Daily News
From Home Furnishing Business
Ethan Allen Sales, Profits Lower in Q4, Fiscal Year
July 27,
2017 by Larry Thomas in Economic News, Industry 
Vertically integrated Ethan Allen (NYSE: ETH) reported lower sales and earnings in its fiscal fourth quarter and fiscal year ending June 30 as the company incurred higher costs from product launches and several other initiatives.
Sales for the quarter ended June 30 fell 5.2% to $194.9 million, while net income tumbled to $11.7 million or 42 cents per share. In the same quarter last year, net income was $16.8 million or 60 cents per share.
Farooq Kathwari, chairman, president and CEO, noted that fourth quarter written orders, which include merchandise sold but not delivered, were up 1.9% from the prior year’s fourth quarter. He said May and June were particularly strong, and said written orders have remained strong so far in July – the first month of the new fiscal year.
“As we enter fiscal 2018, we are well positioned to grow with refreshed and relevant product offerings, a strong North American manufacturing, logistics and retail network, investments in technology, increased advertising and expanded marketing channels,” Kathwari said.
For the fiscal year ended June 30, net sales fell 3.9% to $763.4 million, and net income fell to $36.2 million, or $1.31 per share. In the previous fiscal year, net income was $56.6 million or $2.02 per share.
Ethan Allen products are sold through a network of about 300 company-owned and licensed retail stores, which the company calls Design Centers. The company operates six factories and one sawmill in the United States, and one plant each in Mexico and Honduras.