Ethan Allen posts $3.5 million profit as sales rise 10.6%
April 28, 2011,
The $3.5 million net income for the period ended March 31 compared with a $900,000 loss for the same period a year ago.
Excluding special items in both periods, including restructuring, impairment and transition charges, Ethan Allen said its net income was $2 million or 7cents per share in the latest quarter, compared with a loss of $1.5 million or 5 cents per share a year ago.
"The economy is healing, and due to the many initiatives we have undertaken in the last three years, we remain cautiously optimistic," said Farooq Kathwari, chairman, president and CEO of the Danbury, Conn.-based furniture maker and retailer. "Our plans are for continued investment in advertising and also adding qualified professionals in the retail division."
Kathwari said the company has increased its advertising spending by 31% for the quarter and 26% for the first nine months, compared with the previous year periods. Written business for the retail division in the third quarter increased 11.4% and same-store written business was up 13.4%.
Through nine months, the company, with a network of about 280 design centers in the United States and abroad, reported a 17.4% increase in net sales to $501 million and net income of $22.1 million compared with a $17.8 million loss the year before. Excluding special items in both periods, net income was $10.8 million or 37 cents per share vs. a loss of $8.8 million or 31 cents per share for the same period last year.
Ethan Allen also announced that it was increasing its quarterly dividend by 40% to 7 cent per share, payable July 25 to shareholders of record July 11.
Most Viewed Articles
Related Content By Author
Innovation is key as summer hits its stride
Furniture Retail Solutions
Over the past year, our editorial team has been on the road, studying retail – what's working and what challenges even the most established retailers face. Born from these studies is Furniture Retail Solutions – a multi-part series addressing common problems retailers face. Read our first two articles:
RSA Insights & Intelligence
RSA Insights & Intelligence gives you, the retail sales associates, critical intelligence and insights. We make it easier for you to sell by providing actionable tips and key takeaways you can and should use for every sale. Check out our first two articles:
* Veteran sales trainer Bob Muenkel talks about the power of asking
* 3 lines of defense for brick-and-mortar stores
Steve Lowsky, President/CEO of Middle Market Strategies on what makes a company great now