From Home Furnishing Business
Ethan Allen Issues 3Q Warning
Home furnishings retailer Ethan Allen (NYSE: ETH) warned today that store renovations and new product introductions would impact its upcoming third quarter earnings.
The company will release the results April 27 following the close of the market.
The company said it expects per share earnings of 18 cents and flat sales from the same quarter last year.
In addition to renovating design centers and adding to its employment numbers, the company is investing in technology, specifically its website, and boosting its North American manufacturing.
“These initiatives are very important for the long-term, but there will be some disruption in the short-term due to continued sell off of floor samples, implementing new product through our manufacturing and increasing our operating expenses,” said Farooq Kathwari, chairman, president and CEO.
Looking forward, “We expect another six months of some disruption as we continue to strengthen our teams and invest in our marketing and manufacturing,” Kathwari said. “Our focus is to position us to grow our sales, both in our design centers and by e-commerce."