DANBURY, Ct. -- Ethan Allen Interiors Inc. reports double-digit growth in key operating metrics including sales, income, and earnings per share.
“Our vertically integrated business continues to produce strong results and positions us for future growth,” said Farooq Kathwari, Ethan Allen’s chairman, president, and CEO.
Sales increased 11.7% to $197.7 million, gross margin increased to 60.4% and operating margin rose to 16.5%, resulting in diluted EPS of $0.97, an increase of 59.0%.
Kathwari continued, “As we celebrate 90 years of innovation, we remain focused on a single enterprise model while maintaining an entrepreneurial attitude.”
He pointed to key initiatives during the third quarter including adding a new Board member, new product introductions in upholstery, home office, lighting, outdoor living, decorative accents, and a new flooring program. In addition, the company expanded its upholstery manufacturing in North Carolina, opened a new concept retail design center in Westport, Ct., combining enhanced technology and personal service, and expanded its marketing campaign.
“Despite the challenges faced during the quarter, we are managing through them to improve efficiencies, work through our backlog, and service customers and consumers while achieving strong profitability,” he said. “We also took selective price increases to counter rising raw material, freight, and labor costs. While we are pleased with our third-quarter performance, we also recognize there are several external factors, such as record inflation, rising interest rates, supply chain challenges, and global unrest, that have created higher levels of uncertainty.”
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