Through The FLY's Eyes: Ethan Allen

from Theflyonthewall.com





The Successful Makeover Continues

Ethan Allen's (ETH) stock has declined on fears that weakness in the housing market will translate into weak results for this furniture retailer.

* Net sales for the quarter were up 12.3%
* EPS were up 18%
* Its retail division was particularly strong, with sales up 21.8%

Investors have been running scared from anything associated with housing and the consumer. However, Ethan Allen's management has been going through a makeover the last few years and it looks like the company will be able to weather a modest slowing of the consumer.

Ethan Allen is growing sales, profits and free cash flow. It also has little debt and owns the real estate of many of its stores. This is a nice company that is in a position to generate some nice returns for shareholders.