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.
Walt Disney (NYSE:DIS)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Walt Disney Charts.
Walt Disney (NYSE:DIS)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Walt Disney Charts.