Lower sales drive Ethan Allen to a loss in 3Q

Steep drop in sales drives Ethan Allen to a loss in third quarter

• On 9:41 pm EDT, Wednesday October 28, 2009

DANBURY, Conn. (AP) -- Home furnishing company Ethan Allen Interiors Inc. said Wednesday that a steep drop in sales linked to the continued housing slump drove it to a third-quarter loss, reversing its year-ago profit.

For the three months ended Sept. 30, the company lost $13.6 million, or 47 cents per share. That compared with income of $7.4 million, or 26 cents per share, in the prior-year quarter.

The results included an $8.5 million charge for plant transition costs and an $800,000 restructuring costs. Excluding one-time charges, the company lost 20 cents per share in the quarter.

Net sales for the quarter were $136.2 million, down 34 percent from $205.8 million last year. Sales for both the company's retail and wholesale divisions fell.

The performance still missed Wall Street expectations. On average, analysts polled by Thomson Reuters expected a loss of 8 cents per share on revenue of $150.4 million.

The company noted that it consolidated its U.S. manufacturing and logistics and reduced cost structure throughout the company.

Shares of Ethan Allen gained 20 cents to $13.33 in after-hours trading, after falling 68 cents, or nearly 5 percent, to close the regular session at $13.13.