 2020, temporary closures of its manufacturing facilities, and a negative impact on the Company’s ability to deliver product to customers. Customer demand continues to outpace product availability even as manufacturing capacity increases. The Company resumed production in its North American manufacturing plants during the first quarter of fiscal 2021 and have ramped up to near pre-COVID-19 production levels, which is expected to reduce the high undelivered order backlogs and delivery lead-times in the second half of fiscal 2021. Gross profit decreased 2.2% to $187.1 million compared with the prior year period due to lower retail net sales of $13.5 million partially offset by an increase in wholesale net sales of $5.7 million. Operating expenses decreased to $152.9 million, or 46.3% of net sales, compared with $163.5 million, or 46.9% of net sales last year. Included in prior year period operating expenses was a gain of $11.5 million from the sale of the Company’s Passaic, New Jersey property. Operating expenses decreased during fiscal 2021 due to lower selling costs and a reduction in general and administrative expenses. Retail selling expenses were lower due to less warehouse and delivery expenses from a reduced volume of shipments, less designer selling expenses and lower compensation due to headcount reductions. Wholesale selling costs were down due to a reduction in advertising spend and lower compensation costs. General and administrative expenses decreased due to lower compensation costs coupled with lower occupancy costs, reduced travel expenses and lower regional management expenses. Operating income totaled $34.2 million compared with $27.8 million a year ago. Adjusted operating income was $35.7 million, or 10.8% of net sales compared with $21.7 million, or 6.2% of net sales last year. Strong cost containment measures, including improved expense management and reduced headcount, drove operating income growth. These benefits to operating income were partially offset by the 5.3% decline in consolidated net sales. Income tax expense was $7.2 million compared with $6.7 million a year ago. Income tax expense was higher due to the $5.5 million increase in income before income taxes partially offset by a $0.9 million reduction to the Company’s valuation allowance on retail segment deferred tax assets. The Company’s effective rate was 21.5% in the current year first half compared with 24.1% last year due to the discrete tax benefit related to a reduction in its valuation allowance on retail deferred tax assets. Diluted EPS was $1.04 compared with $0.79 in the prior year comparable period. Adjusted diluted EPS was $1.05, up 69.4% compared with $0.62 in the prior year period. Restructuring and impairment charges, net of the valuation allowance tax benefit, negatively impacted diluted EPS by $0.01 during fiscal 2021. The gain on the sale of the Company’s Passaic, New Jersey property partially offset with other restructuring activities and corporate actions increased diluted EPS by $0.17 in the prior year period. Balance Sheet and Cash Flow Total cash and cash equivalents was $80.0 million at December 31, 2020 compared with $72.3 million at June 30, 2020 and $28.3 million a year ago. Cash and cash equivalents aggregated to 12.6% of total assets at December 31, 2020, compared with 4.6% a year ago and 11.6% at June 30, 2020. Cash and cash equivalents increased $7.7 million during fiscal 2021 due to net cash provided by operating activities of $65.9 million, partially offset by the Company’s September 2020 repayment of 100% or $50.0 million of outstanding borrowings under the Company’s existing credit facility and capital expenditures of $5.9 million. Inventories, net of $126.7 million increased $0.6 million compared with $126.1 million at June 30, 2020 as the Company continues to minimize inventory carrying costs. Debt outstanding was zero at December 31, 2020 as the Company paid down the remaining $50.0 million of its borrowing in September 2020 using available cash on hand. Capital expenditures in the first six months of fiscal 2021 were $5.9 million compared with $8.0 million in the prior year period. As part of the Company’s initial response to the COVID-19 health crisis, the Company took immediate