Ethan Allen Interiors (ETD) risk factors, FY2025 10-K

Other

1. 01Declines in certain economic conditions, which impact consumer confidence and consumer spending, could negatively impact our sales, results of operations and liquidity
2. 02Other financial or operational difficulties due to competition may result in a decrease in our sales, earnings and liquidity
3. 03A significant shift in consumer preference toward purchasing products online could have a materially adverse impact on our sales and operating margin

Risks Related to our Brand and Product Offerings

1. 04Inability to maintain and enhance our brand may materially adversely impact our business
2. 05Failure to successfully anticipate or respond to changes in consumer tastes and trends in a timely manner could materially adversely impact our business, operating results and financial condition
3. 06Competition from manufacturers and retailers may materially adversely affect our business, operating results or financial condition
4. 07We may not be able to maintain our current design center locations at current costs. We may also fail to successfully select and secure design center locations
5. 08Our number of manufacturing sites may increase our exposure to business disruptions and could result in higher costs
6. 09Disruptions of our supply chain and supply chain management could have a material adverse effect on our operating and financial results
7. 10Fluctuations in the price, availability and quality of raw materials and imported finished goods could result in increased costs and cause production delays which could result in a decline in sales, either of which could materially adversely impact our earnings
8. 11Our current and former manufacturing and retail operations and products are subject to environmental, health and safety requirements
9. 12Product recalls or product safety concerns could materially adversely affect our sales and operating results

Technology and Data Security Risks

1. 13We rely extensively on information technology systems to process transactions, summarize results, and manage our business and that of certain independent retailers. Disruptions in both our primary and back-up systems could adversely affect our business and operating results
2. 14Successful cyberattacks and the failure to maintain adequate cybersecurity systems and procedures could materially harm our operations
3. 15ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES
4. 16Loss, corruption and misappropriation of data and information relating to customers could materially adversely affect our operations

Legal and Regulatory Risks

1. 17Global and local economic uncertainty may materially adversely affect our manufacturing operations or sources of merchandise and international operations
2. 18Changes in the U.S. trade and tax policy could materially adversely affect our business and results of operations
3. 19Our business may be materially adversely affected by changes to tax policies
4. 20Failure to protect our intellectual property could materially adversely affect us

Human Capital Risk

1. 21Our business is dependent on certain key personnel; if we lose key personnel or are unable to hire additional qualified personnel, our business may be harmed
2. 22Labor challenges could have a material adverse effect on our business and results of operations

Financial Risks

1. 23We are subject to self-insurance risks
2. 24Our operations present hazards and risks which may not be fully covered by insurance, if insured
3. 25Access to consumer credit could be interrupted as a result of conditions outside of our control, which could reduce sales and profitability