1、A N N U A L R E P O R T 2 0 1 5DEAR FELLOW SHAREHOLDERSWe are pleased with the progress we made during the fiscal year that ended June 30,2015.We greatly strengthened our offerings,our interior design network,and our North American manufacturing operations.We also invested in technology and strength
2、ened and refined our message.While making these major changes to our enterprise,we continued to improve our financial position and are positioned well for growth.The following is a brief overview of what we achieved in fiscal 2015:n Earnings per diluted share of$1.27,net sales of$754.6 million,and a
3、n operating margin of 8.7%.n Our wholesale division operating margin was 14.3%,and our retail divisions operating margin was 0.3%.n Paid$13.3 million in dividends and repurchased$16.5 million of our stock.n Inventories increased as planned by$5.6 million from June 30,2014,to support our expanded ass
4、ortment of in-stock products.n We put in place a new$150 million credit facility and redeemed the remaining$129.4 million balance of our outstanding senior notes.At the end of the fiscal year,we had$75 million outstanding under the new credit facility and total cash and securities of$86.4 million.n
5、With many initiatives implemented in 2015 in place,we are positioned for renewed growth.STRENGTHENED PRODUCT PROGRAMSDuring fiscal 2015,we introduced strong product programs.The first and second phases were launched during fiscal 2015,and the new products have been well received by our clients.We in
6、troduced the third phase to our retail network in July 2015,and these new products will be available to consumers later this fall.This major introduction of new products strengthens our brand as a home fashion leader and will be supported by increased marketing activities,including direct mail,telev
7、ision,and digital advertising.Our new products are classically designed,beautifully crafted,and fashionable yet exude a relaxed style attuned to todays more casual lifestyles.STRENGTHENED MANUFACTURING OPERATIONSWe have continued to invest in North American manufacturing;about 70%of our furniture pr
8、oducts are made in our workshops.During fiscal 2015,we continued the expansion and refinement of our North American manufacturing operations,including the addition of new finishing capacity in our North Carolina upholstery plant and a new rough mill in our North Carolina case goods plant.We also exp
9、anded capacity in our Mexico and Honduras plants.STRENGTHENED INTERIOR DESIGN NETWORKWe have continued to strengthen our interior design network by strengthening retail management,hiring qualified interior designers,and by further repositioning our Design Centers into smaller footprint locations in
10、lifestyle and town center locations.In fiscal 2015,we continued to open new Design Centers and relocate others.We opened new locations in:Chattanooga,TN;Charlotte,NC;Las Vegas,NV;and Homestead,PA.Our independent retailers opened new locations in:Marlton,NJ;Redding,CA;Houston,TX;Dubai,UAE;Doha,Qatar;
11、and Manila,Philippines.Plus 16 new locations have opened in China.In fiscal 2016,new Design Centers are are opening in:Wichita,KS;McCandless,PA;Hyannis,MA;Cranston,RI;Rockville,MD;and New York City.Our independent retailers are also opening and/or relocating several more international locations.The
12、majority of our Design Centers have refreshed their external and internal projections to present our new products in fresh,eclectic settings.INVESTMENTS IN TECHNOLOGYOur technological base was further strengthened this year.All of our designers are now equipped with tablets,which increase their prod
13、uctivity.We also expanded the number of touchscreen information centers in our Design Centers.We launched a rebranded website and are now in the final stages of fine-tuning our ecommerce offerings to launch later this fall.Our American journey began 83 years ago.Its a journey that has taken us from
14、America to the world and from maker of colonial furniture to leader in home fashion,as we continue to embrace international design influences to meet the ever-evolving,ever more sophisticated tastes of our clients.Because just as America is a melting pot of cultures,Americas classic design brand is
15、a fusion of people,ideas,and styles that seamlessly come together to create something unique.This journey would not have been possible except for the efforts and accomplishments of our talented associates in North America and elsewhere.We have an exciting fiscal 2016 ahead,and I thank all of our ass
16、ociates,clients,and shareholders for your continued support.Sincerely,FAROOQ KATHWARIChairman of the Board,President and CEO Ethan Allen Interiors Inc.DURING FISCAL 2015,WE IMPROVED OUR FINANCIAL POSITION AND POISED THE ORGANIZATION WELL TO GROW SALES AND PROFITS.BELOW ARE THE FIVE PRIORITIES THAT H
17、AVE BEEN OUR FOCUS OVER THE PAST TWELVE MONTHS.REFINING OUR VERTICAL INTEGRATION Because we design,source,and manufacture most of our products and then distribute,market,and deliver them,we control our costs,quality,and service.In fiscal 2015,we implemented several measures that improved productivit
18、y,including upgrading our rough mill and upholstery frame finish equipment.We also improved logistics by reengineering some of our packaging materials so that we could fit more products on our delivery trucks.INVESTING IN TECHNOLOGY In fiscal 2015,we reinforced our commitment to investing in technol
19、ogy throughout our vertically integrated enterprise.We continued to introduce state-of-the-art equipment in our North American manufacturing facilities,where we make about 70%of our furniture products.We also made major improvements to the user experience on our website and upgraded our retail syste
20、ms.PROJECTING A RELEVANT MESSAGETo further differentiate ourselves from our competitors,we continued to leverage our strong brand equity by finding creative and compelling ways to remind consumers of our tremendous range of products,professional designer services,extraordinary craftsmanship,and exte
21、nsive custom options.We consistently projected these messages across all media,including direct mail,digital,shelter magazines,TV,all relevant social platforms,and importantly,with the launch of our 328-page Muses book.DESIGNING A BRIGHT FUTUREDEVELOPING RELEVANT OFFERINGS In fiscal 2015,we continue
22、d to refine our product assortment and introduce new furniture and dcor.Customization has always been a major point of differentiation for us.We now offer even more ways to personalize our products.To name just a few,consumers can choose to add hand-applied gilding to select furniture styles and bea
23、utiful trim tapes to select window treatments.New product introductions will continue into 2016.STRENGTHENING OUR RETAIL NETWORK We continued to strengthen our retail division by adding qualified managers and designers.During fiscal 2015,several new Design Centers were opened in the U.S.and abroad.I
24、n addition,we prudently relocated several of our Design Centers to more appropriate locations with smaller footprints.As of June 30,2015,our global retail network included 144 company-operated Design Centers and 155 Design Centers operated by our independent retailers.These locations employ about 2,
25、000 interior design professionals.FINANCIAL HIGHLIGHTSSTATEMENT OF OPERATIONS DATA 2015 2014 2013Net sales$754,600$746,659$729,083Gross profit$411,163$406,496$398,349Operating income$65,934$69,636$60,437Net income$37,142$42,931$32,478 PER SHARE DATANet income per diluted share$1.27$1.47$1.11Diluted
26、weighted average common shares outstanding 29,182 29,276 29,239 BALANCE SHEET DATACash and securities(a)$86,390$135,836$103,563 Working capital$129,705$169,582$127,631 Current ratio 1.92 to 1 2.25 to 1 1.96 to 1Total assets$607,308$654,434$617,285 Total debt,including capital lease obligations$77,56
27、8$130,912$131,289 Shareholders equity$370,258$367,215$334,150 Debt as%of equity 20.9%35.6%39.3%Debt as%of capital 17.3%26.3%28.2%CASH RETURNED TO SHAREHOLDERSDividends paid$13,348$11,297$22,220Cost of shares repurchased$16,470 Number of shares repurchased 645,831 Amounts in thousands,except per shar
28、e data.Fiscal years ended June 30.(a)Includes cash and cash equivalents,marketable securities,and restricted cash and investments.1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington,D.C.20549 FORM 10-K (Mark One)X ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT
29、OF 1934 For the fiscal year ended June 30,2015 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-11692 Ethan Allen Interiors Inc.(Exact name of registrant as specified in its charter)Delaware 06-12752
30、88 (State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification No.)Ethan Allen Drive,Danbury,CT 06811 (Address of principal executive offices)(Zip Code)Registrants telephone number,including area code (203)743-8000 Securities registered pursuant to Section 12(b)of th
31、e Act:Title of Each Class Name of Each Exchange On Which Registered Common Stock,$.01 par value New York Stock Exchange,Inc.Securities registered pursuant to Section 12(g)of the Act:None(Title of Class)Indicate by check mark if the Registrant is a well-known seasoned issuer,as defined in Rule 405 of
32、 the Securities Act.X Yes No Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.Yes X No Indicate by check mark whether the Registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange
33、 Act of 1934 during the preceding 12 months(or for such shorter period that the Registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.X Yes No Indicate by check mark whether the Registrant has submitted electronically and posted on its
34、corporate Web site,if any,every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or such shorter period that the registrant was required to submit and post such files).X Yes No Indicate by check ma
35、rk if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein,and will not be contained,to the best of Registrants knowledge,in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K
36、.Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,or a smaller reporting company.See the definitions of“large accelerated filer,”“accelerated filer”and“smaller reporting company”in Rule 12b-2 of the Exchange Act(check one):Indica
37、te by check mark whether the Registrant is a shell company(as defined in Rule 12b-2 of the Act).Yes X No The aggregate market value of the Registrants common stock,par value$.01 per share,held by non-affiliates(based upon the closing sale price on the New York Stock Exchange)on December 31,2014,(the
38、 last day of the Registrants most recently completed second fiscal quarter)was approximately$813,244,000.As of July 31,2015,there were 28,407,119 shares of the Registrants common stock,par value$.01 per share,outstanding.DOCUMENTS INCORPORATED BY REFERENCE:Certain information contained in the Regist
39、rants definitive Proxy Statement for the 2015 Annual Meeting of stockholders,which will be filed with the Securities and Exchange Commission pursuant to Regulation 14A of the Securities Exchange Act of 1934,is incorporated by reference into Part III hereof.Large accelerated filer X Accelerated filer
40、 Non-accelerated filer Smaller reporting company ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 2 TABLE OF CONTENTS Item Page PART I 1.Business 3 1A.Risk Factors 11 1B.Unresolved Staff Comments 16 2.Properties 16 3.Legal Proceedings 17 4.Mine Safety Disclosures 18 PART II 5.Market for Registrants Common
41、 Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities 18 6.Selected Financial Data 20 7.Managements Discussion and Analysis of Financial Condition and Results of Operation 21 7A.Quantitative and Qualitative Disclosures About Market Risk 34 8.Financial Statements and Supplemen
42、tary Data 35 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 63 9A.Controls and Procedures 63 9B.Other Information 63 PART III 10.Directors,Executive Officers and Corporate Governance 64 11.Executive Compensation 64 12.Security Ownership of Certain Beneficial O
43、wners and Management and Related Stockholder Matters 64 13.Certain Relationships and Related Transactions,and Director Independence 64 14.Principal Accountant Fees and Services 64 PART IV 15.Exhibits and Financial Statement Schedules 64 Signatures 69 ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 3 PART
44、 I Item 1.Business Background Incorporated in Delaware in 1989,Ethan Allen Interiors Inc.,through its wholly-owned subsidiary,Ethan Allen Global,Inc.,and Ethan Allen Global,Inc.s subsidiaries(collectively,We,Us,Our,Ethan Allen or the Company),is a leading interior design company and manufacturer and
45、 retailer of quality home furnishings.Founded over 80 years ago,today we are a leading international home fashion brand doing business in North America,Europe,Asia and the Middle East.We are vertically integrated from design through delivery,affording our clientele a value equation of style,quality
46、and price that is unique to the industry.We offer complimentary interior design service to our clients and sell a full range of furniture products and decorative accents through and a network of approximately 300 design centers in the United States and abroad.The design centers represent a mix of in
47、dependent licensees and our own Company operated retail segment.We own and operate eight manufacturing facilities including five manufacturing plants and one sawmill in the United States and a manufacturing plant in each of Mexico and Honduras.Mission Statement Our primary business objective is to p
