Vince Martin
Long/short equity, value, gambling

Ethan Allen Interiors: Management Might Have Been Right After All

I've been skeptical of Ethan Allen Interiors (NYSE:ETH) for some time. I'm not sure the "classic New England" tone of the brand fits all that well in the current furniture market, particularly as 'baby boomers' age out of the company's customer sweet spot. I started to get a little leery of management, particularly longtime CEO Farooq Kathwari, after the company's long-running overhaul was extended into a previously unmentioned "phase 4", and marketing and capital allocation strategies seemed to change rapidly amidst a (failed) proxy fight last year. Growth of late has been minimal - revenue has increased barely 1% on average over the past three fiscal years - and I found it difficult to get too excited about

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details