Ethan Allen says its fiscal Q1 earnings are likely to come in below Wall Street's expectations; CEO says some clearance sales hurt gross margins while lower backlogs limited product deliveries

Cindy Allen

NEW YORK , October 14, 2013 (Associated Press) – Ethan Allen Interiors drops as 1Q profit, revenue forecasts miss analysts' expectations

Ethan Allen's shares fell Friday as the home furnishings company said that its fiscal first-quarter earnings and revenue are likely to come in below Wall Street's view.

Ethan Allen Interiors Inc. said it expects to report adjusted earnings in a range of 30 cents to 32 cents per share on revenue between $180 million and $182 million.

Analysts polled by FactSet expect adjusted earnings of 39 cents per share on revenue of $193.8 million.

Chairman and CEO Farooq Kathwari said in a statement on Thursday that some clearance sales hurt its quarterly gross margins, while lower backlogs limited product deliveries.

One bright spot in the period ended Sept. 30 was an 11.4 percent increase in written sales for the retail unit. Comparable design center written sales climbed 13.8 percent.

Ethan Allen's stock dropped $1.19, or 4.3 percent, to $26.30 in midday trading. Over the last year, the shares have traded between $21.96 and $33.36.