48、rovide our customers with a convenient,full-service,one-stop shopping solution for their home decorating needs by offering stylish,high-quality products at good value.In order to meet our stated objective,we have developed and adhere to a focused and comprehensive business strategy.The elements of t
49、his strategy,each of which is integral to our solutions-based philosophy,include(i)our vertically integrated operating structure,(ii)our stylish products and related marketing initiatives,(iii)our retail design center network,(iv)our people,and(v)our focus on providing design solutions.Operating Seg
50、ments Our products are sold through a dedicated global network of approximately 300 retail design centers.As of June 30,2015,the Company operated 144 design centers(our retail segment)and our independent retailers operated 155 design centers(as compared to 143 and 152,respectively,at the end of the
51、prior fiscal year).Our wholesale segment net sales include sales to our retail segment(which are eliminated in consolidation),and sales to our independent retailers.Our retail segment net sales accounted for 77%of our consolidated net sales in fiscal 2015.Our wholesale segment net sales to independe
52、nt retailers accounted for 23%,including approximately 13.5%of our net sales in fiscal 2015 to the ten largest independent retailers,who operate 96 design centers.Our independent retailer in China operated 75 of these locations at the end of fiscal 2015.Our wholesale and retail operating segments re
53、present strategic business areas of our vertically integrated business that operate separately and provide their own distinctive services(further outlined below).This vertical structure enables us to offer our complete line of home furnishings and accents more effectively while controlling quality a
54、nd cost.For certain financial information regarding our operating segments,see Note 15 to the Consolidated Financial Statements included under Item 8 of this Annual Report and incorporated herein by reference.Our home furnishings and accents are marketed and sold in a similar manner in our wholesale
55、 and retail segments,although the type of customer(wholesale versus retail)and the specific services that each operating segment provides are different.Within the wholesale segment,we maintain revenue information according to each respective product line(i.e.case goods,upholstery,or home accents and
56、 other).Case goods include items such as beds,dressers,armoires,tables,chairs,buffets,entertainment units,home office furniture,and wooden accents.Upholstery items include sleepers,recliners and other motion furniture,chairs,ottomans,custom ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 4 pillows,sofas,
57、loveseats,cut fabrics and leather.Skilled artisans cut,sew and upholster custom-designed upholstery items which are available in a variety of frame,fabric and trim options.Home accessory and other items include window treatments and drapery hardware,wall decor,florals,lighting,clocks,mattresses,beds
58、preads,throws,pillows,decorative accents,area rugs,wall coverings and home and garden furnishings.The allocation of retail sales by product line is similar to that of the wholesale segment(see table of wholesale net sales allocated by product line in the Wholesale Segment Overview below).We evaluate
59、 performance of the respective segments based upon revenues and operating income.Inter-segment transactions result,primarily,from the wholesale sale of inventory to the retail segment,including the related profit margin.Wholesale Segment Overview:Wholesale net sales for each of the last three fiscal
60、 years are summarized below(in millions):201520142013Wholesale net sales469.4$453.6$434.4$Fiscal Year Ended June 30,Wholesale net sales for each of the last three fiscal years,allocated by product line,were as follows:201520142013Case Goods34%36%37%Upholstered Products48%48%48%Home Accents and Other
61、18%16%15%100%100%100%Fiscal Year Ended June 30,The wholesale segment,principally involved in the development of the Ethan Allen brand,encompasses all aspects of design,manufacture,sourcing,sale,and distribution of our broad range of home furnishings and accents.Wholesale revenue is generated upon th
62、e wholesale sale and shipment of our products to our network of independently operated design centers and Company operated design centers(see Company operated retail comments below)through its national distribution center and one other smaller fulfillment center.During the past year,independent reta
63、ilers opened 22 new design centers and closed 17,seven of which were relocations.We continue to promote the growth and expansion of our independent retailers through ongoing support in the areas of market analysis,site selection,and business development.As in the past,our independent retailers are r
64、equired to enter into license agreements with us,which(i)authorize the use of certain Ethan Allen trademarks and(ii)require adherence to certain standards of operation,including a requirement to fulfill related warranty service agreements.We are not subject to any territorial or exclusive retailer a
65、greements in North America.The wholesale segment also develops and implements related marketing and brand awareness programs.Wholesale profitability includes(i)the wholesale gross margin,which represents the difference between the wholesale net sales price and the cost associated with manufacturing
66、and/or sourcing the related product,and(ii)other operating costs associated with wholesale segment activities.Approximately 70%of the products sold by the Company are manufactured in its North American plants.During fiscal 2015,the Companys manufacturing footprint increased by 125,000 square feet,fu
67、rther increasing throughput in our upholstery plants in North Carolina and Mexico.We operate four case good plants(two in Vermont including one sawmill,one in North Carolina,and one in Honduras),three upholstery plants(two at ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 5 our North Carolina campus,and
68、 one in Mexico)and one home accessory plant in New Jersey.We also source selected case goods,upholstery,and home accessory items from third-party suppliers domestically and abroad.As of June 30,2015,our wholesale backlog was$63.7 million(as compared to$44.9 million as of June 30,2014)which is antici
69、pated to be serviced in the first quarter of fiscal 2016.This backlog fluctuates based on the timing of net orders booked,manufacturing schedules and efficiency,the timing of sourced product receipts,the timing and volume of wholesale shipments,and the timing of various promotional events.Because or
70、ders may be rescheduled and/or canceled and the sourcing timing may change,the measure of backlog at a point in time may not necessarily be indicative of future sales performance.For the twelve months ended June 30,2015,net orders booked at the wholesale level,which includes orders generated by inde
71、pendently operated and Company operated design centers,totaled$487.4 million as compared to$452.6 million for the twelve months ended June 30,2014.In any given period,net orders booked may be impacted by the timing of floor sample orders received in connection with new product introductions.New prod
72、uct offerings may be made available to the retail network at any time during the year,including in connection with our periodic retailer conferences.Retail Segment Overview:Retail net sales for each of the last three fiscal years are summarized below(in millions):The retail segment sells home furnis
73、hings and accents to consumers through a network of Company operated design centers.The Company also offers access to its products to qualified independent interior designers through our interior design affiliate(“IDA”)program.Retail revenue is generated upon the retail sale and delivery of our prod
74、ucts to our retail customers through our network of service centers.Retail profitability reflects(i)the retail gross margin,which represents the difference between the retail net sales price and the cost of goods,purchased primarily from the wholesale segment,and(ii)other operating costs associated
75、with retail segment activities.We measure the performance of our design centers based on net sales and written orders booked on a comparable period basis.Comparable design centers are those which have been operating for at least 15 months.During the first three months of operations of newly opened(i
76、ncluding relocated)design centers,written orders are booked but minimal net sales are achieved through the delivery of products.Design centers we acquire from independent retailers are included in comparable design center sales in their 13th full month of Ethan Allen-owned operations.The frequency o
77、f our promotional events as well as the timing of the end of those events can also affect the comparability of orders booked during a given period.We pursue further expansion of the Company operated retail business by adding interior design professionals and expanding the IDA program,opening new des
78、ign centers,relocating existing design centers and,when appropriate,acquiring design centers from independent retailers.During fiscal 2015,we opened four new design centers,two of which were relocations.The geographic distribution of retail design center locations is included under Item 2 of Part I
79、of this Annual Report.Products Our strategy has been to position Ethan Allen as a preferred brand offering complimentary design service together with products of superior style,quality and value to provide consumers with a comprehensive,one-stop shopping solution for their home furnishing and interi
80、or design needs.In carrying out our strategy,we continue to expand our 201520142013Retail net sales579.7$580.7$578.3$Fiscal Year Ended June 30,ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 6 reach to a broader consumer base through a diverse selection of attractively priced products,designed to complem
81、ent one another,reflecting current fashion trends in home decorating.During fiscal 2015,the Company significantly strengthened its product offerings by introducing new products to retail consumers in case goods,upholstery,and home accents,by introducing a very large collection of new products and ex
82、isting products in new finishes under the umbrella of“Classics”.Regular product introductions,a broad range of styles and custom options within our upholstery and case good lines and expanded product offerings to accommodate todays home decorating trends,continue to define Ethan Allen,positioning us
83、 as a leader in home fashion.The interior of our design centers,which were substantially refreshed during the fiscal year,are organized to facilitate display of our product offerings,both in room settings that project the category lifestyle and by product grouping to facilitate comparisons of the st
84、yles and tastes of our clients.To further enhance the experience,technology is used to expand the range of products viewed by including content from our website in applications used on large touch-screen flat panel displays.We continuously monitor changes in home fashion trends through attendance at
85、 international industry events and fashion shows,internal market research,and regular communication with our retailers and design center design consultants who provide valuable input on consumer trends.We believe that the observations and input gathered enable us to incorporate appropriate style det
86、ails into our products to react quickly to changing consumer tastes.Product Development and Sourcing Activities Using a combination of on staff and outsourced product designers,we design the majority of the products we sell;all of which are branded Ethan Allen.This important facet of our vertically
87、integrated business enables us to control the design specifications and establish consistent levels of quality across our product offerings.We manufacture and/or assemble approximately 70%of the products we sell in our own North American plants making us one of the largest manufacturers of home furn
88、ishings in the United States.To capitalize on this vertical integration,during fiscal 2014 and during fiscal 2015 the Company undertook a significant redesign of products,which were introduced in the fall and spring of fiscal 2015,to take advantage of the Companys custom manufacturing capabilities i
89、n its North American plants.Our main manufacturing facilities are located in the Northeast and Southeast regions of the United States supported by an upholstery plant in Mexico and a case goods plant in Honduras.Our plants are located near sources of raw materials and skilled artisans.We source appr
90、oximately 30%of the products we sell from third-party suppliers,most of which are located outside the United States,primarily in Asia.We carefully select our sourcing partners and require them to provide products according to our specifications and quality standards.We believe that strategic investm
91、ents in our manufacturing facilities balanced with outsourcing from foreign and domestic suppliers will accommodate significant future sales growth and allow us to maintain an appropriate degree of control over cost,quality and service to our customers.We take pride in our“green”initiatives includin
92、g but not limited to the use of responsibly harvested Appalachian woods and expanded use of water based finishes and recycled materials in our products.In November 2013,after previously implementing the Enhancing Furnitures Environmental Culture(EFEC)environmental management system sponsored by the
