Financial Analysis

(20) Commitments and Contingencies Commitments represent obligations, such as those for future purchases of goods or services that are not yet recorded on the balance sheet as liabilities. We record liabilities for commitments when incurred (specifically when the goods or services are received). Fluctuations in our operating results, levels of inventory on hand, the degree of success of our accounts receivable collection efforts, the timing of tax and other payments, as well as capital expenditures will impact our liquidity and cash flows in future periods. The effect of our commitments, including contractual obligations, on our liquidity and capital resources in future periods should be considered in conjunction with the factors mentioned here. Lease Commitments We enter into operating and financing leases in the normal course of business. Most lease arrangements provide us with the option to renew the leases at defined terms. Refer to Note 6, Leases, for further lease details. Purchase Commitments with Suppliers Purchase obligations are defined as agreements that are enforceable and legally binding that specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. We do, in the normal course of business, initiate purchase orders for the procurement of selected finished goods sourced from third-party suppliers, lumber, fabric, leather and other raw materials us …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

(12) Credit Agreement On January 26, 2022, the Company and most of its domestic subsidiaries (the Loan Parties) entered into a Third Amended and Restated Credit Agreement (the Credit Agreement) with JPMorgan Chase Bank, N.A. as administrative agent and syndication agent and Capital One, National Association, as documentation agent. The Credit Agreement amends and restates the Second Amended and Restated Credit Agreement, dated as of December 21, 2018, as amended. The Credit Agreement provides for a $125 million revolving credit facility (the Facility), subject to borrowing base availability, with a maturity date of January 26, 2027. The Credit Agreement also provides the Company with an option to increase the size of the facility up to an additional amount of $60 million. We incurred financing costs of $0.5 million during fiscal 2022, which are being amortized as interest expense within Interest and other financing costs in the consolidated statements of comprehensive income over the remaining life of the Credit Agreement using the effective interest method. Availability. The availability of credit at any given time under the Facility will be constrained by the terms and conditions of the Credit Agreement, including the amount of collateral available, a borrowing base formula based upon numerous factors including the value of eligible inventory and eligible accounts receivable, and other restrictions contained in the Facility. All obligations under the Facility are secured by …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Fiscal Year Ended June 30, Wholesale Retail Eliminations (1) Total Upholstery (2) $ 174,195 $ 244,897 $ (132,214 ) $ 286,878 Case goods (3) 97,548 133,578 (72,115 ) 159,011 Accents (4) 63,220 107,569 (58,074 ) 112,715 Other (5) (4,268 ) 25,151 - 20,883 Fiscal 2026 $ 330,695 $ 511,195 $ (262,403 ) $ 579,487 Upholstery (2) $ 184,123 $ 250,461 $ (133,775 ) $ 300,809 Case goods (3) 113,862 136,581 (74,914 ) 175,529 Accents (4) 66,071 109,548 (58,861 ) 116,758 Other (5) (4,999 ) 26,552 - 21,553 Fiscal 2025 $ 359,057 $ 523,142 $ (267,550 ) $ 614,649 Upholstery (2) $ 184,699 $ 255,607 $ (132,708 ) $ 307,598 Case goods (3) 120,743 141,737 (74,316 ) 188,164 Accents (4) 70,518 113,021 (58,392 ) 125,147 Other (5) (4,873 ) 30,185 - 25,312 Fiscal 2024 $ 371,087 $ 540,550 $ (265,416 ) $ 646,221

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(18) Stock-Based Compensation The Ethan Allen Interiors Inc. Stock Incentive Plan (the Plan) provides for the grant of stock-based awards including stock options, restricted stock and stock units. The Plan also provides for the issuance of stock appreciation rights (SARs) on issued options, however no SARs have been issued to date. All stock-based awards are approved by the Compensation Committee of the Board of Directors after consideration of the recommendations proposed by the Chief Executive Officer. Company policy requires an additional one-year holding period beyond the service vest date for executive officers and Board of Directors. Under this Plan, the initial aggregate number of shares of common stock that may be issued through awards of any form was 6,487,867 shares. At June 30, 2026, there were 1,178,976 shares of common stock available for future issuance pursuant to the Plan. The table below summarizes the total stock-based compensation expense we recognized for all outstanding stock-based awards. Stock-based compensation expense is recorded in SG&A expenses in the consolidated statement of income (in thousands): Fiscal Year ended June 30, 2026 2025 2024 Stock options $ 101 $ 119 $ 94 Restricted stock units 507 603 484 Performance stock units 599 805 872 Total stock-based compensation expense $ 1,207 $ 1,527 $ 1,450 Tax benefit $ 131 $ 127 $ 131 At June 30, 2026, $1.3 million of total unrecognized compensation expense related to non-vested stock-based awards …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

