Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Aug. 17, 2023 | Dec. 31, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 1-11692 | ||
Entity Registrant Name | Ethan Allen Interiors Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 06-1275288 | ||
Entity Address, Address Line One | 25 Lake Avenue Ext. | ||
Entity Address, City or Town | Danbury | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06811-5286 | ||
City Area Code | 203 | ||
Local Phone Number | 743-8000 | ||
Title of 12(b) Security | Common stock $0.01 par value | ||
Trading Symbol | ETD | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 597,349,648 | ||
Entity Common Stock, Shares Outstanding (in shares) | 25,372,098 | ||
Auditor Name | CohnReznick LLP | ||
Auditor Location | New York, New York | ||
Auditor Firm ID | 596 | ||
Entity Central Index Key | 0000896156 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 62,130 | $ 109,919 |
Investments | 110,577 | 11,199 |
Accounts receivable, net | 11,577 | 17,019 |
Inventories, net | 149,195 | 176,504 |
Prepaid expenses and other current assets | 25,974 | 32,108 |
Total current assets | 359,453 | 346,749 |
Property, plant and equipment, net | 222,167 | 223,530 |
Goodwill | 25,388 | 25,388 |
Intangible assets | 19,740 | 19,740 |
Operating lease right-of-use assets | 115,861 | 100,782 |
Deferred income taxes | 640 | 820 |
Other assets | 2,204 | 2,886 |
TOTAL ASSETS | 745,453 | 719,895 |
Current liabilities: | ||
Accounts payable and accrued expenses | 28,565 | 37,370 |
Customer deposits | 77,765 | 121,080 |
Accrued compensation and benefits | 23,534 | 22,700 |
Current operating lease liabilities | 26,045 | 25,705 |
Other current liabilities | 7,188 | 8,788 |
Total current liabilities | 163,097 | 215,643 |
Operating lease liabilities, long-term | 104,301 | 89,506 |
Deferred income taxes | 3,056 | 4,418 |
Other long-term liabilities | 3,993 | 3,005 |
TOTAL LIABILITIES | 274,447 | 312,572 |
Commitments and Contingencies | ||
SHAREHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value; 1,055 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value; 150,000 shares authorized; 49,426 and 49,360 shares issued; 25,356 and 25,323 shares outstanding at June 30, 2023 and 2022, respectively | 494 | 494 |
Additional paid-in-capital | 386,146 | 384,782 |
Treasury stock, at cost: 24,070 and 24,037 shares at June 30, 2023 and 2022, respectively | 682,646 | 681,834 |
Retained earnings | 769,819 | 710,369 |
Accumulated other comprehensive loss | (2,785) | (6,462) |
Total Ethan Allen Interiors Inc. shareholders' equity | 471,028 | 407,349 |
Noncontrolling interests | (22) | (26) |
TOTAL SHAREHOLDERS' EQUITY | 471,006 | 407,323 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 745,453 | $ 719,895 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2023 | Jun. 30, 2022 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized (in shares) | 1,055,000 | 1,055,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized (in shares) | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued (in shares) | 49,426,000 | 49,360,000 |
Common Stock, Shares, Outstanding (in shares) | 25,356,000 | 25,323,000 |
Treasury Stock, Common, Shares (in shares) | 24,070,000 | 24,037,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net sales | $ 791,382 | $ 817,762 | $ 685,169 |
Cost of sales | 311,012 | 333,056 | 292,062 |
Gross profit | 480,370 | 484,706 | 393,107 |
Selling, general and administrative expenses | 346,894 | 350,917 | 313,411 |
Restructuring and other impairment charges, net of gains | (3,720) | (4,461) | 2,411 |
Operating income | 137,196 | 138,250 | 77,285 |
Interest and other income (expense), net | 4,042 | 72 | (393) |
Interest and other financing costs | 213 | 201 | 481 |
Income before income taxes | 141,025 | 138,121 | 76,411 |
Income tax expense | 35,218 | 34,841 | 16,406 |
Net income | $ 105,807 | $ 103,280 | $ 60,005 |
Basic earnings per common share: | |||
Net income per basic share (in dollars per share) | $ 4.15 | $ 4.06 | $ 2.38 |
Basic weighted average common shares (in shares) | 25,473 | 25,413 | 25,265 |
Diluted earnings per common share: | |||
Net income per diluted share (in dollars per share) | $ 4.13 | $ 4.05 | $ 2.37 |
Diluted weighted average common shares (in shares) | 25,604 | 25,522 | 25,352 |
Comprehensive income | |||
Net income | $ 105,807 | $ 103,280 | $ 60,005 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments | 3,178 | (466) | 2,510 |
Other | 503 | (66) | (24) |
Other comprehensive income (loss), net of tax | 3,681 | (532) | 2,486 |
Comprehensive income | $ 109,488 | $ 102,748 | $ 62,491 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows from Operating Activities | |||
Net income | $ 105,807 | $ 103,280 | $ 60,005 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 15,614 | 15,987 | 16,385 |
Share-based compensation expense | 1,288 | 1,139 | 1,268 |
Non-cash operating lease cost | 30,235 | 30,261 | 29,944 |
Deferred income taxes | 1,182 | 352 | (3,013) |
Restructuring and other impairment charges, net of gains | (3,720) | (4,461) | 3,050 |
Restructuring payments | (1,045) | (1,556) | (2,771) |
Loss on disposal of property, plant and equipment | (43) | (44) | (38) |
Other | (455) | (70) | 115 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (5,442) | 7,993 | 934 |
Inventories, net | (27,309) | 32,526 | 18,516 |
Prepaid expenses and other current assets | (5,570) | (6,659) | 13,654 |
Customer deposits | (43,315) | (9,555) | 66,604 |
Accounts payable and accrued expenses | (8,787) | 123 | 11,741 |
Accrued compensation and benefits | 948 | (1,053) | 5,360 |
Operating lease liabilities | 31,013 | 33,588 | 33,401 |
Other assets and liabilities | 2,985 | (2,877) | (1,895) |
Net cash provided by operating activities | 100,664 | 69,356 | 129,912 |
Cash Flows from Investing Activities | |||
Proceeds from sales of property, plant and equipment | 9,914 | 10,613 | 4,913 |
Capital expenditures | (13,885) | (13,387) | (12,029) |
Purchases of investments | (234,949) | (63,861) | 0 |
Proceeds from sales of investments | 137,397 | 52,664 | 0 |
Net cash used in investing activities | (101,523) | (13,971) | (7,116) |
Cash Flows from Financing Activities | |||
Payment of cash dividends | (46,357) | (48,257) | (43,290) |
Payments on borrowings | 0 | 0 | (50,000) |
Payment for debt issuance costs | 0 | (505) | 0 |
Proceeds from employee stock plans | 75 | 1,117 | 2,961 |
Taxes paid related to net share settlement of equity awards | (812) | (843) | (75) |
Payments on financing leases and other | 497 | 512 | 585 |
Net cash used in financing activities | (47,591) | (49,000) | (90,989) |
Effect of exchange rate changes on cash and cash equivalents | 201 | (110) | 513 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (48,249) | 6,275 | 32,320 |