93、American Home Furnishing Alliance(AHFA)at all of its domestic manufacturing facilities,our manufacturing division was awarded Sustainable by Design(SBD)registration which is the highest level of achievement under the EFEC program.The Company has also expanded its EFEC registration to all of its corp
94、orate distribution and home delivery service centers.SBD provides a framework for home furnishings companies to create and maintain a corporate culture of conservation and environmental stewardship by integrating socio-economic policies and sustainable business practices into their manufacturing ope
95、rations and sourcing strategies.ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 7 Raw Materials and Other Suppliers The most important raw materials we use in furniture manufacturing are lumber,veneers,plywood,hardware,glue,finishing materials,glass,laminates,fabrics,foam,and filling material.The various
96、 types of wood used in our products include cherry,ash,oak,maple,prima vera,African mahogany,birch,rubber wood and poplar.Fabrics and other raw materials are purchased both domestically and outside the United States.We have no significant long-term supply contracts,and have sufficient alternate sour
97、ces of supply to prevent disruption in supplying our operations.We maintain a number of sources for our raw materials,which we believe contribute to our ability to obtain competitive pricing.Lumber prices and availability fluctuate over time based on factors such as weather and demand.The cost of so
98、me of our raw materials such as foam and shipping costs are dependent on petroleum cost.Higher material prices,cost of petroleum,and costs of sourced products could have an adverse effect on margins.Appropriate amounts of lumber and fabric inventory are typically stocked to maintain adequate product
99、ion levels.We believe that our sources of supply for these materials are sufficient and that we are not dependent on any one supplier.We enter into standard purchase agreements with certain foreign and domestic suppliers to source selected case goods,upholstery,and home accessory items.The terms of
100、these arrangements are customary for the industry and do not contain any long-term contractual obligations on our behalf.We believe we maintain good relationships with our suppliers.Distribution and Logistics We distribute our products through two distribution centers,owned by the Company,strategica
101、lly located in Virginia and Oklahoma.These distribution centers provide efficient cross-dock operations to receive and ship product from our manufacturing facilities and third-party suppliers to our network of Company and independently operated retail service centers.Retail service centers prepare p
102、roducts for delivery into clients homes.At June 30,2015,the Company operated retail design centers were supported by 14 Company operated retail service centers plus 15 service centers operated by third parties.While we manufacture to custom order the majority of our products,we also stock selected c
103、ase goods,upholstery and home accents to provide for quick delivery of in-stock items and to allow for more efficient production runs.Wholesale shipments utilize our own fleet of trucks and trailers or are subcontracted with independent carriers.Approximately 89%of our fleet(trucks and trailers)is o
104、wned,with the remainder under capital lease agreements with remaining terms ranging from two to three years.Our practice has been to sell our products at the same delivered cost to all Company and independently operated design centers in North America,regardless of their shipping point.This policy c
105、reates pricing credibility with our wholesale customers while providing our retail network the opportunity to achieve more consistent margins by removing fluctuations attributable to the cost of shipping.Further,this policy eliminates the need for our independent retailers to carry significant amoun
106、ts of inventory in their own warehouses.As a result,we obtain more accurate consumer product demand information.Marketing Programs Our marketing and advertising strategies are developed to drive traffic into our network of design centers and to .We believe these strategies give Ethan Allen a strong
107、competitive advantage in the home furnishings industry.We create and coordinate print,digital and television campaigns nationally,as well as assist in international and local marketing and promotional efforts.The Companys network of approximately 300 retail ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES
108、 8 design centers,along with the independent members of the Interior Design Affiliate program,benefit from these marketing efforts,and we believe these efforts position us to consistently fulfill our brand promise as Americas Classic Design Brand.Our team of advertising specialists creates consisten
109、t,clear messages that Ethan Allen is a leader in home fashion,designer services and classic style,with everything for the well designed home.We use several forms of media to communicate our message,including television(national and local),direct mail,newspapers,shelter magazines,social media,and dig
110、ital advertising.These messages are also conveyed on our website at .A strong email marketing program delivers promotional messages,inspiration,design ideas and product brochures to a growing database of clients.Our national television,social media,online and print advertising campaigns are designed
111、 to leverage our strong brand equity,finding creative and compelling ways to remind consumers of our tremendous range of products,services,special programs,and custom options.Coordinated local television and print advertising also serve to support our national programs.The Ethan Allen direct mail ma
112、gazine,which emphasizes the eclectic mix of our wide breadth of products and services,is a key marketing tool.We publish these magazines and sell them to Company and independently operated design centers that use demographic information collected internally and through independent market research to
113、 target potential clients.Given the importance of this advertising medium,direct mail marketing lists are continually refined to target those consumers who are most likely to purchase,and improve the return on direct mail expenditures.Approximately 30 million copies of our direct mail magazine were
114、distributed to consumers during fiscal 2015.At we provide our clients and our associates with the tools they need to shop and design.The website,which was redesigned and re-launched in fiscal 2015,features inspiring photography,engaging video content,and a rich yet streamlined shopping experience.So
115、me of the newest features include an online gift registry,live chat,and our new interior design blog,The Muse.Those looking to shop our site can do so by product or by room in an easy-to-navigate format.The sites“My Projects”tool lets visitors create idea boards and even gives them the option of con
116、sulting with a design professional from their local Ethan Allen design center.Visitors to will also find all our latest news and promotional information.Nearly all of our products are available for purchase online.Ethan Allen also has local websites in various international regions to support our in
117、ternational licensees.These websites,some in local languages,provide a regionalized presentation of the brand while also linking to our main website.To enhance the Ethan Allen client experience,our design centers have interactive touchscreens,where users can browse our full product catalog,check out
118、 hundreds of fully designed rooms,print product descriptions,learn about promotions,and much more.Our design consultants utilize customized tablets so they can be more productive in our design centers and in our clients homes.Our social media content is updated regularly and offers fans and follower
119、s inspirational images,trend information,and design ideas,as well as tips for how to bring distinctive Ethan Allen style to their homes.We also have a robust and informative extranet available to our retailers and design professionals.It is the primary source of communication in and among members of
120、 our retail network.It provides information about ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 9 every aspect of the retail business at Ethan Allen,including advertising materials,prototype floor plan displays,and extensive product details.Retail Design Center Network Ethan Allen design centers are ty
121、pically located in busy retail settings as freestanding destinations or as part of suburban strip malls or shopping malls,depending upon the real estate opportunities in a particular market.Our design centers average approximately 16,000 square feet in size with 80%between 15,000 and 25,000 square f
122、eet.By combining technology with personal service in our design centers,the new and relocated design centers that we have opened in the past three fiscal years average 10,500 square feet.These smaller footprint design centers reflect our direction as we move forward in repositioning our retail desig
123、n center network.These new and relocated design centers also reflect our shift from destination and shopping mall locations to lifestyle centers that better project our brand and offer increased traffic opportunities.We maintain consistency of presentation throughout the retail design center network
124、 through a comprehensive set of standards and display planning assistance.These interior display design standards assist each design center in presenting a high quality image by using focused lifestyle settings and select product category groupings to display our products and information to facilita
125、te design solutions and to educate consumers.We also create a consistent brand projection through our exterior facades and signage.The establishment of these standards has helped position Ethan Allen as a leader in home furnishings retailing.We continue to strengthen the retail network with many ini
126、tiatives,including the opening of new and relocating design centers in desirable locations,updating presentations and floor plans,strengthening of the professionalism of our designers through training and certification,and the consolidation of certain design centers and service centers.People At Jun
127、e 30,2015,the Company had approximately 5,000 employees(“associates”),none of whom are represented by unions.We believe we maintain good relationships with our employees.The retail network,which includes both Company and independently operated design centers,is staffed with a sales force of interior
128、 design consultants and service professionals who provide customers with complimentary home decorating and interior design solutions.Our interior design associates receive specialty training with respect to the distinctive design and quality features inherent in each of our products and programs.Thi
129、s enables them to more effectively communicate the elements of style and value that serve to differentiate us from our competition.As such,we believe our design consultants,and the complimentary service they provide,create a distinct competitive advantage over other home furnishing retailers.We cont
130、inue to strengthen the level of service,professionalism,interior design competence,efficiency,and effectiveness of retail design center associates.The Companys interior design affiliate program adds further strength and breadth to our interior design reach.We believe that this program augments the d
131、esign center design staff to reach more clients and improve market penetration.We recognize the importance of our retail design center network to our long-term success.Accordingly,we believe we(i)have established a strong management team within Company operated design centers and(ii)continue to work
132、 closely with our independent retailers in order to assist them.With this in mind,we make our services available to every design center,whether independently operated or Company operated,in support of their marketing efforts,including coordinated advertising,merchandising and display programs,and by
133、 providing extensive training seminars and educational materials.We believe that the development of design consultants,service and delivery personnel,and independent retailers is important for the growth of our business.As a result,we have committed to ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 10 m
134、ake available comprehensive retail training programs intended to increase the customer service capabilities of each individual.Customer Service Offerings We offer numerous customer service programs,each of which has been developed and introduced to consumers in an effort to make their shopping exper
135、ience easier and more enjoyable.Gift Card This program allows customers to purchase and redeem gift cards through our website or at any participating retail design center,which can be used for any of our products or services.Ethan Allen Consumer Credit Programs The Ethan Allen Platinum program offer
136、s consumers(clients)a menu of custom financing options.Financing offered is administered by a third-party financial institution and is granted to our customers on a non-recourse basis to the Company.Clients may apply for an Ethan Allen Platinum card at any participating design center or on-line at .
