Ethan Allen sales decline 4.4% in quarter
Jay McIntosh -- Furniture Today, April 24, 2013
DANBURY, Conn. — Ethan Allen's sales declined 4.4% in its fiscal third quarter ended March 31, partly because it entered the period with lower backlogs due to Hurricane Sandy and shipped less product to its Chinese retailer, the company said.
Earnings were $6.1 million or 21 cents per share. In the same quarter a year ago, the company earned $27.5 million or 94 cents per share, but that included a one-time $21.8 million tax benefit. Excluding special items, the company said the latest quarter's earnings were up about 50% from $4 million a year ago.
Sales for the quarter were $168.1 million. Retail division sales were $132.1 million, up 0.5% from a year earlier, with same-store growth also up 0.5%.
The numbers fell short of Wall Street estimates. On average, analysts polled by FactSet had expected earnings per share of 27 cents on revenue of $179.9 million.
"While our third quarter is historically our seasonally slowest delivered sales quarter, our written and delivered sales growth rates this quarter were affected by several factors including high prior year prototype product sales, adverse timing of the Easter and Passover holidays falling within the current year quarter, and entering the quarter with lower backlogs due to Hurricane Sandy," said Chairman and CEO Farooq Kathwari.
"This quarter, we also had lower shipments to our retailer in China. While their sales of Ethan Allen products have grown nicely, they had accumulated inventory in anticipation of even higher sales and to support a greater number of design center openings," he said.
He said the growth in earnings, on an adjusted basis, "reflects the leverage of our vertically integrated enterprise, which we continue to make more efficient."
The company didn't offer sales and earnings projections for the current quarter, but Kathwari added, "We remain cautiously optimistic about our performance in our fourth fiscal quarter and next fiscal year due to the many strong programs already in place and others we will introduce in the coming months."