Ethan Allen CEO on Retail Outlook

The video discusses consumer spending trends, highlighting continued interest in high-end furniture despite fluctuations in sales. It covers the advantages of having manufacturing operations in North America, addressing labor cost challenges and the need for wage increases. The company maintains a competitive edge by combining domestic and offshore manufacturing, particularly in Mexico and Honduras. Supply chain disruptions, including container shortages and seasonality, are also explored, emphasizing the impact on production and shipping costs.

What is the current trend in consumer interest for high-end furniture?

• Interest has completely declined.

• Interest remains strong but not as high as before.

• Consumers are losing interest.

• Interest is at an all-time high.

What advantage does the company have by manufacturing in North America?

• A competitive edge due to local production.

• Lower labor costs compared to overseas.

• Access to cheaper raw materials.

• Faster shipping times to Europe.

What percentage of the company's products are manufactured in North America?

• 25%

• 75%

• 100%

• 50%

What strategy did the company adopt 14-15 years ago regarding manufacturing?

• Focus solely on digital sales.

• Outsource all production overseas.

• Maintain manufacturing in North America.

• Reduce the number of production facilities.

How has the cost of shipping containers changed recently?

• It has decreased significantly.

• It has fluctuated unpredictably.

• It has remained stable.

• It has increased dramatically.

What is one of the main challenges faced by the company due to supply chain disruptions?

• Decreased demand.

• Overproduction.

• Excess inventory.

• Container shortages.

What impact did the foam shortage have on the company's production?

• Increased production hours.

• No impact at all.

• Reduced working days.

• Expansion of production facilities.