137、Competition The domestic and global home furnishings industry faces numerous challenges,which include an influx of low-priced products from overseas.As a result,there is a high degree of competition in our markets.We differentiate ourselves as a preferred brand by adhering to a business strategy foc
138、used on providing(i)high-quality,well designed and often custom,handmade products at good value,(ii)a comprehensive complement of home furnishing design solutions,including our complimentary design service,and(iii)excellence in customer service.We consider our vertical integration a significant comp
139、etitive advantage in the current environment as it allows us to design,manufacture and source,distribute,market,and sell our products through one of the industrys largest single-source retail networks.The internet also provides a highly competitive medium for the sale of a significant amount of home
140、 furnishings each year,and we believe it is becoming increasingly important.Although much of that product is sold through commodity oriented,low priced and low service retailers,we believe consumers are spending more time window shopping on the internet and are thus better informed when they do visi
141、t our brick and mortar facilities.At Ethan Allen,the ultimate goal of our internet strategy is to drive traffic into our network of design centers by combining technology with excellent personal service.At ,customers have the opportunity to buy our products online but we take the process further.Wit
142、h so much of our product offering being custom,we encourage our website customers to get help from our network of interior design professionals.This complimentary interior design support creates a competitive advantage through our excellent personal service.This enhances the online experience and re
143、gularly leads to internet customers becoming clients of our network of interior design centers.Industry globalization has provided us an opportunity to adhere to a blended sourcing strategy,establishing relationships with certain manufacturers,both domestically and outside the United States,to sourc
144、e selected case goods,upholstery,and home accessory items.We intend to continue to balance our own North American production with opportunities to source from foreign and domestic manufacturers,as appropriate,in order to maintain our competitive advantage.We believe the home furnishings industry com
145、petes primarily on the basis of product styling and quality,personal service,prompt delivery,product availability and price.We further believe that we effectively compete on the basis of each of these factors and that,more specifically,our direct manufacturing,product presentations,website,and compl
146、imentary design service create a distinct competitive advantage,further supporting our ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 11 mission of providing consumers with a complete home decorating and design solution.We also believe that we differentiate ourselves further with the quality of our desi
147、gn service through our intensive training.Our objective is to continue to develop and strengthen our retail network by(i)expanding the Company operated retail business through the repositioning of and opening of new design centers,and(ii)obtaining and retaining independent retailers,encouraging such
148、 retailers to expand their business through the opening or relocation of new design centers with the objective of increasing the volume of their sales and(iii)further expanding our sales network through our IDA and realtor referral programs.Trademarks We currently hold,or have registration applicati
149、ons pending for,numerous trademarks,service marks and design patents for the Ethan Allen name,logos and designs in a broad range of classes for both products and services in the United States and in many foreign countries.In addition,we have registered,or have applications pending for certain of our
150、 slogans utilized in connection with promoting brand awareness,retail sales and other services and certain collection names.We view such trademarks and service marks as valuable assets and have an ongoing program to diligently monitor and defend,through appropriate action,against their unauthorized
151、use.Available Information We make available,free of charge via our website,all Annual Reports on Form 10-K,Quarterly Reports on Form 10-Q,Current Reports on Form 8-K and other information filed with,or furnished to,the Securities and Exchange Commission(the SEC or the Commission),including amendment
152、s to such reports.This information is available at as soon as reasonably practicable after it is electronically filed with,or furnished to,the SEC.In addition,the SEC maintains a website that contains reports,proxy and information statements,and other information regarding companies that file electr
153、onically with the Commission.This information is available at www.sec.gov.In addition,charters of all committees of our Board of Directors,as well as our Corporate Governance guidelines,are available on our website at or,upon written request,in printed hardcopy form.Written requests should be sent t
154、o Office of the Secretary,Ethan Allen Interiors Inc.,Ethan Allen Drive,Danbury,Connecticut 06811.Item 1A.Risk Factors The following information describes certain significant risks and uncertainties inherent in our business that should be carefully considered,along with other information contained el
155、sewhere in this report and in other filings,when making an investment decision with respect to us.If one or more of these risks actually occurs,the impact on our business,including our financial condition,results of operations,and cash flows could be adverse.An economic downturn may materially adver
156、sely affect our business.Our business and results of operations are affected by international,national and regional economic conditions.Regional economic conditions in the United States and in other regions of the world where we have a concentration of design centers such as Canada or China may impa
157、ct the Company greater compared to economic conditions in other parts of the world where we have lesser concentration of design centers.The United States and many other international economies experienced a major recession,which reduced the available market size for our industry from historic peak l
158、evels.While we have recalibrated the footprint of our vertically integrated enterprise to be profitable with lower revenues than achieved at our historic peak,an economic downturn of significance or extended duration could adversely affect consumer demand and discretionary spending habits and,as a r
159、esult,our business performance,profitability,and cash flows.ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 12 Access to consumer credit could be interrupted and reduce sales and profitability.Our ability to continue to access consumer credit for our clients could be negatively affected by conditions out
160、side our control.If capital market conditions were to worsen meaningfully,there is a risk that our business partner that issues our private label credit card program may not be able to fulfill its obligations under that agreement.In addition,further tightening of credit markets may restrict the abil
161、ity and willingness of customers to make purchases.We may be unable to obtain sufficient external funding to finance our operations and growth.Historically,we have relied upon our cash from operations to fund our debt service,operations and growth.As we operate and expand our business,we may rely on
162、 external funding sources,including the proceeds from the issuance of additional debt or use of the$115 million revolving bank line of credit under our existing$150 million credit facility.The credit facility bears interest at a floating rate and there is a risk that the rate will increase and as we
163、 are not hedging our interest rate for the credit facility,our debt service costs could increase.Any unexpected reduction in cash flow from operations could increase our external funding requirements to levels above those currently available.There can be no assurance that we will not experience unex
164、pected cash flow shortfalls in the future or that any increase in external funding required by such shortfalls will be available on acceptable terms or at all.Operating losses could reduce our liquidity and impact our dividend policy.Historically,we have relied on our cash from operations or debt is
165、suances to fund our operations and the payment of cash dividends.If the Companys financial performance were to deteriorate resulting in financial losses we may not be able to fund a shortfall from operations and would require external funding.Some financing instruments used by the Company historical
166、ly may not be available to the Company in the future.We cannot assure that additional sources of financing would be available to the Company on commercially favorable terms should the Companys capital requirements exceed cash available from operations and existing cash and cash equivalents.In such c
167、ircumstances,the Company may reduce its quarterly dividends.Additional impairment charges could reduce our profitability.We have significant long-lived tangible and intangible assets recorded on our balance sheets.If our operating results decline,we may incur impairment charges in the future,which c
168、ould have a material impact on our financial results.We evaluate the recoverability of the carrying amount of our long-lived tangible and intangible assets on an ongoing basis.There can be no assurance that the outcome of such future reviews will not result in substantial impairment charges.Impairme
169、nt assessment inherently involves judgments as to assumptions about expected future cash flows and the impact of market conditions on those assumptions.Future events and changing market conditions may impact our assumptions as to prices,costs or other factors that may result in changes in our estima
170、tes of future cash flows.Although we believe the assumptions we use in testing for impairment are reasonable,significant changes in any of our assumptions could produce a significantly different result.We face changes in global and local economic conditions that may adversely affect consumer demand
171、and spending,our manufacturing operations or sources of merchandise.Historically,the home furnishings industry has been subject to cyclical variations in the general economy and to uncertainty regarding future economic prospects.Such uncertainty,as well as other variations in global economic conditi
172、ons such as rising fuel costs,wage and benefit inflation,currency fluctuations,and increasing interest rates,may continue to cause inconsistent and unpredictable consumer spending habits,while increasing our own ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 13 input costs.These risks,as well as industr
173、ial accidents or work stoppages,could also severely disrupt our manufacturing operations,which could have a material adverse effect on our financial performance.We import a portion of our merchandise from foreign countries and operate manufacturing plants in Mexico and Honduras.As a result,our abili
