DANBURY, CT-Home furniture maker and retailer Ethan Allan Interiors Inc. posted an 11% rise in profits during the third quarter as same-store sales grew 15.2% due in large part to a series of initiatives implemented during the last few quarters designed to drive up sales and profits for the Danbury, CT-based company.

Ethan Alan, which operates 311 retail home furnishing stores in the United States and abroad, earned $20 million, or 59 cents per share, for the quarter ending March 31, beating analysts’ estimates of 56 cents per share on revenue of $246.4 million. For the same period in 2005, quarterly results were $17.9 million, or 50 cents per share.

Revenue for the quarter was also up nearly 16% to $267.1 million, from $231.2 million a year ago. For stores open at least a year, sales grew 15.2% over the same quarter last year. The company said it is also “within reach” of meeting analysts’ estimates for the fourth quarter.

A series of initiatives, implemented earlier last year, including the relocation of underperforming stores, quicker home delivery and increased pricing and advertising, have helped the numbers, even though higher fuel delivery charges have cut into profits. To defray some of those rising charges, the company, which opened three new stores during the quarter and 12 during this fiscal year, said it would increase pricing about 2.5%.

“We’ll continue to see positive trends,” predicted the firm’s chairman and chief executive officer Farooq Kathwari in a conference call with investors. Kathwar said increases in both sales and earnings are expected to continue, putting the firm on track to reach analysts estimates for the fourth quarter.

For the nine months ending March 31, 2006, per share earnings totaled $1.85 on net income of $63.3 million. Included in that figure was a $4.2-million restructuring and impairment charge related to the company’s conversion of an existing manufacturing plant into a regional distribution center. Earnings per share for the same period last year was $1.63 based on net income of $59.8 million. Excluding the impact of the restructuring and impairment charge, per-share earnings for the fiscal year-to-date period would be $1.93 on net income of $65.9 million, the company said.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.