Ethan Allen (ETH) Misses Q3 EPS by 5c

Ethan Allen (NYSE: ETH) reported Q3 EPS of $0.23, $0.05 worse than the analyst estimate of $0.28. Revenue for the quarter came in at $180.5 million versus the consensus estimate of $186.57 million.

Farooq Kathwari, Chairman and CEO, stated, "We are well positioned to grow with our many initiatives including refreshed and relevant product offerings, the strengthening of our North American manufacturing, logistics and retail network of 200 design centers staffed by 1,500 interior design professionals, investments in technology and increased spend on advertising."

Mr. Kathwari further stated, "We are also strengthening our distribution channels including collaboration with Amazon to be launched this summer, the recent launch of Ethan Allen | Disney offerings on disneystore.com, the U.S. State Department contract, additional important contract initiatives and increased business opportunity with our collaboration in China where we are launching Ethan Allen | Disney this summer."

Mr. Kathwari concluded, "The third quarter results were impacted with very strong prior year comparisons when sales increased 10% and EPS increased 89%. In addition, the uncertain political environment and customer expectations of higher discounting contributed to lowering sales. During the quarter, we increased advertising by 21% and plan to increase by about the same amount in our fourth quarter. During this quarter, we also made a decision to reduce clearance and discontinued inventory at both our wholesale and retail segments through donation within the next three months, resulting in a pre-tax charge of $6.4 million in the quarter."

For earnings history and earnings-related data on Ethan Allen (ETH) click here.

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