The New Look of Ethan Allen Coming This Fall

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July 25 (Bloomberg) -- Ethan Allen CEO Farooq Kathwari tells Adam Johnson and Julie Hyman that despite their mixed earnings, Ethan Allen is positioned to increase its top line with a new look. He speaks on Bloomberg Television's "Street Smart." (Source: Bloomberg)

The ceo joins us here.

You came in with earnings slightly better than estimates.

Earnings up 26% but sales are flat.

Why the difference?

We just ended this year where earnings were up 39%. sales were flat and we explained this morning that some of the reasons were the timing.

The timing of the various events, and if we take into the events, sales were up 2-3%. still other not -- not a level we would like them to be.

The good news is we have made tremendous amount of progress.

We of a 39% increase in earnings.

We had a strong balance sheet.

We've paid a strong dividend.

We brought back bonds from debt.

We are now focusing on increasing the top line.

With the positioning we have done, i think we are ready to do that.

How exactly is that positioning -- does that positioning work?

You design your furniture, make most of your furniture, and a lot of it here in the west -- u.s.. how does that put you in a good place?

We have about 2000 interior designers, 1500 in north america.

What we have been known for for 80 years has been at manufacturer, retailer of good, great quality furniture.

Now we are expanding to become a total home furnishings with a lot of accessories.

I want to pick up on that.

Stylish is the word you mentioned.

If i am not incorrect, you are trying to update your image?

The new eclecticism only at ethan allen is the branding.

We will start marketing that this fall.

To do that, we have to do a lot of work in developing products.

That is what we have been doing the past year.

We launched it in our headquarters in the flagship design center in june.

Now in the next two months our objective is to update 200 of our design centers in north america.

100 outside the united states, many of them updated with the new a eclectic look.

Which is great color.

People today are becoming more eclectic.

It is no longer boring earth turns.

Maybe the economy is feeling better and people want to redecorate with bright colors.


Throughout history people decorate themselves first.

A great yellow color.

Asking that is a complement.

Then they go and decorate their home.

-- i think that is a complement.

They are getting tired of the boring color.

We're giving them a great color.

That is where our 1500's designers in north america come in.

You are leading this company in the future.

You are serving on president obama's council for immigration trying to figure out how to get it right.

In the last 30 seconds, how do we get it right?

I am serving on the asian and pacific islanders immigration board.

I had a chance to see president obama a couple weeks back.

It is a broken system.

Immigrant entrepreneurs by nature.

The great thing is we have to solve this legal issue.

America has been built by immigrants.

Declining birth rates.

Less young people.

Immigration gives us the chance to bring in fresh blood, vitality.

That is how america was built, and i think immigration is important.

This text has been automatically generated. It may not be 100% accurate.


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