Ethan Allen Results Top Expectations as Sales Climb
January 26 2016 - 05:50PM
Dow Jones News
Ethan Allen Interiors Inc. posted stronger-than-expected results
for its December quarter as sales in its retail and wholesale
segments climbed.
Shares of the company rose 4.6% in after-hours trading to
$27.41.
The furniture-maker's retail segment net sales rose 7.5%, while
the wholesale segment rose 8.8%. Retail total written orders
climbed 15.3% and comparable written orders increased 14.6%.
For its fiscal second quarter, Ethan Allen also took a gentler
currency hit, posting a $411,000 impact for the latest quarter,
compared with $1.23 million a year ago.
For the quarter, the company earned $16.5 million, or 58 cents a
share, compared with a profit of $10 million, or 34 cents a share,
a year earlier. Excluding certain items, adjusted earnings were 55
cents a share, up from 37 cents. Sales rose 5.3% to $207.5
million.
Analysts surveyed by Thomson Reuters expected earnings of 45
cents a share on $204 million in revenue.
Along with La-Z-Boy and Ashley, Ethan Allen is one of the
best-known brands in U.S. furniture. The company, however, has
sought changes to appeal to a younger demographic.
In the midst of the changes, the company had to fight off the
advances of activist investors, who accused Ethan Allen's long time
CEO of autocratic leadership. In November, shareholders elected the
seven directors nominated by the furniture company, defeating an
effort by Sandell Asset Management Corp. to win control of the
board.
In its effort to rev up sales that have trailed prerecession
peaks and court shoppers with less formal tastes, Ethan Allen has
gone about introducing new furniture designed to look elegant but
not stuffy and in the process appeal to a younger consumer. The
Danbury, Conn., company has also sought to cater to buyers who have
grown accustomed to the speedy delivery times of Amazon Prime and
looked to cut product deliveries in many cases to a week or
two.
"We are continuing to implement many new initiatives, from
adding two new upholstery manufacturing plants in North America to
introducing Phase 4 of our new offerings — which will launch during
the spring and summer of 2016 — to expanding our reach through
print, television and digital mediums," said CEO Farooq Kathwari.
He added that the company partnership with Disney will yield a new
product-line aimed at children and younger consumers.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
January 26, 2016 17:35 ET (22:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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