Ethan Allen Q1 Net Jumps 31.5 Percent
DANBURY, Conn.-Healthy sales along with stringent expense controls boosted Ethan Allen Interiors' first-quarter net income by 31.5 percent, to $11.9 million.
Net sales in the quarter, which ended on Sept. 30, totaled $190.7 million, up 5 percent from last year's first quarter. The main driver for the top line came from Ethan Allen's wholesale segment, whose sales rose 10.1 percent, while sales in the retail segment edged up 2.3 percent.
Selling, general and administrative expenses increased 1.9 percent in dollars but were down 136 basis points as a percentage of sales, to 44.2 percent. Gross margin gained 60 basis points to finish at 55 percent.
Farooq Kathwari, Ethan Allen's chairman and CEO, said the company was "pleased" with its first-quarter performance. Looking ahead, Kathwari said the company is further strengthening its product programs and relaunched its website on Oct. 15.
"We plan to begin ramping up advertising now during this second quarter and into the next half, " he said. "As we have stated previously, we remain cautiously optimistic."