Ethan Allen Reverses Losses, Posts Net Gains in Q4
DANBURY, Conn.--Ethan Allen Interiors ended its fiscal year on a highly positive note, posting net income for both the fourth quarter and fiscal year on top of net losses in both periods one year ago.
The manufacturer-retailer reported net income for the fourth quarter, which ended on June 30, of $7.2 million, overcoming a net loss of $26.5 million in last year's fourth quarter. For the fiscal year, net income was $29.3 million on top of a net loss of $44.3 million for the last fiscal year.
For the quarter, net sales rose 9 percent to $178 million, and gross margin gained 340 basis points to 52.9 percent. The gains in sales and gross margin helped offset a rise of 21 percent in operating expenses. As a percentage of sales, operating expenses increased 462 basis points to 46.5 percent. For the fiscal year, net sales picked up 15.1 percent to $679 million.
Farooq Kathwari, Ethan Allen's chairman, president and CEO, said the company's fiscal year improved largely because of upward trends in written business, especially in the second half of the fiscal year. "We also made major progress in improving our vertically integrated enterprise during fiscal 2011," Kathwari said.