Cash, cash equivalents and restricted cash at beginning of period | 110,871 | 104,596 | 72,276 |
Cash, cash equivalents and restricted cash at end of period | 62,622 | 110,871 | 104,596 |
Supplemental Disclosure on Cash Flow Information | |||
Cash paid during the year for income taxes, net of refunds | 41,933 | 28,795 | 6,006 |
Cash paid during the year for interest | $ 31 | $ 25 | $ 538 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock, Common [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Jun. 30, 2020 | 49,053 | 24,000 | |||||
Balance at Jun. 30, 2020 | $ 491 | $ 378,300 | $ (680,916) | $ (8,441) | $ 638,631 | $ (1) | $ 328,064 |
Net income | $ 0 | 0 | $ 0 | 0 | 60,005 | 0 | 60,005 |
Common stock issued on share-based awards (in shares) | 175 | 0 | |||||
Common stock issued on share-based awards | $ 1 | 2,959 | $ 0 | 0 | 0 | 0 | 2,960 |
Share-based compensation expense | $ 0 | 1,268 | $ 0 | 0 | 0 | 0 | 1,268 |
Restricted stock vesting (in shares) | 12 | 3 | |||||
Restricted stock vesting | $ 0 | 0 | $ (75) | 0 | 0 | 0 | (75) |
Cash dividends declared | 0 | 0 | 0 | 0 | (43,290) | 0 | (43,290) |
Other comprehensive income (loss) | $ 0 | 0 | $ 0 | 2,510 | 0 | (24) | 2,486 |
Balance (in shares) at Jun. 30, 2021 | 49,240 | 24,003 | |||||
Balance at Jun. 30, 2021 | $ 492 | 382,527 | $ (680,991) | (5,931) | 655,346 | (25) | 351,418 |
Net income | $ 0 | 0 | $ 0 | 0 | 103,280 | 0 | 103,280 |
Common stock issued on share-based awards (in shares) | 55 | 0 | |||||
Common stock issued on share-based awards | $ 1 | 1,116 | $ 0 | 0 | 0 | 0 | 1,117 |
Share-based compensation expense | $ 0 | 1,139 | $ 0 | 0 | 0 | 0 | 1,139 |
Restricted stock vesting (in shares) | 65 | 34 | |||||
Restricted stock vesting | $ 1 | 0 | $ (843) | 0 | 0 | 0 | (842) |
Cash dividends declared | 0 | 0 | 0 | 0 | (48,257) | 0 | (48,257) |
Other comprehensive income (loss) | $ 0 | 0 | $ 0 | (531) | 0 | (1) | (532) |
Balance (in shares) at Jun. 30, 2022 | 49,360 | 24,037 | |||||
Balance at Jun. 30, 2022 | $ 494 | 384,782 | $ (681,834) | (6,462) | 710,369 | (26) | 407,323 |
Net income | $ 0 | 0 | $ 0 | 0 | 105,807 | 0 | 105,807 |
Common stock issued on share-based awards (in shares) | 2 | 0 | |||||
Common stock issued on share-based awards | $ 0 | 75 | $ 0 | 0 | 0 | 0 | 75 |
Share-based compensation expense | $ 0 | 1,288 | $ 0 | 0 | 0 | 0 | 1,288 |
Restricted stock vesting (in shares) | 64 | 33 | |||||
Restricted stock vesting | $ 0 | 1 | $ (812) | 0 | 0 | 0 | (811) |
Cash dividends declared | 0 | 0 | 0 | 0 | (46,357) | 0 | (46,357) |
Other comprehensive income (loss) | $ 0 | 0 | $ 0 | 3,677 | 0 | 4 | 3,681 |
Balance (in shares) at Jun. 30, 2023 | 49,426 | 24,070 | |||||
Balance at Jun. 30, 2023 | $ 494 | $ 386,146 | $ (682,646) | $ (2,785) | $ 769,819 | $ (22) | $ 471,006 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Business | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | (1) Organization and Nature of Business Organization Founded in 1932, Ethan Allen Interiors Inc., through its wholly-owned subsidiary, Ethan Allen Global, Inc., and Ethan Allen Global, Inc.’s subsidiaries (collectively, “we,” “us,” “our,” “Ethan Allen” or the “Company”), is a Delaware Corporation and leading interior design company, manufacturer and retailer in the home furnishings marketplace. Nature of Business We are a global luxury home fashion brand that is vertically integrated from product design through home delivery, which offers our customers stylish product offerings, artisanal quality and personalized service. We are known for the quality and craftsmanship of our products as well as for the exceptional personal service from design to delivery. We provide complimentary interior design service to our clients and sell a full range of home furnishings through a retail network of design centers located throughout the United States and abroad as well as online at ethanallen.com. Ethan Allen design centers represent a mix of locations operated by independent licensees and Company-operated locations. As of June 30, 2023, the Company operates 139 retail design centers with 135 located in the United States and four in Canada. Our independently operated design centers are located in the United States, Asia, the Middle East and Europe. We also own and operate ten manufacturing facilities in the United States, Mexico and Honduras, including one sawmill, one rough mill and a kiln dry lumberyard. Approximately 75% of our products are manufactured or assembled in these North American facilities. We also contract with various suppliers located in Europe, Asia, and various other countries that produce products that support our business. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | (2) Basis of Presentation Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Our consolidated financial statements also include the accounts of an entity in which we are a majority shareholder with the power to direct the activities that most significantly impact the entity’s performance. Noncontrolling interest amounts in the entity are immaterial and included in the consolidated statements of comprehensive income within Interest and other income (expense), net Use of Estimates We prepare our consolidated financial statements in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of net sales and expenses during the reporting period. Due to the inherent uncertainty involved in making those estimates, actual results could differ from those estimates. Areas in which significant estimates have been made include, but are not limited to, goodwill and indefinite-lived intangible asset impairment analyses, recoverability and useful lives for property, plant and equipment, inventory obsolescence, tax valuation allowances, the evaluation of uncertain tax positions and business insurance reserves. |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | (3) Summary of Significant Accounting Policies Our significant accounting policies are summarized below. Cash and Cash Equivalents Cash and short-term, highly liquid investments with original maturities of three months or less are considered cash and cash equivalents and are reported at fair value. Our corporate money market funds are readily convertible into cash and the net asset value of each fund on the last day of the month is used to determine its fair value. We maintain our cash and cash equivalent accounts in various financial institutions and as such, perform ongoing evaluations of these institutions to limit our concentration of credit risk. Restricted Cash We present restricted cash as a component of total cash and cash equivalents on our consolidated statements of cash flows and within Other Assets Investments Our investments as of June 30, 2023 consist solely of United States Treasury Bills with maturities of one year or less. Previously held investments included