Ethan Allen 2Q Income Rises
CHARLOTTE (AP) _ Ethan Allen Interiors Inc. said Thursday that net income rose a better-than-expected 9 percent in the fiscal second quarter as increased profit margins bolstered a tepid 3 percent sales increase.
The Danbury, Conn., furniture manufacturer and retailer said earnings rose to $23.1 million, or 60 cents a share, in the Dec. 31-ended quarter from $21.2 million, or 53 cents a share, a year earlier.
Analysts had anticipated earnings of 57 cents a share, according to Thomson First Call.
Net sales increased 3 percent to $229.7 million, led by a 19 percent increase in sales delivered by the chain’s 314-store retail division.
But written orders for Ethan Allen’s company-owned stores, which numbered 116 at Sept. 30, fell 3 percent on a same-store basis, signaling to analysts that sales in coming quarters may be lower than previously expected. Same-store sales measure sales in stores that have been open at least a year.
Orders in the fiscal first quarter were up 4.8 percent.
``Assuming no further deterioration in the economy or consumer confidence, we still have the opportunity, as stated previously, to generate fiscal year earnings per share increases of 12 to 15 percent,″ said Ethan Allen Chairman and Chief Executive Farooq Kathwari.
That outlook implies per-share earnings of $2.40 to $2.46 for the fiscal year ending in June, compared with $2.14 in fiscal 2002. Analysts expect $2.40 a share, according to First Call.
New York Stock Exchange-listed Ethan Allen shares traded midday Thursday at $32.86, up 81 cents, or 3 percent.