Ethan Allen 1Q Earnings Double

Danbury, CN, October 25, 2007– Ethan Allen Interiors reported fiscal first quarter profit more than doubled due to higher margins and lower costs.

For the quarter ended Sept. 30, net income rose to $17.5 million, or $0.57 per share, from $8.5 million, or $0.26 per share in the prior year quarter.

Analysts had forecasr EPS of $0.56.

Revenue rose 2% to $248.7 million from $242.8 million in the first quarter of 2007. Analysts predicted sales of $247 million.

The company credited higher gross margins, cost containment and benefits from share repurchases for its profit boost.

Gross margins increased to 53.7% from 52% in the year-ago period. The company’s cost of sales fell about 1%.

Total operating expenses of $105.7 million fell versus the first quarter in the last fiscal year, which included a restructuring and impairment charge of $13.9 million.

Ethan Allen bought back 1.1 million shares in the quarter at an average cost per share of about $33.50.