Danbury, CT, September 25, 2006--Ethan Allen Interiors, Chairman and CEO, Farooq Kathwari said, in anticipation of being asked to comment on current business at an investor conference it will be hosting tomorrow said, "As previously indicated, sales in recent months have slowed as consumer confidence has remained weak.”
Kathwari added, “In addition, we find ourselves up against tough comparable results for the prior year quarter during which time we experienced a 9% increase in sales and a 15% increase in comparable retail written sales. The prior year quarter also marked the first phase of our initiative to reduce the lead time in filling customer orders. The faster backlog turnover afforded by this initiative reduces the forward visibility of delivered sales, subjecting our business to more volatility as demand levels fluctuate. We currently anticipate that revenues for the quarter ending September 30, 2006, will total $240 to $245 million."
Kathwari continued, "Importantly, the implementation of "Everyday Best Pricing" means that consumers now make purchases when it is most convenient for them, and we know that the summer months present numerous other activities and commitments. We have seen some positive trends in September and, should those trends continue, we could benefit in the second quarter."
"We recently conducted an international convention which was attended by more than 800 of our Ethan Allen associates during which time we unveiled major renovations in our Danbury design center that serve to take our focus on providing decoration solutions and interior design service to a new level. In addition, we introduced two new product collections - Modern Glamour and Horizons Studio - which will arrive in our retail network next spring."
