Ethan Allen sales, earnings fall
By Furniture Today Staff -- Furniture Today, February 4, 2007
Danbury, Conn. — Ethan Allen's sales declined 6.7% in its second quarter ended Dec. 31 and earnings were 12.9% below the comparable period a year earlier, the retailer and manufacturer reported.
Still, Chairman and CEO Farooq Kathwari said management was pleased with the company's performance in the latest quarter, which included operating income of 14.2% of sales, "despite a soft home furnishings retail environment and challenging prior-year comparisons."
Ethan Allen said sales in the quarter came to $257.4 million and earnings were $22.8 million, or 70 cents per share.
In the six months, sales were $500.2 million, down 5.1% from a year earlier, and earnings were $31.2 million, or 96 cents per share, down 27.8%.
Excluding the effect of restructuring and impairment charges in both periods, earnings in the latest six months were $39.8 million, or $1.22 per share, down 13.3% from $45.9 million, or $1.34 per share, a year earlier.
In the latest quarter, delivered sales in the company's retail division decreased 1.4% to $177.4 million, while wholesale sales decreased 11.7% to $165.7 million.
Kathwari said comparisons with the 2005 quarter were difficult because the prior-year results were favorably affected by stronger economic conditions and the company's drive to reduce lead times, which cut its order backlog and increased profitability.
Looking at this year's prospects, he said, "We saw positive trends in comparable written sales during the month of December. We also recognize that the home furnishings retail environment, as a whole, remains uncertain."
| Ethan Allen | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 12/31 | 2006 | 2005 | Change |
| (a) Includes a $314,000 pretax restructuring and impairment credit. (b) Based on average shares outstanding of 32.5 million in the 2006 quarter, 33.8 million in the 2005 quarter, 32.6 million in the 2006 six months and 34.2 million in the 2005 six months. (c) Includes pretax restructuring and impairment charges of $13.6 million in the 2006 six months and $4.2 million in the 2005 six months. | |||
| Sales | $257,419,000 | $276,003,000 | (6.7%) |
| Operating income | 36,215,000 | 44,288,000 | (18.2%) |
| Net income | (a)22,792,000 | 26,164,000 | (12.9%) |
| Earnings per share (b) | 0.70 | 0.77 | (9.1%) |
| 6 months ended 12/31 | 2006 | 2005 | Change |
| Sales | $500,242,000 | $527,317,000 | (5.1%) |
| Operating income | 64,381,000 | 76,723,000 | (16.1%) |
| Net income (c) | 31,244,000 | 43,294,000 | (27.8%) |
| Earnings per share (b) | 0.96 | 1.26 | (23.8%) |
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