ETD — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-09-03

• Ethan Allen has kept a disciplined approach to core product assortment. Our focus on maximizing customization and client choice has helped us minimize unnecessary complexity. As a leading interior design destination, our strategy supports personalization and customization, allowing clients and desig…

• Our vertically integrated approach empowers us to introduce new products, oversee design specifications, and uphold consistent levels of excellence across all product lines. Alongside our seven manufacturing facilities in the U.S., we possess three upholstery manufacturing plants in Mexico and a cas…

• Our product assortment has increased in recent years, driven by substantial growth in Home Accents, Lighting, Outdoor, Area Rugs and expanded customization across Upholstery and Case Goods collections. The growth in our product assortment has been driven less by an increase in the number of SKUs, bu…

• A person who walks into an Ethan Allen design center isn’t met by a salesperson; they’re greeted by an interior designer qualified to solve a range of challenges, from simply recommending a piece of furniture to managing a whole-home redesign. Clients can collaborate with any of our professional des…

• Ethan Allen’s marketing strategy focuses on the promotion of our core brand differentiators: complimentary interior design service, quality and craftsmanship, customization, and premier home delivery. Our brand projection shows two important design perspectives: classic design, modern perspective; a…

Text removed vs the prior filing · source: 10-K · 2025-08-22

• For the third year in a row, Ethan Allen was named to Newsweek’s list of America’s Best Retailers, including America’s #1 Premium Furniture Retailer. The assessment and rankings were the result of an independent survey of customers who have shopped at retail stores in person in the past three years …

• We manufacture 75% of the furniture we offer by combining the craftsmanship of our skilled associates with technology in our North American facilities. Every product bears the distinctive quality of the Ethan Allen brand. Meticulously hand-guided stitching dress our upholstery frames and our case go…

• Our vertically integrated approach empowers us to introduce new products, oversee design specifications, and uphold consistent levels of excellence across all product lines. Alongside our seven manufacturing facilities in the U.S., we possess three upholstery manufacturing plants in Mexico and a cas…

• Ethan Allen’s marketing emphasizes our core brand values of quality and craftsmanship, combining personal service with technology, and a commitment to social responsibility. We amplify those values through our brand story built around a core projection and philosophy of Classics with a Modern Perspe…

• We consider our ethanallen.com website an extension of our retail design centers and not a separate segment of our business. Our website includes enhanced search capabilities, expanded live chat services, online appointment booking, and product listing and display pages. Most clients use our website…

Text added vs the prior filing · source: 10-K · 2026-09-03

• Online sales compete heavily on price as opposed to style, service and quality. A significant shift in consumer preference towards exclusively purchasing products online could have a materially adverse impact on our sales and operating margin as a majority of our sales are finalized within our physi…

• We are able to meet clients where they prefer to shop, through home calls, online or in the design center. However, a material shift to online only could significantly reduce our competitive advantage, which could lead to reduced sales. Evolving technologies are altering the manner in which the Comp…

• Artificial intelligence (“AI”) and agentic commerce could transform our industry and business model, and our failure to optimize these capabilities could adversely affect our competitive position.

• We use, and may over time increase our use of, AI technologies, including generative AI and autonomous or agentic commerce tools, to support certain business functions, including administrative, customer service, finance, marketing, and operational activities. However, these technologies are rapidly…

• The increasing use of AI, including generative AI and autonomous or agentic commerce tools, may materially change how consumers identify, evaluate, specify, purchase, and manage furniture and workplace solutions. These technologies could alter client expectations, affect the role of dealers, designe…

Text removed vs the prior filing · source: 10-K · 2025-08-22

• A majority of our business relies on physical brick and mortar design centers that merchandise and sell our products and a significant shift in consumer preference towards exclusively purchasing products online could have a materially adverse impact on our sales and operating margin. We are attempti…

• Evolving technologies are altering the manner in which the Company and its competitors communicate and transact with customers. Adoption of new technology and related changes in customer behavior present a specific risk in the event we are unable to successfully execute our technology plans or adjus…

• For example, the COVID-19 pandemic resulted in supply chain challenges for the entire home furnishings industry, including transportation delays, increases on shipping containers, extensive travel restrictions and temporary closing of businesses. If a similar pandemic or event should occur, it could…

• Changes in the political environment in the U.S. may require us to modify our current business practices. During fiscal 2025, the U.S. announced its intention and/or actively took actions to increase tariffs at various rates, including on certain products imported from many countries and individuali…

Text added vs the prior filing · source: 10-K · 2026-09-03

• Ethan Allen focuses on the key areas of talent, service, marketing, technology and social responsibility. Our initiatives to introduce new products, run strong marketing campaigns, invest in our North American manufacturing, and maintain our logistics network throughout North America has positioned …

