Ethan Allen (ETH) Sees Q2 EPS of $0.38-$0.39, Vs. Cons of $0.59

Ethan Allen Interiors Inc. (NYSE: ETH) commented today on its financial results for the fiscal 2017 second quarter, which ended on December 31, 2016.

The company's Chairman and CEO Farooq Kathwari stated, "Despite a challenging retail environment during our second quarter ending December 31, 2016 we had a reduction of 3.6 percent in our written retail orders compared to a record written increase of 15.3 percent in the previous year quarter. Due to a delivered sales decline of 6.2 percent, our adjusted operating income is projected to be approximately 8.8 percent of sales compared to 12.2 percent of sales in the previous year quarter. Our adjusted earnings per share is projected to be $0.38- $0.39 compared to $0.55 in the previous year second quarter." (*** consensus is $0.59)

Mr. Kathwari continued "We are positioned well to benefit from many initiatives including freshening of our offerings, launch of the Ethan Allen/Disney collaboration, improvements to our manufacturing and logistics resulting in faster deliveries, relocations and renovations of our design centers, and investments in technology. We are seeing increases in sales from on-line interactions and we expect to see continued increases due to the combination of technology and personal services of our interior designers. Our plans are to start substantially increasing our marketing in both digital and traditional mediums starting from our current third quarter with continued increases as we move forward."

Based on preliminary financial information, the Company expects to report consolidated net sales of $194.7 million, gross margin of approximately 55.5 percent, an increase of approximately $0.3 million in adjusted operating expenses and an adjusted EPS in the range of $0.38- $0.39 compared to $0.55 in the same period last year. Expenses associated with the Ethan Allen | Disney launch and incremental new Design Center start-up losses resulted in a $0.03 EPS impact.

The Company also announced today that it will release its fiscal 2017 first quarter financial results after the market closes on Wednesday, January 25, 2017 and will host a conference call to discuss the company's business and financial highlights the same afternoon, at 5:00 PM ET. A live webcast may be accessed from the "Events & Presentations" page at http://ethanallen.com/investors. To access the conference call, dial 844-822-0103 (or 614-999-9166 for international callers), and provide conference ID 41001866. For those unable to listen to the live broadcast, a webcast replay will be archived on the company's website for at least 60 days.

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