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: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.