fixed income securities including municipal bonds, commercial paper and certificates of deposits with maturities of less than one year. We classify our investments as available-for-sale debt investments and are held in the custody of major financial institutions. These short-term investments are recorded in our consolidated balance sheets at fair value. The fair value of our underlying investments is based on observable inputs and classified as Level 2. Unrealized gains and losses on these investments are included, net of tax, as a separate component of Accumulated other comprehensive loss no . Accounts Receivable Accounts receivable arise from the sale of products on trade credit terms and is presented net of allowance for doubtful accounts. The allowance for doubtful accounts is based on a review of specifically identified accounts in addition to an overall aging analysis. On a monthly basis, we review all accounts as to their past due balances, as well as collectability of the outstanding trade accounts receivable for possible write-off. It is our policy to write-off the accounts receivable against the allowance account when we deem the receivable to be uncollectible. Additionally, we review orders from retailers that are significantly past due, and we ship product only when our ability to collect payment from our customer for the new order is probable. At June 30, 2023 and 2022, the allowance for doubtful accounts was immaterial. Inventories Inventories are stated at the lower of cost (on first-in, first-out basis) or net realizable value. Cost is determined based solely on those charges incurred in the acquisition and production of the related inventory (i.e., material, labor and manufacturing overhead costs). We estimate inventory reserves for excess quantities and obsolete items based on specific identification and historical write-offs, taking into account future demand and market conditions. If actual demand or market conditions in the future are less favorable than those estimated, additional inventory write-downs may be required. At June 30, 2023 and 2022, our inventory reserves were $1.9 million and $2.1 million, respectively. Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation of property, plant and equipment is provided over the estimated useful lives of the respective assets on a straight-line basis. Estimated useful lives of the respective assets typically range from 20-40 years for buildings and improvements and from three to twenty years for machinery and equipment. Information systems, computer hardware and software, which are included within the machinery and equipment category, are typically depreciated from three to five years. Leasehold improvements are amortized over the shorter of the underlying lease term or the estimated useful life. Repairs and maintenance expenditures, which are not considered leasehold improvements and do not extend the useful life of the property and equipment, are expensed as incurred. Retirement, sales or dispositions of long-lived assets are recorded based on carrying value and proceeds received. Any resulting gains or losses are recorded as a component of operating expenses. Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. For further discussion regarding impairments refer to the Impairment of Long-Lived Assets Assets Held for Sale An asset is considered to be held for sale when all of the following criteria are met: (i) management commits to a plan to sell the property; (ii) it is unlikely that the disposal plan will be significantly modified or discontinued; (iii) the property is available for immediate sale in its present condition; (iv) actions required to complete the sale of the property have been initiated; (v) sale of the asset is probable and the completed sale is expected to occur within one year; and (vi) the property is actively being marketed for sale at a price that is reasonable given its current market value. Upon designation as an asset held for sale, the carrying value of the asset is recorded at the lower of its carrying value or its estimated fair value less estimated costs to sell, and the Company ceases depreciating the asset. As of June 30, 2023 and 2022, we did not Impairment of Long-Lived Assets We review the carrying value of our long-lived assets, which includes our right-of-use lease assets, for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Our assessment of recoverability is based on our best estimates using either quoted market prices or an analysis of the undiscounted projected future cash flows by asset group in order to determine if there is any indicator of impairment requiring us to further assess the fair value of our long-lived assets. If the sum of the estimated undiscounted future cash flows related to the asset is less than the carrying value, we recognize a loss equal to the difference between the carrying value and the fair value, usually determined by the estimated discounted cash flow analysis of the assets. Our asset groups consist of our operating segments within our wholesale reportable segment, each of our retail design centers and other corporate assets. The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets, which for our retail segment is the individual retail design center and for our wholesale segment is the manufacturing plant level. We estimate future cash flows based on design center-level historical results, current trends, third-party appraisals and operating and cash flow projections. Our estimates are subject to uncertainty and may be affected by a number of factors outside our control, including general economic conditions and the competitive environment. While we believe our estimates and judgments about future cash flows are reasonable, future impairment charges may be required if the expected cash flow estimates, as projected, do not occur or if events change requiring us to revise our estimates. Refer to Note 10, Restructuring and Other Impairment Activities, Goodwill and Other Indefinite-Lived Intangible Assets Our goodwill and intangible assets are comprised primarily of goodwill, which represents the excess of cost over the fair value of net assets acquired, and our Ethan Allen trade name and related trademarks. Both goodwill and indefinite-lived intangible assets are assigned to our wholesale reporting unit, which is principally involved in the development of the Ethan Allen brand and encompasses all aspects of design, manufacturing, sourcing, marketing, sale and distribution of the Company’s broad range of home furnishings and accents, and are not amortized as they are estimated to have an indefinite life. We are required to test goodwill and indefinite-lived intangibles for potential impairment annually, or more frequently if impairment indicators occur. Goodwill and other indefinite-lived intangible assets are evaluated for impairment on an annual basis during the fourth quarter of each fiscal year, and between annual tests whenever events or circumstances indicate that the carrying value of the goodwill or other intangible asset may exceed its fair value. Goodwill. Other Indefinite-Lived Intangible Assets (trade name). Leases We determine if an arrangement contains a lease at inception based on our right to control the use of an identified asset and our right to obtain substantially all of the economic benefits from the use of that identified asset. Lease right-of-use (“ROU”) assets represent the right to use an underlying asset pursuant to the lease for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Lease ROU assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease ROU asset, unless an implicit rate is readily determinable. