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Operator
Good day, ladies and gentlemen, and welcome to the Ethan Allen conference call. [OPERATOR INSTRUCTIONS]
I would now like to turn the conference over to your host, Mr.Kathwari of Ethan Allen. Sir, you may begin
Farooq Kathwari - Chairman, President & CEO
All right, thank you very much. I am Farooq Kathwari, Chairman and CEO of Ethan Allen, I'm joined today by Jeff Hoyt, our Vice President of Finance. Today we are reporting the results for the three and 12 months ended June 30, 2006. I am pleased to report that we have ended the fiscal year of June 30, 2006, by substantially improving both our financial position and more importantly,, the overall positions of our Company. I will briefly touch on the financials, as you have access to that information, and spend time on the important factors that led to our results. For the quarter-ended June 30, 2006, sales increased 12.3% to $272 million. Retail division sales increased 21.8% to $184.4 million, with comparable sales increasing 12.8%. Wholesale sales increased 3.6% to $178 million. Our written sales during the quarter for the retail division increased 14.5% and comparable increasing 6%. For quarter, gross margins amounted to 51.4% as compared to 49.9% in the prior year. Operating margin was 13.5% compared to 13.3%. Retail operating margin at 4.6% compared to 3.1%. Earnings per share at $0.66 compared to $0.56, an increase of 18%. For the 12-months period, the financial highlights are: Sales increased 12.4% to $1.1 billion; retail division sales increased 17.9% to $691 million, with comparable sales increasing 12.3%; wholesale sales increased 11% to $736.1 million; consolidated gross margin was 50.7% as compared to 48.6% in the prior-year period; and consolidated operating margin, after restructuring at 13.8%, was at 13.6%.
On the balance sheet side, the main highlights of the quarter and the year are we generated operating cash of $39.7 million for the fourth quarter and $132.1 million for the year, and EBITDA of 16.2% for the quarter and the fiscal year. We utilized $84.1 million to repurchase shares of Company stock for the year and $33 million -- and during the quarter, $33 million was spent. The number of shares purchased for the year were 2.5 million at an average cost of $33.40, and during this first quarter of fiscal 2007, we have repurchased 451,000 shares at an average cost of $34.82. Inventories decreased during the quarter by $1.9 million, and for the whole year increased by 1.7%. We spent $49.3 million to fund capital expenditures and acquisitions, and paid $23.1 million in quarterly dividends. During the quarter, we acquired five stores, and mostly small stores; two in Massachusetts, two in Las Vegas, and one in Charleston, South Carolina. The total acquisition cost for all five amounted to about $4.2 million.
Now I will briefly give the main factors that led to our results. Sales increased due to: Substantially strengthening the management and design consultants at the retail division; focus on solutions and service; impact of major new products introductions during the last few years. During this past year, we introduced two important product introductions, the [Maison] and the American Classics. The Maison program has had the benefit of the whole year, while American Classics is just getting started to be fully implemented at retail. Our new products reflect improvements in style, details, versatility and value. We continue the relocation of stores. Four new stores are open in the fourth quarter and 16 during the year. At June 30, we ended with 306 stores, with 167 operated by independent licensees and 139 by the Company. Of the new openings during the year, about 50% were opened by the Company and 50% by independent licensees. Without international store openings, 70% of the new stores in the U.S. were open by the Company and 30% by our independent licensees.
We had strong -- stronger advertising programs, both in direct mail and television, both national and regional. On a national basis, while our traffic during the year remained flat, our sales increases were due primarily due to conversions by our associates with our customers. We have seen sales growth during the year in most markets around the country, while some smaller markets in the midwest remain weaker. We implemented a small price increase in March, 2006, which resulted in about 1% impact during the fourth quarter. Gross margins improved due to: Overall sales increase; a larger percent of retail sales to total sales; improvements and efficiencies in both manufacturing and retail operations. On factors that had a negative impact on our gross margins they were: Increase in foam costs, that had an impact of about 1% to our consolidated gross margins during the quarter; impact of increasing help; and also utility costs. Overall, our consolidated gross margins increased, as I said previously, to 51.4% for the quarter. Our operating margin was impacted by the factors impacting our gross margins. In addition we had the following factors; operating margins are positively impacted by improvements in the retail division operating margins and the benefit of overall sales increase. Negative factors were increase in fuel distribution cost as we deliver products on one-cost basis nationally, thereby sheltering our retailers from numerous freight surcharges. Our EPS was $0.66 compared to $0.56, an increase of 18%.
