Ethan Allen Interiors Q2 Profit Down

(RTTNews) - Ethan Allen Interiors Inc. (ETH) reported that its net income for its second quarter ended December 31, 2019 decreased to $7.1 million or $0.27 per share from last year's $12.2 million or $0.45 per share. The decrease was primarily from sales and operating income being negatively impacted during the quarter as the company transitions from a promotional to membership model combined with retail consumers being cautious with discretionary spending.

Adjusted earning per share decreased to $0.27 from $0.46 in the prior year.

Net sales were $174.6 million, a decrease of 11.5% from last year. Net sales were negatively impacted as the Company transitions from a promotional to membership model as evidenced by a 21.8% decrease in wholesale orders, which led to lower wholesale shipments.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share and revenues of $174.65 million for the quarter. Analysts' estimates typically exclude special items.

International sales decreased $4.2 million primarily from lower sales to China and in Canada due to a challenging global economy. In addition, retail consumers remained cautious with discretionary spending.