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. As we do not have any outstanding public debt, we estimated the incremental borrowing rate based on our estimated credit rating and available market information. The incremental borrowing rate is subsequently reassessed upon a modification to the lease agreement. We combine lease and certain non-lease components for our design center real estate leases in determining the lease payments subject to the initial present value calculation. Lease ROU assets include upfront lease payments and exclude lease incentives, where applicable. Certain operating leases have renewal options and rent escalation clauses as well as various purchase options. We assess these options to determine if we are reasonably certain of exercising these options based on all relevant economic and financial factors. Any options that meet these criteria are included in the lease term at lease commencement. Operating leases are included in operating lease ROU assets, current operating lease liabilities and long-term operating lease liabilities in our consolidated balance sheets. Financing leases are included in property, plant and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets. Lease expense for operating leases consists of both fixed and variable components. Expense related to fixed lease payments are recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred, where applicable, and include certain index-based changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. We have elected the short-term lease exemption, whereby leases with initial terms of one year or less are not capitalized and instead expensed on a straight-line basis over the lease term. In addition, certain of our equipment lease agreements include variable lease payments, which are based on the usage of the underlying asset. The variable portion of payments are not included in the initial measurement of the asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. Refer to Note 6, Leases, Customer Deposits In most cases we collect deposits from customers on a portion of the total purchase price at the time a written order is placed, but before we have transferred control of our product to our customers, resulting in contract liabilities. These customer deposits are reported as a current liability in Customer deposits Deferred Financing Fees Deferred financing fees related to our revolving credit facility are included in Prepaid expenses and other current assets Other assets Interest and other financing costs Insurance The Company maintains insurance coverage for significant exposures, as well as those risks that, by law, must be insured. In the case of the Company’s health care coverage for employees, the Company has an insurance program related to claims filed that also includes a stop-loss insurance policy to protect from individual losses over a specified dollar value. Expenses related to this insured program are computed on an actuarial basis, based on claims experience, regulatory requirements, an estimate of claims incurred but not yet reported (“IBNR”) and other relevant factors. The projections involved in this process are subject to uncertainty related to the timing and amount of claims filed, levels of IBNR, fluctuations in health care costs and changes to regulatory requirements. We recorded an estimated liability related to health care coverage of $2.4 million and $2.0 million, as of June 30, 2023 and 2022, respectively. These liabilities are recorded within Accrued compensation and benefits We also carry workers’ compensation insurance subject to a deductible amount for which the Company is responsible on each claim. We recorded an estimated liability related to workers’ compensation claims, primarily for claims that do not meet the per-incident deductible, of $4.2 million and $3.8 million as of June 30, 2023 and 2022, respectively. The workers’ compensation insurance reserve is recorded within Accrued compensation and benefits Fair Value of Financial Instruments Because of their short-term nature, the carrying value of our cash and cash equivalents, investments, receivables and payables, and customer deposit liabilities approximates fair value. We believe the fair value of any future borrowings under our credit facility will approximate its carrying amount as the terms and interest rate approximate market rates given its floating interest rate basis. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance must be established for deferred tax assets when it is more likely than not that the assets will not be realized. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Most of the unrecognized tax benefits, if recognized, would be recorded as a benefit to income tax expense. The liability associated with an unrecognized tax benefit is classified as a long-term liability except for the amount for which a cash payment is expected to be made or tax positions settled within one year. We recognize interest and penalties related to income tax matters as a component of income tax expense. Revenue Recognition Our reported revenue (net sales) consist substantially of product sales. We report product sales net of discounts and recognize them at the point in time when control transfers to the customer. For sales to our customers in our wholesale segment, control typically transfers when the product is shipped. The majority of our shipping agreements are freight-on-board shipping point and risk of loss transfers to our wholesale customer once the product is out of our control. Accordingly, revenue is recognized for product shipments on third-party carriers at the point in time that our product is loaded onto the third-party container or truck. For sales in our retail segment, control generally transfers upon delivery to the customer. We recognize the promised amount of consideration without adjusting for the effects of a significant financing component if