With this brief summary, I would like to open the call for your comments and questions, please. Operator, are you there? Hello? Hello.
Operator
Sorry, Mr.Kathwari. [OPERATOR INSTRUCTIONS] Our first question or comment comes from Budd Bugatch. Sir, your line is open.
Todd Scholl - Analyst
Hi, this is actually Todd, in for Budd. Budd is travelling today. I had a couple of questions. My first one was how many stores did you actually reposition in the quarter?
Farooq Kathwari - Chairman, President & CEO
Four.
Todd Scholl - Analyst
Four stores? And where were those located?
Farooq Kathwari - Chairman, President & CEO
They were located in -- let me see the details. In San Antonio, in Texas.
Todd Scholl - Analyst
Okay.
Farooq Kathwari - Chairman, President & CEO
In Nashville and Memphis, and the fourth one was in China. It was a new store.
Todd Scholl - Analyst
Okay. Secondly -- my second question is, as far as CapEx, I think you'd previously stated that you were looking to spend $50 to $60 million in 2007, and so, is that still the plan?
Farooq Kathwari - Chairman, President & CEO
It might be somewhat higher. It could go about -- as this stage we are looking at the possibilities of spending close to $80 million, because somewhat of an accelerated program of building new stores.
Todd Scholl - Analyst
Okay. And then my -- I did have one last question and that was you had mentioned that one of the increases in your sales was because of sales conversions by your associates. Is that basically upselling or cross-selling? I wasn't sure what that terminology meant.
Farooq Kathwari - Chairman, President & CEO
What it meant is better conversion of our customers coming into our stores, because of our improvement in the design consultants.
Todd Scholl - Analyst
Okay.
Farooq Kathwari - Chairman, President & CEO
And in our management in the retail, it is converting customers into business.
Todd Scholl - Analyst
Okay. Thank you.
Farooq Kathwari - Chairman, President & CEO
All right.
Operator
Thank you, sir. Our next question comes from Adrianne Shapira. Ma'am, your line is open.
Adrianne Shapira - Analyst
Thank you. Good morning. Congratulations Farooq.
Farooq Kathwari - Chairman, President & CEO
First of all, I'm happy you're all listening because I was speaking and then I realized maybe you folks are not listening.
Adrianne Shapira - Analyst
No, we're here with baited breath.
Farooq Kathwari - Chairman, President & CEO
Go ahead, Adrianne.
Adrianne Shapira - Analyst
Okay. You know, you talked about the sales, what has driven the impressive sales in the quarter, but you didn't mention Mission Possible. We're just wondering what impact that had in the quarter and what, perhaps, benefit that continues to have?
Farooq Kathwari - Chairman, President & CEO
Actually, yes, I should have mentioned that. Mission Possible is also a very important initiative. We are not sort of taking for granted that that's become so much of a part of our business that I do not mention it, but it did. It is now impacting every element of our business. It has certainly increased our sales. How much it is is hard to, sort of, calculate. But we know that talking to our people in our regional network that we have been able to get customers who perhaps in the past were not willing to wait. It has had an impact of, of course, overall reducing our backlogs. It has always had an impact of overall making our overall operations more efficient, and in fact, also, controlling our inventories.
Adrianne Shapira - Analyst
Right. If you could perhaps give us a sense -- I mean, since you mentioned there were several positive drivers to sales, perhaps prioritize with, as you mentioned, the design consultants, the new introductions, Mission Possible. Can you give us a sense of which is impacting the most? As you mentioned, it's hard to quantify any one, but what is perhaps the biggest drivers and which one could you foresee continuing into future quarters?