174、ty to obtain adequate supplies or to control our costs may be adversely affected by events affecting international commerce and businesses located outside the United States,including natural disasters,changes in international trade,central bank actions,changes in the relationship of the U.S.dollar v
175、ersus other currencies,labor availability and cost,and other governmental policies of the U.S.and the countries from which we import our merchandise or in which we operate facilities.The inability to import products from certain foreign countries or the imposition of significant tariffs could have a
176、 material adverse effect on our results of operations.Competition from overseas manufacturers and domestic retailers may adversely affect our business,operating results or financial condition.Our wholesale business segment is involved in the development of our brand,which encompasses the design,manu
177、facture,sourcing,sales and distribution of our home furnishings products,and competes with other U.S.and foreign manufacturers.Our retail network sells home furnishings to consumers through a network of Company operated design centers,and competes against a diverse group of retailers ranging from sp
178、ecialty stores to traditional furniture and department stores,any of which may operate locally,regionally and nationally,as well as over the internet.We also compete with these and other retailers for appropriate retail locations as well as for qualified design consultants and management personnel.S
179、uch competition could adversely affect our future financial performance.Industry globalization has led to increased competitive pressures brought about by the increasing volume of imported finished goods and components,particularly for case good products,and the development of manufacturing capabili
180、ties in other countries,specifically within Asia.The increase in overseas production capacity has created over-capacity for many manufacturers,including us,which has led to industry-wide plant consolidation.In addition,because many foreign manufacturers are able to maintain substantially lower produ
181、ction costs,including the cost of labor and overhead,imported product may be capable of being sold at a lower price to consumers,which,in turn,could lead to some measure of further industry-wide price deflation.We cannot provide assurance that we will be able to establish or maintain relationships w
182、ith sufficient or appropriate manufacturers,whether foreign or domestic,to supply us with selected case goods,upholstery and home accessory items to enable us to maintain our competitive advantage.In addition,the emergence of foreign manufacturers has served to broaden the competitive landscape.Some
183、 of these competitors produce furniture types not manufactured by us and may have greater financial resources available to them or lower costs of operating.This competition could adversely affect our future financial performance.Failure to successfully anticipate or respond to changes in consumer ta
184、stes and trends in a timely manner could adversely impact our business,operating results and financial condition.Sales of our products are dependent upon consumer acceptance of our product designs,styles,quality and price.We continuously monitor changes in home design trends through attendance at in
185、ternational industry events and fashion shows,internal marketing research,and regular communication with our retailers and design consultants who provide valuable input on consumer tendencies.However,as with all retailers,our business is susceptible to changes in consumer tastes and trends.Such tast
186、es and trends can change rapidly and any delay or failure to anticipate or respond to changing consumer tastes and trends in a timely manner could adversely impact our business,operating results and financial condition.ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 14 Our number of manufacturing and log
187、istics sites may increase our exposure to business disruptions and could result in higher transportation costs.We have a limited number of manufacturing sites in our case good and upholstery operations,consolidated our distribution network into fewer centers for both wholesale and retail segments,an
188、d operate a single home accents plant.Our upholstery operations consist of two upholstery plants at our North Carolina campus and one plant in Mexico.The Company operates three manufacturing plants(North Carolina,Vermont,and Honduras)and one sawmill in support of our case goods operations.Our plants
189、 require various raw materials and commodities such as logs and lumber for our case good plants and foam,springs and engineered hardwood board for our upholstery plants.As a result of the consolidation of our manufacturing operations into fewer facilities,if any of our manufacturing or logistics sit
190、es experience significant business interruption,our ability to manufacture products or deliver timely would likely be impacted.While we have long-standing relationships with multiple outside suppliers of our raw materials and commodities,there can be no assurance of their ability to fulfill our supp
191、ly needs on a timely basis.The consolidation to fewer locations has resulted in longer distances for delivery and could result in higher costs to transport products if fuel costs increase significantly.Our current and former manufacturing and retail operations and products are subject to increasingl
192、y stringent environmental,health and safety requirements.We use and generate hazardous substances in our manufacturing and retail operations.In addition,both the manufacturing properties on which we currently operate and those on which we have ceased operations are and have been used for industrial
193、purposes.Our manufacturing operations and,to a lesser extent,our retail operations involve risk of personal injury or death.We are subject to increasingly stringent environmental,health and safety laws and regulations relating to our products,current and former properties and our current operations.
194、These laws and regulations provide for substantial fines and criminal sanctions for violations and sometimes require product recalls and/or redesign,the installation of costly pollution control or safety equipment,or costly changes in operations to limit pollution or decrease the likelihood of injur
195、ies.In addition,we may become subject to potentially material liabilities for the investigation and cleanup of contaminated properties and to claims alleging personal injury or property damage resulting from exposure to or releases of hazardous substances or personal injury because of an unsafe work
196、place.In addition,noncompliance with,or stricter enforcement of,existing laws and regulations,adoption of more stringent new laws and regulations,discovery of previously unknown contamination or imposition of new or increased requirements could require us to incur costs or become the basis of new or
197、 increased liabilities that could be material.Fluctuations in the price,availability and quality of raw materials could result in increased costs or cause production delays which might result in a decline in sales,either of which could adversely impact our earnings.We use various types of wood,foam,
198、fibers,fabrics,leathers,and other raw materials in manufacturing our furniture.Certain of our raw materials,including fabrics,are purchased domestically and outside North America.Fluctuations in the price,availability and quality of raw materials could result in increased costs or a delay in manufac
199、turing our products,which in turn could result in a delay in delivering products to our customers.For example,lumber prices fluctuate over time based on factors such as weather and demand,which in turn,impact availability.Production delays or upward trends in raw material prices could result in lowe
200、r sales or margins,thereby adversely impacting our earnings.In addition,certain suppliers may require extensive advance notice of our requirements in order to produce products in the quantities we desire.This long lead-time may require us to place orders far in advance of the time ETHAN ALLEN INTERI
201、ORS INC.AND SUBSIDIARIES 15 when certain products will be offered for sale,thereby exposing us to risks relating to shifts in consumer demand and trends,and any significant downturn in the U.S.economy.We depend on key personnel and could be affected by the loss of their services.The success of our b
202、usiness depends upon the services of certain senior executives,and in particular,the services of M.Farooq Kathwari,Chairman of the Board,President and Chief Executive Officer,who is the only one of our senior executives who operates under a written employment agreement.The loss of any such person or
203、 other key personnel could have a material adverse effect on our business and results of operations.Our business is sensitive to increasing labor costs,competitive labor markets,our continued ability to retain high-quality personnel and risks of work stoppages.The market for qualified employees and
204、personnel in the retail and manufacturing industries is highly competitive.Our success depends upon our ability to attract,retain and motivate qualified artisans,professional and clerical associates and upon the continued contributions of these individuals.We cannot provide assurance that we will be
205、 successful in attracting and retaining qualified personnel.A shortage of qualified personnel may require us to enhance our wage and benefits package in order to compete effectively in the hiring and retention of qualified employees.Our labor and benefit costs may continue to increase and such incre
206、ases may not be recovered.This could have a material adverse effect on our business,operating results and financial condition.Our success depends upon our brand,marketing and advertising efforts and pricing strategies.If we are not able to maintain and enhance our brand,or if we are not successful i
207、n these other efforts,our business and operating results could be adversely affected.Maintaining and enhancing our brand is critical to our ability to expand our base of customers and may require us to make substantial investments.Our advertising campaign utilizes television,direct mail,newspapers,m
208、agazines and radio to maintain and enhance our existing brand equity.We cannot provide assurance that our marketing,advertising and other efforts to promote and maintain awareness of our brand will not require us to incur substantial costs.If these efforts are unsuccessful or we incur substantial co
209、sts in connection with these efforts,our business,operating results and financial condition could be adversely affected.We may not be able to maintain our current design center locations at current costs.We may also fail to successfully select and secure design center locations.Our design centers ar
210、e typically located in busy urban settings as freestanding destinations or as part of suburban strip malls or shopping malls,depending upon the real estate opportunities in a particular market.Our business competes with other retailers and as a result,our success may be affected by our ability to re
211、new current design center leases and to select and secure appropriate retail locations for existing and future design centers.Our results of operations for any quarter are not necessarily indicative of our results of operations for a full year.Sales of furniture and other home furnishing products fl
