Bloomberg Talks Ethan Allen CEO Farooq Kathwari Talks Tariffs, Cautious Consumers
Apr 2, 2026
Farooq Kathwari, chairman, president and CEO of Ethan Allen, a vertically integrated furniture maker with North American manufacturing and design services. He discusses keeping production in North America and its benefits. He talks about cautious consumers and shifting store traffic. He explains how vertical integration and logistics help the company absorb rising fuel and import pressures.
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Ethan Allen Kept Manufacturing Close With Owned Plants
- Ethan Allen moved most manufacturing to North America while keeping plants in Mexico and Honduras that it owns and operates.
- Farooq Kathwari says quality is indistinguishable across Vermont, Mexico, and Honduras after two decades of investment in owned plants.
Tariffs Hurt Less When You Own Local Production
- Tariffs had limited direct impact because Ethan Allen manufactures predominantly in North America and owns its plants.
- Kathwari notes Mexico now has significant tariffs (~25%) but impact is muted since the company operates those facilities.
Fewer Shoppers But Higher Conversion
- Consumer traffic to Ethan Allen design centers is down, but conversion among visitors is higher.
- Vertical integration and a large interior design network help convert fewer visitors into purchases with one delivered price nationwide.