Ethan Allen earnings down 45%
Sales decline 8.7% in fiscal fourth quarter
Larry Thomas -- Furniture Today, July 23, 2008
DANBURY, Conn. — Manufacturer and retailer Ethan Allen said its sales fell 8.7% in the fourth quarter of its fiscal year, while profits tumbled more than 45%.
The company, which operates seven factories and two saw mills in the U.S., said fourth-quarter sales at its 295 retail locations were 5.9% below last year’s fourth quarter, while same-store sales in the quarter ended June 30 were off 11.1%.
Farooq Kathwari, chairman and CEO, said he was pleased with the company’s performance, given the difficult economic conditions.
“In these challenging times, it makes sense to be prepared for a further softening of the economy and also be ready for the next upturn,” he said. “We expect to continue to do relatively well.”
Net delivered sales for the quarter totaled $235.9 million, compared with $258.5 million in the comparable period last year.
Net income was $11.1 million or 39 cents per share, compared with $20.5 million or 66 cents per share in last year’s fourth fiscal quarter. The most recent quarter included one-time restructuring and impairment charges of $2.8 million.
For the fiscal year ended June 30, sales were down 2.5% to $980 million.
Net income for the year totaled $58.1 million or $1.98 per share. That was 16.1% below the previous fiscal year, when the company earned $69.2 million or $2.19 per share. The most recent fiscal year included one-time charges of $6.8 million.
Same-store sales were 3.2% below the previous fiscal year.
