The following is a summary of the Ethan Allen Interiors Inc. (ETD) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Ethan Allen consolidated net sales of $146.4 million in Q3 2024 with a double-digit operating margin despite industry challenges.

• The Q3 gross margin was 61.3%, driven by changes in sales mix, lower manufacturing costs, and reduced staff numbers, exceeding 58% for 12 consecutive quarters.

• Adjusted operating margin was 10%, while adjusted diluted EPS stood at $0.48.

• They ended the quarter with a cash and investment balance of $181.1 million, no outstanding debt, and paid a cash dividend of $9.2 million, equivalent to $0.36 per share.

• The company saw a decrease in order trends due to weak industry demand and high interest and inflation rates.

Business Progress:

• The company launched an Interior Design initiative, modifying design centers and integrating technology and skilled interior designers. It also introduced a monthly digital magazine and a new style book.

• Aiming at developing classic products with a modern angle, the company plans to introduce many new products in the next six months.

• On the manufacturing front, the company optimised resources and improved efficiency through plant reduction from 30 to approximately 10 within 15 years.

• Ethan Allen reported an increase in customer deposits partly due to the timing of orders and increased attention on home interiors, translating into higher dollar volume of orders.

• Following the impact of late March's Easter holiday, the company started April on a positive note. Future plans include shrinking design center sizes and enhancing efficiency.

More details: Ethan Allen Interiors IR

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.