Growing & Changing Since 1932
In a world of chain stores and fast food, Ethan Allen is unique. What began as a housewares distributor in the depths of the Great Depression has blossomed into an international furniture manufacturer and retailer that has maintained its commitment to quality, style, service and value.

The road was not always easy. The company, with the support of its independent retailers, has dramatically changed its image – and its product line – from its early American heritage to a more contemporary mix that attracts a broader consumer audience.

Throughout its 65-year history, Ethan Allen has successfully pioneered new ways of doing business. Currently, approximately 90 percent of our products are made in the United States and the company boasts nearly 100 percent brand awareness.

The Evolution of an American Classic
Present-day Ethan Allen was launched as New York-based Baumritter & Co. in 1932. The brainchild of brothers-in-law Theodore Baumritter, a housewares vendor, and Nathan Ancell, a lawyer, the company's balance sheet for Oct. 1 recorded assets of $30,000.

Baumritter & Co. committed to manufacturing wood furniture with the 1936 purchase of its first plant, a 150,000-square-foot facility in Beecher Falls, VT. It was here that the first Colonial-style Ethan Allen brand furniture was crafted, and from this foundation that the company established a continent-wide network of manufacturing and distribution facilities.

In January 1939, the fledgling company introduced its 28-piece collection to buyers at the annual Housewares Show in Chicago. Distribution of Ethan Allen product was limited to select dealers, the first step toward an exclusive Ethan Allen dealership network.

By 1943, the company's holdings had escalated to three saw mills and 11 plants. Assets had increased to approximately $10 million.

The millionth Ethan Allen piece, a maple chest, was presented to President Dwight Eisenhower in 1954. Within two years, the company was positioning itself as "one complete source for all your furniture needs in modern or traditional styling," a phrase that rings true at the turn of the millennium.

Innovative retail strategies were developed to drive the company's Colonial and contemporary furniture. 1962 was a watershed year, with the company pioneering the concept of gallery stores by establishing a retail system of special freedstanding and department store shops. Just as importantly – for the company and the industry – Ethan Allen products were shown in complete room settings, providing consumers with a better understanding of how their homes could look. Another company trademark, the Ethan Allen Treasury of Home Interiors, made its debut.

An extension of its gallery-store concept, a prototype dealer-run showcase gallery opened a year later in Schnectady, NY. A storefront design reflective of "the Colonial architectural lines of a home or church rather than a commercial structure" was drawn for new dealers in 1964 and quickly became the signature look for Ethan Allen retail stores. By 1968, 100 galleries dotted the country, solidifying Ethan Allen's vertically integrated structure .

In 1969, the company is reborn as Ethan Allen Inc., a publicly held corporation. Headquarters moved to Danbury, CT, their current location, in 1973. A mark of the company's continued success, annual sales surpassed $200 million by the end of the decade.

A reflection of merger-and-acquisition-hungry Eighties, the company became a part of Interco Inc., a St. Louis retailing and manufacturing conglomerate, in January 1980. The acquisition was expected to allow the autonomy and assure the continuation of the strong Ethan Allen brand.

To better communicate the company's message to a retail network of more than 200 retail stores, Ethan Allen began holding International Dealer Conferences in 1982. Similar conferences now gather retail design professionals, sales managers and service representatives.

To maintain currency in a fast-changing business environment of the early Eighties, the company began a concerted program of major capital improvement investments. Nearly two decades later, Ethan Allen continues to bolster its competitive advantage by introducing state-of-the-art technology to into its manufacturing, distribution and retail systems.

Associated with the company since the formation of a joint partnership in 1973, M. Farooq Kathwari was appointed president of Ethan Allen Inc. in 1985. He was subsequently named chief executive officer and chairman of the board.

Interiors magazine, Ethan Allen's direct mail catalog, debuted in 1987 as the company moved from two to four sales a year. Like the Treasury, Interiors featured fully furnished room settings meant to inspire consumers.

