Retailers, consumers and prices
Fancy furnishings can wait
Morgan Keegan cut profit estimates for Ethan Allen Interiors this week, saying it could be the next victim as a spending pullback takes hold at upscale furnishings companies.
“Home related spending is weak and we are now seeing signs that the typically resilient high-end consumer is pulling back on discretionary spending on furnishings,” analyst Laura Champine said in a research note.
Ethan Allen has generally fared better than its furniture peers but rising costs for raw materials, energy and freight are weighing on the sector, Champine said. She cut her third quarter profit estimate for the company by three cents a share to 49 cents, and lowered her full-year estimate by six cents. The company’s fiscal year ends in June.
(Photo: Ethan Allen Website)