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FOR IMMEDIATE RELEASE CONTACT: Ed Schade
Ethan Allen Interiors Inc.
(203) 743-8294
ETHAN ALLEN INTERIORS INC.
REPORTS RECORD QUARTERLY SALES AND EARNINGS
DANBURY, CONN., April 17, 1997 -- Ethan Allen Interiors Inc. (NYSE: ETH) today reported record quarterly growth in both sales and earnings.
Sales for the quarter ended March 31, 1997 totaled $144.7 million, or 7.5% greater than the corresponding quarter in the prior year. For the nine months ended March 31, 1997, sales grew to $415.4 million, for an increase of 9.7% over the prior year period.
Net income available to shareholders for the quarter ended March 31, 1997, increased 53.9% to $12.9 million, or $.88 a share, compared to $8.3 million, or $.57 a share, in the third quarter of the prior fiscal year. For the nine months ended March 31, 1997, net income available to shareholders increased 63.7% to $33.9 million, or $2.32 a share, compared to $20.7 million, or $1.42 a share, in the prior year period.
The Company attributes the earnings increase in the third quarter to improved manufacturing margins, continued growth in sales, and lower interest expense. Operating margin in the third quarter of fiscal 1997 amounted to 15.6%, which is a significant improvement over the 11.8% reported in the prior year quarter. "We are gratified with the strong traffic and sales this quarter. Our new national television campaign and Winter Sale direct mail magazine attracted many more customers into our stores. In turn, our professional designers did a good job turning that traffic into sales" commented M. Farooq Kathwari, Chairman and Chief Executive Officer of Ethan Allen Inc. "Moving forward, we will continue to pursue our focused growth strategy of developing innovative, proprietary products, strengthening our existing stores, training our sales force for increased performance, realizing improved efficiencies in manufacturing and distribution, improving customer service and opening new dynamic retail stores domestically and abroad."
Ethan Allen Interiors Inc., a leading manufacturer and retailer of quality home furnishings, sells a full range of furniture products and decorative accessories through an exclusive network of 295 retail stores, 65 of which are Company-owned. Retail stores are located in the United States, Canada and Mexico with 14 located abroad. Ethan Allen has 20 manufacturing facilities and 3 sawmills throughout the United States. Ethan Allen can be found on the internet at http://www.ethanallen.com.