Commenting on the firm's expected second quarter 2001 earnings (for period ended Dec. 31, 2000), Farooq Kathwari, chairman and CEO of Ethan Allen Interiors said, "While the company has seen some slowdown in retail sales during the last few months, we continue to focus on implementing our strategies to grow the business and to service the business."
The company estimated its second quarter sales would be 4% to 6% above last year's second quarter and earnings per share would be in the $0.56 to $0.59 range. He later added that in addition to offering new wood products and increasing its production facilities, Ethan Allen is "on track to open about 15 new stores during fiscal 2001."
Kathwari said that the firm opened four new stores during the first quarter (began July 1, 2000) and have opened another four locations in the second quarter, including a 20,000 sf location on the West Side in Manhattan (103 West End Ave.) The company has also opened stores so far this year in North Carolina (2), Vestal, NY, Erie, PA, the Houston area, Detroit and a relocation of an existing store in Philadelphia.
The company currently has seven stores under construction including outlets in: Toronto, Dallas, Houston, Miami, as well as locations in Colorado and California. In total, the firm boasts more than 300 company or dealer-owned stores worldwide. It also operates 21 manufacturing plants, including three sawmills in the United States.
The firm, which has 8,090 employees, acquired a wood manufacturing plant in late October, in Dublin, VA, which contains 450,000 sf of manufacturing space and another 150,000 sf of warehouse space. In addition, the company plans to complete by the spring of 2001 a 53,000 sf expansion of its Andover, ME manufacturing plant, which the company has estimated to cost $5.6 million. The expansion will almost double the current facility's size and update the plant's machine technology and equipment, company officials said.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
