• Powell Slaughter

Ethan Allen Q4 sales down 5.2%

DANBURY, Conn. – Vertically integrated manufacturer and retailer Ethan Allen reported net sales of $194.9 million in its fourth fiscal quarter, a decline of 5.2% from the same prior-year period.

Fourth-quarter net income stood at $11.7 million, off 30.3% from $16.8 million in the comparable fiscal 2016 period. Ethan Allen attributed a drop in operating to reduced sales and increased advertising expenses during the quarter.

Ethan Allen’s retail segment had fourth-quarter sales of $153.2 million, down 6.4% from the prior-year period, and comparative-store net sales were off 9.2%.

For its fiscal year ended June 30, the company had sales of $763.4 million, down 3.9% from $794.2 million in fiscal 2016. Net income for fiscal 2017 of $36.2 million fell 36% compared with $56.6 million the prior year. Operating expenses were affected during the year by increased advertising costs, a loss on disposal of real estate and increased occupancy expenses related to a net increase of five design centers. Those were partially offset by a reduction in incentive compensation.

Despite lower sales and income, Ethan Allen paid dividends of $20 million in fiscal 2017, an increase of 20.3% over the prior year.

Farooq Kathwari, chairman and CEO called fiscal 2017 a “year of action” that included the completion of many initiatives and the launch of new ones.

“As we enter fiscal 2018, we are well-positioned to grow with refreshed and relevant product offerings, a strong North American manufacturing, logistics and retail network, investments in technology, increased advertising and expanded marketing channels,” he said in a release of results. “The fourth-quarter retail written orders were up 1.9% over the prior year, with strong May and June orders ending the fiscal year on a positive note. So far in July, written orders have continued a strong positive trend and we remain cautiously optimistic.”

Ethan Allen sells a full range of furniture and decorative accessories online and a network of approximately 300 Ethan Allen Design Centers in the United States and abroad. The company owns and operates nine manufacturing facilities, including six manufacturing plants and one sawmill in the United States, plus one plant each in Mexico and Honduras. Approximately 75% of its products are made in its North American plants.

Click here for the entire Ethan Allen fourth-quarter and fiscal 2017 release.

Powell SlaughterPowell Slaughter | Senior Editor
PSlaughter@furnituretoday.com

I'm Powell Slaughter, senior editor at Furniture/Today. I returned to the publication in January 2015 after nine years of writing about furniture retail strategies and best practices at a monthly magazine focusing on home furnishings retail operations. Prior to that, I spent 10 years with F/T covering wood furniture, the last five of those as case goods editor. While I cover occasional, home entertainment and home office here, a major responsibility is expanding our attention to the logistics side of the industry. I hope my articles will encourage a dialogue with retailers, vendors, third-party logistics specialists and carriers. I’d love to hear your ideas, concerns and suggestions for smoother flow of material and goods.

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