Ethan Allen said sales jumped 10% to $190.6 million in the quarter ended March 31 and earnings per share shot up 300% due to improved operating leverage and higher sales at its retail stores.

The vertically integrated company said comparable-store sales for its retail segment jumped 18.6%, and the segment recorded an operating profit of $600,000, reversing a loss in the comparable quarter.

Net income for the quarter — the third quarter of Ethan Allen’s fiscal year — totaled $10.2 million or 36 cents per share. That compares with $2.54 million or 9 cents per share in the same quarter a year ago.

Gross margins rose to 55.5% from 54.3% in the comparable quarter.

“ We are making very good progress with repositioning our product offerings, our interior design network, making technology enhancements and improvements in our manufacturing, sourcing and logistics,” said Farooq Kathwari, chairman and CEO. “We remain cautiously optimistic.”

For the nine months ended March 31, sales totaled $588.5 million, an increase of 4.9% from $561 million in the first nine months of the previous fiscal year.

Nine-month net income totaled $39.9 million or $1.40 per share. That’s up from $24.5 million or 84 cents per share, in comparable period.

(Source: Furniture Today  Author: Larry Thomas)