action and made adjustments to its business operations, including delaying investments and capital expenditures, which led to a reduction in capital spending. The decrease related primarily to lower spending of $2.9 million on retail design center openings, relocations and improvements, as well as the prior year conversion of the Company’s Old Fort, North Carolina facility into a distribution center, partially offset by expansion of its existing Maiden, North Carolina manufacturing campus. Cash dividends paid were $5.3 million during the first half of fiscal 2021, a decrease of $5.4 million over a year ago, due to the Board’s decision to temporarily suspend the quarterly dividend as a result of impacts from the COVID-19 pandemic. The Company had suspended its regular quarterly cash dividend as of April 28, 2020. On August 4, 2020, the Company announced that its Board of Directors reinstated and declared a regular quarterly cash dividend of $0.21 per share, payable to shareholders of record as of October 8, 2020 and was paid on October 22, 2020. DIVIDEND DECLARED On January 25, 2021, the Company announced that its Board of Directors had declared a regular quarterly cash dividend of $0.25 per share, payable on April 22, 2021 to shareholders of record at the close of business on April 8, 2021. ANALYST CONFERENCE CALL Ethan Allen will host an analyst conference call today, January 28, 2021 at 5:00 PM (Eastern Time) to discuss its results. The analyst conference call will be webcast live from the Company’s Investor Relations website at https://ir.ethanallen.com. The following information is provided for those who would like to participate: U.S. Participants: 877-705-2976International Participants: 201-689-8798Meeting Number: 13714570 For those unable to listen live, an archived recording of the call will be made available on the Company’s website referenced above for at least 60 days. ABOUT ETHAN ALLEN Ethan Allen Interiors Inc. (NYSE: ETH) is a leading interior design company, manufacturer and retailer in the home furnishings marketplace. The Company provides complimentary interior design service to its clients and sells a full range of furniture products and decorative home accents through a retail network of approximately 300 design centers in the United States and abroad as well as online at ethanallen.com. Ethan Allen owns and operates nine manufacturing facilities, including six manufacturing plants in the United States, two manufacturing plants in Mexico and one manufacturing plant in Honduras. Approximately 75% of its products are manufactured or assembled in these North American facilities. For more information on Ethan Allen's products and services, visit www.ethanallen.com. Investor / Media Contact: Matt McNulty Vice President, Finance IR@ethanallen.com ABOUT NON-GAAP FINANCIAL MEASURES This press release is intended to supplement, rather than to supersede, the Company's consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). In this press release the Company has included financial measures that are not prepared in accordance with GAAP. The Company uses non-GAAP financial measures, including adjusted gross profit and margin, adjusted operating income and margin, adjusted net income and adjusted diluted EPS (collectively “non-GAAP financial measures”). The Company computes these non-GAAP financial measures by adjusting the comparable GAAP measure to remove the impact of certain charges and gains and the related tax effect of these adjustments. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial measures presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. A reconciliation of the non-GAAP financial measures to the most directly comparable financial measure reported in accordance with GAAP is provided at the end of this press release. FORWARD-LOOKING STATEMENTS This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which represent management's beliefs and assumptions concerning future events based on information currently available to the Company relating to its future results. Such forward-looking statements are identified in this news release and incorporated herein by reference by use of certain forward-looking