Ethan Allen sales jump 21% in second quarter
Sales, profits increase reverse losses from last year
Furniture Today Staff -- Furniture Today, January 25, 2011
DANBURY, Conn. — Ethan Allen swung to a $14.7 million profit in the quarter ended Dec. 31 from a loss a year earlier as sales rose 21% to $173.3 million, the manufacturer and retailer reported.
The company's profit in the quarter, the second of its fiscal year, compared with a loss of $3.3 million in the same period a year ago. On a per-share basis, the profit in the recent quarter was 51 cents and the loss a year earlier was 12 cents.
Excluding one-time items, Ethan Allen said it had a profit of $5.6 million or 19 cents per share in the latest quarter, compared with a loss of $1.6 million or 6 cents per share a year earlier.
"With a sales increase of 21% and operating income of $10.5 million, we have benefited from the many initiatives we have taken to improve our marketing and operations," said Farooq Kathwari, chairman, president and CEO. "We also continue to maintain strong liquidity, ending the quarter with cash and securities of $85.6 million. Fiscal year to date, we have retired $6.9 million of our bonds and repurchased $5.4 million of our common stock. Later this year, we also expect to receive a federal tax refund of approximately $17 million."
In the company's retail division, sales of $131 million were up 22.3%. Written orders booked during the quarter were up 5.7%, including a same-store gain of 10.7%.
For the six months ended Dec. 31, sales of $338.2 million were up 21%, and net income of $18.6 million or 64 cents per share reversed a loss of $16.9 million or 58 cents per share a year earlier. Excluding special items, earnings in the latest period were 30 cents per share and the loss a year earlier was 25 cents per share.
"The ‘Great Recession' has afforded us an opportunity to reinvent and restructure many aspects of our vertically integrated enterprise," Kathwari said. "While the economic recovery is still in the early stages, we remain cautiously optimistic and continue to take steps to grow our business. In our third quarter ending March 31 ... we plan to invest to increase our direct mail advertising by approximately 50% over the prior year."
-
Ethan Allen posts profit as sales climb 21% in 2Q
Feb 10, 2011
Featured Company
-
Wright Labels
Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more
VIEW ALL GALLERIES
