Aug. 8 at 12:43 AM
Ethan Allen Interiors CEO Farooq Kathwari defended the furniture retailer’s strategy after activist investor DGB Investments launched a proxy fight seeking to replace the company’s entire board. Kathwari said Ethan Allen is prioritizing long-term retail sales over short-term digital growth, focusing on showrooms and in-person interior-design services to maintain relationships with designers.
Kathwari acknowledged that online sales are lower but said the company directs website visitors to meet with designers in stores, where sales can be three to five times higher than through other channels.
DGB Investments founder Douglas Bergeron disclosed a stake in Ethan Allen and criticized what he called an outdated strategy and an entrenched management team and board. The former VeriFone CEO argues the company has underinvested in digital initiatives despite strong online growth across the furniture industry.
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