words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “continue,” “may,” “will,” “short-term,” “target,” “outlook,” “forecast,” “future,” “strategy,” “opportunity,” “would,” “guidance,” “non-recurring,” “one-time,” “unusual,” “should,” “likely,” “COVID-19 impact,” 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, including projections about future financial growth and trends with respect to the Company’s business and results of operations, and are not guarantees of future performance. Actual results could differ materially from those anticipated in the forward-looking statements due to a number of risks and uncertainties including, but not limited to the following: the ongoing global COVID-19 pandemic may continue to materially adversely affect the Company’s business, its results of operations and overall financial performance; additional funding from external sources may not be available at the levels required, or may cost more than expected; declines in certain economic conditions, which impact consumer confidence and consumer spending; a decline in the health of the economy and consumer spending may affect consumer purchases of discretionary items; financial or operational difficulties due to competition in the residential furniture industry; a significant shift in consumer preference toward purchasing products online; ability to maintain and enhance the Ethan Allen brand; failure to successfully anticipate or respond to changes in consumer tastes and trends; global and local economic uncertainty may materially adversely affect manufacturing operations or sources of merchandise and international operations; competition from overseas manufacturers and domestic retailers; disruptions in the supply chain; the number of manufacturing and logistics sites may increase exposure to business disruptions and could result in higher transportation costs; fluctuations in the price, availability and quality of raw materials could result in increased costs or cause production delays; current and former manufacturing and retail operations and products are subject to increasingly stringent environmental, health and safety requirements; product recalls or product safety concerns; reliance on information technology systems to process transactions, summarize results, and manage its business and that of certain independent retailers; disruptions in both primary and back-up systems; successful cyber-attacks and the ability to maintain adequate cyber-security systems and procedures; loss, corruption and misappropriation of data and information relating to customers; changes in United States trade and tax policy; reliance on certain key personnel; loss of key personnel or inability to hire additional qualified personnel; additional asset impairment charges that could reduce profitability; access to consumer credit could be interrupted; inability to maintain current design center locations at current costs; failure to successfully select and secure design center locations; changes to tax policies; hazards and risks which may not be fully covered by insurance; possible failure to protect the Company’s intellectual property; and other factors disclosed in Part I, Item 1A. Risk Factors, in the Company’s 2020 Annual Report on Form 10-K. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. Many of these factors are beyond the Company’s ability to control or predict. These forward-looking statements speak only as of the date of this news release. Other than as required by law, the Company undertakes no obligation to update or revise its forward-looking statements, whether because of new information, future events, or otherwise. Accordingly, actual circumstances and results could differ materially from those contemplated by the forward-looking statements. Ethan Allen Interiors Inc.Selected Financial Data(Unaudited)($ in millions, except per share data) Selected Consolidated Financial Data Three months endedDecember 31,Six months endedDecember 31, 2020 2019 2020 2019 Net sales$178.8 $174.6 $329.9 $348.5 Gross margin 56.7% 55.9% 56.7% 54.9%Adjusted gross margin* 56.9% 56.1% 56.8% 56.2%Operating income$22.6 $9.2 $34.2 $27.8 Adjusted operating income*$23.4 $9.5 $35.7 $21.7 Operating margin 12.6% 5.3% 10.4% 8.0%Adjusted operating margin* 13.1% 5.4% 10.8% 6.2%Net income$16.9 $7.1 $26.2 $21.2 Adjusted net income*$17.5 $7.3 $26.5 $16.6 Effective tax rate 23.9% 23.5% 21.5% 24.1%Diluted EPS$0.67 $0.27 $1.04 $0.79 Adjusted diluted EPS*$0.69 $0.27 $1.05 $0.62 Cash flows from operating activities$23.7 $(0.0)$65.9 $23.4 Capital expenditures$3.4 $4.6 $5.9 $8.0 Cash dividends paid$5.3 $5.6 $5.3 $10.7 Repurchases of common stock$0.0 $10.2 $0.0 $10.2 Selected Financial Data by Segment Three months endedDecember 31,Six months endedDecember 31,Retail 2020 2019 2020 2019 Net sales$144.8 $139.1 $262.9 $276.4 Operating margin 6.8% (0.1%) 4.5% 0.5%Adjusted operating margin* 7.1% (0.1%) 4.9% 0.6% Wholesale Net sales$101.6 $91.9 $198.9 $193.2 Operating margin 12.5% 6.2% 13.0% 11.7%Adjusted operating margin* 12.9% 6.5% 13.2% 8.5% * See reconciliation of U.S. GAAP to adjusted key financial measures in the back of this press release Ethan Allen Interiors Inc.Consolidated Statements of Comprehensive Income(Unaudited)(In thousands, except per share data) Three months ended December 31, Six months ended December 31, 2020 2019 2020 2019 Net sales$ 178,826 $ 174,574 $329,884 $348,495 Cost of sales 77,494 77,053 142,782 157,180 Gross profit 101,332 97,521 187,102 191,315 Selling, general and administrative expenses 78,354 88,495 151,820 174,505 Restructuring and other impairment charges, net of gains 423 (178) 1,046 (11,035)Operating income 22,555 9,204 34,236 27,845 Other expenses Interest and other financing costs 47 51 382 99 Other income (expense), net (330) 114 (435) 181 Income before income taxes 22,178 9,267 33,419 27,927 Income tax expense 5,295 2,181 7,183 6,735 Net income$16,883 $7,086 $26,236 $21,192 Per share data Diluted earnings per common share: Net income per diluted share$0.67 $0.27 $1.04 $0.79 Diluted weighted average common shares 25,309 26,612 25,257 26,681 Comprehensive income Net income$16,883 $7,086 $26,236 $21,192 Other comprehensive income (loss), net of tax Foreign currency translation adjustments 1,990 773 2,546 274 Other (5) (19) (14) (26)Other comprehensive income, net of tax 1,985 754 2,532 248 Comprehensive income$18,868 $7,840 $28,768 $21,440 Ethan Allen Interiors Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) December 31,June 30,ASSETS 2020 2020 Current assets: Cash and cash equivalents$80,035 $72,276 Accounts receivable, net 8,985 8,092 Inventories, net 126,748 126,101 Prepaid expenses and other current assets 30,160 23,483 Total current assets 245,928 229,952 Property, plant and equipment, net 234,425 236,678 Goodwill 25,388 25,388 Intangible assets 19,740 19,740 Operating lease right-of-use assets 108,470 109,342 Deferred income taxes 641 137 Other assets 1,627 1,552 Total ASSETS$636,219 $622,789 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued expenses$33,989 $25,595 Customer deposits and deferred revenue 90,063 64,031 Accrued compensation and benefits 21,149 18,278 Current operating lease liabilities 31,838 27,366 Other current liabilities 10,439 3,708 Total current liabilities 187,478 138,978 Long-term debt - 50,000 Operating lease liabilities, long-term 95,703 102,111 Deferred income taxes 872 1,074 Other long-term liabilities 4,602 2,562 Total LIABILITIES$288,655 $294,725 Shareholders’ equity: Ethan Allen Interiors Inc. shareholders’ equity$347,579 $328,065 Noncontrolling interests (15) (1)Total shareholders’ equity$347,564 $328,064 Total LIABILITIES AND SHAREHOLDERS’ EQUITY$636,219 $622,789 Ethan Allen Interiors Inc. Design Center Activity (Unaudited) IndependentCompany- Design Center activityRetailersOperatedTotalBalance at June 30, 2020160144304New locations8-8Closures(10)-(10)Transfers---Balance at December 31, 2020158144302Relocations (in new and closures)--- U.S.34138172International1246130 Reconciliation of Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with GAAP, the Company uses non-GAAP financial measures including adjusted gross profit and margin, adjusted operating income, adjusted retail operating income and margin, adjusted wholesale operating income and margin, adjusted net income and adjusted diluted earnings per share. The reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in tables below. These non-GAAP measures are derived from the consolidated financial statements but are not presented in accordance with