Ethan Allen reports Q4 preliminary EPS 41c-42c, consensus 50c
Net sales and projected earnings for the fourth quarter, ending June 30, were impacted by several factors, including very tough comparatives with the prior year quarter when retail net sales increased 7.6%, wholesale net sales increased 9.6%, and adjusted EPS increased 32.6%. Net sales in the prior year quarter also reflected shipments of new product introductions, which also resulted in stronger margins at the wholesale level. Additionally, during the current year fourth quarter, national advertising increased 27.5% over the prior year period, reflecting the Company's continued focus on brand building and driving traffic and sales."We look forward to discussing our progress and initiatives at the forthcoming Investor Meeting," said Farooq Kathwari, Chairman and CEO of Ethan Allen. "Fiscal 2017 was a 'year of action' where we completed many initiatives and also launched major new initiatives. Topics of the meeting will include the repositioning of our offerings, our expanded marketing, investments in new Design Centers around the country, investments in technology, the launch of the Ethan Allen Disney magical home program and the recent launch of the 'Ethan Allen design studio' on Amazon."Mr. Kathwari added, "During our fourth quarter, retail written orders in April decreased 7.1% and then progressively increased by 7.0% in May and 6.9% in June, resulting in a 1.9% increase for the quarter compared to the same period in the prior year. So far in July, written orders have continued a strong positive trend."