Free Newsletter
DANBURY, Conn. — Ethan Allen reported lower sales and profits in the quarter ended June 30 as the company continued a major product rollout and repositioning of many of its retail stores.
Sales for the quarter totaled $193.6 million, down 2.6% from $198.8 million in the same quarter last year. The company said comparable-store sales at its retail stores also fell 2.6%, but comparable written orders, which include sales of products that haven’t been delivered to the consumer, rose 10.4%.
Net income was $12.7 million or 44 cents per share. That was down 25.7% from $17.1 million or 58 cents per share in the same quarter last year.
Results for the fiscal year ended June 30 were similar. Net sales fell 1.1% to $754.6 million and net income fell 13.5% to $37.1 million or $1.27 per share.
The company said comparable written orders for the fiscal year rose 4.4%, and total written orders were up 3.9%.
“We are pleased with our results for the fiscal year just ended,” said Farooq Kathwari, chairman and CEO. “Despite the impact of major changes to our offerings, the repositioning of our interior design network, investing and managing change in our North American manufacturing, investing in technology, refining and accelerating our message and the prior fiscal year fourth quarter’s record financial results, we have done very well. We have continued to generate healthy profits and cash, reduced our debt, increased our dividends and continued to invest in our enterprise.”
He said the company will continue investing for the future “with our expressed goal of sustained long-term growth” and will continue to relocate some retail stores to improved locations with a smaller footprint.
Ethan Allen also will continue to sell properties that “no longer meet our future focus,” Kathwari said.
