Ethan Allen earnings jump 77.6% on 12.2% sales increase
Jay McIntosh -- Furniture Today, October 25, 2011
DANBURY, Conn. — A strong sales performance helped Ethan Allen Interiors to a 77.6% gain in net income in the manufacturer and retailer's fiscal first quarter, which ended Sept. 30.
Net income was $6.8 million or 23 cents per share on sales of $184.9 million, an increase of 12.2% from the comparable quarter a year ago. Same-store sales at Ethan Allen's design centers were up 14.9%.
Written orders booked by the company's retail division were up 13.2% from a year earlier with same-store growth of 11.2%, the company said.
"We are gratified to see continued improvements in our sales and profitability. Our focus of providing ‘aspirational and attainable' offerings with complimentary design services is helping us differentiate in a very positive manner," said Farooq Kathwari, chairman and CEO.
In last year's first quarter, earnings were $3.8 million or 13 cents per share on sales of $164.8 million.
Excluding special items in both periods, net income for the latest quarter was $7.2 million or 25 cents per share compared with $3.2 million or 11 cents per share a year earlier.
"Many major changes we undertook in the last three years demonstrate the impact of our vertically integrated structure," Kathwari said. "Our adjusted operating income grew 116% and our adjusted net income grew 127%. We also continued to maintain strong liquidity with $105.9 million of cash and securities while continuing to invest in our operations and also reducing our debt."
He added, "We plan to continue with our marketing and operational initiatives including introduction of a major product program reaching a larger consumer base and a strong advertising program getting across our total value proposition of style, quality, value, and personal service. While the economic environment remains challenging, we remain cautiously optimistic primarily due to the implementation of our various initiatives. However, we are also preparing for contingencies if the overall economic conditions were to deteriorate."