Farooq Kathwari - Chairman, President & CEO
I would say that the strengthening of our retail management -- the way that I have sort of outlined is the way I did it. I prioritize them myself in the way I stated it, Adrianne.
Adrianne Shapira - Analyst
Alright, that's helpful. And then moving on to the expenses, obviously we've seen increases in marketing over the past few quarters, project manager introduction, that also a substantial increase. Wondering going forward, as those pressures abate, should we expect some easting of express pressures as you anniversary those costs?
Farooq Kathwari - Chairman, President & CEO
Yes. You would not see the kind of an increases we have, because in the last one year, we added about 150 project managers, and also promoted many to district project managers and regional project managers. That has to -- that has [inaudible] restabilized.
Adrianne Shapira - Analyst
Okay, great. So there's no other sort of cost coming in to sort of supplant that?
Farooq Kathwari - Chairman, President & CEO
No, not from that perspective. I think our management -- we will, of course, continue to grow the management and that will reflect our increased expansion of our retail network. That perhaps may increase our costs. But we have, this last fiscal year, added the project manager. It is possible that some of that will be fully anniversaried this fiscal year, so just keep that in mind. But it is all a question of all the costs that we incurred last year. But in the fourth quarter, those costs were, I think, fully implemented.
Adrianne Shapira - Analyst
Okay, great. And then just lastly, clearly a lot of concerns around the macro, what we're heading into this back half. You'd mentioned in the press release that written business in recent months has slowed. Can you give us a sense what you're focused on and what you're looking to on the heels of, obviously, such a strong quarter, besides written sales and maybe elaborate on what degree of slowdown, what else are you looking to sort of monitor of the health of your consumer?
Farooq Kathwari - Chairman, President & CEO
We are, of course, pretty close to our consumer. We have seen, as I have indicated, somewhat of a concern by consumers due to all external factors, and we are watching that carefully. I mean, I do not -- at this stage cannot tell you any more than, you know, what you know. We have focused on what we can do internally, which is to have strong product, strong people who can convert the people that we are getting. And that's where really our biggest opportunity. That is to convert the customers we have, providing great solutions, great service. Overall, you got to work harder. And, of course, that gives an opportunity to those who are positioned well. And if you're not positioned well, it's a pretty tough time.
Adrianne Shapira - Analyst
Great. Thank you, Farooq.
Farooq Kathwari - Chairman, President & CEO
All right.
Operator
Thank you, ma'am. Our next question comes from Susan Maklari. Ma'am, your line is open.
Susan Maklari - Analyst
Good morning, Farooq.
Farooq Kathwari - Chairman, President & CEO
Good morning, Susan.
Susan Maklari - Analyst
Can you talk a little bit about. overall. the retail environment out there, and are you seeing any changes in the competitive landscape?
Farooq Kathwari - Chairman, President & CEO
We continue to see, Susan, what I have often said is the retailing going into extremes. That on one hand, you have the mass merchants becoming more interested in home furnishings and furniture, which is impacting a lot of people in the middle, and negatively. And that's why we have felt very strongly that, focusing on solutions and focusing on style and service, is very, very important for us. And we continue to see that. I continue to s -- I feel that people in the middle are going to have a tough time. That either they've go to be the best in solutions and service or they've got to be in the mass merchandising, and more and more of the mass merchants are getting into furnishings.
Susan Maklari - Analyst
Okay. And then, can you just give us any update on any credit offers or anything like that you offer during the quarter or plan to offer over the next few months?
Farooq Kathwari - Chairman, President & CEO
We don't have anything out of the ordinary that is planned. We may continue to do what we have done in the past, which is not anything major or significant. So at this stage, we don't have anything special that we are considering, Susan.
Susan Maklari - Analyst
Okay, thank you.
Operator
Thank you, ma'am. Our next question comes from Ivy Zelman. Your line is open.
Ivy Zelman - Analyst
Hi, Farooq. How you doing?
Farooq Kathwari - Chairman, President & CEO
Good morning, Ivy.
Ivy Zelman - Analyst
You had mentioned. I think. when you talked about the higher conversion rate, did you say that your traffic was flat?
Farooq Kathwari - Chairman, President & CEO
On a national basis.