212、uctuate from quarter to quarter due to such factors as changes in global and regional economic conditions,changes in competitive conditions,changes in production schedules in response to seasonal changes in energy costs and weather conditions,changes in consumer order patterns,and the timing of vari
213、ous promotional events.From time to time,we have experienced,and may continue to experience,volatility with respect to demand for our home furnishing products.Accordingly,results of operations for any quarter are not necessarily indicative of the results of operations for a full year.ETHAN ALLEN INT
214、ERIORS INC.AND SUBSIDIARIES 16 Failure to protect our intellectual property could adversely affect us.We believe that our patents,trademarks,service marks,trade secrets,copyrights and all of our other intellectual property are important to our success.We rely on patent,trademark,copyright and trade
215、secret laws,and confidentiality and restricted use agreements,to protect our intellectual property and may seek licenses to intellectual property of others.Some of our intellectual property is not covered by any patent,trademark,or copyright or any applications for the same.We cannot provide assuran
216、ce that agreements designed to protect our intellectual property will not be breached,that we will have adequate remedies for any such breach,or that the efforts we take to protect our proprietary rights will be sufficient or effective.Any significant impairment of our intellectual property rights o
217、r failure to obtain licenses of intellectual property from third parties could harm our business or our ability to compete.Moreover,we cannot provide assurance that the use of our technology or proprietary know-how or information does not infringe the intellectual property rights of others.If we hav
218、e to litigate to protect or defend any of our rights,such litigation could result in significant expense.The Company relies heavily on information and technology to operate its business,and any disruption to its technology infrastructure or the internet could harm the Companys operations.We operate
219、many aspects of our business including financial reporting,and customer relationship management through server and web-based technologies,and store various types of data on such servers or with third-parties who in turn store it on servers and in the“cloud”.Any disruption to the internet or to the C
220、ompanys or its service providers global technology infrastructure,including malware,insecure coding,“Acts of God,”attempts to penetrate networks,data theft or loss and human error,could have adverse affects on the Companys operations.While we have invested and continue to invest in information techn
221、ology risk management,cybersecurity and disaster recovery plans,these measures cannot fully insulate the Company from technology disruptions or data theft or loss and the resulting adverse effect on the Companys operations and financial results.We could incur substantial costs due to compliance with
222、 conflict mineral regulations,which may materially adversely affect our business,operating results,and financial condition.The SEC has adopted rules regarding disclosure of the use of conflict minerals(commonly referred to as tantalum,tin,tungsten,and gold),which are mined from the Democratic Republ
223、ic of the Congo and surrounding countries.This requirement could affect the sourcing of materials used in some of our products as well as the companies we use to manufacture our products.If our products are found to contain conflict minerals sourced from the Democratic Republic of the Congo or surro
224、unding countries,the Company would take actions such as changing materials or designs to reduce the possibility that the purchase of conflict minerals may fund armed groups in the region.These actions could add engineering and other costs to the manufacture of our products.We expect to incur costs t
225、o continue to upgrade our process to discover the origin of the tantalum,tin,tungsten,and gold used in our products,and to audit our conflict minerals disclosures.Our reputation and consequently our financial condition may also suffer if we have included conflict minerals originating in the Democrat
226、ic Republic of the Congo or surrounding countries in our products,and those conflict minerals funded armed groups in the region.Item 1B.Unresolved Staff Comments None.Item 2.Properties ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 17 Our 144,000 sq.ft.corporate headquarters,located in Danbury,Connectic
227、ut,and adjacent Ethan Allen Hotel and Conference Center,containing approximately 200 guestrooms,are owned by the Company.The hotel is used primarily for functions and accommodations for the general public as well as in connection with Ethan Allen functions and training programs.We operate eight manu
228、facturing facilities located in the U.S.,Mexico and Honduras.All of these facilities are owned by the Company and include four case good plants(including one sawmill)totaling 1,731,000 square feet,three upholstery furniture plants totaling 961,000 square feet,and one home accessory plant of 295,000
229、square feet.Our wholesale division also owns and operates two national distribution and fulfillment centers which are a combined 883,000 square feet.Two of our case goods manufacturing facilities are located in Vermont,one is in North Carolina and one is in Honduras.We have two upholstery manufactur
230、ing facilities at our North Carolina campus,and one in Mexico.Our distribution facilities are located in Virginia and Oklahoma.We own three and lease eleven retail service centers,totaling 741,000 square feet.Our retail service centers are located throughout the United States and Canada and serve to
231、 support our various retail sales districts.The location activity and geographic distribution of our retail design center network as of June 30,2015 is as follows:Independent retailersCompany-operatedTotalIndependent retailersCompany-operatedTotalRetail Design Center location activity:Balance at beg
232、inning of period152 143 295 148 147 295 New locations22 4 26 10 9 19 Closures(17)(5)(22)(6)(13)(19)Transfers(2)2 -Balance at end of period155 144 299 152 143 295 Relocations(in new and closures)7 2 9 -6 6 Retail Design Center geographic locations:United States58 137 195 61 135 196 Canada2 6 8 4 6 10
233、 Asia87 -87 81 -81 Europe1 1 2 1 2 3 Middle East7 -7 5 -5 Total155 144 299 152 143 295 Year-to-date Fiscal 2014Year-to-date Fiscal 2015 Of the 144 Company operated retail design centers,70 of the properties are owned and 74 of the properties are leased from independent third parties.Of the 70 owned
234、design centers,17 are subject to land leases.We own six additional retail properties,two of which are leased to independent Ethan Allen retailers,and four of which are leased to unaffiliated third parties.See Note 7 to the Consolidated Financial Statements included under Item 8 of this Annual Report
235、 for more information with respect to our operating lease obligations.We believe that all of our properties are well maintained and in good condition.We estimate that our manufacturing plants are currently operating at approximately 71%of capacity based on their current shifts and staffing.We believ
236、e we have additional capacity at selected facilities,which we could utilize with minimal additional capital expenditures.Item 3.Legal Proceedings ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 18 We are a party to various legal actions with customers,employees and others arising in the normal course of
237、our business.We maintain liability insurance,which is deemed to be adequate for our needs and commensurate with other companies in the home furnishings industry.We believe that the final resolution of pending actions(including any potential liability not fully covered by insurance)will not have a ma
238、terial adverse effect on our financial condition,results of operations,or cash flows.Environmental Matters We and our subsidiaries are subject to various environmental laws and regulations.Under these laws,we and/or our subsidiaries are,or may be,required to remove or mitigate the effects on the env
239、ironment of the disposal or release of certain hazardous materials.We believe our currently anticipated capital expenditures for environmental control facility matters are not material.We are subject to other federal,state and local environmental protection laws and regulations and are involved,from
240、 time to time,in investigations and proceedings regarding environmental matters.Such investigations and proceedings typically concern air emissions,water discharges,and/or management of solid and hazardous wastes.We believe that our facilities are in material compliance with all applicable environme
241、ntal laws and regulations.Federal and state regulations provided the initiative for us to reformulate certain furniture finishes or institute process changes to reduce emissions of volatile organic compounds.Compliance with many of these requirements has been facilitated through the introduction of
242、high solids coating technology and alternative formulations.In addition,we have instituted a variety of technical and procedural controls,including reformulation of finishing materials to reduce toxicity,implementation of high velocity low pressure spray systems,development of storm water protection
243、 plans and controls,and further development of related inspection/audit teams,all of which have served to reduce emissions per unit of production.We remain committed to implementing new waste minimization programs and/or enhancing existing programs with the objective of(i)reducing the total volume o
244、f waste,(ii)limiting the liability associated with waste disposal,and(iii)continuously improving environmental and job safety programs on the factory floor which serve to minimize emissions and safety risks for employees.We will continue to evaluate the most appropriate,cost effective,control techno
245、logies for finishing operations and design production methods to reduce the use of hazardous materials in the manufacturing process.Item 4.Mine Safety Disclosures Not applicable PART II Item 5.Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities
246、Our common stock is traded on the New York Stock Exchange(“NYSE”)under ticker symbol ETH.The following table sets forth,for each quarterly period during the past two fiscal years,(i)the intraday high and low sales prices of our common stock as reported on the NYSE and(ii)the dividends per share paid
247、 by us:ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 19 DividendsHighLowPer ShareFiscal 2015First Quarter26.84$22.06$0.12$Second Quarter31.24 22.58 0.12 Third Quarter32.63 25.31 0.12 Fourth Quarter28.25 23.33 0.14 Fiscal 2014First Quarter31.25$25.30$0.10$Second Quarter31.09 23.88 0.10 Third Quarter31.5
248、2 24.03 0.10 Fourth Quarter27.63 22.83 0.10 Market Price Mr.Kathwari,Chief Executive Officer and President,has certified to the NYSE,pursuant to Section 303A.12 of the NYSEs Listing Company Manual,that he is unaware of any violation by the Company of the NYSEs corporate governance listing standards.
