We’ve carefully crafted Krrb Classifieds to give honest folks a trusted environment to buy and sell with each other. Whether you’re buying from someone next door or over yonder, we’ve got your back. Stats and Verifications — Get to know the seller before you buy from them. Personal Messaging — Unclutter your inbox and keep your email private. Secure Payments — Make online payment with our secure payment platform. No-Hassle Refunds — Get the item you ordered or your money back. Friendly Support — Our team is available to help you in any and every way we can. Interested in a listing? Contact the seller and request to purchase or ask any questions you may have. Be clear, honest, kind and prompt with your replies. Negotiate price, including delivery fees if applicable. Agree on a pick-up location or delivery method if applicable. Use our dedicated messaging system for all communication. In case of a dispute, these messages serve as a transactional record.
For your safety, do not share your email address or personal information. Learn more about trust and safety. Payments are transacted online through our secure payment platform. Once a seller sends you a payment request, simply click the “Pay Now” button and enter your credit or debit card information. We’ll hold the funds until you receive your purchase. For in-person pickup, you may choose to pay with cash (or otherwise), but keep in mind that we cannot offer a refund should a problem arise. Learn more about acceptable payment methods. Sellers can offer different options for delivery ranging from in-person pickup and local delivery to domestic and international shipping. For your protection, sellers are required to use our payment platform when shipping and offer you a tracking number. Learn more about avoiding scams and staying safe during in-person pickups. When using our payment platform, if you do not receive your purchase or if it is substantially not as advertised, we’ll refund your payment including shipping fees if applicable.
and do not confirm receipt on the order. Once payment is transferred to the seller, it may not be possible to recoup the funds. Each seller may have a different return policy. In most cases, a seller will not accept returns. Before making payment, ask the seller about their return policy. We find that members most often resolve their own issues through direct contact. and we'll make it our mission to make sure both parties are happy. To fully protect yourself, always communicate through our messaging system and pay through our payment platform. In your messages, you have the ability to privately rate your experience with the seller and conversely, the seller can rate you. Your rating should be based on your personal experience with the seller while using our platform. All member ratings are averaged and displayed on the members corner. If you have a general complaint about inappropriate content or activity, please use the “Report as Inappropriate” feature on the specific listing, corner or message.
We will be notified and take immediate action. Your report will be kept confidential. The member who is reported will not know who reported them. Additionally, our review will be handled discreetly. make / manufacturer: Ethan Allen QR Code Link to This Post This is a really lovely, formal chair I had made at Ethan Allen about 8 years ago. I have always described it as a wing back without the wings! It sat in a formal living room pretty much the whole time, unused and are therefore in nearly perfect condition. The color is coral/salmon with hints of green, yellow and gold. Floral pattern with some wide stripes. SummaryAn adaptive and relevant corporate strategy.Strong post-crisis results and conservative outlook.A good relative valuation among its peers.The home furnishing business is a cyclical sector that is strongly correlated to the housing market. So far this year, US high-end home furnishers are underperforming both the Dow Jones Real Estate Index (+1%) and the S&P 500 (+5%).
However the performance of Ethan Allen (NYSE:ETH), a monobrand luxury home furnisher, is clearly standing out in a sector that is expected to grow at +4.6% CAGR until 2021. A first look at history. Mr. Ethan Allen was a leader of the revolutionary war (1775-1783), he was a farmer and businessman from Vermont, he then became an American historical figure. Ethan Allen Inc., founded long after in 1932 in Vermont, was named after the philosophy of this patriot: tradition, authenticity and proximity. The company entered the market in 1939 with its first collection of American crafted furniture. After first being acquired in the early 1980s, the company was sold a second time in 1989 to a group of investors led by Farooq Kathwari, current Chairman & CEO. In the aftermath of this acquisition, Farooq Kathwari led the IPO in 1993 to make Ethan Allen a major player in the US home furnishing industry. The company was strongly hit during the 2008 housing crisis, its share price collapsed by -80% from $39 in 2007 to $7 in 2009 (revenues were down -33% and profits turned in the red during the same period).
Fortunately, operational growth was back in 2011 (shares reached $25), profits are now in the black since then but above all, management has considerably improved its corporate strategy. The experienced management team has succeeded in adapting its strategy to survive in a highly competitive sector. The latest annual results reported in June 2016 show the ability of the company to sustain its growth strategy with revenues growing steadily at +3% CAGR since 2011 to reach $800 million. Its furniture product ranges are now well diversified and the new Buckhead collection was well received by US consumers. However, Ethan Allen has still room to grow as it hasn't reached pre-crisis sales levels of $1 billion. FY2016 ($mln) ETH WSM RH HD Revenues 794 4'976 2'109 88'519 COGS 352 3'132 1'356 58'254 Gross % 56% 37% 36% 34% A&P costs 31 333 108 868 % of sales 4,0% 6,7% 5,1% 1,0% Ethan Allen, a pure player in home furniture, is mainly focused in the US market which represents 92% of net sales.
