14931 Wed, 07/23/2008 - 12:44pm
DANBURY, Conn.–Net income and sales both took dives in Ethan Allen’s fiscal year 2008, which ended June 30.
The manufacturer-retailer posted a 16 percent drop in net income, to $58.1 million; and net sales of $980 million, down 2 percent from fiscal 2007. Although the key numbers declined, Farooq Kathwari, the company’s chairman and chief executive officer, said in a statement that he was “pleased with the progress we made during the fiscal year.”
Kathwari said the company has undertaken “numerous initiatives” to grow its businesses. In the retail division, he said, Ethan Allen has started its design-team concept, the conversion of 12 design centers into design studios, the restructuring of its retail design-service-center network, the closing of 12 design centers in underperforming markets and the opening of 18 new design centers. Kathwari also said the company has improved its product offerings, debuted a national and regional advertising campaign relating to its interior-design services, improved its information systems and developed a new Web site.
These initiatives have prepared Ethan Allen for “challenging times” in fiscal 2009, Kathwari said. “As far as our financial performance is concerned, we expect to continue to do relatively well,” he said.