Page 1

October 27 , 2021 Ethan Allen Reports Fiscal 2022 First Quarter Results ETHAN ALLEN Strong Increase in Sales and Profitability DANBURY , CT , Oct. 27 , 2021 ( GLOBE NEWSWIRE ) -- Ethan Allen Interiors Inc. ( " Ethan Allen " or the " Company " ) ( NYSE : ETD ) today reported its operating results for its fiscal 2022 first quarter ended September 30 , 2021 . Farooq Kathwari , Ethan Allen's Chairman , President and CEO commented , " We are pleased to report sales growth of 20.7 % , gross margin increasing to 59.9 % and operating margin of 15.0 % , resulting in diluted EPS of $ 0.79 and adjusted EPS of $ 0.80 compared with an adjusted EPS of $ 0.36 in the prior year , an increase of 122.2 % . During the quarter we paid a special cash dividend of $ 0.75 per share and a regular quarterly cash dividend of $ 0.25 per share and ended the quarter with cash on hand of $ 93.7 million and no bank debt . " Mr. Kathwari continued , " Our vertically integrated structure , including 75 % of our products being made in our North American manufacturing workshops , provides us a unique opportunity to grow and better serve our clients . The combination of the personal service of our in - house interior designers and the increasing use of technology is a major factor in our growth . " FISCAL 2022 FIRST QUARTER HIGHLIGHTS * Consolidated net sales increased 20.7 % to $ 182.3 million o Retail net sales of $ 155.0 million increased 31.3 % o Wholesale net sales of $ 109.4 million increased 12.4 % • Strong written orders o Retail segment written orders growth of 6.1 % o Wholesale segment written orders growth of 8.1 % • Consolidated gross margin increased to 59.9 % • Operating margin grew to 15.0 % due to net sales growth and controlling costs by leveraging cost reductions ; selling , general and administrative expenses decreased to 44.7 % of net sales from 48.6 % , reflecting the Company's operating leverage • Diluted EPS of $ 0.79 compared with $ 0.37 ; adjusted diluted EPS of $ 0.80 increased 122.2 % compared with $ 0.36 • Generated $ 17.0 million of cash from operating activities ; cash on hand of $ 93.7 million and no bank debt outstanding • Paid special cash dividends and regular quarterly cash dividends totaling $ 25.4 million • Announced plans to further expand manufacturing production , including new job openings and increases in wages to reaffirm the Company's commitment to its North American manufacturing