(10) Goodwill and Intangible Assets Our goodwill and intangible assets are comprised of goodwill, which represents the excess of cost over the fair value of net assets acquired, and our Ethan Allen trade name and related trademarks. Both goodwill and indefinite-lived intangible assets are not amortized as they are estimated to have an indefinite life. At June 30, 2026 and 2025, we had $25.4 million of goodwill and $19.7 million of indefinite-lived intangible assets, all of which are assigned to our wholesale reporting unit. Our wholesale reporting unit is principally involved in the development of the Ethan Allen brand and encompasses all aspects of design, manufacturing, sourcing, marketing, sale and distribution of the Companys broad range of home furnishings and accents. We test our wholesale goodwill and indefinite-lived intangibles for impairment on an annual basis in the fourth quarter of each fiscal year, and more frequently if events or changes in circumstances indicate that it might be impaired. We performed our annual goodwill impairment test during the fourth quarter of fiscal 2026 utilizing a qualitative analysis and concluded it was more likely than not the fair value of our wholesale reporting unit was greater than its respective carrying value and no impairment charge was required. We also performed our annual indefinite-lived intangible asset impairment test during the fourth quarter of fiscal 2026 utilizing a qualitative analysis and concluded it was more lik …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

(14) Income Taxes Income tax expense is based on taxable income determined in accordance with current enacted laws and tax rates. Deferred income taxes are recorded for the temporary differences between the financial statement and tax bases of assets and liabilities using currently enacted tax rates. Income before income taxes consists of the following (in thousands): Fiscal Year Ended June 30, 2026 2025 2024 Domestic $ 52,546 $ 68,727 $ 83,362 Foreign 631 293 2,084 Total income before income taxes $ 53,177 $ 69,020 $ 85,446 Income tax expense consists of the following components (in thousands): Fiscal Year Ended June 30, 2026 2025 2024 Current: Federal $ 10,310 $ 14,686 $ 16,754 State 1,886 3,044 4,150 Foreign 568 219 931 Total current 12,764 17,949 21,835 Deferred: Federal 305 (980 ) (20 ) State 172 3 117 Foreign 53 452 (302 ) Total deferred 530 (525 ) (205 ) Total income tax expense $ 13,294 $ 17,424 $ 21,630 Our effective tax rate differs from the U.S. Federal statutory income tax rate of 21% for the following reasons (in thousands): Fiscal Year Ended June 30, 2026 U.S. Federal statutory tax rate $ 11,167 21.0 % State and local income taxes, net of federal tax benefit (1) 1,673 3.1 % Foreign tax effects 94 0.2 % Effect of cross-border tax laws (51 ) (0.1 %) Tax credits (117 ) (0.2 %) Changes in valuation allowances 416 0.8 % Nontaxable or nondeductible items 182 0.3 % Changes in unrecognized tax benefits (70 ) (0.1 %) Income tax expense (and corresponding effective tax ra …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements The Company evaluates all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) for consideration of their applicability to our consolidated financial statements. New Accounting Standards or Updates Adopted in Fiscal 2026 Income Taxes .InDecember 2023,the FASB issued ASU2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which enhances transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid. We adopted ASU 2023-09 for the fiscal year ended June 30, 2026, and have applied it prospectively in our consolidated financial statements, which modified our income tax disclosures, however it did not have a material impact on our consolidated financial statements. Refer to Note 14, Income Taxes, in the accompanying notes to the consolidated statements for further detail. Recent Accounting Standards or Updates Not Yet Effective Disaggregation of Income Statement Expenses. In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . This ASU requires disaggregation of certain income statement expense captions into specified categories to be disclosed within the notes to the consolidated financial statements but does not change the expense captions on the income st …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

