DANBURY, CT - Ethan Allen Interiors Inc. (NYSE:ETH) reported net earnings of $10.1 million on $187.4 million in sales for its first quarter ended Sept. 30.
The residential furniture company, which is celebrating its 80th anniversary, said improved margins helped it realize a 49% profit boost even though total sales only increased 1.4% compared to its first quarter of 2011.
Net sales of Ethan Allen's nearly 300 retail retail design centers increased 5.6% to $149.1 million, representing 80% of the company's first quarter sales. The company said that about 70% of its products are made at its five U.S. manufacturing plants.
Farooq Kathwari, chairman and CEO, said, “We are pleased to see the benefits of substantially completing the transition of our major introduction of new products and the operating leverage of our vertically integrated business. Our gross margins improved to 55.6% from 52.9% and our operating income was $19.6 million, an increase of 43.9% after adjusting for a $1.6 million loss on the sale of vacant real estate."
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