[Introduction and Executive Summary](index=1&type=section&id=Introduction%20and%20Executive%20Summary) Ethan Allen Interiors Inc. reports fiscal 2025 results, highlighting vertical integration, strategic focus, and key financial performance [Company Overview and Strategic Focus](index=1&type=section&id=Company%20Overview%20and%20Strategic%20Focus) Ethan Allen operates a vertically integrated enterprise, manufacturing approximately **75%** of its furniture in North America, and has been recognized as **America's 1 Premium Furniture Retailer** - Ethan Allen operates a **vertically integrated enterprise**, manufacturing approximately **75%** of its furniture in North American facilities[2](index=2&type=chunk) - Strategic focus areas include talent, service, marketing, technology, and social responsibility[2](index=2&type=chunk) - Named **America's 1 Premium Furniture Retailer** by Newsweek for the third year in a row[3](index=3&type=chunk) [Q4 and Full Year 2025 Performance Summary](index=1&type=section&id=Q4%20and%20Full%20Year%202025%20Performance%20Summary) For Q4 FY2025, Ethan Allen reported consolidated net sales of **$160.4 million**, a gross margin of **59.9%**, and adjusted diluted EPS of **$0.49** Fiscal 2025 Fourth Quarter Key Financials | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :----------------------- | :---------- | :---------- | :----- | | Consolidated Net Sales | $160.4M | $168.6M | -4.9% | | Gross Margin | 59.9% | 60.8% | -0.9 pp | | Adjusted Operating Income | $15.6M | N/A | N/A | | Adjusted Operating Margin | 9.7% | 13.1% | -3.4 pp | | Adjusted Diluted EPS | $0.49 | $0.70 | -30.0% | | Operating Cash Flow | $24.8M | $26.2M | -5.3% | - Retail segment written orders **increased 1.6%** in Q4 FY2025[2](index=2&type=chunk)[4](index=4&type=chunk) - Declared a special cash dividend of **$0.25 per share** and a regular quarterly cash dividend of **$0.39 per share**, both payable on August 28, 2025[2](index=2&type=chunk) [Fiscal 2025 Fourth Quarter Highlights](index=1&type=section&id=FISCAL%202025%20FOURTH%20QUARTER%20HIGHLIGHTS) Review of Ethan Allen's Q4 FY2025 financial and operational performance, including sales, margins, and written orders [Key Financial Metrics (Q4)](index=1&type=section&id=Key%20Financial%20Metrics%20(Q4)) For the fourth quarter of fiscal 2025, consolidated net sales decreased by **4.9%** to **$160.4 million**, with gross margin at **59.9%** and adjusted diluted EPS at **$0.49** Q4 FY2025 Financial Performance | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :----------------------- | :---------- | :---------- | :----- | | Consolidated Net Sales | $160.4 million | $168.6 million | -4.9% | | Retail Net Sales | $138.5 million | $145.1 million | -4.6% | | Wholesale Net Sales | $87.2 million | $91.2 million | -4.3% | | Consolidated Gross Margin | 59.9% | 60.8% | -0.9 pp | | Operating Margin | 9.5% | 13.4% | -3.9 pp | | Adjusted Operating Margin | 9.7% | 13.1% | -3.4 pp | | Diluted EPS | $0.48 | $0.72 | -33.3% | | Adjusted Diluted EPS | $0.49 | $0.70 | -30.0% | | Operating Cash Flow | $24.8 million | $26.2 million | -5.3% | [Operational Highlights (Q4)](index=1&type=section&id=Operational%20Highlights%20(Q4)) In Q4 FY2025, retail segment written orders **increased 1.6%**, while wholesale orders **decreased 6.8%**, with advertising expenses rising to **3.4%** of sales - Retail segment written orders **increased 1.6%** YoY[4](index=4&type=chunk) - Wholesale segment written orders **decreased 6.8%** YoY[4](index=4&type=chunk) - Advertising expenses increased to **3.4%** of sales, up from **2.8%** a year ago[4](index=4&type=chunk) - Paid cash dividends totaling **$10.0 million** (**$0.39 per share**) during the quarter[4](index=4&type=chunk) [Fiscal 2025 Full Year Highlights](index=2&type=section&id=FISCAL%202025%20FULL%20YEAR%20HIGHLIGHTS) Summary of Ethan Allen's full fiscal year 2025 financial results, operational achievements, and strategic investments [Key Financial Metrics (FY2025)](index=2&type=section&id=Key%20Financial%20Metrics%20(FY2025)) For the full fiscal year 2025, consolidated net sales were **$614.6 million**, a **4.9%** decrease, with gross margin at **60.5%** and operating cash flow at **$61.7 million** FY2025 Full Year Financial Performance | Metric | FY2025 | FY2024 | Change | | :----------------------- | :---------- | :---------- | :----- | | Consolidated Net Sales | $614.6 million | $646.2 million | -4.9% | | Retail Net Sales | $523.1 million | $540.6 million | -3.2% | | Wholesale Net Sales | $359.1 million | $371.1 million | -3.2% | | Consolidated Gross Margin | 60.5% | 60.8% | -0.3 pp | | Adjusted Operating Margin | 10.2% | 12.1% | -1.9 pp | | Diluted EPS | $2.01 | $2.49 | -19.3% | | Operating Cash Flow | $61.7 million | $80.2 million | -23.1% | | Total Cash and Investments | $196.2 million | $195.8 million | +0.2% | | Inventory Levels | $140.9 million | $142.0 million | -0.8% | [Operational and Strategic Achievements (FY2025)](index=2&type=section&id=Operational%20and%20Strategic%20Achievements%20(FY2025)) In fiscal 2025, Ethan Allen opened four new design centers, reduced headcount by **5.7%**, and received recognition for sustainability efforts - Retail segment written orders were **lower by 1.5%**, and wholesale segment written orders were **lower by 3.2%**[6](index=6&type=chunk) - Headcount **reduced by 5.7%** from a year ago and **32.2%** less than June 2019, indicating **operational efficiency**[2](index=2&type=chunk)[6](index=6&type=chunk) - Opened four new Company-operated design centers and plans for additional openings in fiscal 2026[6](index=6&type=chunk) - Awarded '**Most Improved**' by The Sustainable Furnishings Council for wood-sourcing policies and commitment to sustainable wood[6](index=6&type=chunk) - Invested **$11.3 million** in capital expenditures, an increase from **$9.6 million** a year ago[6](index=6&type=chunk) [Detailed Financial Performance](index=3&type=section&id=Detailed%20Financial%20Performance) In-depth analysis of Ethan Allen's GAAP and adjusted financial measures, balance sheet, cash flow, and dividend declarations [Key Financial Measures (GAAP & Adjusted)](index=3&type=section&id=KEY%20FINANCIAL%20MEASURES) Ethan Allen's detailed financial measures show a decline in net sales and profitability for both Q4 and full fiscal year 2025, while gross margin remained robust above **59%** Key Financial Measures (Q4 and FY2025) (in thousands $) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :----------------------- | :---------- | :---------- | :---------- | :---------- | | Net sales | $160,357 | $168,632 | $614,649 | $646,221 | | Gross profit | $96,059 | $102,461 | $372,121 | $393,062 | | Gross margin | 59.9% | 60.8% | 60.5% | 60.8% | | GAAP operating income | $15,269 | $22,627 | $61,988 | $77,991 | | Adjusted operating income | $15,588 | $22,047 | $62,895 | $77,914 | | GAAP operating margin | 9.5% | 13.4% | 10.1% | 12.1% | | Adjusted operating margin | 9.7% | 13.1% | 10.2% | 12.1% | | GAAP net income | $12,268 | $18,513 | $51,596 | $63,816 | | Adjusted net income | $12,505 | $18,080 | $52,271 | $63,758 | | GAAP diluted EPS | $0.48 | $0.72 | $2.01 | $2.49 | | Adjusted diluted EPS | $0.49 | $0.70 | $2.04 | $2.49 | | Cash flows from operating activities | $24,817 | $26,241 | $61,696 | $80,195 | [Balance Sheet and Cash Flow Analysis](index=3&type=section&id=BALANCE%20SHEET%20and%20CASH%20FLOW) Ethan Allen concluded fiscal 2025 with a robust balance sheet, maintaining **$196.2 million** in cash and investments and **no outstanding debt** Key Balance Sheet and Cash Flow Data (FY2025) | Metric | June 30, 2025 | June 30, 2024 | Change | | :-------------------------- | :-------------- | :-------------- | :----- | | Cash and investments | $196.2 million | $195.8 million | +0.2% | | Cash from operating activities | $61.7 million | $80.2 million | -23.1% | | Cash dividends paid | $50.1 million | $50.3 million | -0.4% | | Capital expenditures | $11.3 million | $9.6 million | +17.7% | | Inventories, net | $140.9 million | $142.0 million | -0.8% | | Customer deposits | $75.1 million | $73.5 million | +2.2% | | Wholesale backlog | $48.9 million | $53.5 million | -8.5% | - **No outstanding debt** at June 30, 2025[12](index=12&type=chunk) [Dividends Declared](index=3&type=section&id=DIVIDENDS) Ethan Allen declared a special cash dividend of **$0.25 per share** and a regular quarterly cash dividend of **$0.39 per share**, marking the **fifth consecutive year** of special dividends - Special cash dividend of **$0.25 per share** declared on July 29, 2025[13](index=13&type=chunk) - Regular quarterly cash dividend of **$0.39 per share** declared on July 29, 2025[13](index=13&type=chunk) - Both dividends payable on August 28, 2025[13](index=13&type=chunk) - This marks the **fifth consecutive year** of declaring and paying a special cash dividend[13](index=13&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) Essential corporate details including