Ethan Allen 3Q Earnings Tumble

April 24, 2015  by in Financial Reports, Industry   

The company reported net income of $2.54 million for the quarter compared to net income of $5.26 million reported in the third quarter of last year.

Net sales for the third quarter were basically even at $173.3 million.

Farooq Kathwari, chairman and CEO, said redesign at its stores, technology upgrades and new product launches impacted the results.

“As we have discussed, 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,” Kathwari said. “We expect another six months of some disruption as we continue to strengthen our teams and invest in our marketing and manufacturing. Our focus is to position us to grow our sales, both in our design centers and by e-commerce."

Net income for the nine-month period was $24.45 million compared to $25.85 million for the same period last year. Net sales for the nine months were $561.03 million compared to net sales of $547.82 million in the first nine months of fiscal 2014.

The complete earnings release is available online.