2023
ANNUAL REPORT
a
t
a
d
Net sales
2023
2022
2021
$791,382
$817,762
$685,169
t
n
e
m
e
t
a
t
s
e
m
o
c
n
i
Adjusted gross margin (a)
Adjusted operating income (a)
Adjusted net income (a)
Adjusted diluted EPS (a)
Cash and cash equivalents
Total assets
Long-term debt
Total liabilities
Shareholders’ equity
Working capital
Adjusted return on equity (a)
Current ratio
Long-term debt to equity
Common shares outstanding
a
t
a
d
t
e
e
h
s
e
c
n
a
a
b
l
s
c
i
r
t
e
m
y
e
k
60.7%
$133,514
$103,057
$4.03
$172,707
$745,453
$-
$274,447
$471,006
$196,356
23.5%
2.20
0.0%
59.3%
$134,240
$100,277
$3.93
$121,118
$719,895
$-
$312,572
$407,323
$131,106
26.4%
1.61
0.0%
57.5%
$80,335
$60,059
$2.37
$104,596
$683,245
$-
$331,827
$351,418
$71,377
17.7%
1.32
0.0%
25,356,462
25,322,792
25,237,415
y
t
i
i
d
u
q
i
l
Cash flows from operating activities
Capital expenditures
Cash dividends paid
Dividend yield
$100,664
$13,885
$46,357
5.1%
$69,356
$13,387
$48,257
6.3%
$129,912
$12,029
$43,290
3.6%
Amounts in thousands, except share and per share data
(a) See reconciliation of U.S. GAAP to adjusted key financial measures in this annual report
FINANCIAL HIGHLIGHTS
DEAR FELLOW
SHAREHOLDERS
As we mark the close of our 91st year,
I am pleased to report that we have
We are one brand, able to manage
workshops and remain committed
our experience from the day a product
to producing furniture in North
continued to strengthen all areas of
is designed to the day a client receives
America. Investments in manufacturing
our vertically integrated enterprise
it in their home.
technology have made our operations
more efficient across our enterprise.
including talent, marketing, service,
technology, and social responsibility.
This focus enabled us to deliver solid
financial results to our shareholders
while positioning us well for the
challenges ahead.
Strong financial results
A continual focus on
reinvention
Repositioning our retail network and
A culture of social
responsibility
rebranding ourselves “The Interior
In addition to running a socially
Design Destination,” we’ve reimagined
responsible business, we are
the projection of our Design Centers.
committed to good corporate
During the process, we curated a more
governance and environmental
For the year ended June 30, 2023,
consolidated furniture gallery while
stewardship. We are also committed
we achieved consolidated net sales
using continued investments in design
to making positive contributions to
of $791.4 million, with a gross margin
technology to show the sheer breadth
the communities in which we operate
of 60.7% and an adjusted operating
of what we can offer.
and treating every associate with
margin of 16.9%. Adjusted diluted
earnings per share totaled $4.03. Our
balance sheet included total cash and
investments of $172.7 million and no
dignity and respect.
Classic design from a
modern point of view
Ethan Allen was recently named
America’s Best Retailer in the Premium
debt. We were pleased to pay cash
We continue to project a range of
Furnishings category as well as one
dividends of $46.4 million, including a
lifestyles to show our clients all that
of America’s Top 10 Retailers by
12.5% increase to our regular quarterly
cash dividend and a special $0.50
cash dividend.
they can create with an Ethan Allen
Newsweek. This recognition is a credit
designer’s help. Thanks to our vertically
to each of our associates, and I thank
integrated structure, we can provide
them, our Board of Directors, our
Vertically integrated from
concept to delivery
Our vertically integrated
manufacturing, logistics, and retail
our clients with a wide range of
custom options.
Reinvestment in North
American manufacturing
operations continue to be one of our
We continue to craft about 75% of our
greatest competitive advantages.
products in our own North American
clients, and all shareholders for their
continued support, as we look ahead
to all that we can achieve together in
fiscal 2024.
VERTICALLY INTEGRATED FROM CONCEPT TO DELIVERY
A CONTINUAL FOCUS ON REINVENTION
CL ASSIC DESIGN FROM A MODERN POINT OF VIEW
REINVESTMENT IN NORTH AMERICAN MANUFACTURING
A CULTURE OF SOCIAL RESPONSIBILIT Y
ETHAN ALLEN BY THE NUMBERS
101213864 Welcome to the
INTERIOR
DESIGN
DESTINATION
172
DESIGN CENTERS IN
NORTH AMERICA
Manufacturing Plants
Distribution Centers
Home Delivery Centers
Design Centers
4 NEW OR RELOCATED
DESIGN CENTERS:
13% in the past five years
47% in the past ten years
VERTICALLY
INTEGRATED
from concept to delivery
Since we purchased our Beecher Falls workshop in 1936, our vertically
integrated structure has been both a strategic and branding advantage.
We design our own upholstery and case goods products, manufacturing
about 75% in our North American workshops.
