Ethan Allen Net Balloons in Third Quarter

DANBURY, Conn.-Third-quarter net income for Ethan Allen Interiors rose 683 percent to $27.5 million.

The bottom line for the quarter, which ended on March 31, included non-cash tax benefits from the reversal of deferred tax asset valuation allowances and other tax reserves. Without these tax benefits, Ethan Allen's profit was $4 million, up 100 percent from the third quarter of last year.

Net sales for the manufacturer/retailer rose 8 percent, to $175.9 million, including an increase of 12.3 percent in sales from the retail division and comparable sales growth from design centers of 9.4 percent.

Gross margin rose 260 basis points to 53.6 percent. Operating expenses jumped 10.4 percent in dollars and 108 basis points as a percentage of sales to 49.2 percent. According to Farooq Kathwari, Ethan Allen's chairman and CEO, the expense rise reflected the company's investments in acquiring interior design associates and management for the retail division.

"While increase our expenses, this investment provides an opportunity to grow our sales by enhancing our competitive advantage of providing complimentary interior design services," Kathwari said.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.