Ethan Allen Net Up 70 Percent for Fiscal Year After Small Gain in 4Q
DANBURY, Conn.-After a slight increase of 1.7 percent in the fourth quarter, Ethan Allen's bottom line firmed by 70 percent for its fiscal year ending on June 30.
Net income totaled $7.3 million in the fourth quarter and $49.7 million for the fiscal year. Net sales for the quarter were $185.3 million, and for the year net sales registered $729.4 million. In the quarter, Ethan Allen's sales were fueled by a 5 percent pickup in sales from its retail division, which included comparable design-center sales growth of 3.6 percent.
Also in the quarter, the bottom line benefited from a 100 basis-point pickup in gross margin, to 53.9 percent. Operating expenses finished the quarter up 3.3 percent in dollars but down 37 basis points as a percentage of sales, to 46.2 percent.
Summing up the fiscal year, Farooq Kathwari, Ethan Allen's chairman and CEO, said the company is "well positioned to grow. We have substantially strengthened the main ares of our vertically integrated structure including our product offerings, our advertising and communications, our interior-design retail network, our manufacturing and logistics operations, and in the technology employed throughout our business."