DEERFIELD, Ill.—Ethan Allen Interiors Inc. reported Monday that its fiscal first-quarter net income jumped nearly 80 percent as sales improved at its furniture stores.
The results beat analyst expectations and shares of the company, based in Deerfield, Ill., rose sharply in after-hours trading.
Ethan Allen earned $6.8 million, or 23 cents per share, for the quarter that ended Sept. 30. That's up from $3.8 million, or 13 cents per share, in the same quarter last year. After excluding special items in both periods, the company's profit more than doubled to $7.2 million, or 25 cents per share, from $3.2 million, or 11 cents per share in the prior year.
Ethan Allen's revenue increased 12 percent to $184.9 million. Sales through the company's retail business increased nearly 17 percent to $141.2 million and sales through its wholesale business increased 8 percent to $116.4 million.
Analysts polled by FactSet anticipated the company would post adjusted earnings of 18 cents per share on revenue of $179.8 million.
Ethan Allen CEO Farooq Kathwari said the company's focus on selling "aspirational and attainable" products, along with design services, has helped set the furniture company apart from its peers. The furniture industry suffered during the economic downturn as shoppers cut back on their spending but has recovered some in recent quarters as shoppers resume some discretionary spending.
Shares of the company increased $1.12, more than 6 percent, to close at $19.62. The stock jumped 88 cents, or 4.5 percent, to $20.50 in after-hours trading following the release of the earnings report.
