Furniture maker and retailer Ethan Allen Interiors Inc. on Monday forecast revenue for the current quarter below Wall Street estimates amid weak consumer confidence and volatility in its business.
Ethan Allen, whose shares fell 3 percent in premarket trade, said it saw revenue of $240 million to $245 million for the first quarter ending on September 30. The average outlook of analysts polled by Reuters Estimates was $263.4 million.
Speaking ahead of a Tuesday investor conference, Chief Executive Farooq Kathwari said sales had slowed in recent months, and the company faced tough comparisons from last year, when total sales rose 9 percent and comparable written orders increased 15 percent.
Ethan Allen, which has been trying to reduce the lead time in filling customer orders, said the faster turnover reduced the visibility of future sales.
But the Danbury, Connecticut-based company has seen some positive trends in September and if they continue, it could benefit in the second quarter, Kathwari said.
In recent years, Ethan Allen has overhauled its product lineup with casual and contemporary styles and relocated stores to more vibrant areas. The changes have helped it beat earnings estimates in recent quarters as rivals face tougher times amid rising gasoline prices and interest rates and a cooling housing market.
Ethan Allen shares fell to $35.47 in electronic trading before the bell from Friday's New York Stock Exchange close of $36.72.