We sell Ethan Allen-branded products in our retail Design Centers, which
are typically located in busy retail settings as freestanding destinations or
as part of town centers, lifestyle centers, and suburban shopping malls.
Our logistics network is integrated from manufacturing to the the point of
delivery at a client’s home.
Hartsdale, NY
[Farooq] Kathwari has
built incomparability into
the Ethan Allen brand by
keeping his eye firmly
fixed on the company, its
operations, the customers,
and especially its people
who bring its tradition,
heritage, vision and
mission to life.
– FORBES MAGAZINE
a continual focus on
REINVENTION
Our quest to continually reinvent ourselves as the Interior Design Destination
has prompted unprecedented changes in the projections at Design Centers
throughout our retail network. Clients can come into a Design Center, no matter
its size, and find incredible resources—furniture, fabrics, accents, window treatments,
and more—plus state-of-the-art technology that enables them to preview the
future of their homes in 3D and 4K.
Following the transformations, even smaller Design Centers will have projections
that show the scope of what we offer, from formal to casual to modern, along
with programs like custom dining. Then, through touchscreen previews and
3D room planning, along with our library of samples, our designers will help
clients create interior designs and customize products to their liking.
This commitment to combining technology with personal service is part of why
customers, when surveyed by Newsweek and Statista, named us one of America’s
Best Retailers and recognized us as America’s #1 Premium Furnishings retailer.
6
a continual focus on
REINVENTION
GRAND REOPENINGS
Starting with our flagship Danbury,
Connecticut, Design Center, adjacent
to our headquarters, we began
marking our transformation with
Grand Reopening celebrations.
INVOLVING OUR
COMMUNITIES
Each Design Center was given
access to a specially created event
kit to promote their events through
direct mail, in-store signage,
and local media, plus takeways
including magazines and design
service brochures.
Farooq Kathwari with Dean Esposito,
Mayor of Danbury, CT
Choloma, Honduras
CLASSIC DESIGN
from a modern point of view
Our talented team of more than 1,000 interior designers does more than just
place furniture in homes; they provide whole-home interior design solutions for
our clients. Centering our business around a made-to-order model enables us to
maintain an extensive catalog of products, plus customizations that can be made
on demand.
Through customization, we project ourselves as an aspirational luxury brand,
offering truly handcrafted furnishings that can be personalized with the help of
an interior designer. An immense selection of frames, fabrics, leathers, finishes,
and accents provides a bottomless toolkit with which designers can showcase our
philosophy—classic design, modern perspective—in ways they can personalize
to each client.
Fiscal 2023 saw product extensions across each category, including a significant
expansion to our upholstery Quick Ship program, a new line of custom desks,
a new Outdoor collection, and an expanded selection of accents.
DESIGN TECHNOLOGY
With our 3D room planner, clients
can see proposed interior designs
from both an overhead and in-
room perspective. Via a link sent
from their interior designer, clients
can also take an immersive 4K
walk-through of their proposed
room layout.
8 Ethan Allen’s position as a
truly exceptional retailer...
suggests it is the most loved
American furniture brand
and the one more Americans
aspire to own.
– FORBES MAGAZINE
A DISCIPLINED
MARKETING APPROACH
We develop relevant, aspirational
creative messaging and convey
it through a variety of channels,
including digital and direct mail
magazines. Recognizing that our
clients increasingly spend time in
digital spaces, we utilize digital
marketing to drive traffic to
our Design Centers.
reinvestment in
NORTH AMERICAN
MANUFACTURING
Mixing traditional handcraftsmanship techniques that have been part of our
manufacturing process for years with recent investments in cutting-edge technology,
we make approximately 75% of our products in our own North American workshops.
We design our own upholstery and case goods products, all sold under one brand
name. We also operate an integrated logistics network, from manufacturing to the client’s
home, utilizing air freight, ocean vessels, trucks, and trains for safe, on-time delivery.
To uphold our quality commitment, we continue to manage specific processes, including
milling much of our own wood, inspecting any lumber that we purchase, and kiln-drying
all wood to ensure correct moisture content. We also tailor all upholstery by hand, using
fabrics that meet or exceed industry standards and leathers that we cut and color-blend
in our workshops.
10 Our workshops
Wood furniture
Beecher Falls, VT: sawmill and machining,
336,000 sq. ft. of manufacturing capacity
Orleans, VT: machining, veneering, and finishing,
666,000 sq. ft. of manufacturing capacity
Pine Valley, NC: lumber processing,
63,000 sq. ft.
Choloma, Cortes, Honduras: machining through finishing,
241,000 sq. ft. of manufacturing capacity
Upholstery
Maiden/Claremont, NC: fabric upholstery,
736,000 sq. ft. of manufacturing capacity
Silao, Guanajuato, Mexico: fabric and leather upholstery,
572,000 sq. ft. of manufacturing capacity
Our distribution centers
Our wholesale distribution centers ship to approximately
50 retail service centers as well as to all international retailers.
