Ethan Allen Going Custom
August 7, 2009
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Ethan Allen (NYSE: ETH) will shift its American-made case goods manufacturing from large production runs to a custom, made-to-order business.
The Danbury, Conn.-based vertical retailer said the transition is expected to occur within the next 12 months.
“Our custom capability is one of our strongest assets and a strong point of differentiation,” said Farooq Kathwari, chairman, president and CEO. “During the last few years, we have been making affordable custom upholstery in our U.S. workrooms and shipping more than 80 percent of this custom product within 30 days. Now we are converting our U.S. case goods manufacturing to custom in manageable increments, starting with four popular dining room collections.“
Kathwari said the shift would allow the company to meet the strategic objective of growing its U.S. manufacturing base. The company owns and operates six manufacturing facilities in the United States, including a sawmill, and one factory in Mexico. The company produces about 65 percent of its products in its U.S. facilities.
“The transition to an entirely custom American case goods business will further enhance our ability to provide great products with unparalleled options at affordable prices,” Kathwari said.
Ethan Allen has about 300 stores in the United States and abroad, and recently converted its Web site to an e-commerce platform.
The Danbury, Conn.-based vertical retailer said the transition is expected to occur within the next 12 months.
“Our custom capability is one of our strongest assets and a strong point of differentiation,” said Farooq Kathwari, chairman, president and CEO. “During the last few years, we have been making affordable custom upholstery in our U.S. workrooms and shipping more than 80 percent of this custom product within 30 days. Now we are converting our U.S. case goods manufacturing to custom in manageable increments, starting with four popular dining room collections.“
Kathwari said the shift would allow the company to meet the strategic objective of growing its U.S. manufacturing base. The company owns and operates six manufacturing facilities in the United States, including a sawmill, and one factory in Mexico. The company produces about 65 percent of its products in its U.S. facilities.
“The transition to an entirely custom American case goods business will further enhance our ability to provide great products with unparalleled options at affordable prices,” Kathwari said.
Ethan Allen has about 300 stores in the United States and abroad, and recently converted its Web site to an e-commerce platform.
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