Ethan Allen Comments on Business in Advance of its International Conference, Announces Earnings Release Date for Fiscal 2018 First Quarter Results - Seite 2

Mr. Kathwari further commented, "Additionally, our written, delivered and profitability were affected by first run production of floor samples for Passport, a new product assortment launching in November. First run production and strong orders from the U.S. State Department also resulted in production and shipping delays." Mr. Kathwari added, "Going into the second quarter, our retail division backlog is up 11.6% and the wholesale backlog is up 61.6% from June 30, 2017. We are well positioned to clear up these high backlogs during the second quarter."

The Company expects to report consolidated net sales of $181.3 million for the first quarter, wholesale net sales of $111.6 million, and retail net sales of $141.6 million. The Company expects a gross margin of 55.3% for the first quarter, an adjusted operating margin of approximately 6.8%, and an adjusted EPS in the range of $0.27 to $0.28. The Company estimates that the hurricanes and first run production of new products disrupted consolidated net sales by approximately 7% to 8%, brought down gross margin from 56.0% to 55.3%, and reduced adjusted EPS by $0.14 to $0.15.

The Company will release its first quarter fiscal 2018 financial results after the market closes on Wednesday, October 25, 2017, and will host an analyst conference call to discuss the Company's business and financial highlights that afternoon at 5:00 PM ET. This call will be webcast from the "Events and Presentations" page at http://www.ethanallen.com/investors. To access the conference call, dial 844-822-0103 (or 614-999-9166 for international callers), and enter conference ID 50728592. For those unable to listen live, the call will be archived on the company's website for at least 60 days.

About Ethan Allen

Ethan Allen Interiors Inc. (NYSE: ETH) is a leading interior design company and manufacturer and retailer of quality home furnishings. The company offers complimentary interior design service to its clients and sells a full range of furniture products and decorative accessories through ethanallen.com and a network of approximately 300 Design Centers in the United States and abroad. Ethan Allen owns and operates nine manufacturing facilities including six manufacturing plants and one sawmill in the United States plus one plant each in Mexico and Honduras. Approximately seventy-five percent of its products are made in its North American plants. For more information on Ethan Allen's products and services, visit www.ethanallen.com.