DANBURY, CT - Ethan Allen (NYSE:ETD) Interiors Inc. (NYSE: ETD), a prominent furniture retailer, has announced an increase in its regular quarterly cash dividend. Today, the company's Board of Directors declared a dividend of $0.39 per share, an 8.3% hike from the previous payout. The dividend is scheduled to be paid on May 23, 2024, to shareholders on record as of the close of business on May 7, 2024.
Farooq Kathwari, the Chairman, President, and CEO of Ethan Allen, expressed satisfaction with the board's decision, attributing the increase to the company's robust financial position. "The Board's decision today highlights our strong balance sheet allowing for these returns to shareholders," Kathwari stated.
The announcement comes ahead of the company's release of its fiscal 2024 third-quarter financial results, set for Wednesday. Ethan Allen has been recognized for its high-quality and craftsmanship in furniture manufacturing since 1932. The company operates a mix of Company-operated and independent licensee locations, offering interior design services and a full range of home furnishings.
About 75% of Ethan Allen's custom-crafted products are manufactured in its North American facilities. The company has recently been named America's #1 Premium Furniture Retailer and is among America's Top 10 Retailers according to Newsweek. Ethan Allen's commitment to state-of-the-art technology and personal service has solidified its position as a leading interior design destination.
This dividend increase reflects Ethan Allen's confidence in its financial health and commitment to shareholder returns. The information is based on a press release statement from Ethan Allen Interiors Inc .
InvestingPro Insights
As Ethan Allen Interiors Inc. (NYSE: ETD) declares a heightened dividend payout to its shareholders, a glance at recent financial metrics and analyst insights from InvestingPro reveals a more nuanced picture of the company's financial health. With a market capitalization of $813.29 million USD and a dividend yield of 6.1%, the company stands out as a significant player in the furniture retail industry.
InvestingPro data indicates a robust gross profit margin of 60.65% for the last twelve months as of Q2 2024, underscoring Ethan Allen's efficiency in managing production costs relative to its sales. This aligns with the company's reputation for high-quality craftsmanship and may partly explain the board's confidence in increasing the dividend. Moreover, the company's price to earnings (P/E) ratio is currently at 10.26, suggesting a reasonable valuation relative to its earnings.
InvestingPro Tips highlight that Ethan Allen holds more cash than debt on its balance sheet, providing a solid liquidity position that supports the dividend increase. Moreover, the company has maintained dividend payments for 29 consecutive years, reflecting a long-term commitment to delivering shareholder value.
On the flip side, analysts have noted a potential sales decline in the current year and anticipate a drop in net income. Still, the company's strong historical return over the last five years suggests resilience in the face of these challenges.
For readers looking to delve deeper into Ethan Allen's financials and future prospects, there are 6 additional InvestingPro Tips available at https://www.investing.com/pro/ETD. To access these insights and more, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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