Ethan Allen projects 18% sales increase in June 30 quarter
GDA Staff -- Gifts & Dec, July 22, 2010
Manufacturer and retailer Ethan Allen said it expects to report sales of approximately $163 million and earnings of 30 cents to 32 cents per share for the quarter ended June 30.
If the sales projection holds, that would represent an 18% increase from the same quarter last year, said Farooq Kathwari, chairman and CEO.
"Our written business (booked orders) of our retail division increased 23% compared to the prior year fourth quarter, continuing the strong trends that we have experienced in the last six months," said Kathwari. "While we are gratified with the results we remain cautious as there are still many uncertainties in the economic environment."
The earnings estimate doesn't include restructuring, impairment and related one-time charges, but does include a one-time benefit of approximately 16 cents per share, he said.
The results represent a turnaround from a tough quarter a year ago. In the period ending June 30, 2009, Ethan Allen's sales were down 41% from a year earlier and the company lost 58 cents per share, partly because of restructuring and impairment charges.
The company will release complete results for the period, the fourth quarter of its fiscal year, on Aug. 5.
The company said it ended the most recent quarter with $102 million in cash and investments, compared with $53 million on June 30, 2009. A regular quarterly dividend of 5 cents per share will be paid Oct. 25 to shareholders of record on Oct. 11.
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