the contract has a duration of one year or less. As our contracts typically are less than one year in length and do not have significant financing components, we have not adjusted consideration. Shipping and Handling. Sales Taxes. Accounts payable and accrued expenses Returns and Allowances. Prepaid expenses and other current assets Other current liabilities Commissions. Prepaid expenses and other current assets Customer Financing Program The Ethan Allen Platinum Card consumer credit program offers clients a menu of custom financing options. Financing offered through this program is administered by a third-party financial institution and is granted to our clients on a non-recourse basis to the Company. Clients may apply for an Ethan Allen Platinum Card at a design center or online at ethanallen.com. During fiscal 2023 we offered various interest-free financing options and will continue to evaluate the use of such financing options and their related costs during fiscal 2024 as interest rates remain elevated. Cost of Sales Our cost of sales consist of the cost to manufacture our merchandise including materials, direct labor and overhead costs as well as the cost to purchase import products, including inbound freight. Selling, General and Administrative Expenses SG&A expenses include the costs of selling our products and general and administrative costs. Selling expenses primarily consist of shipping and handling costs, commissions, advertising, and compensation and benefits of employees performing various sales and designer functions. Occupancy costs, depreciation, compensation and benefit costs for administrative employees and other administrative costs are included in SG&A. All store pre-opening costs are included in SG&A expenses and are expensed as incurred. Advertising Expenses Advertising expenses primarily represent the costs associated with our digital marketing, direct mailings, national television spots, on-air radio and other mediums. Our total advertising costs were $17.2 million in fiscal 2023, $15.6 million in fiscal 2022 and $20.7 million in fiscal 2021. These amounts include advertising media expenses, outside and inside agency expenses, certain website related fees and photo and video production. Advertising costs from our direct mailers are expensed when provided to the carrier for distribution. Website, print and other advertising expenses, which include e-commerce advertising, web creative content, national television and direct marketing activities such as print media and radio, are expensed as incurred or upon the release of the content or the initial advertisement. Prepaid advertising costs were immaterial at June 30, 2023 and 2022, respectively. Research and Development Costs Research and development costs are charged to expense in the periods incurred and are included as a component of SG&A. Expenditures for research and development costs were immaterial in each fiscal year presented. Interest and Other Financing Costs Interest expense consists primarily from borrowings under our revolving credit facility and the amortization of deferred financing fees. For the twelve months ended June 30, 2023, 2022 and 2021, we recorded interest expense of $0.2 million, $0.2 million and $0.5 million, respectively. Interest and Other Income (Expense), Net Interest and other income (expense), net includes interest income on investments, foreign currency gains or losses and other income or expense incurred outside our normal course of business. There were no material transactions recorded within Interest and ther income (expense), net Supplemental Cash Flow Information The Company’s supplemental cash flow information is presented at the bottom of its consolidated statement of cash flows, with the exception of required lease disclosures. Refer to Note 6, Leases, Share-Based Compensation Share-based compensation expense is included within SG&A expenses. Tax benefits associated with our share-based compensation arrangements are included within income tax expense. We estimate, as of the date of grant, the fair value of stock options awarded using the Black-Scholes option pricing model. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs, including anticipated changes in the underlying stock price (i.e., expected volatility) and option exercise activity (i.e., expected life). Expected volatility is based on the historical volatility of our stock and other contributing factors. The risk-free rate of return is based on the United States Treasury bill rate extrapolated to the term matching the expected life of the grant. The dividend yield is based on the annualized dividend rate at the grant date relative to the grant date stock price. The expected life of options granted, which represents the period of time that the options are expected to be outstanding, is based, primarily, on historical data. We estimate, as of the date of grant, the fair value of non-performance based restricted stock units awarded using a discounted cash flow model, which requires management to make certain assumptions with respect to model inputs including anticipated future dividends not paid during the restriction period, and a discount for lack of marketability for a one-year holding period after vesting. We account for these restricted stock units as equity-based awards because when they vest, they will be settled in shares of our common stock. We estimate, as of the date of grant, the fair value of performance units with a discounted cash flow model, using as model inputs the risk-free rate of return as the discount rate, dividend yield for dividends not paid during the restriction period, and a discount for lack of marketability for a one-year post-vest holding period. The lack of marketability discount used is the present value of a future put option using the Chaffe model. Performance units require management to make assumptions regarding the likelihood of achieving Company performance targets on a quarterly basis. The number of performance units that vest will be predicated on the Company achieving certain performance levels. A change in the financial performance levels the Company achieves could result in changes to our current estimate of the vesting percentage and related share-based compensation. As share-based compensation expense recognized is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures are estimated based primarily on historical experience. Windfall tax benefits, defined as tax deductions that exceed recorded share-based compensation, are classified as cash inflows from operating activities. The value of the portion of the equity-based awards that are ultimately expected to vest is recognized as expense over the requisite service periods in our consolidated statement of comprehensive income. Earnings Per Share We