Ethan Allen Warns Of Profit And Sales Miss

By Tomi Kilgore Markets MarketWatch Pulse

Ethan Allen Interiors Inc. said Wednesday it expects fiscal second-quarter adjusted earnings per share of 38 cents to 39 cents, well below the FactSet consensus of 59 cents, amid a challenging retail environment. The furniture retailer expects total sales of $194.7 million, which is down from $207.5 million from a year ago, and below the FactSet consensus of $213.7 million. Delivered sales fell 6.2%, while written retail orders declined 3.6%. "Our plans are to start substantially increasing our marketing in both digital and traditional mediums starting from our current third quarter with continued increases as we move forward," said Chief Executive Farooq Kathwari. The stock, which was still inactive in premarket trade, has soared 36% over the past 12 months, while the SPDR S&P Retail ETF has tacked on 7.8% and the S&P 500 has gained 18%.

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