News Flash

Comparable Ethan Allen design center Q2 sales fall

23 Jan '08

3 min read

Farooq Kathwari, Chairman and CEO, commented, "We continue to show positive sales results both for the quarter and for the six months ended December 31, 2007. For the quarter ended December 31, 2007 our gross margin increased to 53.7% from 52%, our operating earnings remained very strong at 12.9%, and our earnings per share were $0.70, the same as in the prior year, and for the six months our earnings per share were $1.27 compared to $1.22 before restructure charges in the prior year.

So far this fiscal year we have generated $47.4 million in operating cash, and utilized $30.3 million to fund capital expenditures oriented primarily toward opening new design centers and $64.8M million to repurchase shares of our common stock. In January, 2008 we spent an additional $5.3 million to repurchase shares of our common stock, and as of January 23, 2008 we have remaining authorization to repurchase 1.7 million shares. "

Mr. Kathwari further stated, "Our positive results reflect the ongoing re-positioning of our Company to provide interior design solutions. This has involved numerous initiatives including strengthening our retail network by relocating design centers to stronger retail locations with ten new design centers opened during the last six months, the implementation of the project management program and intensive training programs, remerchandising about 80% of our product line to implement the new lifestyle projections, a strong regional and national advertising program, and investments in our manufacturing and logistics network."

Commenting on the near term future outlook Mr. Kathwari said, "While we are operating in a difficult economic environment, especially for the home and home furnishing categories, we remain cautiously optimistic that we have the opportunity to continue to do well due to the above mentioned initiatives that positions Ethan Allen as a provider of style, quality, value and solutions."

Ethan Allen Interiors Inc

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