Ethan Allen 1Q Earnings Double

Danbury, CN, October 25, 2007-- Ethan Allen Interiors reported fiscal first quarter profit more than doubled due to higher margins and lower costs.

For the quarter ended Sept. 30, net income rose to $17.5 million, or $0.57 per share, from $8.5 million, or $0.26 per share in the prior year quarter.

Analysts had forecasr EPS of $0.56.

Revenue rose 2% to $248.7 million from $242.8 million in the first quarter of 2007. Analysts predicted sales of $247 million.

The company credited higher gross margins, cost containment and benefits from share repurchases for its profit boost.

Gross margins increased to 53.7% from 52% in the year-ago period. The company's cost of sales fell about 1%.

Total operating expenses of $105.7 million fell versus the first quarter in the last fiscal year, which included a restructuring and impairment charge of $13.9 million.

Ethan Allen bought back 1.1 million shares in the quarter at an average cost per share of about $33.50.