Ivy Zelman - Analyst
On a national basis, okay. Are you seeing any regional differences in traffic?
Farooq Kathwari - Chairman, President & CEO
What we've, of course, seen is that in all the new stores that we've opened, they've had a major -- they've had a major increase in traffic. And where we have felt, as I said in my comments, that in some of the smaller markets, and especially some smaller markets in the midwest and even in the south, we have seen somewhat more of a drop-in traffic than we have seen in, say, larger markets on the coasts.
Ivy Zelman - Analyst
Okay. And you know you talked about the 306 stores. Do you want to give us a number what you think we should look for at the end of fiscal '07?
Farooq Kathwari - Chairman, President & CEO
Our objective is to open 16 new stores. And the number is not going to substantially change, Ivy. It's possible we may consolidate two or three smaller ones, but more important is that, at the end of each year, we are ending out with a much stronger network.
Ivy Zelman - Analyst
Is there -- in that 16 store opening, you're also looking at relocating more stores so we could already slot it?
Farooq Kathwari - Chairman, President & CEO
I would say approximately 70% to 75% will be relocations.
Ivy Zelman - Analyst
Okay, 75% of those relocations, okay. Thinking about the big picture, back to an earlier question, you put out guidance that was relatively optimistic for fiscal '07 in terms of revenue guidance up 5% to 7%. Obviously, with same-store sales, written business showing 6%, that's only really gives you several weeks of visibility. Is that something -- how do you support that, given what could be a very different '07 with much higher interest rates, housing markets slowing? You know, there's a lot of mortgage resets coming. The consumer can really be negatively impacted by some headwinds. Do you feel like you're being optimistic?
Farooq Kathwari - Chairman, President & CEO
Well, you know, I'm always conservatively optimistic. It's hard to really -- you're right, it is hard to project, Ivy, in these times. However, because of the fact that we have a network that is focused on providing service and solutions, if I were selling my products to others and did not have the benefit of our own distribution and our own network, I would be somewhat more of taking -- sort of just making a statement. We have a better opportunity of continuing our growth while understanding that, there's still lots of factors, as you have said, that are beyond our control.
Ivy Zelman - Analyst
Okay. Well, congratulations on another great quarter, Farooq.
Farooq Kathwari - Chairman, President & CEO
Thanks, Ivy.
Operator
Our next question comes from Todd Schwartzman. Sir, your line is open.
Farooq Kathwari - Chairman, President & CEO
Good morning, Todd.
Todd Schwartzman - Analyst
Hi, Farooq. How are you? Could you discuss the production schedule, what it looked like in the quarter and what the trend was through the the quarter?
Farooq Kathwari - Chairman, President & CEO
We started the quarter by taking some downtime. But by -- towards the middle of the quarter, we ended up getting our domestic manufacturing operating full-time.
Todd Schwartzman - Analyst
So of the 13 weeks, how many would you say you were at 35 hours, 40 hours?
Farooq Kathwari - Chairman, President & CEO
I mean basically, we had relatively small -- I would say, about 1% or so of our production was shutdown.
Todd Schwartzman - Analyst
Okay. And could you quantify for us the components of the other income line?
Farooq Kathwari - Chairman, President & CEO
All right. Here's Jeff. What is that?
Jeff Hoyt - VP - Finance
On that line is about $2.1 million investment income, and we have some losses on the sale of previously closed plant real estate for a couple hundred thousand.
Farooq Kathwari - Chairman, President & CEO
All right.
Todd Schwartzman - Analyst
What about average ticket size during the quarter?
Farooq Kathwari - Chairman, President & CEO
You know, we don't give that information out, Todd. So we'll leave it at that.
Todd Schwartzman - Analyst
Fair enough. My last question is on delivery time, you gave us some numbers last quarter. Maybe you can update that, please, by case goods and upholstery?
Farooq Kathwari - Chairman, President & CEO
Yes. All right. I'll just give you a total of blended, which is approximately the same for all our categories. We are shipping -- in this last quarter, we shipped 80% of our products at the wholesale level within 30 days. That is, from our distribution to our retail network.
