Ethan Allen Turns Loss into Profit in Third Quarter
DANBURY, Conn.-The bottom line for Ethan Allen Interiors transformed from red to black in its fiscal third quarter, ending March 31.
The manufacturer-retailer posted net income of $3.5 million, compared with a net loss of $855,000 in last year's third quarter. A 10.5 percent gain in net sales, which totaled $162.8 million in the quarter, provided some of the help to the bottom line. Farooq Kathwari, chairman, president and CEO, noted that Ethan Allen's retail division enjoyed a 9.3 percent boost in net sales, with written orders up 11.4 percent and comparable design-center orders rising 13.4 percent.
Ethan Allen also firmed its gross margin by 210 basis points to 51 percent. Selling, general and administrative expenses were up 5 percent in dollars, but dropped 253 basis points as a percentage of sales, to 48 percent.
Regarding the outlook for the company, Kathwari said, "The economy is healing, and due to the many initiatives we have undertaken in the past three years, we remain cautiously optimistic."