UPDATE 1-Ethan Allen to report profit for June quarter

Tue Jul 20, 2010 6:15pm EDT

* Sees Q4 EPS of $0.30 to $0.32, incl $0.16 one-time gain

* Says Q4 sales were up 18 percent to around $163 million

* Q4 booked orders rose 23 percent

* Shares up almost 3 percent

LOS ANGELES, July 20 (Reuters) - Furniture retailer Ethan Allen Interiors Inc (ETH.N) said on Tuesday its swung to a profit before items in its June quarter, helped by an 18 percent increase in sales, and its shares rose nearly 3 percent.

Sales in the company's fiscal fourth quarter were $163 million and orders rose 23 percent, according to the company, which plans to issue full results on Aug. 5.

"While we are gratified with the results, we remain cautious as there are still many uncertainties in the economic environment," Chief Executive Farooq Kathwari said in a statement.

Ethan Allen sees earnings of 30 cents to 32 cents per share for the quarter, versus an year-earlier loss of 23 cents per share. Results from both periods exclude restructuring, impairment and other one-time items.

Excluding an expected 16 cent one-time gain in the latest quarter, adjusted earnings per share are expected to be in the range of 14 cents to 16 cents per share.

The company said the quarterly profit results do not include an expected impact from a noncash charge of around $36 million for a tax valuation reserve against the company's deferred tax assets.

Shares in Ethan Allen, which closed up 4.7 percent at $13.83 on Tuesday, rose to $14.23 in extended trading. (Reporting by Lisa Baertlein; Editing by Steve Orlofsky)