Todd Schwartzman - Analyst
Was case goods better above that or --
Farooq Kathwari - Chairman, President & CEO
No, it's about the same.
Todd Schwartzman - Analyst
Okay. Thank you.
Farooq Kathwari - Chairman, President & CEO
All right.
Operator
Thank you, sir. [OPERATOR INSTRUCTIONS] Our next question or comment comes from Laura Champine. Ma'am, your line is open.
Farooq Kathwari - Chairman, President & CEO
Good morning, Laura.
Laura Champine - Analyst
Good morning. Just wanted to confirm what I thought I heard which was that CapEx would probably ramp to $80 million next year, and then if that is the case, is that sort of a going-forward level that we ought to expect or is that a one-time spend?
Farooq Kathwari - Chairman, President & CEO
I think that, for the next at least couple of years, we would be spending that, because most of the new stores that we open, we acquire the land and build them, and that's where most of this money is going, in addition with our technology and information systems and logistics and distribution. But I would say at least, I can sort of at this stage see for two years and I would say for the next two years, we would be spending about that much.
Laura Champine - Analyst
Okay. And then, lastly, can you describe what drove the disparity between your very strong growth in retail revenue and the much lower growth in wholesale? What was the delta there?
Farooq Kathwari - Chairman, President & CEO
There're two factors and, in fact, going forward, we are going to focus really on giving information on the retail comparable numbers, because the wholesale is impacted a lot by our timing of when we ship orders to our retail network, timing of our conferences and things of that nature. And the products that we perhaps may be selling for new products for the re -- for floor samples, all of those factors are there. So that's an important factor. The other important factor is that our 6% is what we wrote in the --, in our retail division, on a comparable basis. To me, that is a more important number. It's possible that our licensees, perhaps, may have written -- I don't have the numbers, but it's possible they may have written between 4% and 6%. So, if I was looking at it, I would say most probably our orders booked were close to 5% or so, Laura. Perhaps that will help you.
Laura Champine - Analyst
Great. Thank you.
Farooq Kathwari - Chairman, President & CEO
Okay.
Operator
Thank you, ma'am. [OPERATOR INSTRUCTIONS] Our next question comes from Justin Maurer. Sir, your line is open.
Justin Maurer - Analyst
Good morning, guys.
Farooq Kathwari - Chairman, President & CEO
Good morning.
Justin Maurer - Analyst
Farooq, just want to make clear I had the information right. You said you bought four stores and moved four stores last year, is that right?
Farooq Kathwari - Chairman, President & CEO
We purchased five stores and had four new stores opened up.
Justin Maurer - Analyst
Guess it's five and four. So within the $80 million CapEx, are you finding that you guys are having to do a lot of this lifting yourselves relative to the dealer network, or is it just because for whatever reason the next couple of years, you want to accelerate the program of the company stores?
Farooq Kathwari - Chairman, President & CEO
Most of the capital expenditures that I talked about is going to be spent on the relocations and some new openings of Company stores. We do not have any major plans and we do not budget for any acquisitions that come in. And then they come in, which is sort of -- they come in at one or two or three at a time as people retire. Most of these are retirements. That it has not been a substantial amount on capital expenditures, so most of the $80 million is going to be spent on the Company side.
Justin Maurer - Analyst
Okay. So of the 16 stores you mentioned in '07, do you have any rough sense as to how many of that is relos versu -- I know you said 75%. but within that, just trying to get a feel for the cost differential of a new versus a relo? It should be roughly the same, right?
Farooq Kathwari - Chairman, President & CEO
It's the same, because basically it' a new store.
Justin Maurer - Analyst
And then secondly, just quick on the margin, you mentioned the foam costs. The 100 basis points you felt would hit the margin, was that in the fourth quarter or for the year in total?
Farooq Kathwari - Chairman, President & CEO
It was for the fourth quarter and for the whole year, approximately 70 basis points or so.
Justin Maurer - Analyst
And the price increase in the spring, do you feel it largely offset that, or do you still have catch-up to do or --
Farooq Kathwari - Chairman, President & CEO
No, we have still some catch-up to do.
