Kathwari Comments on Current Business

August 30, 2006  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on August 2006 A sales slowdown at Ethan Allen that began in July has continued through August, said Farooq Kathwari, chairman and chief executive officer of the manufacturer and retailer.

“This quarter we are being impacted by both lower consumer confidence and our initiative, started last July, to reduce the lead time in filling customer orders,” he said. “As we previously indicated, the faster backlog turnover reduces the forward visibility of delivered sales, and we are subject to more volatility as demand levels fluctuate.”

Kathwari remained pleased with Ethan Allen’s record sales for the fiscal year ended June 30.

“More importantly, we have continued to take steps to differentiate Ethan Allen by focusing on providing decorating solutions,” he said. “In that regard we have strong product programs in place; we have strengthened our design professional staff and retail management; and, we continue to relocate our Interior Design Centers.”

In mid-September more than 800 Ethan Allen dealers are scheduled to attend the company’s annual Retail Convention in Danbury, Conn., where they’ll see new marketing initiatives and product in the newly renovated Ethan Allen Interior Design Center. Ethan Allen also will host an Investor Conference in Danbury Sept. 26.

Next Thursday, Kathwari will be speaking at the Goldman Sachs Global Retailing Conference.