Ethan Allen Interiors

Ethan Allen Interiors, Inc. is an American furniture chain with almost 300 stores across the United States, Canada and the United Kingdom. The company makes customized furniture domestically (Maiden, NC), such as upholstered furniture, sofas, and chairs, custom made in a selected fabric. Ethan Allen has 295 Design Centers and Studios, six manufacturing facilities including two sawmills, six wholesale distribution centers, 29 retail service centers, one hotel, and sales of $980 million located across the United States. It is one of the largest furniture companies in the United States. 
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​Ethan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in North America, Europe, Asia, and the Middle East. The company operates through two segments, Wholesale and Retail. Its products include case goods items, such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents; upholstery items comprising sleepers, recliners, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics, and leather; and home accents and other items, including window treatments and drapery hardware, wall decors, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, wall coverings, and home and garden furnishings. The company markets and sells its products under the Ethan Allen brand name through home furnishing retail networks and independent retailers, as well as through ethanallen.com Website. As of August 4, 2016, it operated a network of approximately 300 retail design centers. Ethan Allen Interiors Inc. was founded in 1932 and is headquartered in Danbury, Connecticut.
​(Summary) (Company) (Chart)

28 September 2016
Price $32.21
1yr Target $37.33
Analysts 3
Dividend $0.68
Payout Ratio 34.00%

1yr Cap Gain 15.89%
Yield 2.11%
1yr Tot Return 18.00%

P/E 16.11
PEG 1.04
Beta 1.57

EPS (ttm) $2.00
EPS next yr $2.44
Forward P/E 13.20
EPS next 5yr 15.50%
1yr Price Support $37.82

Market Cap $893.83 Mil
Revenues $794.20 Bil
Earnings $56.60 Mil
Profit Margin 7.12%

Quick Ratio 0.70
Current Ratio 2.00
Debt/Equity 0.11

1yr RevGR 5.24%
3yr RevGR 2.86%
5yr RevGR 3.18%

1yr EarnGR 57.48%
3yr EarnGR 21.44%
5yr EarnGR 14.64%

1yr DivGR 24.00%
3yr DivGR 19.64%
5yr DivGR 23.02%

ROA 9.60%
ROE 14.80%

​Operating Segments

Ethan Allen's products are sold through a dedicated global network of approximately 300 retail design centers (the company's retail segment). As of June 30, 2015, the Company operated 144 design centers and their independent retailers operated 155 design centers. The wholesale segment sales include sales to the company's retail segment (which are eliminated in consolidation), and sales to their independent retailers. The retail segment net sales accounted for 77% of the company's consolidated net sales in fiscal 2015. The wholesale segment net sales to independent retailers accounted for 23%, including approximately 13.5% of net sales in fiscal 2015 to the ten largest independent retailers who operate 96 design centers. The company's independent retailer in China operated 75 of these locations at the end of fiscal 2015.

The company's wholesale and retail operating segments represent strategic business that operate separately and provide their own distinctive services. This vertical structure enables the company to offer a complete line of home furnishings and accents more effectively while controlling quality and cost. 

Home furnishings and accents are marketed and sold in a similar manner in the wholesale and retail segments, although the type of customer (wholesale versus retail) and the specific services that each operating segment provides are different. Within the wholesale segment, Ethan Allen maintains revenue information according to each respective product line (i.e. case goods, upholstery, or home accents and other). Case goods include items such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents. Upholstery items include sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics and leather. Skilled artisans cut, sew and upholster custom-designed upholstery items which are available in a variety of frame, fabric and trim options.

Home accessory and other items include window treatments and drapery hardware, wall decor, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, wall coverings and home and garden furnishings. The allocation of retail sales by product line is similar to that of the wholesale segment. 
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The company's strategy has been to position Ethan Allen as a preferred brand offering complimentary design service together with products of superior style, quality and value to provide consumers with a comprehensive, one-stop shopping solution for their home furnishing and interior design needs. In carrying out this strategy the company continues to expand their reach to a broader consumer base through a diverse selection of attractively priced products, designed to complement one another, and reflecting current fashion trends in home decorating.

During fiscal 2015, the company strengthened its product offerings by introducing new products to retail consumers in case goods, upholstery, and home accents, by introducing a very large collection of new products and existing products in new finishes under the umbrella of “Classics”. Regular product introductions, a broad range of styles and custom options within our upholstery and case good lines and expanded product offerings to accommodate today’s home decorating trends, continue to define Ethan Allen positioning it as a leader in home fashion.

The interior of their retail design centers are organized to facilitate display of their product offerings in both room settings that project the category lifestyle and by product grouping to facilitate comparisons of the styles and tastes of clients or customers. To further enhance the experience, technology is often used throughout the design centers to expand the range of products viewed by including content from the company's website in applications used on large touchscreen flat panel displays.