249、As of July 31,2015,there were 247 shareholders of record of our common stock.Management estimates there are approximately 9,000 beneficial shareholders of the Companys common stock.The Companys policy is to issue quarterly dividends,and we expect to continue to declare quarterly dividends for the fo
250、reseeable future,business conditions permitting.Equity Compensation Plan Information The Equity Compensation Plan Information required by this Item will appear in the Ethan Allen Interiors Inc.proxy statement for the Annual Meeting of Shareholders scheduled to be held on October 15,2015 and is incor
251、porated herein by reference in the introductory paragraph of Part III of this Annual Report.Issuer Purchases of Equity Securities During the fiscal year ended June 30,2015 the Company repurchased 645,831 shares of our common stock at an average price of$25.50 per share.Certain information regarding
252、purchases of our common stock made by us during the three months ended June 30,2015 is as follows:Total Number of Maximum Number ofShares PurchasedShares that May YetNumber ofAverageas Part of PubliclyBe PurchasedSharesPrice PaidAnnouncedUnder thePurchasedPer SharePlans or ProgramsPlans or ProgramsP
253、eriodApril 2015100,000 24.88$100,000 2,897,724 May 2015416,329 25.34$416,329 2,481,395 June 201525,736 24.89$25,736 2,455,659 Total542,065 25.23$542,065 On November 21,2002,our Board of Directors approved a share repurchase program authorizing us to repurchase up to 2,000,000 shares of our common st
254、ock,from time to time,either directly or through agents,in the open market at prices and on terms satisfactory to us.Subsequent to that date,the Board of Directors ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 20 increased the remaining authorization on several separate occasions,the last of which was
255、on April 13,2015 when the Board of Directors increased the purchase authorization to approximately 3,000,000 shares.Comparative Company Performance The following line graph compares the cumulative total stockholder return for the Company with the S&P 500 Index,and the S&P Retail Select Industry Inde
256、x(SPSIRE),assuming$100 was invested on June 30,2010.Item 6.Selected Financial Data The following table presents selected financial data for the fiscal years ended June 30,2015,2014,2013,2012 and 2011 that has been derived from our consolidated financial statements(dollar amounts in thousands except
257、per share data).The information set forth below should be read in conjunction with Managements Discussion and Analysis of Financial Condition and Results of Operations included under Item 7 of this Annual Report and our Consolidated Financial Statements(including the notes thereto)included under Ite
258、m 8 of this Annual Report.$0$50$100$150$200$250$300$350 6/10 6/11 6/12 6/13 6/14 6/15 COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*Among Ethan Allen Interiors Inc.,the S&P 500 Index,S&P Retail Select Industry Index(SPSIRE)Ethan Allen Interiors Inc.S&P 500 S&P Retail Select Industry Index(SPSIRE)*$10
259、0 invested on 6/30/10 in stock or index,including reinvestment of dividends.Fiscal years ending June 30.Source:S&P Dow Jones Indices LLC ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 21 20152014201320122011Consolidated Operations Data Net Sales754,600$746,659$729,083$729,373$678,960$Cost of Sales343,43
260、7 340,163 330,734 339,085 329,500 Selling,general andadministrative expenses345,229 336,860 337,912 340,591 317,527 Operating income(loss)65,934 69,636 60,437 49,697 31,933 Interest and other expense,net9,251 7,234 10,263 8,458 5,562 Income(loss)before incometax expense56,683 62,402 50,174 41,239 26
261、,371 Income tax expense(benefit)19,541 19,471 17,696 (8,455)(2,879)Net income(loss)37,142$42,931$32,478$49,694$29,250$Per Share DataNet income(loss)per basicshare1.29$1.48$1.13$1.72$1.02$Basic weighted average sharesoutstanding28,874 28,918 28,864 28,824 28,758 Net income(loss)per dilutedshare1.27$1
262、.47$1.11$1.71$1.01$Diluted weighted averageshares outstanding29,182 29,276 29,239 29,109 28,966 Cash dividends per share0.50$0.40$0.77$0.30$0.22$Other InformationDepreciation and amortization19,142$17,930$18,008$18,581$20,816$Capital expenditures andacquisitions21,778$19,305$19,775$23,404$12,051$Wor
263、king capital129,705$169,582$127,631$131,715$113,912$Current ratio1.92 to 12.25 to 11.96 to 11.87 to 11.74 to 1Effective tax rate34.5%31.2%35.3%-20.5%-10.9%Balance Sheet Data(at end of period)Total assets607,308$654,434$617,285$644,788$628,325$Total debt,including capitallease obligations 77,568 130,
264、912 131,289 154,500 165,032 Shareholders equity370,535$367,467$334,357$321,868$281,687$Debt as a percentage of equity20.9%35.6%39.3%48.0%58.6%Debt as a percentage of capital17.3%26.3%28.2%32.4%36.9%Fiscal Year Ended June 30,Item 7.Managements Discussion and Analysis of Financial Condition and Result
265、s of Operation The following discussion of financial condition and results of operations is based upon,and should be read in conjunction with,our Consolidated Financial Statements(including the notes thereto)included under Item 8 of this Annual Report.ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 22 Fo
266、rward-Looking Statements Managements discussion and analysis of financial condition and results of operations and other sections of this Annual Report contain forward-looking statements relating to our future results.Such forward-looking statements are identified by use of forward-looking words such
267、 as anticipates,believes,plans,estimates,expects,and intends or words or phrases of similar expression.These forward-looking statements are subject to management decisions and various assumptions,risks and uncertainties,including,but not limited to:the potential effects of natural disasters affectin
268、g our suppliers or trading partners;the effects of labor strikes;weather conditions that may affect sales;volatility in fuel,utility,transportation and security costs;changes in global or regional political or economic conditions,including changes in governmental and central bank policies;changes in
269、 business conditions in the furniture industry,including changes in consumer spending patterns and demand for home furnishings;effects of our brand awareness and marketing programs,including changes in demand for our existing and new products;our ability to locate new design center sites and/or nego
270、tiate favorable lease terms for additional design centers or for the expansion of existing design centers;competitive factors,including changes in products or marketing efforts of others;pricing pressures;fluctuations in interest rates and the cost,availability and quality of raw materials;the effec
271、ts of terrorist attacks or conflicts or wars involving the United States or its allies or trading partners;those matters discussed in Items 1A and 7A of this Annual Report and in our SEC filings;and our future decisions.Accordingly,actual circumstances and results could differ materially from those
272、contemplated by the forward-looking statements.Critical Accounting Policies Our consolidated financial statements have been prepared in conformity with U.S.generally accepted accounting principles that require,in some cases,that certain estimates and assumptions be made that affect the amounts and d
273、isclosures reported in those financial statements and the related accompanying notes.Estimates are based on currently known facts and circumstances,prior experience and other assumptions believed to be reasonable.We use our best judgment in valuing these estimates and may,as warranted,solicit extern
274、al advice.Actual results could differ from these estimates,assumptions and judgments,and these differences could be material.The following critical accounting policies,some of which are impacted significantly by estimates,assumptions and judgments,affect our consolidated financial statements.Invento
275、ries Inventories(finished goods,work in process and raw materials)are stated at the lower of cost,determined on a first-in,first-out basis,or market.Cost is determined based solely on those charges incurred in the acquisition and production of the related inventory(i.e.material,labor and manufacturi
276、ng overhead costs).We estimate an inventory reserve for excess quantities and obsolete items based on specific identification and historical write-downs,taking into account future demand and market conditions.If actual demand or market conditions in the future are less favorable than those estimated
277、,additional inventory write-downs may be required.Revenue Recognition Revenue is recognized when all of the following have occurred:persuasive evidence of a sales arrangement exists(e.g.a wholesale purchase order or retail sales invoice);the sales arrangement specifies a fixed or determinable sales
278、price;title and risk of ownership has passed to the customer;no specific performance obligations remain;product is shipped or services are provided to the customer;collectability is reasonably assured.As such,revenue recognition generally occurs upon the shipment of goods to independent retailers or
279、,in the case of Ethan Allen operated retail design centers,upon delivery to the customer.If a shipping charge is billed to customers,this is included in revenue.Recorded sales provide for estimated returns and allowances.We permit our customers to return defective products and incorrect shipments,an
280、d terms we offer are standard for the industry.ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 23 Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments.The allowance for doubtful accounts
281、 is based on a review of specifically identified accounts in addition to an overall aging analysis.Judgments are made with respect to the collectability of accounts receivable based on historical experience and current economic trends.Actual losses could differ from those estimates.Retail Design Cen
282、ter Acquisitions-We account for the acquisition of retail design centers and related assets with the purchase method.Accounting for these transactions as purchase business combinations requires the allocation of purchase price paid to the assets acquired and liabilities assumed based on their fair v
283、alues as of the date of the acquisition.The amount paid in excess of the fair value of net assets acquired is accounted for as goodwill.Impairment of Long-Lived Assets and Goodwill Goodwill and other indefinite-lived intangible assets are evaluated for impairment on an annual basis during the fourth
284、 quarter of each fiscal year,and between annual tests whenever events or circumstances indicate that the carrying value of the goodwill or other intangible asset may exceed its fair value.When testing goodwill for impairment,we may assess qualitative factors for some or all of our reporting units to
285、 determine whether it is more likely than not(that is,a likelihood of more than 50 percent)that the fair value of a reporting unit is less than its carrying amount,including goodwill.Alternatively,we may bypass this qualitative assessment for some or all of our reporting units and determine whether
286、the carrying value exceeds the fair value using a quantitative assessment as described below.The recoverability of long-lived assets are evaluated for impairment by determining whether the carrying value will be recovered through the expected undiscounted future cash flows resulting from the use of
287、the asset.In the event the sum of the expected undiscounted future cash flows is less than the carrying value of the asset,an impairment loss equal to the excess of the assets carrying value over its fair value is recorded.The long-term nature of these assets requires the estimation of cash inflows
288、and outflows several years into the future and only takes into consideration technological advances known at the time of the impairment test.To evaluate goodwill using a quantitative assessment,the Company determines the current fair value of the reporting units using a combination of“Market”and“Inc
289、ome”approaches.In the Market approach,the“Guideline Company”method is used,which focuses on comparing the Companys risk profile and growth prospects to reasonably similar publicly traded companies.Key assumptions used for the Guideline Company method are total invested capital(“TIC”)multiples for re
290、venues and operating cash flows,as well as consideration of control premiums.The TIC multiples are determined based on public furniture companies within our peer group,and if appropriate,recent comparable transactions are considered.Control premiums are determined using recent comparable transaction
291、s in the open market.Under the Income approach,a discounted cash flow method is used,which includes a terminal value,and is based on external analyst financial projection estimates,as well as internal financial projection estimates prepared by management.The long-term terminal growth rate assumption
