Danbury home furnishings company Ethan Allen Interiors Inc. today posted a sharply lower fiscal second-quarter profit as sales dropped in a tough economy.
Profit dropped 73 percent to $5.5 million, or 19 cents per share, from $20.6 million, or 70 cents per share, last year.
Sales declined 27 percent to $189.6 million from $259.5 million, dampened by weakness in its retail and wholesale units.
Analysts surveyed by Thomson Reuters, who usually exclude one-time items from their estimates, expected 22 cents per share and sales of $193.3 million.
“Despite major economic challenges resulting in a decline in sales, we maintained profitability,” Chief Executive Farooq Kathwari said in a statement.
The company also amended its revolving credit agreement to provide additional covenant flexibility and lower the total line to $100 million.
Ethan Allen’s board declared a regular quarterly cash dividend of 10 cents per share, payable to shareholders of record as of April 14 and paid on April 28.
At 11 a.m., shares of Ethan Allen traded at $11.79, down $1.16, or 9 percent. (AP)
