Ethan Allen earnings down 45%
By Larry Thomas -- Furniture Today, August 4, 2008
Danbury, Conn. — Manufacturer and retailer Ethan Allen said its sales fell 8.8% in the fourth quarter of its fiscal year, while profits tumbled more than 46%.
The company, which operates seven factories and two saw mills in the U.S., said fourth-quarter sales at its 295 retail locations were 5.9% below last year's fourth quarter, while same-store sales in the quarter ended June 30 were off 11.1%.
Farooq Kathwari, chairman and CEO, said he was pleased with the company's performance, given the difficult economic conditions.
"In these challenging times, it makes sense to be prepared for a further softening of the economy and also be ready for the next upturn," he said. "We expect to continue to do relatively well."
Net delivered sales for the quarter totaled $235.9 million, compared with $258.5 million in the comparable period last year.
Net income was $11.1 million or 39 cents per share, compared with $20.5 million or 65 cents per share in last year's fourth fiscal quarter. The most recent quarter included one-time restructuring and impairment charges of $2.8 million.
For the fiscal year ended June 30, sales were down 2.5% to $980 million.
Net income for the year totaled $58.1 million or $1.97 per share. That was 16.1% below the previous fiscal year, when the company earned $69.2 million or $2.15 per share. The most recent fiscal year included one-time charges of $6.8 million.
Same-store sales were 3.2% below the previous fiscal year.
| Ethan Allen | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 6/30 | 2008 | 2007 | Change |
| (a) Includes pretax restructuring and impairment charges of $2.8 million in the 2008 quarter, $6.8 million in the 2008 year and $13.4 million in the 2007 year. | |||
| Sales | $235,907,000 | $258,531,000 | (8.8%) |
| Operating income | 21,969,000 | 32,273,000 | (31.9%) |
| Net income (a) | 11,100,000 | 20,484,000 | (45.8%) |
| Earnings per share | 0.39 | 0.65 | (40.0%) |
| Year ended 6/30 | 2008 | 2007 | Change |
| Sales | $980,045,000 | $1,005,312,000 | (2.5%) |
| Operating income | 102,836,000 | 124,561,000 | (17.4%) |
| Net income (a) | 58,072,000 | 69,227,000 | (16.1%) |
| Earnings per share | 1.97 | 2.15 | (8.4%) |