conference call information, company profile, non-GAAP measures, and forward-looking statements [Conference Call Details](index=3&type=section&id=CONFERENCE%20CALL) Ethan Allen will host a conference call on July 30, 2025, at 5:00 p.m. Eastern Time to discuss its fiscal results, with a live webcast and archived recording available - Conference call scheduled for July 30, 2025, at 5:00 p.m. Eastern Time[14](index=14&type=chunk) - Live webcast available on the Company's Investor Relations website (https://ir.ethanallen.com), with an archived recording for up to six months[14](index=14&type=chunk)[15](index=15&type=chunk) [About Ethan Allen (Company Profile)](index=4&type=section&id=ABOUT%20ETHAN%20ALLEN) Ethan Allen is a leading interior design destination, recognized as **America's 1 Premium Furniture Retailer**, manufacturing approximately **75%** of its custom furniture in North America - Ethan Allen is a leading interior design destination, combining state-of-the-art technology with personal service[16](index=16&type=chunk) - Manufactures about **75%** of its custom-crafted furniture in its own North American manufacturing facilities[16](index=16&type=chunk) - Operates 172 retail design centers in North America, including 142 Company-operated and 30 independently owned and operated locations[6](index=6&type=chunk) [About Non-GAAP Financial Measures](index=4&type=section&id=ABOUT%20NON-GAAP%20FINANCIAL%20MEASURES) Ethan Allen utilizes non-GAAP financial measures, such as adjusted operating income and diluted EPS, to complement GAAP statements and provide enhanced transparency into operating results - Non-GAAP financial measures include adjusted operating income and margin, adjusted net income, and adjusted diluted EPS[17](index=17&type=chunk) - These measures are used for financial and operational decision-making and to evaluate period-to-period comparisons, providing useful information about operating results[17](index=17&type=chunk) - Investors should consider non-GAAP measures in addition to, and not as a substitute for, GAAP financial performance measures[17](index=17&type=chunk) [Forward-Looking Statements](index=4&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section contains forward-looking statements reflecting management's beliefs, subject to risks and uncertainties that could cause actual results to differ materially - Forward-looking statements represent management's beliefs and assumptions concerning current expectations, projections, or trends relating to results of operations, financial results, and strategic initiatives[18](index=18&type=chunk) - These statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations[20](index=20&type=chunk) - Readers should not place undue reliance on these statements, as many factors are beyond the Company's ability to control or predict[21](index=21&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Presentation of Ethan Allen's unaudited condensed consolidated statements of comprehensive income, balance sheets, and non-GAAP reconciliations [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) The unaudited condensed consolidated statements of comprehensive income show a year-over-year decrease in net sales, gross profit, operating income, and net income for both the three and twelve months ended June 30, 2025 Condensed Consolidated Statements of Comprehensive Income (Selected Data) (in thousands $) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :----------------------------------- | :---------- | :---------- | :---------- | :---------- | | Net sales | $160,357 | $168,632 | $614,649 | $646,221 | | Cost of sales | $64,298 | $66,171 | $242,528 | $253,159 | | Gross profit | $96,059 | $102,461 | $372,121 | $393,062 | | Selling, general and administrative expenses | $80,791 | $80,414 | $309,790 | $315,148 | | Operating income | $15,269 | $22,627 | $61,988 | $77,991 | | Net income | $12,268 | $18,513 | $51,596 | $63,816 | | Net income per diluted share | $0.48 | $0.72 | $2.01 | $2.49 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the condensed consolidated balance sheet indicates a slight decrease in total assets and liabilities, with increased cash and long-term investments, and **no outstanding debt** Condensed Consolidated Balance Sheets (Selected Data) (in thousands $) | Asset/Liability | June 30, 2025 | June 30, 2024 | Change | | :-------------------------------- | :-------------- | :-------------- | :----- | | Total ASSETS | $737,099 | $744,917 | -1.1% | | Cash and cash equivalents | $76,178 | $69,710 | +9.3% | | Investments, short-term | $59,955 | $91,319 | -34.4% | | Investments, long-term | $60,030 | $34,772 | +72.6% | | Inventories, net | $140,893 | $142,040 | -0.8% | | Total LIABILITIES | $254,830 | $262,001 | -2.8% | | Customer deposits | $75,068 | $73,471 | +2.2% | | Total SHAREHOLDERS' EQUITY | $482,269 | $482,916 | -0.1% | - **No outstanding debt** at June 30, 2025[12](index=12&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides a detailed reconciliation of GAAP to adjusted non-GAAP financial measures, including operating income, net income, and diluted EPS, with key adjustments for fiscal 2025 Reconciliation of GAAP to Adjusted Financial Measures (Q4 and FY2025) (in thousands $) | Metric | Q4 FY2025 GAAP | Q4 FY2025 Adj. | FY2025 GAAP | FY2025 Adj. | | :-------------------------- | :------------- | :------------- | :---------- | :---------- | | Operating income | $15,269 | $15,588 | $61,988 | $62,895 | | Operating margin | 9.5% | 9.7% | 10.1% | 10.2% | | Net income | $12,268 | $12,505 | $51,596 | $52,271 | | Diluted EPS | $0.48 | $0.49 | $2.01 | $2.04 | Adjustments to GAAP Financial Measures (Pre-tax) (in thousands $) | Adjustment Type | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------------- | :--------- | :--------- | :------- | :------- | | Orleans, Vermont flood | $19 | $- | $92 | $2,243 | | Gain on sale-leaseback | $- | $(654) | $(218) | $(2,620) | | Severance and other charges | $300 | $74 | $1,033 | $300 | | Total Adjustments | $319 | $(580) | $907 | $(77) |

Core Insights - Ethan Allen Interiors Inc. reported its fiscal 2025 results, highlighting a strong performance despite economic challenges, with a focus on its vertically integrated business model and operational efficiency [2][3] Financial Performance - For the fourth quarter ended June 30, 2025, consolidated net sales were $160.4 million, down from $168.6 million in the prior year, reflecting a 4.9% decrease [6][23] - Gross margin for the fourth quarter was 59.9%, compared to 60.8% in the previous year, indicating a slight decline [6][23] - Adjusted operating income for the fourth quarter was $15.6 million, with an adjusted operating margin of 9.7%, down from 13.1% a year ago [6][29] - The company generated $24.8 million in operating cash flow during the fourth quarter, compared to $26.2 million in the prior year [6][10] Dividends and Shareholder Returns - The company paid a total of $10.0 million in cash dividends during the fourth quarter, with a regular quarterly cash dividend of $0.39 per share and a special cash dividend of $0.25 per share approved for payment on August 28, 2025 [2][13] - Total cash dividends paid during fiscal 2025 amounted to $50.1 million, including a special cash dividend of $0.40 per share paid in August 2024 [11][13] Operational Highlights - The company has reduced its headcount by 5.7% year-over-year and 32.2% since 2019, reflecting a focus on operational efficiency [2][8] - Retail segment written orders increased by 1.6% in the fourth quarter, while wholesale segment written orders decreased by 6.8% [6][12] - The company opened four new design centers during fiscal 2025 and plans to open additional locations in fiscal 2026 [8][12] Recognition and Brand Strength - Ethan Allen was named America's 1 Premium Furniture Retailer by Newsweek for the third consecutive year, underscoring its commitment to quality and customer service [3][15] - The company celebrated its 93-year heritage and was recognized for its sustainable wood-sourcing policies [8][12]

Core Insights - Ethan Allen has been recognized as America's 1 Premium Furniture Retailer for three consecutive years, according to surveys conducted by Newsweek and Statista [2][7] - The ranking is based on consumer recommendations and ratings across various categories, including product quality, customer service, and store atmosphere [2] Company Performance - The company's President and CEO, Farooq Kathwari, attributes the success to dedicated associates, a commitment to North American manufacturing, and a blend of personal service with technology [3] - Ethan Allen manufactures approximately 75% of its products in its own workshops, ensuring high quality and competitive pricing [3] Service and Offerings - The company provides complimentary interior design services at its Design Centers, where professional designers assist clients from concept to delivery [3] - Services include guidance on furniture selection, décor, color schemes, and room layouts, enhanced by advanced 3D imaging and 4K animations [3] Company Background - Ethan Allen is a vertically integrated company, managing the entire process from product design to logistics, and has been recognized for its craftsmanship since 1932 [4] - The company operates a mix of company-operated and independent licensee locations, offering a full range of home furnishings [4]

