DANBURY, CT — Ethan Allen Interiors Inc. recorded net sales of $183.3 million for the second quarter, an increase of 5.7% compared to the same period last year by the residential furniture manufacturer and retailer.
In a statement, Chairman and CEO Farooq Kathwari, said, “We are pleased with the strong 5.7% growth in sales as it builds upon the 21% growth in the previous year quarter. We continue to benefit from major initiatives during the last three years resulting in operating leverage with gross margin increasing to 53.6% from 51.8% and an increase in our adjusted diluted earnings per share for the quarter of 57.9%. Our written orders for the Retail division during the quarter increased 10.3% including comparable written orders which increased 6.7%. Our Retail backlog at Dec. 31, 2011 was 9.4% higher than at this time last year.”
Ethan Allen also announced a net income for the quarter ended Dec. 31, of $8.1 million, a 45% loss over the prior year period of $14.7 million. However, the company reported, excluding special items in both periods, net income for the quarter was $8.6 million, compared with $5.6 million in the prior year period.
Kathwari noted that Ethan Allen Interiors has continued to repurchase its bonds to reduce its debt by $10 million. "Over the last 12 months we have reduced our total debt by $43.6 million,” he said.
“We remain cautiously optimistic due to our many initiatives including major introductions of new products, acquiring qualified and entrepreneurial interior design associates, investing in our manufacturing and logistics, and adding technology in all areas of our enterprise. We also see improving trends in consumer attitudes,” Kathwari added.
The company reported net sales for the six months ended Dec. 31, 2011, increased 8.9% over the prior year to $368.2 million. Retail division net sales increased 12.8% to $284.3 million including comparable design center net sales growth of 10.5%.
Net income for the six month period was $14.8 million, compared to $18.6 million for the year previous. Excluding special items in both periods, the company said, net income for the six months ended Dec. 31, 2011, was $15.8 million compared with $8.7 million in the year prior.
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