16772 Wed, 08/12/2009 - 12:25pm
DANBURY, Conn.–Ethan Allen reported net losses of $16.9 million for the fourth quarter and $52.7 million for fiscal year 2009 as a whole.
The furniture manufacturer-retailer said the quarterly loss compared with fourth-quarter net income of $11.1 million and full-year net income of $58.1 million last year. Much of the downfall for both periods occurred because of steep sales declines. For the fourth quarter, net sales were $138.7 million, a decline of 41 percent; while for the full year net sales fell 31 percent to $674.3 million.
In the company’s statement regarding the results, Farooq Kathwari, chairman and chief executive officer, said Ethan Allen has been striving to overcome an “extremely challenging” period through expense reductions and reinventing itself. Kathwari said the company had slimmed its operating expenses by about $120 million and its manufacturing costs by $30 million on an annualized basis.
As examples of the changes in its operating strategy, Kathwari noted Ethan Allen’s move toward custom production in case goods and the debut of its Interior Design Affiliate program—both of which were announced over the past few days.