Group 1 - Ethan Allen Interiors Inc. will release its financial and operating results for the fiscal 2025 fourth quarter and full year on July 30, 2025, after market close [1] - A conference call to discuss the results will be held at 5:00 p.m. Eastern Time on the same day, which will be webcast live [2] - An archived recording of the conference call will be available for six months on the Company's Investor Relations website, with a telephone replay available for one month [2] Group 2 - Ethan Allen is recognized as America's 1 Premium Furniture Retailer by Newsweek and is a leading interior design destination [3] - The Company offers complimentary interior design services and a full range of home furnishings, including custom furniture and artisan-crafted accents [3] - Approximately 75% of Ethan Allen's custom-crafted furniture is manufactured in its own North American facilities, highlighting its vertical integration from product design to logistics [3]

Company Overview - Ethan Allen is a manufacturer and retailer of home furnishings, founded in Vermont and headquartered in Danbury, Connecticut [1] - The company was established in 1932 and opened its first sawmill in 1936 in Beecher Falls, Vermont [2] - Ethan Allen manufactures approximately 75% of its furniture in North America, with production facilities in Vermont, North Carolina, Mexico, and Honduras [2] Commitment to Local Manufacturing - The company has maintained a commitment to local manufacturing, producing most of its furniture close to home, contrasting with many competitors who have moved production overseas [3] - This dedication to local craftsmanship has been a core value for the company over its 93-year history [3] Retail and Community Engagement - Ethan Allen operates over 170 retail Design Centers across North America, providing complimentary interior design services and a full range of home furnishings [4] - To support local communities, many Design Centers will conduct food drives in partnership with local charities, starting on June 23 and continuing through July [3] Recognition and Quality - Ethan Allen has been recognized as America's 1 Premium Furniture Retailer by Newsweek, highlighting its status as a leading interior design destination [4] - The company emphasizes quality and craftsmanship in its products, which have been a hallmark since its inception [4]

Group 1 - The furniture industry is characterized by commoditized products, intense competition, and vulnerability to consumer preferences and economic fluctuations, which poses challenges for success [1] - Crude Value Insights focuses on the oil and natural gas sector, emphasizing cash flow generation and identifying companies with value and growth potential [1] Group 2 - Subscribers to Crude Value Insights gain access to a stock model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2] - A two-week free trial is available for new subscribers to explore the oil and gas investment opportunities [3]

Core Viewpoint - Ethan Allen Interiors Inc experienced a 2.5% decline in fiscal third-quarter sales, attributed to significant drops in order intake during January and February, with an 11% decline in order intake following a 14% increase in the previous quarter [1][2]. Group 1: Financial Performance - The company reported earnings of 38 cents per share, which fell short of the consensus estimate of 46 cents per share [2]. - Fiscal 2025 earnings estimates have been reduced from $2.32 per share to $2.00 per share, which is lower than the current consensus of $2.36 per share [2]. - Sales are expected to decline by 6.6%, an increase from the previous estimate of 3.5% [2]. Group 2: Analyst Insights - Telsey Advisory Group's Cristina Fernández maintained a Market Perform rating and lowered the price target from $32 to $30 [1]. - Concerns were raised regarding deteriorating traffic and sales trends, despite confidence in managing incremental costs from tariffs [3]. Group 3: Market Reaction - Shares of Ethan Allen fell by 9.82% to $26.27 at the time of publication [3].