Dublin, VA
631,000 sq. ft. of warehouse and parts fulfillment capacity
Pine Valley, NC
490,000 sq. ft. of warehouse capacity
Maiden, NC
54,000 sq. ft. of warehouse capacity
Upholstery manufacturing
Maiden, NC
Choloma, Honduras
A CULTURE OF
SOCIAL RESPONSIBILITY
PRESERVING OUR
RESOURCES
Most of the wood we source
for domestic production comes
from responsibly managed
Appalachian forests, and we have
been Verified Sustainable and
Legal by Appalachian Hardwood
Manufacturers, Inc.
We aim to build a collaborative culture that emphasizes
proud to say that 70% of our retail division leaders and
dignity and respect for all our associates while offering
65% of our company leaders are women.
equal opportunity across our global organization.
For the fourth year in a row, Ethan Allen’s upholstery
manufacturing operation in Silao, Guanajuato, Mexico,
has been named “Empresa Socialmente Responsable”
(Environmentally and Socially Responsible) by the
Mexican Center for Corporate Philanthropy and the
Alliance for Corporate Social Responsibility, in addition to
receiving multiple Great Place to Work® Mexico awards.
The annual health fair that we provide for our associates in
Honduras has been named Best Health Fair for multiple
years by the Medical Enterprise System of the Honduras
Institute of Social Security.
We continue to develop impactful practices to make
our company more diverse and inclusive by supporting
diversity awareness, maintaining an inclusive environment
free from discrimination of any kind, including sexual or
other discriminatory harassment and offering multiple
avenues, including a confidential whistleblower hotline,
through which to report inappropriate behavior. We also
work to enhance quality of life in the communities in which
we work and live, developing partnerships that enable
associates to feel both a sense of connection to and
pride in their communities. Teams in our North American
workshops, including in North Carolina and Vermont,
We work every day to capitalize on the talents of our
support their communities through local food drives and
diverse workforce through recognition and promotion to
community sponsorships.
leadership positions. Furthermore, as a U.S. government
contractor, we follow federal Equal Opportunity
Employment standards, ensuring freedom from
discrimination on the basis of protected classes. We are
Our work to cut our carbon footprint, greenhouse
emissions, electrical and water usage, and landfill waste
continues, as does our commitment to prioritizing
responsible forestry and materials that are not harmful
to the environment.
12 by the numbers
LEADERSHIP
70%
of retail leaders
are women
65%
of company
leaders are
women
RETAIL
More than
1,000
interior
designers
172
159,000+
Design Centers in
North America
3D room
plans created
MANUFACTURING
5
case goods
(wood furniture)
plants
5
upholstery
plants
75%
of products made
in our own
workshops
2.6 million
sq. ft. of
manufacturing
and dry-kiln
capacity
DISTRIBUTION & DELIVERY
1.2 million
sq. ft. of
warehouse and
parts fulfillment
capacity
50
North American
retail service
centers providing
Premier In-Home
Delivery
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CONSOLIDATED SALES &
OPERATING MARGIN
Consolidated Net Sales
Adjusted Operating Margin (a)
Millions
$575
$600
$625
$650
$675
$700
$725
$750
$775
$800
$825
2023
2022
2021
$791.4
16.9%
$817.8
16.4%
$685.2
11.7%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10% 11% 12% 13% 14% 15% 16% 17%
(a) See reconciliation of U.S. GAAP to adjusted key financial measures in the back of this annual report.
TOTAL SPECIAL &
REGULAR DIVIDENDS PAID
Cash Dividends Paid—Total
Dividend Yield
Millions
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2023
2022
2021
5.1%
$46.4
6.3%
$48.3
3.6%
$43.3
0%
1%
2%
3%
4%
5%
6%
7%
8%
Board of Directors
CORPORATE DATA
DIRECTORS
Farooq Kathwari
Chairman of the Board, President
and Chief Executive Officer
María Eugenia Casar
Former Under-Secretary-General,
United Nations
John J. Dooner Jr.
Chairman, The Dooner Group
David M. Sable
Co-Founder and Partner,
DoAble, LLC
Tara I. Stacom
Executive Vice Chairman,
Cushman & Wakefield
Cynthia Ekberg Tsai
Chief Executive Officer,
Tana Systems
Corporate Headquarters
Ethan Allen Interiors Inc.
25 Lake Avenue Ext.
Danbury, CT 06811
203.743.8000
ethanallen.com
Independent Registered
Public Accounting Firm
CohnReznick LLP
1301 6th Avenue
New York, NY 10019
212.297.0400
Investor Relations
Matt McNulty
Senior Vice President, Chief
Financial Officer & Treasurer
IR@ethanallen.com
Stock Exchange Listing
New York Stock Exchange
Ethan Allen Interiors Inc.
Trading Symbol: ETD
Transfer Agent
Computershare Investor
Services, LLC
211 Quality Circle, Suite 210
College Station, TX 77845
computershare.com
©2023 ETHAN ALLEN GLOBAL, INC.