Andrew Efimoff's questions to Grayscale Ethereum Mini Trust ETF (ETH) leadership • Q4 2021
Question
Andrew Efimoff of KeyBanc Capital Markets inquired about the specifics of raw material delays, the potential impact of rising costs on future gross margins, and the company's capacity to exceed its recent quarterly revenue levels.
Answer
Chairman and CEO Farooq Kathwari addressed the questions, explaining that raw material issues, primarily with foam and springs for upholstery, are gradually improving. He stated that the company aims to maintain a gross margin around 58%, noting that the mix of retail versus contract business can influence this figure without necessarily impacting operating margins. Regarding revenue, Mr. Kathwari confirmed it was possible to surpass the recent $180 million quarterly level, suggesting an increase of $5 million to $8 million was a reasonable expectation.