(13) Employee Retirement Programs The Company established its Ethan Allen Retirement Savings Plan (the 401(k) Plan) in 1994. The 401(k) Plan is a defined contribution plan subject to the provisions of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 (IRC). All full-time U.S. employees of the Company are eligible to participate in the Plan on the first day of employment. Each year, participants may contribute up to 100% of their eligible annual compensation, subject to annual limitations established by the IRC. We may, at our discretion and as the employer, make contributions to the 401(k) Plan on behalf of each eligible participant. All participants shall cliff vest 100% of Company contributions received after three years of service. Total expense incurred by the Company from employer contributions to employee 401(k) accounts during fiscal 2026, 2025 and 2024, was $1.7 million, $2.3 million and $2.3 million, respectively. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

(4) Revenue Recognition The following table disaggregates our net sales by product category by segment for each fiscal year (in thousands): Fiscal Year Ended June 30, Wholesale Retail Eliminations (1) Total Upholstery (2) $ 174,195 $ 244,897 $ (132,214 ) $ 286,878 Case goods (3) 97,548 133,578 (72,115 ) 159,011 Accents (4) 63,220 107,569 (58,074 ) 112,715 Other (5) (4,268 ) 25,151 - 20,883 Fiscal 2026 $ 330,695 $ 511,195 $ (262,403 ) $ 579,487 Upholstery (2) $ 184,123 $ 250,461 $ (133,775 ) $ 300,809 Case goods (3) 113,862 136,581 (74,914 ) 175,529 Accents (4) 66,071 109,548 (58,861 ) 116,758 Other (5) (4,999 ) 26,552 - 21,553 Fiscal 2025 $ 359,057 $ 523,142 $ (267,550 ) $ 614,649 Upholstery (2) $ 184,699 $ 255,607 $ (132,708 ) $ 307,598 Case goods (3) 120,743 141,737 (74,316 ) 188,164 Accents (4) 70,518 113,021 (58,392 ) 125,147 Other (5) (4,873 ) 30,185 - 25,312 Fiscal 2024 $ 371,087 $ 540,550 $ (265,416 ) $ 646,221 (1) The Eliminations column in the table above represents the elimination of all intercompany wholesale segment sales to the retail segment in each period presented. (2) Upholstery includes fabric-covered items such as sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics and leather. (3) Case goods includes items such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture and wooden accents. (4) Accents includes items such as window treatments and drapery hardwar …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

(19) Segment Information Ethan Allen conducts business globally and has strategically aligned its business into two reportable segments: Wholesale and Retail. These two segments represent strategic business areas of our vertically integrated enterprise that operate separately and provide their own distinctive services. Our operating segments are aligned with how the Company, including our chief operating decision maker (the CODM) who is our Chairman of the Board, President and Chief Executive Officer, evaluates the operating results and performance of the business. Wholesale Segment. The wholesale segment is principally involved in the development of the Ethan Allen brand and encompasses all aspects of design, manufacturing, sourcing, marketing, sale and distribution of our broad range of home furnishings and accents. Wholesale revenue is recorded upon the shipment of our products to our retail network of independently operated design centers, Company-operated design centers, and other third-party contract business clients. Our wholesale segments net sales to Company-operated design centers are eliminated in consolidation. Retail Segment. The retail segment sells home furnishings and accents to clients through 141 Company-operated design centers. Ethan Allen design centers are typically located in retail settings as freestanding destinations or as part of town centers, lifestyle centers, and suburban shopping malls, and average approximately 13,700 square feet in size. The ge …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

