Ethan Allen Interiors Inc. (NYSE:ETD) Q1 2024 Earnings Call Transcript

Zach Donnelly: Got it. Got it. That’s really helpful. And then, I guess, just a follow-up on that as a final point maybe. So with that being the case moving into fiscal 2Q as we kind of see that timing shift maybe benefit written orders in 2Q. I also believe that fiscal 2Q of the prior year, your contract orders were down maybe around 88%, so just easier comparisons, moving into the next quarter, the benefit of the timing shift. Would it be fair to assume that we should see some sort of sequential improvement in written order trends on the contract side moving into the next quarter?

Farooq Kathwari: Yeah. I think that we can make that assumption because and that the government has something different, but we are expecting that. And the retail of course will depend upon how the — how our retail network works, how the economy is. We are — I think we are — our people are very motivated. This initiative of Interior Design Destination is creating a lot of impact, because at this time if we didn’t do it because of the fact that we are going to end into this soft economy, we did it was the right thing to do. But this has given us a great opportunity to get our message across — around at a time when the only message that is being given out is that of deep discounts and going out of business. So we are getting the message across that we are alive, well and very strong in our offerings. I think that is going to help us.

Zach Donnelly: Got it. Yeah. That’s it for us. Thank you, Farooq. Good luck on the refresh and congrats on the strong margins this quarter. Thank you.

Farooq Kathwari: Thanks very much. Any other questions…

Operator: There are no…

Farooq Kathwari: … or comment?

Operator: There are no further questions in the queue. I’d like to hand it back to Mr. Kathwari for closing remarks.

Farooq Kathwari: Well, thank you very much and thank you for participating and attending. And as Budd knows this is most likely, I think, over 120th, 125th consecutive quarterly call and we are just getting started. So stay with us and we got a lot of, lot of good things happening. So thanks very much for participating.

Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.