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Ethan Allen earnings jump 31.5% as sales rise 5%
    October 23,2014



 

Ethan Allen said its earnings jumped 31.5% in the quarter ended Sept. 30 on a 5% increase in sales.

 

The manufacturer and retailer said both its wholesale and retail segments performed well, as wholesale sales were up 10.1% and retail sales rose 2.3%. Same-store sales at Ethan Allen’s design centers were up 4.2%.

 

Net sales for the quarter, the first quarter of the company’s fiscal year, totaled $190.7 million. That was up from $181.7 million in the same quarter last year.

 

Net income totaled $11.9 million or 41 cents per share. That compares with $9.03 million or 31 cents per share in last year’s first fiscal quarter.

 

“We are pleased with our strong performance,” said Farooq Kathwari, chairman and CEO. “Despite clearance sales at lower margins and the disruption of manufacturing and retail in implementing new products and renovations, we maintained strong gross and adjusted operating margins of 55% and 11.5% compared to 54.4% and 9.2% in the prior year.”

 

Kathwari said about 80% of the more than 600 fall introduction items already have been shipped to its retail stores, and said advertising spending is being ramped up for the current quarter and into the second half of the fiscal year.

 

“We’re further strengthening our product programs and currently have in development our next new program with the objective of launching it in the spring of 2015,” he said.

 

Ethan Allen currently has about 300 retail stores, which it calls design centers, in the United States and abroad, and eight manufacturing facilities. Five of the plants and one sawmill are in the U.S. The other factories are in Mexico and Honduras.

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