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

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