Follow Jeff Gundlach And Short Housing Through This Home Furnishings Retailer
- A drop in home sales, as predicted by Jeff Gundlach, will decrease sales of home furnishing companies, particularly at the high-end.
- Ethan Allen Interiors, with the highest margins, is set to decline the most due to the shift in housing.
- Its growth strategy targets younger consumers, a shrinking market. This "new eclecticism" has so far been ineffective.
- Ethan Allen is trading at a premium to its peers. Due to differing quarter-end dates, this premium is also understated.