292、s reflect our current long-term view of the market in which we compete.Discount rates use the weighted average cost of capital for companies within our peer group,adjusted for specific company risk premium factors.The fair value of our trade name,which is the Companys only indefinite-lived intangibl
293、e asset other than goodwill,is valued using the relief-from-royalty method.Significant factors used in trade name valuation are rates for royalties,future growth,and a discount factor.Royalty rates are determined using an average of recent comparable values.Future growth rates are based on the Compa
294、nys perception of the long-term values in the market in which we compete,and the discount rate is determined using the weighted average cost of capital for companies within our peer group,adjusted for specific company risk premium factors.ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 24 In the fourth q
295、uarter of fiscal years 2015,2014 and 2013,the Company performed qualitative assessments of the fair value of the wholesale reporting unit and concluded that the fair value of its goodwill exceeded its carrying value.In fiscal year 2011 the Company performed a quantitative assessment and determined t
296、he fair value of its wholesale reporting unit exceeded its carrying value by a substantial margin.The fair value of the trade name exceeded its carrying value by a substantial margin in fiscal years 2015,2014,and 2013.To calculate fair value of these assets,management relies on estimates and assumpt
297、ions which by their nature have varying degrees of uncertainty.Wherever possible,management therefore looks for third party transactions to provide the best possible support for the assumptions incorporated.Management considers several factors to be significant when estimating fair value including e
298、xpected financial outlook of the business,changes in the Companys stock price,the impact of changing market conditions on financial performance and expected future cash flows,and other factors.Deterioration in any of these factors may result in a lower fair value assessment,which could lead to impai
299、rment of the long-lived assets and goodwill of the Company.Income Taxes Income taxes are accounted for under the asset and liability method.Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts
300、of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards.Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovere
301、d or settled.The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.Additional factors that we consider when making judgments about the deferred tax valuation include tax law changes,a recent history of cumula
302、tive losses,and variances in future projected profitability.The Company evaluates,on a quarterly basis,uncertain tax positions taken or expected to be taken on tax returns for recognition,measurement,presentation,and disclosure in its financial statements.If an income tax position exceeds a 50%proba
303、bility of success upon tax audit,based solely on the technical merits of the position,the Company recognizes an income tax benefit in its financial statements.The tax benefits recognized are measured based on the largest benefit that has a greater than 50%likelihood of being realized upon ultimate s
304、ettlement.The liability associated with an unrecognized tax benefit is classified as a long-term liability except for the amount for which a cash payment is expected to be made or tax positions settled within one year.We recognize interest and penalties related to income tax matters as a component o
305、f income tax expense.Business Insurance Reserves We have insurance programs in place to cover workers compensation and property/casualty claims.The insurance programs,which are funded through self-insured retention,are subject to various stop-loss limitations.We accrue estimated losses using actuari
306、al models and assumptions based on historical loss experience.Although we believe that the insurance reserves are adequate,the reserve estimates are based on historical experience,which may not be indicative of current and future losses.In addition,the actuarial calculations used to estimate insuran
307、ce reserves are based on numerous assumptions,some of which are subjective.We adjust insurance reserves,as needed,in the event that future loss experience differs from historical loss patterns.Other Loss Reserves We have a number of other potential loss exposures incurred in the ordinary course of b
308、usiness such as environmental claims,product liability,litigation,tax liabilities,restructuring charges,and the recoverability of deferred income tax benefits.Establishing loss reserves for these matters requires the use of estimates and judgment with regard to maximum risk exposure and ultimate lia
309、bility or realization.As a result,these estimates are often developed with our counsel,or other appropriate advisors,and are based on our current understanding of the underlying facts and circumstances.Because of uncertainties related to the ultimate outcome of these issues or the possibilities of c
310、hanges in the underlying facts and circumstances,additional charges related to these issues could be required in the future.ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 25 Results of Operations For the year ended June 30,2015,our net sales were$754.6 million,and gross profit was$411.2 million,both inc
311、reasing 1.1%compared to fiscal 2014.Operating income decreased 5.3%over the prior fiscal year,and earnings per diluted share was$1.27,which was 13.6%below the year ended June 30,2014.Net cash provided by operating activities was$55.1 million,a$4.8 million decrease over the prior fiscal year.Our whol
312、esale division operating income grew$9.2 million,while the retail divisions operating income was down$8.8 million from the prior fiscal year.Our liquidity continues to be strong,enabling us to reduce our debt by$53.3 million and increase our dividend payments during the fiscal year by 18.2%to$13.3 m
313、illion,and repurchase$16.5 million of our common stock.At June 30,2015 we had total cash and securities of$86.4 million,and working capital of$129.7 million.Net sales for our wholesale business segment for fiscal 2015 grew 3.5%over the prior fiscal year,while net sales for our retail segment decreas
314、ed 0.2%over the same period.Total written orders booked by our retail segment increased 3.9%for fiscal 2015 compared to fiscal 2014,and comparable design center written orders increased 4.4%.Net sales for the fourth quarter of fiscal 2015 compared to the prior year increased 0.2%in wholesale and dec
315、reased 2.3%in our retail segment,while total written orders booked by our retail segment increased 11.2%over the same period.Backlogs at June 30 2015 compared to one year earlier are up 41.8%and 18.6%by our wholesale and retail segments respectively.During fiscal 2015 our retail segment had signific
316、antly more clearance sales than in the prior year period as we sold off floor samples at a discount to make room for the first two phases of new product introductions,which impacted both retail sales and gross margin.We anticipate these clearance sales to continue during the first half of fiscal 201
317、6 as we make room for the third phase of the product refresh that began in the first half of fiscal 2015.We continue to make investments to strengthen the level of service,professionalism,interior design competence,efficiency,and effectiveness of the retail network design center personnel.We believe
318、 that over time,we will continue to benefit from(i)continuous repositioning and opening of new design centers in our retail network,(ii)frequent new product introductions,(iii)new and innovative marketing promotions and effective use of targeted advertising media,and(iv)continued use of the latest t
319、echnology coupled with personal service from our interior design professionals.We believe our network of professionally trained interior design professionals differentiates us significantly from others in our industry.Our manufacturing and logistics operations gained efficiency by adding capacity in
320、 North Carolina and adding new technology to our operations.We estimate our manufacturing facilities are currently operating at approximately 71%of capacity based on their current shifts and staffing.We believe we have sufficient scalable capacity that can support strong sales growth while maintaini
321、ng control over cost,quality and service to our customers.Business Results:Our revenues are comprised of(i)wholesale sales to independently operated and Company operated retail design centers and(ii)retail sales of Company operated design centers.See Note 15 to our Consolidated Financial Statements
322、for the year ended June 30,2015 included under Item 8 of this Annual Report.ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 26 The components of consolidated revenues and operating income(loss)are as follows(in millions):201520142013Revenue:Wholesale segment469.4$453.6$434.4$Retail segment579.7 580.7 578
323、.3 Elimination of inter-segment sales(294.5)(287.6)(283.6)Consolidated revenue754.6$746.7$729.1$Operating income:Wholesale segment67.0$57.8$50.8$Retail segment1.7 10.5 8.0 Adjustment for inter-company profit(1)(2.8)1.3 1.6 Consolidated operating income65.9$69.6$60.4$Fiscal Year Ended June 30,(1)Repr
324、esents the change in wholesale profit contained in Ethan Allen operated design center inventory existing at the end of the period.Fiscal 2015 Compared to Fiscal 2014 Consolidated revenue for the fiscal year ended June 30,2015 was$754.6 million compared to$746.7 million for fiscal 2014.There was year
325、-over-year sales growth in the wholesale segment and a slight decline in the retail segment.The increase in the wholesale segment in the current fiscal year was primarily due to higher shipments internationally and to our retail segment.Wholesale revenue for fiscal 2015 increased by$15.8 million,or
326、3.5%,to$469.4 million from$453.6 million in the prior fiscal year.The year-over-year increase was attributable to increased sales to both our Company operated design centers and independent retailers worldwide.Orders similarly increased 7.7%during the same period.The number of total design centers g
327、lobally as of June 30,2015 was 299,which increased by four from June 30,2014.The independently operated retail network,net of relocations,increased by three design centers to 155 at June 30,2015 including a net increase of five locations to 75 in China.Our international net sales to independent reta
328、ilers was 7.5%of our consolidated net sales for the fiscal year ended June 30,2015 compared to 6.5%the previous fiscal year.Retail revenue from Ethan Allen operated design centers for the twelve months ended June 30,2015 decreased by$1.0 million,or 0.2%,to$579.7 million from$580.7 million for the tw
329、elve months ended June 30,2014.Year-over-year,written orders for the Company operated design centers increased 3.9%and comparable design centers written business increased 4.4%Net sales were impacted by the increased level of clearance sales during fiscal 2015 as compared to fiscal 2014.The strength
330、ening of the U.S.dollar to the Canadian dollar and euro resulted in an average decrease in sales of 0.5%due to the seven to eight design centers we operated in Canada and Europe throughout the fiscal year.The increase in written orders is reflected in the 18.6%increase in ending backlog at June 30 2
331、015.Gross profit for fiscal 2015 increased to$411.2 million from$406.5 million in fiscal 2014.The$4.7 million increase in gross profit was primarily attributable to increases in our wholesale segment of both manufacturing efficiency and net sales.This was partly offset by a lower mix of retail net s
332、ales to consolidated net sales in the current fiscal year of 76.8%compared to the 77.8%in the prior fiscal year,and a net increase in cost of goods sold due to the elimination of intercompany profit in ending inventory.ETHAN ALLEN INTERIORS INC.AND SUBSIDIARIES 27 Operating expenses increased$8.4 mi
333、llion or 2.5%to$345.2 million or 45.7%of net sales in fiscal 2015 from$336.9 million or 45.1%of net sales in fiscal 2014.The increase in current year expenses is primarily due to costs associated with strengthening our management team in the retail segment,increased maintenance and repair costs and depreciation expense associated with our retail design center refurbishing efforts undertaken durin
0731-84720580
sgpjbg002
工作日 9:30 - 18:00
研報
新質生產力
DeepSeek?
低空經濟
大模型
AI Agent
AI Infra
具身智能
自動駕駛
寵物
銀發經濟
人形機器人
企業出海
算力
微短劇
薪酬
白皮書
創新藥
人工智能
AI產業
信息科技
互聯網
消費經濟
汽車交通
電商零售
傳媒娛樂
醫藥健康
投資金融
能源環境
地產建筑
傳統產業
英文報告
其它
最新報告
中英對照
全文搜索
報告精選
PDF上傳翻譯
多格式文檔互轉
入駐&報告售賣
會員權益
機構報告
券商研報
財報庫
專題合集
英文報告
數據圖表
會議報告
其他資源
行業聚焦
芯片產業
熱點概念
全球咨詢智庫
人工智能
500強
新質生產力
會議峰會
新能源汽車
企業年報
互聯網
公司研究
行業綜觀
消費教育
科技通信
醫藥健康
人力資源
投資金融
汽車產業
物流地產
電子商務
傳統產業
傳媒營銷
其它
2025低空經濟/低空產業報告合集（共50套打包）
2025年智算中心/AIDC/AI數據中心研究報告合集（共37套打包）
AI、科技與通信
廣告、傳媒與營銷
消費、零售與支付
HR、文化與旅游
金融、保險與投資
能源、環境與工業
醫療制藥與大健康
物流、地產與建筑
其他行業
AI ? 科技 ? 通信
數字化
金融財經
智能制造
電商傳媒
地產建筑
醫療醫學
能源化工
其他行業
收藏
下載
2025-05-20
AI查數
行業數據
政策法規
商業模式
產業鏈
競爭格局
市場規模
產業概述
其它
2025年
AI讀財報
年報
一季報
半年報
三季報
IPO招股書
社會責任報告
A股
IPO申報
港股
美股&全球
新三板
掃碼登錄
手機快捷登錄
賬號登錄