(3) Summary of Significant Accounting Policies Our significant accounting policies are summarized below. Cash and Cash Equivalents Cash and short-term, highly liquid investments with original maturities of three months or less are considered cash and cash equivalents and are reported at fair value. Our corporate money market funds are readily convertible into cash and the net asset value of each fund on the last day of the month is used to determine its fair value. We maintain our cash and cash equivalent accounts in various financial institutions and as such, perform ongoing evaluations of these institutions to limit our concentration of credit risk. Restricted Cash We present restricted cash as a component of total cash and cash equivalents on our consolidated statements of cash flows and within Other assets on our consolidated balance sheets. At June 30, 2026 we did not have any restricted cash compared with $0.8 million in the prior year, which related to the Ethan Allen insurance captive. Investments Our investments, both short-term and long-term, at June 30, 2026 consist solely of U.S. Treasury bills and notes with maturities of two years or less. We classify our investments as available-for-sale debt investments and are held in the custody of major financial institutions. These short-term and long-term investments are recorded in our consolidated balance sheets at fair value. The fair value of our underlying investments is based on observable inputs and classified as L …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

(15) Shareholders Equity Shares Authorized for Issuance Our authorized capital stock consists of 150,000,000 shares of common stock, par value $0.01 per share, and 1,055,000 shares of Preferred Stock, par value $0.01 per share. The Board of Directors may provide for the issuance of all or any shares of Preferred Stock in one or more classes or series, and to fix for each such class or series such voting powers, full or limited, or no voting powers, and such distinctive designations, preferences and relative, participating, optional or other special rights and such qualifications, limitations or restrictions thereof, as shall be stated and expressed in the resolution or resolutions adopted by the Board of Directors providing for the issuance of such class or series and as may be permitted by the General Corporation Law of the State of Delaware. At June 30, 2026 and 2025, there were no shares of Preferred Stock issued or outstanding. Share Repurchase Program We repurchased 250,000 shares for $4.8 million during fiscal 2026. There were no share repurchases under the Companys existing multi-year share repurchase program during fiscal 2025 or 2024. At June 30, 2026, we had remaining Board authorization to repurchase 1,757,364 shares of our common stock pursuant to our share repurchase program. There is no expiration date on the repurchase authorization. The timing and amount of any future share repurchases in the open market and through privately negotiated transactions will be de …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

(18) Commitments and Contingencies Commitments represent obligations, such as those for future purchases of goods or services that are not yet recorded on the consolidated balance sheets as liabilities. We record liabilities for commitments when incurred (specifically when the goods or services are received). Fluctuations in our operating results, levels of inventory on hand, the degree of success of our accounts receivable collection efforts, the timing of tax and other payments, as well as capital expenditures will impact our liquidity and cash flows in future periods. Material Cash Requirements from Contractual Obligations. As disclosed in our 2025 Annual Report on Form 10-K, we had total contractual obligations of $182.8 million, including $146.3 million related to our operating and finance lease commitments and $21.0 million of open purchase orders at June 30, 2025. Except for $26.1 million in operating lease payments made to our landlords and $19.0 million of operating lease assets obtained in exchange for $19.0 million of operating lease liabilities during the first nine months of fiscal 2026, there were no other material changes, outside of the ordinary course of business, in our contractual obligations as previously disclosed in our 2025 Annual Report on Form 10-K. Legal Matters. We are routinely party to various legal proceedings in the ordinary course of business, including investigations or as a defendant in litigation. On a quarterly basis, we review our litigati …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

