Ethan Allen Q2 Net Jumps 17.4 Percent
January 23, 2014,
DANBURY, Conn.-A watchful eye on expenses helped Ethan Allen to a gain of 17.4 percent in second-quarter net income, which totaled $11.6 million.
Selling, general and administrative expenses dropped 0.5 percent in dollars and 67 basis points as a percentage of sales. Gross margin rose 53 basis points to 54.9 percent.
Net sales in the quarter, which ended on Dec. 31, rose 1 percent to $193.1 million. Farooq Kathwari, Ethan Allen chairman and CEO, said written sales were affected by the government shutdown, difficult weather in many parts of the country and an increase in back-ordered import products.
Kathwari said although the company was "pleased" with the overall financial results, there is still the opportunity to increase written sales. "We continue to aggressively implement marketing programs to improve our competitive differentiation," he said. "Starting from February 2014, we are introducing an 'On Demand' initiative reflecting a focus on greater in-stock products for faster delivery to our clients. This, coupled with our strong custom-order programs, further expands our commitment to personal service."