About Ethan Allen Interiors

Ethan Allen Interiors Inc., through its wholly-owned subsidiary, Ethan Allen Global, Inc., operates as an interior design company. The company is a manufacturer and retailer in the home furnishings marketplace. The company is a global luxury home fashion brand that is vertically integrated from product design through home delivery, which offers the company’s customers stylish product offerings, artisanal quality, and personalized service. The company is known for the quality and craftsmanship of its products, as well as for the exceptional personal service from design to delivery, and for the company’s commitment to social responsibility and sustainable operations. The company’s strong network of entrepreneurial leaders and interior designers provide complimentary interior design service to the company’s clients and sell a full range of home furnishing products through a retail network of design centers located throughout the United States and abroad, as well as online at ethanallen.com. Ethan Allen design centers represent a mix of locations operated by independent licensees and company-operated locations. The company operates retail design centers located in the United States and in Canada. The company’s independently-operated design centers are located in the United States, Asia, the Middle East, and Europe. The company also owns and operates manufacturing facilities, including manufacturing plants, sawmill, rough mill and kiln dry lumberyard in the United States, manufacturing plants in Mexico and manufacturing plant in Honduras. Approximately 75% of the company’s products are manufactured in the company’s North American manufacturing plants and the company also partners with various suppliers located in Europe, Asia, and other countries to produce products that support the company’s business. Business Strategy The company strives to deliver value to its shareholders through the execution of the company’s strategic initiatives focused on the concept of constant reinvention. The company’s business model is to maintain continued focus on providing relevant product offerings; capitalizing on the professional and personal service offered to the company’s customers by its interior design professionals; leveraging the benefits of the company’s vertical integration, including a strong manufacturing presence in North America; regularly investing in new technologies across key aspects of the company’s vertically integrated business; maintaining a strong logistics network; communicating the company’s messages with strong advertising and marketing campaigns; and utilizing the company’s website, ethanallen.com, as a key marketing tool to drive traffic to the company’s retail design centers. Product By harnessing the expertise of skilled artisans within the company’s North American facilities, the company designs and builds 75% of the items the company offers. Every product bears the distinctive quality of the Ethan Allen brand. Meticulous hand-guided stitching, dress the company’s upholstery frames, and the company’s case goods furniture crafted from premium lumber and veneers, individually finished and customized. The company’s commitment to using top-tier construction techniques is evident, including using mortise and tenon joinery and four-corner glued dovetail joinery for drawers. These elements are the bedrock of Ethan Allen's identity, solidifying the company’s role as a premier influencer of quality and style in home furnishings. The company’s vertically integrated approach empowers the company to seamlessly introduce new products, oversee design specifications, and uphold consistent levels of excellence across all product lines. Alongside the company’s seven manufacturing facilities in the United States, the company possesses upholstery manufacturing plants in Mexico and a case goods manufacturing facility in Honduras. The company selectively outsources the remaining 25% of its products, primarily from Asia. The company’s sourcing partners are chosen with the utmost care, and the company insists on unwavering adherence to the company’s quality standards, specifications, and social responsibility. The company’s strategic investments in manufacturing facilities and the judicious outsourcing from foreign and domestic suppliers position the company to accommodate future growth while retaining control over costs, quality, and customer service. Projection The company’s design centers have evolved into an interior design destination, with technology-driven projections and dedicated workstations that foster collaboration between designers and clients. Each workstation highlights the breadth of selection within a home furnishings category, including available custom fabrics, leathers, finishes, and options, where relevant. Clients can also use touchscreens located throughout the store to perform product research at their own pace. Upon entering the company’s design centers clients can immediately view the company’s design studio. The design center showcases the company’s talented interior designers, with freestanding workstations equipped with large touch-screen flat panel displays where clients can view both before-and-after photos and 3D floor plans of single rooms or even entire homes. The large, high-resolution screens bring digital design plans to life, so clients can preview an incredibly realistic version of their designed space before placing an order. Customers are also able to view hundreds of fabrics, leathers, finishes, and other customized options on site; from room plan to furniture details, the experience is personalized. During the year ended June 30, 2023 (fiscal 2023), the company relocated design centers, Skokie, Illinois and San Jose, California, both of which project the variety of the company’s styles, under the umbrella of Classics with a Modern Perspective, in a bright, open, modern layout that follows the company’s best and most current interior design concepts. The company plans to further expand the company’s retail design center footprint in fiscal 2024 through the addition of new design centers located in The Villages, Florida, Manhattan, New York and Avon, Ohio. Marketing Ethan Allen’s marketing emphasizes the company’s core brand values of quality and craftsmanship, combining personal service with technology, and a commitment to social responsibility. The company’s combination of creative and analytics-driven strategies enables the company to secure both new and repeat client traffic, to the company’s design centers worldwide and to its website at ethanallen.com. Using the company’s customer relationship management system, the company works toward creating personalized customer journeys and targeted communications. The company’s creative messaging is relevant and aspirational and conveyed through a variety of media, including digital marketing that includes social media and email marketing campaigns, plus direct mail and TV. E-Commerce The company considers its website an extension of its retail design centers and not a separate segment of the company’s business. Most clients will use the internet for inspiration and as a start to their shopping process to view products and prices. With so much of the company’s product customizable, the company encourages its website customers to get personal help from the company’s interior design professionals either in person or by chatting online. This complimentary direct contact with one of the company’s interior design professionals, whether remotely or in-person, creates a competitive advantage through the company’s excellent personal service. In addition, recent improvements to the company’s ethanallen.com website include improved on-site search capabilities, expanded live chat services, online appointment booking capability, and product listing and display page enhancements. Segments The company operates through two reportable segments: Wholesale and Retail. Seasonality In a typical year, the company schedules production to maintain consistent manufacturing activity throughout the year whenever possible. The company typically shuts down its domestic plants for one week at the beginning of each fiscal year to perform routine maintenance. For both the company’s segments, historically, including in fiscal 2023, no one particular fiscal quarter contributed more than 28% of annual sales volume, thus limiting the company’s exposure to seasonality. During fiscal 2023, the company’s wholesale and retail business sales volumes began trending to more historical levels, therefore, the company anticipates the typical seasonal trends will return to normal in fiscal 2024. Distribution and Logistics The company distributes its products through three national distribution centers, owned by the company, strategically located in North Carolina and Virginia. These distribution centers provide efficient cross-dock operations to receive and ship product from the company’s manufacturing facilities and third-party suppliers to the company’s retail network of company and independently operated retail home delivery centers. Retail home delivery centers prepare products for delivery into customers’ homes. As of June 30, 2023, the company-operated retail design centers were supported by 17 company-operated retail home delivery centers and 9 home delivery centers operated by third parties. The company utilizes independent carriers to ship its products. Intellectual Property The company holds, or has registration applications pending for, trademarks, service marks and copyrights for the Ethan Allen name, logos and designs in a broad range of classes for both products and services in the United States and in many foreign countries. In addition, the company has registered, or has applications pending for certain of the company’s slogans utilized in connection with promoting brand awareness, retail sales and other services and certain collection names. In addition, the company has registered and maintains the internet domain name of ethanallen.com. History Ethan Allen Interiors Inc. was founded in 1932. The company was incorporated in Delaware in 1989.