(12) Credit Agreement On January 26, 2022, the Company and most of its domestic subsidiaries (the Loan Parties) entered into a Third Amended and Restated Credit Agreement (the Credit Agreement) with JPMorgan Chase Bank, N.A. as administrative agent and syndication agent and Capital One, National Association, as documentation agent. The Credit Agreement amends and restates the Second Amended and Restated Credit Agreement, dated as of December 21, 2018, as amended. The Credit Agreement provides for a $125 million revolving credit facility (the Facility), subject to borrowing base availability, with a maturity date of January 26, 2027. The Credit Agreement also provides the Company with an option to increase the size of the facility up to an additional amount of $60 million. We incurred financing costs of $0.5 million during fiscal 2022, which are being amortized as interest expense within Interest and other financing costs in the consolidated statements of comprehensive income over the remaining life of the Credit Agreement using the effective interest method. Availability. The availability of credit at any given time under the Facility will be constrained by the terms and conditions of the Credit Agreement, including the amount of collateral available, a borrowing base formula based upon numerous factors including the value of eligible inventory and eligible accounts receivable, and other restrictions contained in the Facility. All obligations under the Facility are secured by …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Three months ended March 31, 2026 Three months ended March 31, 2025 Wholesale Retail Eliminations (1) Total Wholesale Retail Eliminations (1) Total Upholstery (2) $ 44,300 $ 55,194 $ (33,314 ) $ 66,180 $ 49,207 $ 54,116 $ (35,676 ) $ 67,647 Case goods (3) 26,950 31,247 (17,636 ) 40,561 32,962 32,097 (21,979 ) 43,080 Accents (4) 15,146 24,210 (14,371 ) 24,985 18,814 25,232 (16,262 ) 27,784 Other (5) (1,477 ) 5,586 - 4,109 (1,993 ) 6,177 - 4,184 Total $ 84,919 $ 116,237 $ (65,321 ) $ 135,835 $ 98,990 $ 117,622 $ (73,917 ) $ 142,695 Nine months ended March 31, 2026 Nine months ended March 31, 2025 Wholesale Retail Eliminations (1) Total Wholesale Retail Eliminations (1) Total Upholstery (2) $ 133,551 $ 182,533 $ (100,656 ) $ 215,428 $ 138,850 $ 183,037 $ (101,110 ) $ 220,777 Case goods (3) 74,710 98,322 (53,288 ) 119,744 86,812 100,775 (56,621 ) 130,966 Accents (4) 45,915 79,571 (43,420 ) 82,066 50,185 81,077 (44,488 ) 86,774 Other (5) (3,225 ) 18,722 - 15,497 (3,990 ) 19,765 - 15,775 Total $ 250,951 $ 379,148 $ (197,364 ) $ 432,735 $ 271,857 $ 384,654 $ (202,219 ) $ 454,292

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(16) Share-Based Compensation We recognized total share-based compensation expense of $0.9 million and $1.1 million during the nine months ended March 31, 2026 and 2025, respectively. These amounts have been included in the consolidated statements of comprehensive income within SG&A expenses . At March 31, 2026 , $1.6 million of total unrecognized compensation expense related to non-vested stock-based awards is expected to be recognized over a weighted average period of 1.8 years. There was no share-based compensation capitalized during the nine months ended March 31, 2026 and 2025. At March 31, 2026, there were 1,082,013 shares of common stock available for future issuance pursuant to The Ethan Allen Interiors Inc. Stock Incentive Plan (the Plan), which provides for the grant of stock-based awards including stock options, restricted stock and stock units. All stock-based awards are approved by the Compensation Committee of the Board of Directors after consideration of recommendations proposed by the Chief Executive Officer. Company policy requires an additional one-year holding period beyond the service vest date for executive officers and members of the Board of Directors. Stock Option Activity Employee Stock Option Grants. There were no stock option awards granted to employees during the nine months ended March 31, 2026 and 2025. Non-Employee Stock Option Grants. The Plan also provides for the grant of stock-based awards to non-employee directors of the Company. During …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

(10) Goodwill and Intangible Assets Our goodwill and intangible assets are comprised of goodwill, which represents the excess of cost over the fair value of net assets acquired, and our Ethan Allen trade name and related trademarks. Both goodwill and indefinite-lived intangible assets are not amortized as they are estimated to have an indefinite life. At March 31, 2026 and June 30, 2025, we had $25.4 million of goodwill and $19.7 million of indefinite-lived intangible assets, all of which is assigned to our wholesale reporting unit. Our wholesale reporting unit is principally involved in the development of the Ethan Allen brand and encompasses all aspects of design, manufacturing, sourcing, marketing, sale and distribution of the Companys broad range of home furnishings and accents. We test our wholesale goodwill and indefinite-lived intangibles for impairment on an annual basis in the fourth quarter of each fiscal year, and more frequently if events or changes in circumstances indicate that it might be impaired. Consistent with the timing of prior years, we performed our annual goodwill and indefinite-lived intangible asset impairment tests during the fourth quarter of fiscal 2025 utilizing a qualitative analysis and concluded it was more likely than not the fair value of our trade name was greater than its carrying value and no impairment charge was required. …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

