Profits, Sales Slump at Ethan Allen

Danbury, CT, Oct. 23, 2008--Ethan Allen Interiors Inc. reported earnings per share of $0.26 on net income of $7.4 million, including a restructuring benefit of $1.0 million.

Excluding the restructuring benefit, earnings per share was $0.22 on $6.4 million in net income. This compares to  earnings per share and net income of $0.57 and $17.5 million, respectively, a year ago.

Net delivered sales for the quarter were $205.8 million, representing a decline of 17.2% compared with $248.7 million in the prior year quarter. Net delivered sales for the company's retail division were $155.9 million representing a decline of 14.7% from the prior year period.

"We have been able to maintain decent profitability during these challenging times," said CEO Farooq Kathwari.

"While our sales have decreased, our gross margins increased due to many factors including maintaining our every day best price policy. In addition, our many initiatives during the last several years are also a major factor in reducing costs and improving our performance."