Ethan Allen Early Disclosure

Ethan Allan (ETH) announced a dividend that will be payable some three months from now; indicating their liquidity looks good. They claim to have cut costs on an annualized basis of $120 million. They also patted themselves on the back by saying they are not discounting and keeping their margins up there. They expect a federal tax refund of $8 million which they claim will augment pretty good liquidity. Revenues for Q4 are positioned as pretty good but overall revenues for the year dropped some 31%

Then Farooq Kathwari, Chairman and CEO lets you know that the real earnings results will be coming out Aug 12 which is three weeks in the future. Farooq you need a remedial class in disclosure. Coming out three weeks early and singing sunny sky’s has pretty well signalled to the market what you expect the final results to be. Hopefully now that everyone is warm and fuzzy you will not release a little bit of bad news when the market is no longer looking.

But seriously Farooq there may be a few lawyers who want to talk to you.