Ethan Allen Profit Declines

January 23, 2007  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on January 2007 Ethan Allen, Danbury, Conn., said Wednesday that its its second-quarter profit declined 13 percent to $22.8 million in the quarter that ended Dec. 31. Net delivered sales totaled $257.4 million, down 7 percent from $276 million in the same period of 2005. Comparable Ethan Allen store sales decreased 8.5 percent during the period.

“We are pleased to report quarterly operating earnings of 14.2 percent of sales despite a soft home furnishings retail environment and challenging prior-year comparisons,” said Ethan Allen Chairman and CEO Farooq Kathwari. Looking ahead, he said, “We saw positive trends in comparable written sales during the month of December. We also recognize that the home furnishings retail environment, as a whole, remains uncertain. At this stage, due to the strong positioning of Ethan Allen at retail, we believe the current average of analyst estimates for the fiscal third quarter (ending) March 31, 2007 is within reach.”

According to Thomson Financial, analysts expect Ethan Allen’s third-quarter revenues to rise to $270 million, resulting in earnings per share of 70 cents, equaling its per-share earnings in the second quarter.