• Foundation: Ethan Allen is rooted in our core values of quality, craftsmanship and personal service—values that have enabled us to navigate many economic and housing cycles. Through constant reinvention, including the evolution from a wholesale dealer business to a retail network, we have remained p…

• Business Model. Our vertical integration is a competitive advantage for us. Our North American manufacturing and logistics operations are an integral part of an overall strategy to maximize production efficiencies and maintain this competitive advantage. Our business model is to focus on providing r…

• Talent. At June 30, 2026, our employee count totaled 3,062, with 2,137 employees in our wholesale segment and 925 in our retail segment. Our employee count decreased 4.6% or 149 associates during fiscal 2026, with 47 fewer employees in retail and 102 fewer employees in wholesale. We continually look…

• Fiscal 2026 Financial Year in Review (1). Our financial performance during fiscal 2026 was highlighted by strong margins, positive operating cash flow and strong cash dividends supported by a robust balance sheet despite operating in a challenging macroeconomic environment. We were able to improve o…

Text removed vs the prior filing · source: 10-K · 2025-08-22

• We executed well throughout the fiscal year as the Company remained focused on five key areas: talent, service, marketing, technology and social responsibility. These areas of focus along with our interior design professionals combining personal service with technology contributed to Ethan Allen rec…

• Business Model. Our vertical integration is a competitive advantage for us. Our North American manufacturing and logistics operations are an integral part of an overall strategy to maximize production efficiencies and maintain this competitive advantage. Our business model is to maintain continued f…

• Talent. At June 30, 2025, our employee count totaled 3,211, with 2,239 employees in our wholesale segment and 972 in our retail segment. Our employee count decreased 5.7% or 193 associates during fiscal 2025, with 56 fewer employees in retail and 137 fewer employees in wholesale. We were pleased to …

• Fiscal 2025 Financial Year in Review (1). Our financial performance during fiscal 2025 was highlighted by strong margins, positive operating cash flow and a robust balance sheet despite operating in a challenging environment. We generated strong operating cash flow of $61.7 million, which helped us …

• The home furnishings industry has been challenged by lower consumer confidence, a weak housing market and uncertainty surrounding global trade policies including tariffs. Despite these challenges, our robust balance sheet and financial stability provide a solid foundation. We are confident in the st…

Text added vs the prior filing · source: 10-K · 2026-09-03

• Volatility and uncertainty within the global tariff environment is an ongoing market risk. Since the beginning of 2025, the U.S. government has announced several different tariff measures and regimes. On February 20, 2026, the U.S. Supreme Court invalidated certain tariffs imposed under IEEPA during…

• We are exposed to risk with respect to these tariffs assessed on raw materials, component parts, upholstered wooden furniture and finished goods we import into the U.S. We are also subject to risks relating to other changes affecting imports, as we manufacture components and finished goods in Mexico…

• The introduction of additional tariffs by the U.S. and reciprocal tariffs by other countries has led to incremental costs for our raw materials and finished goods and negatively impacted our wholesale and consolidated margins. To help offset the impact of these additional tariffs, we worked with our…

• Based on current operating levels, we estimate our annual tariff exposure to be approximately $15.0 million. Ongoing geopolitical dynamics may result in additional tariffs being imposed in the future. Should duties rise or additional tariffs be enacted, we will evaluate whether additional retail pri…

• Our inability to minimize the impact of tariffs on our raw material input costs, pass through price increases or find alternative sources for our raw materials, may have a material adverse impact on future earnings and liquidity. As such, we can make no assurances about the long-term impact on our c…

Text removed vs the prior filing · source: 10-K · 2025-08-22

• During fiscal 2025, the U.S. announced its intention and took actions to increase tariffs at various rates, including on certain products imported from many countries and individualized higher tariffs on certain other countries. Other countries have announced reciprocal tariffs or other similar acti…

• We are exposed to risk with respect to tariffs assessed on raw materials, component parts and finished goods we import into the U.S. We are also subject to risks relating to other changes affecting imports, as we manufacture components and finished goods in Mexico and Honduras. Our upholstery produc…

• Based on information currently available to us, the recent introduction of additional tariffs by the U.S. and reciprocal tariffs by other countries is expected to result in incremental costs for our imported raw materials and finished goods. These higher costs are expected to impact certain of our m…

• We continue to work to determine our overall tariff cost exposure, the potential impact of retaliatory responses thereto, if any, and mitigation plans. Our inability to minimize the impact of tariffs on our raw material input costs, pass through price increases or find alternative sources for our ra…

• We are exposed to market risk from changes in the cost of raw materials used in our manufacturing processes, principally wood, fabric and foam products. The cost of foam products, which are petroleum-based, is sensitive to changes in the price of oil. We are also exposed to risk with respect to tran…