Among its US peers - Restoration Hardware (NYSE:RH), Williams-Sonoma (NYSE:WSM), Home Depot (NYSE:HD) - Ethan Allen is the only company with vertical production (70% of manufactured products) which is a strong upside when it comes to controlling its supply chain as 9 manufacturing plants are located in the US and 1 in Mexico (capacity to double) and Honduras. The company has by far the highest gross margin at 56% against roughly 36% for its competitors, thanks to a tight COGS control. We have seen the competition facing supplier disruptions; these risks are limited for ETH who can be more reactive to demand, maintain its high-end quality and improve capacity to ship custom made orders. The company is also able to better manage its inventory in a shaky market environment as some energy-reliant states (Louisiana, Oklahoma) are facing weaker consumer demand. Indeed, inventory has come down by -2% CAGR since 2011. Management has a strong track-record of more than 20 years within the company and is truly dedicated.
New heads could potentially bring further innovative ideas but we believe the experience acquired throughout the last two decades, during volatile markets, gives management credibility and professionalism. Even though we prefer when the Chairman of the Board is a different person than the CEO, we are satisfied by the fact that 5 out of 6 board members are independent from the company. Plus, management remuneration is 70% performance-based and "at risk" which is one of the most conservative scheme among its competitors. As a reminder, Farooq Kathwari has voluntarily capped his compensation in 2013, 2014 and 2015. The company has built its image and reputation on its craftsmanship legacy as well as a strong sense of style and design. Advertisement and Promotion represent only 4% of net sales, lower than comps, so the increase by 23% as reported in the preliminary results ahead of the Investor Meeting is not disturbing us. The executive team has also found an efficient way to elevate the brand externally, through partnerships and capsule collections.
The Ethan Allen/Disney collaboration will deliver its 5th collection in less than a month "the cheerful earful" which will bring Ethan Allen a wider visibility to American households. In line with its patriotic image, the partnership with the US Army and Air Force Services is an additional revenue stream that is limited for now (about 5% of net sales) but we see further growth potential as it's a good communication tool for a large customer base. In addition, Ethan Allen focuses its strategy on design centers and lifestyle influences. The idea that the firm not only provides furniture but also influences its customer lives is widely spread by the management throughout specialized magazines. Offering free design expertise to wealthy clients increases their average spending and loyalty. It targets the customer experience, one of the most important criteria of today's consumers. Delivering fully personalized customer experience has become a concrete focus with the multiplication of its design centers and the rising number of its designers.
Customers spend more time in ETH stores, give more information about them and enable salesmen and designers to anticipate their needs. There are currently 300 design centers animated by more than 1500 designers. While revenues grew this year at +5.2%, slightly above the sector forecast, EBIT margins have increased from 8.7% last year to 11.2% in FY 2016. That's a significant improvement as Ethan Allen is beating most of its competitors and is now behind Home Depot (13.3%). We expect ETH operational profit margins to reach 15% by FY 2019. Other profitability ratios such as ROA (10%) and ROE (15%) have reached substantially higher levels this year but still remain below peers. Hence, we believe there is still room for ETH to grow profitability ratios to reach the sector average. The company has paid a dividend for the last 20 years. It increased by 10% CAGR since 2007, reaching a 2.2% dividend yield for a steady payout ratio of 30%. While net debt levels have come down to almost zero, we remain cautious on the company's ability to generate higher free-cash-flow ratios due to the expansion of CAPEX and lower cash flow from operations.
The cash conversion rate has been deteriorating lately. We believe Ethan Allen is fairly valued today after the year-to-date rally as its multiples 16x P/E and 8.5x EV/EBITDA are in line with most of its sector peers. The book value per share is about $13 so the current share price is 2.4x book value, which is also acceptable for the industry. Nevertheless, if you look at today's price compared to the average earnings of the last 3 years you are actually paying 20x P/E, that's lower than peers. Moreover, there are some attractive valuations that caught our attention such as the Price to sales at 1.2x. The company is forecasting about 10% EPS growth for the next 2 years, so this growth will cost you less (PEG ratio) than the competition. We strongly believe ETH has a real potential for future top-line growth and margin expansion which will boost its share price. Disclosure: I am/we are long ETH. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha).