Ethan Allen CEO on weak earnings: Impacted by government shutdown's impact on consumer confidence

Core Insights - The company experienced a decline in consumer confidence and traffic due to government shutdowns, impacting overall sales performance [1][2] - Despite challenges, written sales in the retail division increased by 5.2% during the quarter, indicating resilience in certain areas [2] - The company increased its marketing spend from 2.3% to 3.4% to strengthen its market position [3] Financial Performance - The company reported cash reserves of $194 million, up from $187 million the previous year, despite paying regular dividends of $0.39 per share and a special dividend of $6 million [4] - The company maintains a vertically integrated structure, manufacturing approximately 80% of its products in North America [4][5] Operational Strategy - The company has a strong interior design network and offers consistent delivery pricing across North America, enhancing customer service [6] - Continuous monitoring of tariff impacts is a priority, especially with manufacturing operations in Mexico and Honduras [7]