14306 Tue, 04/22/2008 - 12:02pm
DANBURY, Conn.–Ethan Allen Interiors today said that its profits for the quarter ended March 31 were down 49 percent, having fallen to $8.84 million from $17.5 million during the same period last year.
For investors, that meant a drop in the value of their diluted shares to 30 cents from 54 cents.
Sales during the period fell 4.3 percent to $$235.9 million from $246.5 million.
The high-end furniture and design enterprise noted that restructuring and impairment charges related to the closing and consolidation of design studios had served to lower operating margins. But even discounting those charges, net income was down.
Ethan Allen’s retail unit recorded an increase in sales to $172.8 million, up from $167.7 million the year before. Wholesale sales, however, were down to $156.3 million from $171.9 million.
Over the past nine months, sales and net income were also down, but by considerably lower percentages.
Farooq Kathwari, chairman and chief executive officer, said in a statement that the company’s performance was “impacted by a weaker economy and costs associated with the many initiatives we have implemented to strengthen our business.”
He added, however, that the firm was “pleased with the progress we are making in positioning Ethan Allen as a provider of design solutions and service.” He also noted that with “a relatively calmer economic environment in April, and Easter behind us, the decline in sales so far has been considerably reduced.”