Ethan Allen reports Q1 EPS 35c, consensus 34c
Reports Q1 revenue $173.9M, consensus $175.13M. Farooq Kathwari, Ethan Allen's Chairman, President and CEO commented, "While we have continued to have strong earnings and cash generation, we believe we have a major opportunity to further increase our profitability by increasing our sales and leveraging our more efficient vertically integrated structure. We continue to strengthen our talent, marketing, retail network, products, manufacturing, logistics and technology, while also maintaining our focus on good governance and social responsibility." Mr. Kathwari continued, "During October, we launched a major initiative - the Ethan Allen Member Program. Those who enroll receive special members-only pricing, complimentary interior design service, free shipping and white glove in-home delivery, and in our U.S. design centers, access to special financing options. The membership program will benefit our clients, enable our team of about 1,500 North American interior designers and our vertically integrated operations to operate more efficiently with the opportunity to improve our operating margins. About 75% of our products are made in our North American workshops. The membership program was launched in October with a strong advertising campaign utilizing direct mail, television and digital mediums. We plan to continue with enhanced marketing as we move through our fiscal 2020 year under our new 'We Make the American Home' campaign designed to further amplify our design heritage and quintessential American brand identity."