Ethan Allen expects to report lower sales, earnings in quarter
Furniture Today Staff -- Furniture Today, October 11, 2013
DANBURY, Conn. — Ethan Allen expects to report net sales of $180 million to $182 million for the quarter ended Sept. 30, down from $187.4 million in the comparable 2012 quarter, the company said in a press release Thursday.
It also expects to report earnings of 30 cents to 32 cents per share, compared with 35 cents a year ago.
"We are pleased to report that our retail division's written sales in our first fiscal quarter ended Sept. 30, 2013, increased by 11.4% over the same period last year, including comparable design center written sales which increased 13.8%, helping us build our backlogs," Chairman and CEO Farooq Kathwari said in the release.
He said the overall financial results, however, were affected by a number of factors.
"We began the quarter with lower backlogs, which limited our product deliveries during the quarter. We also undertook a major initiative during the quarter to sell off floor samples and inventory to prepare our design centers for the launch of The New Eclecticism. These clearance product sales are at substantial discounts, which resulted in lower gross margins for the quarter," Kathwari said. "Our balance sheet continues to be strong with approximately $120 million of cash and securities."
The company will report complete financial results on Oct. 23, he said.
Kathwari said early reaction is good to The New Eclecticism, the company's latest design initiative.
"The New Eclecticism reflects the attitude of consumers in the clothes they wear, in the foods they eat, and most of all in the homes they decorate. People are living more eclectically than ever before," he said.
"Ethan Allen captures this trend in an idea we call ‘The New Eclecticism,' which adds fashion, color, and a spirit of mixing things up to our time-honored story of quality, value and style. Our initiative of The New Eclecticism should help us expand our reach to more consumers and is being very well received by our network and by consumers."