Ethan Allen Interiors Inc.

Good afternoon and welcome to the Ethan Allen Fiscal 2023 Second Quarter Analyst Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. It is now my pleasure to introduce your host, Matt McNulty, Senior Vice President, Chief Financial Officer, and Treasurer. Thank you. You may begin.

Thank you, Camilla. Good afternoon, and thank you for joining us today to discuss Ethan Allen's fiscal 2023 second quarter results. With me today is Farouk Kethwari, our Chairman, President, and CEO. Mr. Casuari will open and close our prepared remarks while I will speak to our financial performance midway through. After our prepared remarks, we will then open the call for your questions. Before we begin, I'd like to remind the audience that this call is being recorded and webcast live under the news and events tab on the investor relations page of our ethanallen.com website. There you will also find a copy of our press release, which contains reconciliations of non-GAAP financial measures referred to in the release and on this call. A replay of today's call will also be made available via phone and on our website. Our comments today may include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our SEC filings for a complete review of those risks. The company assumes no obligation to update or revise any forward-looking matters discussed during this call. With that, I'm pleased to now turn the call over to Mr. Kefwari.

Thank you, Matt. and welcome to our second quarter fiscal 2023 earnings call. We are pleased with our results. Our sales of $203.2 million were the result of many factors, including strong offerings, an interior design destination, 75% products made in our North American workshops, a unique logistics network where we provide personal in-home delivery at one delivered price to our clients in North America. Combining the personal service of our interior designers with technology has been a game changer. We were also helped by a stronger backlog of orders. Our gross margin increased to 61%, and operating income margin increased to 18.2%. Our adjusted earnings per share of $1.10 grew by 15.8%. We ended with strong cash of $140.4 million and no debt. Our unique vertically integrated structure continues to be strengthened, and after Matt provides a brief overview of the financials, I will review our focus and opportunity going forward.