Ethan Allen Doubles Q4 Net; FY Net Rises 32.2 Percent
DANBURY, Conn.-Sales gains in both of its divisions and controlled expenses helped Ethan Allen to a 108.5 percent jump in fourth-quarter net income, to $17.1 million. For the fiscal year ending on June 30, the company posted a net-income gain of 32.2 percent to $42.9 million.
Net sales in the quarter climbed 9.1 percent to $198.8 million. Sales in Ethan Allen's retail segment increased 7.1 percent, while the wholesale segment posted an 8.8 percent gain. For the full fiscal year, net sales were up 2.4 percent to $746.7 million.
Selling, general and administrative expenses in the quarter increased 3 percent in dollars but were down 252 basis points as a percentage of sales, to 42.4 percent. Gross margin tacked on 60 basis points to finish the fourth quarter at 54.6 percent.
Farooq Kathwari, chairman and CEO, said Ethan Allen's performance reflected "continued improvement to our vertically integrated enterprise and the performance of our company's retail division." Kathwari added that the company is progressing with brand repositioning, which includes "a major introduction of new products, improving the projection of our design centers, continued relocation and opening of new design centers, introduction of an improved website this coming fall and a major focus of expansion of our North American manufacturing."