DANBURY, Conn. - Furniture giant Ethan Allen, number 27 on the FDMC 300, said it expects its intense production backlogs to end in four to six months.
The company reported a 105 percent increase in orders for its retail segment, driving fourth-quarter sales to $178.3 million. That's a 94 percent increase over the same period last year.
Ethan Allen also reported net income of $18.9 million, compared to a loss of $3.7 million in 2020's fourth quarter. Wholesale net sales increased 106.2 percent from last year’s fourth quarter to $106.4 million. Retail net sales of $150.7 million rose 113%.
“Many of the changes we implemented last year have allowed us to better manage expenses and improve our operating leverage,” said Chairman, President and CEO Farooq Kathwari in a release. “Additionally, we strengthened the business by expanding capacity, enhanced our use of technology, and brought back many associates to further our talent."
Supply chain issues continue, however. Servicing its large backlog remains the company's chief focus.
Kathwari told CNBC he expects to catch up in the next four to six months.
“We are making improvements,” he said. “We are very high backlogged."
He said he hopes to get back to the company's "normal" rate of being able to make custom products in fewer than eight weeks. It currently takes 12 to 16 weeks or longer.
Many of the company's supply chain issues include delays in fabrics, foam, and lumber.
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