Ethan Allen forecasts earnings below expectations
By Furniture Today Staff -- Furniture Today, April 25, 2005
Danbury, Conn. — Ethan Allen said last week it expects to post earnings of about 50 cents per share in its third quarter ended March 31 on sales of about $230 million.
The earnings forecast was below the 54 cents expected by Wall Street analysts, according to Thomson Financial. The sales figure was in the middle of the company's previous forecast of $225 million to $235 million.
Ethan Allen's stock price dipped after the report.
"The March quarter was impacted by a sluggish economy, Easter falling in March as compared to April last year, and the implementation of everyday pricing," said Farooq Kathwari, chairman and CEO of the furniture manufacturer, importer and retailer.
"We have completed the major transition of bringing in new, modern and fresh casual products to our stores during the quarter," he added. "We have continued to strengthen our strong financial position, which enabled us to continue our share repurchase program by buying an additional 592,000 shares during the quarter."
The company said it expects to report its quarterly results April 20.
