Ethan Allen Sees Modest Improvement in June and July

August 14, 2007  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on August 2007 Ethan Allen Interiors Inc. reported today that same-store sales rose slightly in June and that the modest positive trend continued in July. The Danbury, Conn.-based manufacturer and retailer issued the comments in anticipation of investor meetings it will host in coming weeks.

While there are signs of improving business conditions, CEO Farooq Kathwari noted that consumer confidence can be impacted by factors beyond the company’s control.

“We continue to believe that the strong operating performance that we have been able to sustain during what have been very challenging times for our industry are the direct result of several initiatives that we’ve put in place that are focused on providing solutions and service,” Kathwari said. “These initiatives have included the continued repositioning of our retail network; investments in recruiting and training to increase the professionalism of our retail management team; the development of stylish, high-quality products at good value; stronger advertising and marketing programs; and faster delivery of our products to our customers. We believe that our focus on providing service and solutions provides a distinct competitive advantage and an opportunity to grow our business.”

On July 24, Ethan Allen’s Board of Directors increased the authorization to repurchase shares of the company’s common stock to 2.5 million shares and increased the regular quarterly cash dividend by 10 percent to $0.22. From July 1 through August 14 the company has repurchased 1,075,800 shares and has a remaining authorization to purchase 2.1 million shares.

Ethan Allen sells a full range of furniture products and decorative accessories through a network of 313 design centers in the United States and abroad, of which 159 are company-owned. Ethan Allen has 9 manufacturing facilities in the United States.