Ethan Allen Sales Up, Losses Up in 4Q, Fiscal 2010

August 4, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on August 5, 2010

Furniture manufacturer and retailer Ethan Allen Interiors (NYSE:ETH) reported fourth quarter 2010 sales of $163.3 million, up 17.8 percent from the prior-year period.

Retail division sales for the three months ended June 30 rose 18.5 percent to $121.2 million.

Ethan Allen, Danbury, Conn., lost $26.5 million in its fourth quarter, compared with a net loss of $16.9 million in the comparable period last year.

For the 2010 fiscal year ended June 30,  net delivered sales totaled $590.1 million as compared to $674.3 million the prior year. Net delivered sales for the company's Retail division were $438.5 million versus $508.6 million the prior year. Wholesale net sales were $362.5 million versus $403.4 million the prior year.

The fiscal year loss was $44.3 million, compared with a loss the prior year of $52.7 million or $1.83 per diluted share. The net loss excluding restructuring, impairment, and related transition costs as well as deferred commission impacts and tax asset valuation charges from both years was $4.2 million or $0.15 per diluted share compared to $4.5 million or $0.16 per diluted share in the prior year.

Farooq Kathwari,  commented, "We are gratified that our positive operating results reflect the impact of the many major initiatives undertaken during this 'Great Recession'," said Chairman, President and CEO Farooq Kathwari. "Net income excluding restructuring, impairment, and related transition costs as well as benefits primarily from deferred commissions and a non-cash $34 million tax asset valuation charge during the quarter was $4.6 million or $0.16 per diluted share compared to a loss of $6.8 million or $0.23 per diluted share the prior year also excluding similar charges.

"Our focus has been to position the Company for growth in sales and profitability. Our initiatives in our vertically integrated structure have helped us to reduce costs, improve the efficiency of our manufacturing, logistics and retail while at the same time improving quality and personal service. While pleased with the recent results, we remain cautious due to uncertain economic times."