DANBURY, CT - Ethan Allen Interiors Inc.'s CEO said Hurricane Sandy "negatively impacted" company furniture sales in the third quarter ended Dec. 31, 2012, but that the company still managed to increase net sales 4.4% to $191.3 million compared to the same period of the prior year.
The company reported a third quarter profit of $9.8 million, up 22.2% from the third quarter of 2011,
“Despite the challenging economic / political environment and the impact of Hurricane Sandy, our adjusted earnings per share increased 30%," said Farooq Kathwari, chairman and CEO of Ethan Allen Interiors. "Hurricane Sandy negatively impacted our written orders, delivered sales, and our manufacturing margins during the quarter. Twenty eight of our retail division design centers and eight independent retailer locations were affected. No adjustment to earnings per share was made to reflect the impact of Hurricane Sandy which we estimate may have been approximately $0.02 to $0.03 per diluted share.”
Ethan Allen launched a new global E-Commerce platform in December. Kathwari noted that Ethan Allen also expanded its international operations during the third quarter by opening design centers in Brussels, Belgium, and Montreal, Canada. The start-up costs negatively impacted the company's earnings by $0.02 per diluted share. In addition, Ethan Allen took an additional charge of $0.03 per diluted share in writing down the carrying value of two vacant manufacturing plants. "We expect to exit both these vacant properties during our third fiscal quarter. These start up costs and write down charges are treated as special items in the adjusted results for the quarter," Kathwari said.
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