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Ethan Allen (ETD) Decides to Boost Output in Vermont, Hikes Wages
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As the U.S. home furnishing industry is flourishing on a solid homebuilding market and repair and remodeling activities, Ethan Allen Interiors Inc. (ETD - Free Report) is likely to cash in on the underlying opportunity. Recently, this Danbury, CT-based interior designer, and manufacturer and retailer of home furnishings announced its intention of expansion of manufacturing production in Vermont. Also, it announced new job openings, and increased wages for employees in manufacturing operations in both Beecher Falls and Orleans.
The expansion is in sync with Ethan Allen’s commitment to maintain and grow its North American workshops. The initiative will also help the company control manufacturing costs.
Ethan Allen’s chairman, president and CEO, Farooq Kathwari, said, “Our commitment to manufacturing most of our own products has proven both a strategic and a branding advantage. We are fortunate to have maintained and grown our manufacturing facilities in North America which enables us to be in a better position to serve our clients. We also continue to make major investments in technology.”
He continued, “However, during the last twenty years our production in Vermont has had major declines due to a number of factors including the shortage of labor and the escalation of manufacturing costs. Our growth and future expansion depends on attracting and retaining strong talent while also controlling major costs of manufacturing in Vermont including escalating state income taxes, property taxes, and costs of electricity.”
Encouragingly, the company increased its starting wage to $16 an hour and implemented a salary hike for more experienced associates. The move is likely to attract and retain new talents in Ethan Allen’s team of artisans.
Ethan Allen’s persistent focus on employees’ safety, excellent medical benefits, steadfast environmental commitment and unrivaled reputation for quality is commendable. The company’s solid business model — which includes capitalizing on the professional service offered to customers in retail design centers, investing in new technologies, e-commerce to drive traffic, strong advertising and marketing campaigns along with a strong manufacturing capacity in North America — is adding to the bliss.
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Over the past year, shares of Ethan Allen have gained 110.3% compared with the Zacks Retail - Home Furnishings industry’s 78.3% rally. Earnings estimates for fiscal 2022 stands at $2.67 per share, indicating 12.7% year-over-year growth.
Other top-ranked stocks in the same space include Tempur Sealy International, Inc. (TPX - Free Report) and RH (RH - Free Report) , each sporting a Zacks Rank #1.
Tempur Sealy and RH’s earnings for the current year are expected to surge 69.1% and 45.3%, respectively.
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Ethan Allen (ETD) Decides to Boost Output in Vermont, Hikes Wages
As the U.S. home furnishing industry is flourishing on a solid homebuilding market and repair and remodeling activities, Ethan Allen Interiors Inc. (ETD - Free Report) is likely to cash in on the underlying opportunity. Recently, this Danbury, CT-based interior designer, and manufacturer and retailer of home furnishings announced its intention of expansion of manufacturing production in Vermont. Also, it announced new job openings, and increased wages for employees in manufacturing operations in both Beecher Falls and Orleans.
The expansion is in sync with Ethan Allen’s commitment to maintain and grow its North American workshops. The initiative will also help the company control manufacturing costs.
Ethan Allen’s chairman, president and CEO, Farooq Kathwari, said, “Our commitment to manufacturing most of our own products has proven both a strategic and a branding advantage. We are fortunate to have maintained and grown our manufacturing facilities in North America which enables us to be in a better position to serve our clients. We also continue to make major investments in technology.”
He continued, “However, during the last twenty years our production in Vermont has had major declines due to a number of factors including the shortage of labor and the escalation of manufacturing costs. Our growth and future expansion depends on attracting and retaining strong talent while also controlling major costs of manufacturing in Vermont including escalating state income taxes, property taxes, and costs of electricity.”
Encouragingly, the company increased its starting wage to $16 an hour and implemented a salary hike for more experienced associates. The move is likely to attract and retain new talents in Ethan Allen’s team of artisans.
Ethan Allen’s persistent focus on employees’ safety, excellent medical benefits, steadfast environmental commitment and unrivaled reputation for quality is commendable. The company’s solid business model — which includes capitalizing on the professional service offered to customers in retail design centers, investing in new technologies, e-commerce to drive traffic, strong advertising and marketing campaigns along with a strong manufacturing capacity in North America — is adding to the bliss.
Over the past year, shares of Ethan Allen have gained 110.3% compared with the Zacks Retail - Home Furnishings industry’s 78.3% rally. Earnings estimates for fiscal 2022 stands at $2.67 per share, indicating 12.7% year-over-year growth.
Zacks Rank & Other Key Picks
Ethan Allen — which share space with Williams-Sonoma, Inc. (WSM - Free Report) in the same industry — currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other top-ranked stocks in the same space include Tempur Sealy International, Inc. (TPX - Free Report) and RH (RH - Free Report) , each sporting a Zacks Rank #1.
Tempur Sealy and RH’s earnings for the current year are expected to surge 69.1% and 45.3%, respectively.