Ethan Allen Goes from Loss to Gain
DANBURY, Conn.-Ethan Allen Interiors posted net income of $3.8 million in the third quarter, reversing a $13.6 million net loss from the third quarter of 2009.
The furniture retailer/manufacturer reaped the benefit of a 21 percent pickup in third-quarter sales, which totaled $164.8 million and which included a 17.3 percent sales increase in its retail division. The overall sales boost helped push gross margin up 720 basis points to 50 percent. Operating expenses were kept relatively in check, with an increase of 9.4 percent in selling expenses and a 0.5 percent drop in general and administrative expenses.
Farooq Kathwari, Ethan Allen's chairman, president and chief executive officer, said the U.S. economic recession pushed the company "to make substantial improvements in our vertically integrated enterprise." Kathwari also said the third quarter marked an increase in Ethan Allen's advertising spending and the launch of a new ad campaign--"which, while maintaining the aspirational value of our brand, also gets the message across about our excellent values, stylish products, quality and interior-design services."