Justin Maurer - Analyst
And just any sense on the freight transportation costs in terms of basis point hit?
Farooq Kathwari - Chairman, President & CEO
Approximately -- I said that approximately 50 basis points on the consolidated gross margins.
Justin Maurer - Analyst
Got it, okay. Thanks a lot.
Farooq Kathwari - Chairman, President & CEO
All right.
Operator
Thank you, sir. [OPERATOR INSTRUCTIONS] Or next question comes from Barry Vogel. Sir, your line is open.
Barry Vogel - Analyst
Hey, good morning, Barry. Good morning, Farooq. A couple of [inaudible] questions. The fact that you're ramping up your capital expenditures, would that change your mind about your very positive, aggressive opportunistic purchases of shares?
Farooq Kathwari - Chairman, President & CEO
Yes, well I remember your last question last time, Barry.
Barry Vogel - Analyst
So you obviously listened., [LAUGHTER] which I commend you on.
Farooq Kathwari - Chairman, President & CEO
Well, I think that you're -- as you know, we balance it. Fortunately, after doing all of those things we did and spending all that money, we still ended up with $173 million of cash, as of June 30th. So that's the good news.
Barry Vogel - Analyst
All right. So even though you're ramping up your capital expenditures over the next couple of years, it is optimistic, in your opinion, that you will buy shares?
Farooq Kathwari - Chairman, President & CEO
That's right. And that's the reason earlier this week our board authorized to take our shares repurchase back to 2.5 million.
Barry Vogel - Analyst
Okay. And I've got a small question about tax rate for the year of fiscal '07 and depreciation and amortization.
Farooq Kathwari - Chairman, President & CEO
Jeff?
Jeff Hoyt - VP - Finance
Barry, the tax rate should remain about stable. We may see some benefit. Obviously, we're also looking at the depreciation number for next year and estimating that to be somewhere in the neighborhood of $22.5 million.
Barry Vogel - Analyst
Thank you very much. Keep up the good work.
Farooq Kathwari - Chairman, President & CEO
Thanks, Barry.
Operator
Thank you, sir. [OPERATOR INSTRUCTIONS] We have a follow-up question from Ivy Zelman. Man, your line is open.
Ivy Zelman - Analyst
Thank you. Farooq, when you talked about stronger advertising, could you quantify that for us from a quarter, either sequentially and/or again versus a year ago on the national and direct mail?
Farooq Kathwari - Chairman, President & CEO
We -- this last quarter, our national television was about at the same similar level of what we had the year before. But for the year, we spent more on national television, as you know for competitive reasons I won't tell you that, gut we did spend more on a national basis for the year. Our direct mail is now very strong in terms of its message, in terms of -- you might have received our summer magazine, and we are going to continue with that. And that has increased the cost of mailing in the paper in the printing, so we've had an increases in the cost of producing it and also mailing it, and we'll continue with that program.
Ivy Zelman - Analyst
Okay. And then, with respect to price increases, you had indicated that you did one in March. Is there anticipation, giving you're still catching up as Justin referred to, that you may have to raise prices again?
Farooq Kathwari - Chairman, President & CEO
We are watching it very carefully, Ivy, that we have absorbed and -- absorbed a lot of costs relating to petroleum-based products,especially foam and also transportation costs. We deliver our products at one-cost nationally, so we bear all the costs. And those two factors have been fairly, you know, important in increasing our cost and they both not come down. That's what we had hoped. So we're watching it carefully. It's possible that, as we go forward, we make take a small price increase to cover some of these costs.
Ivy Zelman - Analyst
Okay. And then, Farooq, with respect to the update just on the figures, has there been any change with respect to the amount that you're selling that's outsourced or low-cost manufactured? We had about 30%, is that still a good number?
Farooq Kathwari - Chairman, President & CEO
Yes, overall, actually, it is closer to 35%, with about 40% in case goods. We're still producing a lot of case goods in the U.S., and as we go forward, you're going to obviously see more percentage of case goods being imported, because we are not adding manufacturing capacity in the U.S. But at this time, overall, it's about, I would say --
Ivy Zelman - Analyst
Closer the other 35?