GAAP. The Company believes these non-GAAP measures provide a meaningful comparison of its results to others in its industry and prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, its financial performance measures prepared in accordance with GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than the Company does, limiting the usefulness of those measures for comparative purposes. Despite the limitations of these non-GAAP financial measures, the Company believes these adjusted financial measures and the information they provide are useful in viewing its performance using the same tools that management uses to assess progress in achieving its goals. Adjusted measures may also facilitate comparisons to historical performance. The following tables below show a reconciliation of non-GAAP financial measures used in this newsrelease to the most directly comparable GAAP financial measures. (Unaudited)(In thousands, except per share data) Three months ended Six months ended December 31, December 31, 2020 2019 % Change 2020 2019% ChangeConsolidated Adjusted Gross Profit / Gross MarginGAAP Gross profit$101,332 $97,521 3.9% $187,102 $191,315 (2.2%)Adjustments (pre-tax) * 389 389 389 4,529 Adjusted gross profit *$101,721 $97,910 3.9% $187,491 $195,844 (4.3%)Adjusted gross margin * 56.9% 56.1% 56.8% 56.2% Consolidated Adjusted Operating Income / Operating MarginGAAP Operating income$22,555 $9,204 145.1% $34,236 $27,845 23.0%Adjustments (pre-tax) * 812 284 1,435 (6,144) Adjusted operating income *$23,367 $9,488 146.3% $35,671 $21,701 64.4% Consolidated Net sales$178,826 $174,574 2.4% $329,884 $348,495 (5.3%)GAAP Operating margin 12.6% 5.3% 10.4% 8.0% Adjusted operating margin * 13.1% 5.4% 10.8% 6.2% Consolidated Adjusted Net Income / Adjusted Diluted EPSGAAP Net income$16,883 $7,086 138.3% $26,236 $21,192 23.8%Adjustments, net of tax * 613 214 215 (4,639) Adjusted net income$17,496 $7,300 139.7% $26,451 $16,553 59.8%Diluted weighted average common shares 25,309 26,612 25,257 26,681 GAAP Diluted EPS$0.67 $0.27 148.1% $1.04 $0.79 31.6%Adjusted diluted EPS *$0.69 $0.27 155.6% $1.05 $0.62 69.4% Wholesale Adjusted Operating Income / Adjusted Operating MarginWholesale GAAP operating income$12,720 $5,730 122.0% $25,858 $22,658 14.1%Adjustments (pre-tax) * 389 284 389 (6,292) Adjusted wholesale operating income *$13,109 $6,014 118.0% $26,247 $16,366 60.4% Wholesale net sales$101,550 $91,889 10.5% $198,884 $193,218 2.9%Wholesale GAAP operating margin 12.5% 6.2% 13.0% 11.7% Adjusted wholesale operating margin * 12.9% 6.5% 13.2% 8.5% Retail Adjusted Operating Income / Adjusted Operating MarginRetail GAAP operating income$9,909 $(135)nm $11,892 $1,429 732.2%Adjustments (pre-tax) * 423 - 1,046 148 Adjusted retail operating income *$10,332 $(135)nm $12,938 $1,577 720.4% Retail net sales$144,818 $139,101 4.1% $262,899 $276,367 (4.9%)Retail GAAP operating margin 6.8% (0.1%) 4.5% 0.5% Adjusted retail operating margin * 7.1% (0.1%) 4.9% 0.6% * Adjustments to reported GAAP financial measures including gross profit and margin, operating income and margin, net income and diluted EPS have been adjusted by the following: (Unaudited)Three months endedSix months ended(In thousands)December 31,December 31, 2020 2019 2020 2019 Inventory reserves and write-downs (wholesale)$389 $119 $389 $3,209 Manufacturing overhead costs and other (wholesale) - 270 - 1,320 Adjustments to gross profit$389 $389 $389 $4,529 Inventory reserves and write-downs (wholesale)$389 $119 $389 $3,209 Optimization of manufacturing and logistics (wholesale) - 92 - 1,785 Gain on sale of Passaic, New Jersey property (wholesale) - - - (11,497)Severance and other professional fees (wholesale) - 73 - 211 Loss on sale of property, plant and equipment (retail) 273 - 273 - Retail acquisition costs, severance and other charges (retail) 150 - 150 148 Impairment of long-lived assets (retail) - - 623 - Adjustments to operating income 812 284 1,435 (6,144)Adjustments to income before income taxes 812 284 1,435 (6,144)Related income tax effects on non-recurring items (1) (199) (70) (352) 1,505 Income tax benefit from valuation allowance adjustment - - (868) - Adjustments to net income$(613)$(214)$215 $(4,639) (1) Calculated using a tax rate of 24.5% in all periods presented.