compute basic earnings per share (“EPS”) by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated similarly, except that the weighted average outstanding shares are adjusted to include the effects of converting all potentially dilutive share-based awards issued under our stock incentive plan. The number of potential common shares outstanding are determined in accordance with the treasury stock method to the extent they are dilutive. For the purpose of calculating EPS, common shares outstanding include common shares issuable upon the exercise of outstanding share-based compensation awards. Under the treasury stock method, the exercise price paid by the optionee and future share-based compensation expense that the Company has not yet recognized are assumed to be used to repurchase shares. Foreign Currency Translation The functional currency of each Company-operated foreign location is the respective local currency. Assets and liabilities are translated into U.S. dollars using the current period-end exchange rate and income and expense amounts are translated using the average exchange rate for the period in which the transaction occurred. Resulting translation adjustments are reported as a component of Accumulated other comprehensive loss Treasury Stock The Company accounts for repurchased common stock on a trade date basis under the cost method and includes such treasury stock as a component of its shareholders’ equity. We account for the formal retirement of treasury stock by deducting its par value from common stock, reducing additional paid-in capital (“APIC”) by the average amount recorded in APIC when the stock was originally issued and any remaining excess of cost deducted from retained earnings. Recent Accounting Pronouncements New Accounting Standards or Updates Adopted in Fiscal 2023 The Company evaluates all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) for consideration of their applicability to our consolidated financial statements. As of the beginning of fiscal 2023, we implemented all applicable new standards and updates, none of which had a material impact on our consolidated financial statements. Recent Accounting Standards or Updates Not Yet Effective Business Combinations. Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Derivatives and Hedging. Derivatives and Hedging (Topic 801): Fair Value Hedging Portfolio Layer Method Inflation Reduction Act of 2022. No other new accounting pronouncements issued or effective as of June 30, 2023 have had or are expected to have a material impact on our consolidated financial statements. |
Note 4 - Revenue Recognition
Note 4 - Revenue Recognition | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | (4) Revenue Recognition The following table disaggregates our net sales by product category by segment for each fiscal year (in thousands): Fiscal Year Ended June 30, Wholesale Retail Eliminations (1) Total Upholstery (2) $ 224,272 $ 318,131 $ (163,589 ) $ 378,814 Case goods (3) 149,664 180,079 (93,022 ) 236,721 Accents (4) 82,181 129,385 (64,153 ) 147,413 Other (5) (6,526 ) 34,960 - 28,434 Fiscal 2023 $ 449,591 $ 662,555 $ (320,764 ) $ 791,382 Upholstery (2) $ 262,592 $ 350,737 $ (188,661 ) $ 424,668 Case goods (3) 148,536 175,697 (96,110 ) 228,123 Accents (4) 80,665 133,354 (71,193 ) 142,826 Other (5) (7,951 ) 30,096 - 22,145 Fiscal 2022 $ 483,842 $ 689,884 $ (355,964 ) $ 817,762 Upholstery (2) $ 217,517 $ 275,887 $ (144,268 ) $ 349,136 Case goods (3) 126,690 149,912 (79,206 ) 197,396 Accents (4) 75,572 115,578 (59,404 ) 131,746 Other (5) (6,703 ) 13,594 - 6,891 Fiscal 2021 $ 413,076 $ 554,971 $ (282,878 ) $ 685,169 (1) The Eliminations column in the table above represents the elimination of all intercompany wholesale segment sales to the retail segment in each period presented. (2) Upholstery includes fabric-covered items such as sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics and leather. (3) Case goods includes items such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents. (4) Accents includes items such as window treatments and drapery hardware, wall décor, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, flooring, wall coverings and home and garden furnishings. (5) Other includes product delivery sales, the Ethan Allen Hotel revenues, sales of third-party furniture protection plans and other miscellaneous product sales less prompt payment discounts, sales allowances and other incentives. |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | (5) Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the use of various valuation methodologies, including market, income, and cost approaches is permissible. We consider the principal or most advantageous market in which it would transact and assumptions that market participants would use when pricing the asset or liability. Fair Value Hierarchy. We have categorized our cash equivalents and investments within the fair value hierarchy as follows: Level 1 Level 2 Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis. Fair Value Measurements at June 30, 2023 Assets Level 1 Level 2 Level 3 Total Corporate money market funds (1) $ 23,923 $ - $ - $ 23,923 Investments (2) - 110,577 - 110,577 Total $ 23,923 $ 110,577 $ - $ 134,500 Fair Value Measurements at June 30, 2022 Assets Level 1 Level 2 Level 3 Total Corporate money market funds (1) $ 51,035 $ - $ - $ 51,035 Investments (2) - 11,199 - 11,199 Total $ 51,035 $ 11,199 $ - $ 62,234 (1) We invest excess cash in corporate money market funds and short-term investments. Our corporate money market funds are readily convertible into cash and the net asset value of each fund on the last day of the quarter is used to determine its fair value. Our corporate money market funds are classified as Level 1 assets and are included in Cash and cash equivalents (2) Our investments as of June 30, 2023 consisted solely of United States Treasury Bills with maturities of less than one year. Previously held investments included fixed income securities including municipal bonds, commercial paper and certificates of deposits with maturities of less than one year. We classify our investments as available-for-sale debt investments. The fair value of our underlying investments is based on observable inputs. Our investments are classified as Level 2 and are included in Investments Accumulated other comprehensive loss no There were no investments that have been in a continuous loss position for more than one year, and there have been no other-than-temporary impairments recognized. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis. Assets and Liabilities Measured at Fair Value for Disclosure Purposes Only. no |
Note 6 - Leases
