Danbury, CT, October 23, 2006--Ethan Allen Interiors Inc. said Monday its first-quarter profit fell, weighed down by restructuring charges.
For the quarter ended Sept. 30, the company reported net income of $8.5 million, or $0.26 per share, versus a prior-year profit of $17.1 million, or $0.49 per share.
Excluding a restructuring charge related to plant consolidation and conversion, the company had a profit of $0.53per share in the latest quarter.
Revenue fell to $242.8 million from $251.3 million.
Wall Street had forecast a profit of $0.55 per share, the average estimate of nine analysts surveyed by Thomson Financial, on projected sales of $246.6 million.
Sales in stores open at least one year -- a closely watched performance gauge called same-store sales -- declined 1.7 percent.
The quarter included restructuring and impairment charges of $8.7 million, or $0.27 per share, from consolidating a manufacturing plant and converting an upholstery manufacturing plant into a distribution center.
Ethan Allen said the furniture retail environment remains "difficult," though the company saw some improvement in September. Consumers have put off the purchase of big-ticket items such as furniture as they encountered higher interest rates and gas prices. Gas prices have recently dropped, prompting hopes in the market that consumers might boost their spending.
Ethan Allen also said that shortening delivery times has helped sales yet made comparisons to the prior year more challenging.