Farooq Kathwari - Chairman, President & CEO
Yes, 35% to 40%. [inaudible-background noise] quarter to quarter.
Ivy Zelman - Analyst
Okay. One more final question. With respect to your comments that you're not going to give the ticket number or what the ticket price did on the average sale, but you typically break out how much is accessories versus upholstery versus case goods, did you answer that question already?
Farooq Kathwari - Chairman, President & CEO
No, I did not. upholstery is about 14%.
Ivy Zelman - Analyst
Are you talking about just the quarter or for the year?
Farooq Kathwari - Chairman, President & CEO
It's about the same. We've been running and interestingly, that of course our business has increased, but as a percentage, it is sort of still at 14%, 15%. And we have a great opportunity to-- our objective is to increase it at least 20% nationally.
Ivy Zelman - Analyst
Okay. And that's upholstery. What's the different between case good and accessories?
Farooq Kathwari - Chairman, President & CEO
How much is case goods, Jeff?
Jeff Hoyt - VP - Finance
Case goods is roughly 65, 70%.
Farooq Kathwari - Chairman, President & CEO
What is that? No, the question, Ivy, was what is --
Ivy Zelman - Analyst
I just was looking for breakdown between case goods, upholstery and accessories.
Farooq Kathwari - Chairman, President & CEO
Approximately 52% to 55% of our business is in case goods.
Ivy Zelman - Analyst
And the rest would be accessories?
Farooq Kathwari - Chairman, President & CEO
And then approximately 20% or 30% is upholstery and the rest is accents.
Ivy Zelman - Analyst
What are you saying about 14 to 15? Then I'm confused.
Farooq Kathwari - Chairman, President & CEO
Our case goods is about 52% to 55%. Our upholstery is 30% to 35% and the rest is accents. The accents is 14%, 15%.
Ivy Zelman - Analyst
I thought you said upholstery was 14 to 15. Okay, I'm with you now. And I guess I'll sneak in one more. You said that your design consultants really were a big driver. How many design consultants do you have right now, Farooq, versus a year ago?
Farooq Kathwari - Chairman, President & CEO
The number has not substantially changed. We most probably have added, I would say, on a national basis, perhaps something like 200, 300. But we have added a -- we have increased the capacity and the caliber of design consultants. So I would say that we have now close to 3 ,200 professionals in our retail network.
Ivy Zelman - Analyst
And you know how people -- I think you've told me in the past that, is it roughly 50% of your sales come from actually designers successfully selling at the home? Would that go up, now that you have really ramped up the caliber of the people?
Farooq Kathwari - Chairman, President & CEO
It already has gone up. And in fact, the increases that you have seen are increases based on the fact of the professionalism of our people. If that is not the case, I don't think would have had these increases this past year.
Ivy Zelman - Analyst
So the 50% number, though, is that pretty much still accurate, that they're doing 50% of the sales at the home?
Farooq Kathwari - Chairman, President & CEO
No, I don't think that they do 50% at the home. I think that house call result -- house calls, as well as the customers coming in --into our retail network, results in that 50%. Whether they are all going to the house calls is hard to say. 100% of our business, of course, is written by our design consultants. And I would say approximately still 50% or so would be the result of what you have said --
Ivy Zelman - Analyst
From the house, okay. Great. Thanks for the opportunity for the follow-up.
Farooq Kathwari - Chairman, President & CEO
All right. Thank you.
Operator
Thank you, ma'am.
Farooq Kathwari - Chairman, President & CEO
All right, I think operator, are we done?
Operator
Yes, I'm not showing any further question at this time.
Farooq Kathwari - Chairman, President & CEO
All right. Would I like to also just mention one thing, which is that Peg Lupton will confirm this, that we are going to have on September 26th, a Tuesday, our annual investor conference in Danbury. Prior to that, in early September, middle of September, we are having our annual convention, where we are launching some of our new products. We would like to invite investor friends to our conference. And you will be getting more details. Thank you very much.
Operator
Ladies and gentlemen, this concludes today's conference. Thank you for your participation. Have a wonderful day.