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Ethan Allen Jumps on Expectations of Higher Fourth-Quarter Earnings and Sales

Ethan Allen says consolidated net sales increased 95% year over year in the fourth quarter.
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Shares of furniture company Ethan Allen Interiors  (ETH) - Get Ethan Allen Interiors Inc. Report jumped Friday after the company reported preliminary fiscal fourth-quarter results that were ahead of analysts' estimates.

The Danbury, Connecticut-based company said it will report fourth-quarter earnings between 72 cents and 74 cents a share with consolidated net sales increasing 95% year over year to $178.3 million.

Analysts have called for earnings of 74 cents a share on revenue of $178 million, according to FactSet. 

Full-year net sales were forecast to increase 16.2% to $685.2 million. 

"In a difficult year marked by the COVID-19 pandemic, macroeconomic uncertainty and supply chain disruption, we delivered strong results," CEO Farooq Kathwari said in a statement.

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Ethan Allen's retail segment written orders grew back 105% in the quarter, leading to a record high order backlog for the company. 

Ethan Allen shares jumped 6.43% to $25.31 on Friday. 

A year ago, the company reported a net loss of 15 cents a share due to pandemic-related store closures. 

Kathwari credited the company's North American manufacturing operations for steadily increasing production to meet increased orders as the company looks to work through its backlog. 

Year to date, Ethan Allen shares have risen more than 25%.