Ethan Allen CEO says he expects furniture arrears to end in four to six months
Ethan Allen CEO Farooq Kathwari told CNBC on Tuesday that the company expects its production delays to catch up by early next year after a series of supply issues induced by the pandemic.
“One of the advantages that we have is that first of all, you know, we have the right kind of product lines. And then, secondly, we have the opportunity to combine the personalized service of around 1,500 interior designers with technology… Having said that, we are also affected by service issues, ”said Kathwari during“ Power Lunch ”. .
“We are making improvements,” he said. “We have a very high order book, but I think in the next four to six months we will catch up.”
The interior designer and retailer hopes to return to its “normal” pace of making custom products in less than eight weeks, Kathwari said, rather than its current pace of 12 to 16 weeks or more.
Ethan Allen makes custom products, while the majority of the furniture industry depends on its products in stock, he said, adding that 75% of Ethan Allen items are made in North America. The company sells furniture and home decor products online and in approximately 300 design centers in the United States and internationally.
Kathwari said the company is seeing “record sales” as consumer interest in the homes increased towards the end of the summer season. He said Ethan Allen closed more than 250 of his sites and laid off more than 4,000 employees when the pandemic hit the United States early last year.
Kathwari said current service issues include delays in fabrics and raw materials such as foam and wood. He said the company was hit by a myriad of issues, including severe storms at its Texas factories, which delayed production of foam used in upholstery and sofas, and an initial shortage of workers in its original factory in Vermont.
“Personalization is extremely important. It was a challenge, but it became an opportunity with the involvement of our interior designers, with the involvement of technology, and the fact that… we stayed here, and today it’s a big advantage, “said Kathwari of maintaining her business in the United States
Effective Monday, Ethan Allen is also changing his ticker symbol from “ETH” to “ETD” to avoid confusion with Ethereum news in search results, according to an Aug. 4 report. Press release. Kathwari said the change to the letter “D” reflects the company’s focus on design.