(13) Income Taxes The Company's process for determining the provision for income taxes involves using an estimated annual effective tax rate which is based on forecasted annual income and statutory tax rates across the various jurisdictions in which we operate. We recorded a provision for income tax expense of $1.9 million and $9.4 million, respectively, for the three and nine months ended March 31, 2026 compared with $2.9 million and $13.0 in the prior year comparable period. Our consolidated effective tax rate was 24.2% and 25.1%, respectively, for the three and nine months ended March 31, 2026 compared with 23.4% and 24.9%, respectively, for the three and nine months ended March 31, 2025. Our effective tax rate varies from the 21% federal statutory rate primarily due to state taxes. We recognize interest and penalties related to income tax matters as a component of income tax expense. At March 31, 2026, we had $4.2 million of unrecognized tax benefits compared with $3.9 million at June 30, 2025. It is reasonably possible that various matters relating to $0.9 million of the total gross unrecognized tax benefits at March 31, 2026 will be resolved within the next 12 months as exams are completed or statutes expire. If recognized, $0.8 million of unrecognized tax benefits would reduce our income tax expense in the period realized.

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Recently Adopted Accounting Standards or Updates Segment Reporting. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires all public entities to provide enhanced disclosures about significant segment expenses. The Company adopted ASU 2023-07 for the fiscal year ended June 30, 2025. We adopted this guidance on a retrospective basis, which modified our annual disclosures beginning in fiscal 2025 and our interim disclosures beginning in fiscal 2026 but did not have a material effect on our financial position, results of operations, or cash flows. Refer to Note 17, Segment Information , in the accompanying notes to the consolidated statements for further detail. Recent Accounting Standards or Updates Not Yet Adopted Income Taxes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which enhances transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid and to improve the effectiveness of income tax disclosures. This ASU will be effective for our annual financial statements starting in fiscal 2026 and interim periods beginning in the first quarter of fiscal 2027, with early adoption permitted. We are currently evaluating the impact of this accounting standard, but do not expect it to have a material impact on our income tax disclosures. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

(4) Revenue Recognition Our reported revenue (net sales) consists substantially of product sales. We report product sales net of discounts and recognize them at the point in time when control transfers to the customer. For sales to our customers in our wholesale segment, control typically transfers when the product is shipped. The majority of our shipping agreements are freight-on-board shipping point and risk of loss transfers to our wholesale customer once the product is out of our control. Accordingly, revenue is recognized for product shipments on third-party carriers at the point in time that our product is loaded onto the third-party container or truck. For sales in our retail segment, control generally transfers upon delivery to the customer. We recognize the promised amount of consideration without adjusting for the effects of a significant financing component if the contract has a duration of one year or less. As our contracts typically are less than one year in length and do not have significant financing components, we have not adjusted consideration. Shipping and Handling. Our practice has been to sell our products at the same delivered cost to all retailers and customers nationwide, regardless of shipping point. Costs incurred by the Company to deliver finished goods are expensed and recorded in selling, general and administrative (SG&A) expenses. We recognize shipping and handling expense as fulfillment activities (rather than as a promised good or service) …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

(17) Segment Information Ethan Allen conducts business globally and has strategically aligned its business into two reportable segments: Wholesale and Retail. These two segments represent strategic business areas of our vertically integrated enterprise that operate separately and provide their own distinctive services. Our operating segments are aligned with how the Company and our chief operating decision maker (CODM) who is the Chairman of our Board of Directors, and our President and Chief Executive Officer, evaluates the operating results and performance of the business. We evaluate the performance of our two segments based upon net sales and operating income in order to allocate resources. Segment operating income is based on operating income before interest and other financing costs, interest and other income, net and income tax expense. The CODM assesses performance by regularly reviewing each segments significant expense categories which include selling expenses and cost of sales, general and administrative expenses, and advertising expenses. Wholesale Segment. The wholesale segment is principally involved in the development of the Ethan Allen brand and encompasses all aspects of design, manufacturing, sourcing, marketing, sale and distribution of our broad range of home furnishings and accents. Wholesale revenue is recorded upon the shipment of our products to our retail network of independently operated design centers, Company-operated design centers, and other thir …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing