Ethan Allen Fiscal ‘06 Sales Up 12.4%

July 27, 2006  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on July 2006 Full-line manufacturer and retailer Ethan Allen hit double digit sales increases in its 2006 fiscal year, reaching a record level of $1.07 billion, 12.4 percent ahead of last year.

Net income for fiscal 2006, which ended June 30, rose to $85.7 million from $79.3 million the prior year. This year’s figures include a $4.2 million charge related to the conversion of an Ethan Allen plant into a regional distribution center.

Wholesale sales increased 11 percent to $736.1 million in fiscal 2006, while, comparable Ethan Allen store delivered sales increased 1.3 percent over the prior year.

Fourth-quarter sales of $272 million were up 12.3 percent from the prior-year period, while net income rose from $19.5 million to $22.4 million.

“We are pleased with our results for the year and in reaching the milestone of $1 billion in annual sales,” said Farooq Kathwari, chairman and chief executive officer of Ethan Allen. “We believe that the continued progress being made by Ethan Allen is reflective of several initiatives undertaken in recent years, including the continued repositioning of our retail network; investments to increase the professionalism of our retail management team; the success of new product introductions; improved advertising and marketing programs; and faster delivery of our products to our customers. All of these initiatives have been undertaken with a common objective--a renewed focus on superior customer service.”

Looking ahead to fiscal 2007, Kathwari noted that business has slowed.

“In addition, we remain cautiously aware of the state of the economy and the threat of further increases in interest rates and fuel prices which could have an adverse impact on consumer spending and profitability,” he said. “Still, with the strategies we’ve recently implemented, we believe we have the opportunity to continue to grow our business. At the present time, we believe that fiscal year 2007 sales and earnings per share will increase 5 percent to 7 percent, and 10 percent to 12 percent, respectively.”

Ethan Allen has a network of 306 interior design centers in the United States and abroad, of which 139 are company-owned. The company has 11 manufacturing facilities, which include 2 sawmills, located throughout the United States.