分组1 - Ethan Allen reported quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.45 per share, and down from $0.48 per share a year ago, representing an earnings surprise of -15.56% [1] - The company posted revenues of $142.7 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.13%, and down from $146.42 million year-over-year [2] - Over the last four quarters, Ethan Allen has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] 分组2 - The current consensus EPS estimate for the coming quarter is $0.71 on revenues of $166.4 million, and for the current fiscal year, it is $2.32 on revenues of $623.8 million [7] - The Zacks Industry Rank indicates that the Retail - Home Furnishings sector is currently in the bottom 10% of over 250 Zacks industries, which may negatively impact stock performance [8] - The estimate revisions trend for Ethan Allen is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Ethan Allen Interiors (ETD) Q3 2025 Earnings Call May 05, 2025 05:00 PM ET Company Participants Matt McNulty - Senior VP, Treasurer & CFOFarooq Kathwari - Chairman, President & CEOBrad Thomas - Associate Director of Research Conference Call Participants Cristina Fernández - Managing Director & Senior Equity Research Analyst Operator Good afternoon, and welcome to the Ethan Allen Fiscal twenty twenty five Third Quarter Analyst Conference Call. At this time, all participants are in a listen only mode. A quest ...

Financial Data and Key Metrics Changes - Consolidated net sales were $142.7 million, reflecting lower delivered unit volume, partially offset by higher average ticket price and improved contract sales [9][10] - Gross margin was strong at 61.2%, driven by lower raw material input costs and leveraging investments in technology [12] - Adjusted diluted EPS was $0.38 compared to $0.48 a year ago, but was 23% higher than in 2019 [13] - The effective tax rate was 23.4%, down 170 basis points from a year ago due to recent audit settlements [13] - Cash generated from operating activities was $10.2 million, with total cash and investments at $183 million and no outstanding debt [14] Business Line Data and Key Metrics Changes - Retail segment written orders were down 13.2%, while wholesale orders decreased by 11.2% [11] - Wholesale backlog was $54.6 million at March 31, representing a decline in the last three months [12] - Adjusted operating margin was 8%, compared to 10% a year ago, but improved by 180 basis points compared to pre-pandemic levels [12] Market Data and Key Metrics Changes - Current demand levels reflect challenges from tariffs, economic uncertainty, elevated interest rates, and a challenging housing market [11] - The month of January and February faced challenges due to weather and reduced traffic, but March saw modest demand growth [11] Company Strategy and Development Direction - The company focuses on continual reinvention, utilizing technology to improve operations across various areas [8][17] - Plans to introduce new products over the next twelve months, emphasizing classic and modern design [21] - The company operates 75% of its furniture manufacturing in North America, which helps mitigate tariff impacts [18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about demand trends, noting a positive trend in May after a softer April [33][34] - The company remains disciplined in managing expenses and executing strategies despite the challenging environment [16] Other Important Information - The company opened new design centers in Middleton, Wisconsin, and Toronto, Canada, combining interior design services with technology [14] - The current dividend yield is 5.4%, one of the highest in the industry, with regular quarterly cash dividends being paid [15] Q&A Session Summary Question: How do tariffs affect Ethan Allen's positioning in the industry? - Management indicated that the company is less impacted by tariffs due to its North American manufacturing, with limited exposure to China [26][27] Question: Will price increases be necessary due to current cost pressures? - Management stated that so far, no price increases have been necessary, but they will monitor the situation [29][30] Question: How have demand trends changed in April and early May? - Management noted continued softness in April but observed a positive trend in May, with customers making good purchases when they visited [33][34] Question: How does the company plan to use promotions to drive traffic? - Management believes that increasing discounts is not necessary, as customers who visit are already purchasing [40][41] Question: What is the status of the State Department contract? - Management reported cautious buying from the State Department but confirmed that the contract remains in place [42][43] Question: How is the company managing increased SG&A expenses? - Management highlighted improved efficiency in marketing, achieving better reach with lower costs due to technology [44][45]