Under Kathwari's leadership, Ethan Allen management, retailers and key investors took the company private from Interco in 1989. The cash purchase price was $357 million. Ethan Allen Interiors Inc. (formerly Green Mountain Holding Corporation), with wholly owned subsidiary Ethan Allen Inc., was incorporated in Delaware.

On its own again, Ethan Allen began redefining its product line to reach a broader consumer base in the early Nineties. Fresh new collections like Medallion, American Impressions and American Dimensions joined more traditional Colonial and 18^th century European designs. By 1992, case goods collections spanned four lifestyle categories: Formal, American Country, Classic Elegance and Casual Contemporary.

Simultaneously, the company unveiled an identity program aimed at updating its image and promoting the new collections. The most evident change was a new exterior façade that projected a cleaner, more contemporary message than its Colonial precursor. The façade was complimented by a new logo, updated interior store designs, print and television advertising.

Reflecting the dramatic changes at the manufacturing and retail levels, Ethan Allen goes public. Common stock begins trading on the New York Stock Exchange (symbol: ETH) on March 23, 1993. The initial public offering issues 8,455,950 shares of common stock at $18 per share. After adjusting for two stock splits (a 2:1 split on Sept. 2, 1997 and a 3:2 split on May 21, 1999), the initial public offering effectively equates to 25,367,850 at $6 per share.

A second public offering of common stock is made; 1,488,790 shares are offered at $26.875 each. After adjusting for the 2:1 stock split in 1997 and 3:2 split in 1999, this second offering equates to 4,466,370 at $8.9583.

The public offering fostered growth of every facet of the company. In 1994 alone, new machinery, such as advanced leather-cutting technology, was added to the plants. The company began a concerted effort to extend its market reach by entering specialty categories like home office and home theatre. Consumers benefited from programs, including InteriorsPlus!, aimed at making their purchasing decisions easier. To draw them in: "Everyone's At Home With Ethan Allen," a national TV commercial that aired as part of the annum's $47 million advertising effort.

In the next few years, the company completed the decade-long rebuilding of nearly 90 percent of its product line. Everything from furniture to wall décor, upholstery to area rugs has been re-imagined with Ethan Allen's fresh image and contemporary consumers in mind. New furniture collections included Country Colors and British Classics, both of which starred in highly successful television commercials. And the expanded Comfort Collection of upholstery has been supported by spokesbear Ursula as well as a "zoo-ful" of wild critters in its own televised ads.

A mark of its company-wide success, Ethan Allen issued its first dividend in 1996. Its debt-to-capital ratio for the fiscal year ending June 30 improved to 27.9 percent from 40.3 percent in the previous year. A complement to the positive financials, Investor's Business Daily reported that Ethan Allen is the second-largest furniture retailer in the U.S.

The company's product introductions garnered attention with three Pinnacle Awards for excellence in design that year. To date, products have also been recognized by Home, Better Homes & Gardens and House & Garden.

Anticipating the demands of future consumers, Ethan Allen unveiled an innovative new store interior in Stamford, CT, in 1997. The 30,000-square-foot is the company's largest to date. Its format – divided between Casual and Classic collections with more eclectic room settings and a light, airy feel – quickly became the prototype for Ethan Allen Home Interiors around the world.

Ethan Allen entered the booming kids market with the launch of its comprehensive E.A. Kids Collection, which arrived at retail stores in June 1999. The fun, fanciful furniture, upholstery and accents extends the company's message of style, quality and affordability to parents and kids sure to be future E.A. consumers.

Continuing to explore new ways to reach potential consumers and service current clients, Ethan Allen launched its revamped web site early in 2000. For the first time, consumers are able to order Ethan Allen furnishings directly, take care of customer service issues and request design assistance from their local Ethan Allen Home Interiors – all at the click of a mouse!

Today, Ethan Allen is an international home furnishings company with 3 saw mills, 20 manufacturing facilities and 11 distribution facilities in the United States. Approximately 90 percent of our products are crafted in its own plants in America. The company's rapidly growing retail network encompasses more than 310 company-owned and retailer-operated Ethan Allen Home Interiors in North and South America, the Middle East and Asia.