Note 6 - Leases | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Lessee, Leases [Text Block] | (6) Leases We recognize leases on our balance sheet as a ROU asset and a lease liability. We have operating leases for many of our design centers that expire at various dates through fiscal 2040. We also lease certain tangible assets, including computer equipment and vehicles with initial lease terms ranging from three to five years. We determine if a contract contains a lease at inception based on our right to control the use of an identified asset and our right to obtain substantially all of the economic benefits from the use of that identified asset. For purposes of measuring our ROU asset and lease liability, we determine our incremental borrowing rate by computing the rate of interest that we would have to pay to (i) borrow on a collateralized basis (ii) over a similar term (iii) at an amount equal to the total lease payments and (iv) in a similar economic environment. The Company's lease terms and discount rates are as follows: Fiscal Year Ended Statements of Comprehensive Income Location 2023 2022 Operating lease cost (1) SG&A expenses $ 30,235 $ 30,261 Financing lease cost Depreciation of property SG&A expenses 503 489 Interest on lease liabilities Interest expense and other financing costs 26 24 Short-term lease cost (2) SG&A expenses 1,099 1,222 Variable lease cost (3) SG&A expenses 9,117 9,351 Less: Sublease income SG&A expenses (1,162 ) (1,384 ) Total lease expense $ 39,818 $ 39,963 The following table discloses the location and amount of our operating and financing lease assets and liabilities within our consolidated balance sheet (in thousands): June 30, Consolidated Balance Sheet Location 2023 2022 Assets Operating leases Operating lease right-of-use assets (non-current) $ 115,861 $ 100,782 Financing leases Property, plant and equipment, net 550 1,060 Total lease assets $ 116,411 $ 101,842 Liabilities Current: Operating leases Current operating lease liabilities $ 26,045 $ 25,705 Financing leases Other current liabilities 378 535 Noncurrent: Operating leases Operating lease liabilities, long-trem 104,301 89,506 Financing leases Other long-term liabilities 204 579 Total lease liabilities $ 130,928 $ 116,325 The ROU assets by segment are as follows (in thousands): June 30, 2023 2022 Retail $ 115,861 $ 100,800 Wholesale 550 1,042 Total ROU assets $ 116,411 $ 101,842 The following table discloses the location and amount of our operating and financing lease costs within our consolidated statements of comprehensive income (in thousands): Fiscal Year Ended Statements of Comprehensive Income Location 2023 2022 Operating lease cost (1) SG&A expenses $ 30,235 $ 30,261 Financing lease cost Depreciation of property SG&A expenses 503 489 Interest on lease liabilities Interest expense and other financing costs 26 24 Short-term lease cost (2) SG&A expenses 1,099 1,222 Variable lease cost (3) SG&A expenses 9,117 9,351 Less: Sublease income SG&A expenses (1,162 ) (1,384 ) Total lease expense $ 39,818 $ 39,963 (1) Lease expense for operating leases consists of both fixed and variable components. Expense related to fixed lease payments are recognized on a straight-line basis over the lease term. (2) Leases with an initial term of 12 months or less are not recorded on the balance sheet and instead expensed on a straight-line basis over the lease term. (3) Variable lease payments are generally expensed as incurred, where applicable, and include certain index-based changes in rent, certain non-lease components, such as maintenance, real estate taxes, insurance and other services provided by the lessor, and other charges included in the lease. In addition, certain of our equipment lease agreements include variable lease payments, which are based on the usage of the underlying asset. The variable portion of payments are not included in the initial measurement of the asset or lease liability due to uncertainty of the payment amount and are recorded as expense in the period incurred. The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable leases with terms of more than one year to the total lease liabilities recognized on the consolidated balance sheets as of June 30, 2023 (in thousands): Fiscal Year Operating Leases Financing Leases 2024 $ 32,145 $ 392 2025 29,607 80 2026 25,520 72 2027 19,127 66 2028 15,947 - Thereafter 30,007 - Total undiscounted future minimum lease payments 152,353 610 Less: imputed interest (22,007 ) (28 ) Total present value of lease obligations (1) $ 130,346 $ 582 (1) Excludes future commitments under short-term operating lease agreements of less than $0.1 million as of June 30, 2023. As of June 30, 2023, we did not have any operating or financing leases that have not yet commenced. Other supplemental information for our leases is as follows (in thousands): Fiscal Year Ended 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 31,013 $ 33,588 Operating cash flows from financing leases $ 525 $ 512 Operating lease assets obtained in exchange for new operating lease liabilities $ 40,240 $ 18,674 Financing lease obligations obtained in exchange for new financing lease assets $ - $ 315 We sublease a small number of our leased locations. The terms of these leases generally match those of the lease we have with the lessor. As of June 30, 2023, future minimum leases payments due to us under those subleases were as follows (in thousands): Sublease Fiscal Year Income 2024 $ 1,616 2025 1,641 2026 1,509 2027 1,171 2028 634 Thereafter 2,242 Total future minimum sublease income $ 8,813 Sale-leaseback transaction. Restructuring and other impairment charges, net of gains Restructuring and other impairment charges, net of gains Restructuring and other impairment charges, net of gains Other current liabilities Other long-term liabilities |
Note 7 - Inventories
Note 7 - Inventories | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | (7) Inventories Inventories are summarized as follows (in thousands): June 30, 2023 2022 Finished goods $ 108,873 $ 131,021 Work in process 12,606 15,098 Raw materials 29,653 32,490 Inventory reserves (1,937 ) (2,105 ) Inventories, net $ 149,195 $ 176,504 |
Note 8 - Property, Plant and Eq
Note 8 - Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | (8) Property, Plant and Equipment Property, plant and equipment are summarized as follows (in thousands): June 30, 2023 2022 Land and improvements $ 77,940 $ 78,443 Building and improvements 352,582 356,622 Machinery and equipment 126,203 127,062 Property, plant and equipment, gross 556,725 562,127 Less: accumulated depreciation and amortization (334,558 ) (338,597 ) Property, plant and equipment, net $ 222,167 $ 223,530 We recorded depreciation and amortization expense of $15.6 million, $16.0 million and $16.4 million in fiscal years 2023, 2022 and 2021, respectively. |
Note 9 - Goodwill and Other Int
Note 9 - Goodwill and Other Intangible Assets | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | (9) Goodwill and Other Intangible Assets Our goodwill and intangible assets are comprised of goodwill, which represents the excess of cost over the fair value of net assets acquired, and our Ethan Allen trade name and related trademarks. Both goodwill and indefinite-lived intangible assets are not amortized as they are estimated to have an indefinite life. At June 30, 2023 and 2022, we had $25.4 million of goodwill and $19.7 million of indefinite-lived intangible assets, all of which is assigned to our wholesale reporting unit. Our wholesale reporting unit is principally involved in the development of the Ethan Allen brand and encompasses all aspects of design, manufacturing, sourcing, marketing, sale and distribution of the Company’s broad range of home furnishings and accents. We test our wholesale goodwill and indefinite-lived intangibles for impairment on an annual basis in the fourth quarter of each fiscal year, and more frequently if events or changes in circumstances indicate that it might be impaired. We performed our annual goodwill impairment test during the fourth quarter of fiscal 2023 utilizing a qualitative analysis and concluded it was more likely than not the fair value of our wholesale reporting unit was greater than its respective carrying value and no impairment charge was required. We also performed our annual indefinite-lived intangible asset impairment test during the fourth quarter of fiscal 2023 utilizing a qualitative analysis and concluded it was more likely than not the fair value of our trade name was greater than its carrying value and no impairment charge was required. In performing the qualitative assessments, we considered such factors as macroeconomic conditions, industry and market conditions in which we operate including the competitive environment, significant adverse changes in customer demand, a product recall or an adverse action or assessment by a regulator. We also considered our stock price both in absolute terms and in relation to peer companies. |
Note 10 - Restructuring and Oth
Note 10 - Restructuring and Other Impairment Activities | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | (10) Restructuring and Other Impairment Activities Restructuring and other impairment charges, net of gains, were as follows (in thousands): Fiscal Year Ended 2023 2022 Gain on sale-leaseback transaction (1) $ (4,222 ) $ - Gain on sales of property, plant and equipment (2) (311 ) (5,431 ) Severance and other charges 813 970 Total Restructuring and other impairment charges, net of gains $ (3,720 ) $ (4,461 ) (1) In August 2022, we sold and subsequently leased back a retail design center and recognized a net gain of $4.2 million for the year ended June 30, 2023. The remaining deferred liability of $2.8 million as of June 30, 2023 will be recognized over the remaining life of the lease. Refer to Note 6, Leases (2) In April 2023, we sold a previously closed property to an independent third party for $1.8 million, which resulted in a pre-tax gain of $0.3 million. During the prior year period, we completed the sale of three previously closed properties to independent third parties for $11.0 million, less closing costs, in three separate transactions. As a result of these property sales, the Company recognized a pre-tax gain of $5.4 million. The Company’s restructuring and other impairment activities are summarized in the table below (in thousands): Fiscal 2023 Activity Balance June 30, 2022 New Charges (Income) Non-Cash (Payments) Receipts Balance June 30, 2023 Lease exit costs $ 185 $ - $ - $ (185 ) $ - Sale of property, plant and equipment - (311 ) 1,398 1,809 100 Sale-leaseback transaction - (4,222 ) 1,043 8,103 2,838 (1) Severance and other charges 268 813 - (860 ) 221 Total Restructuring and other impairment activities $ 453 $ (3,720 ) $ 2,441 $ 8,867 $ 3,159 (1) The remaining balance of $2.8 million on the sale-leaseback transaction will be amortized to Restructuring and other impairment charges, net of gains Other current liabilities Other long-term liabilities |
Note 11 - Credit Agreement
Note 11 - Credit Agreement | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | (11) Credit Agreement On January 26, 2022, the Company and most of its domestic subsidiaries (the “Loan Parties”) entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent and syndication agent and Capital One, National Association, as documentation agent. The Credit Agreement amends and restates the Second Amended and Restated Credit Agreement, dated as of December 21, 2018, as amended. The Credit Agreement provides for a $125 million revolving credit facility (the “Facility”), subject to borrowing base availability, with a maturity date of January 26, 2027. The Credit Agreement also provides the Company with an option to increase the size of the facility up to an additional amount of $60 million. We incurred financing costs of $0.5 million during fiscal 2022, which are being amortized as interest expense within Interest expense and other financing costs Availability. Borrowings. no no no Covenants and Other Ratios. The Facility does not contain any significant financial ratio covenants or coverage ratio covenants other than a fixed charge coverage ratio covenant based on the ratio of (a) EBITDA, plus cash Rentals, minus Unfinanced Capital Expenditures to (b) Fixed Charges, as such terms are defined in the Facility. The fixed charge coverage ratio covenant, set at 1.0 to 1.0 and measured on a trailing period of four consecutive fiscal quarters, only applies in certain limited circumstances, including when the unused availability under the Facility drops below $14.0 million. At no point during fiscal 2023 or 2022, did the unused availability under the Facility fall below $14.0 million, thus the Fixed-Charge Coverage Ratio (FCCR) Covenant did not apply. At both June 30, 2023 and 2022, we were in compliance with all the covenants under the Facility. Letters of Credit. |
Note 12 - Other Current and Lon
Note 12 - Other Current and Long-term Liabilities | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | (12) Other Current and Long-term Liabilities The following table summarizes the nature of the amounts within Other current liabilities June 30, 2023 2022 Income taxes payable $ 266 $ 4,558 Deferred liability, short-term (1) 2,620 - Financing lease liabilities, short-term 378 535 Customer financing program rebate 433 216 Other current liabilities 3,491 3,479 Other current liabilities $ 7,188 $ 8,788 (1) As of June 30, 2023, the deferred liability balance associated with the sale-leaseback transaction completed on August 1, 2022 was $2.8 million, with $2.6 million in Other current liabilities Other long-term liabilities Leases The following table summarizes the nature of the amounts within Other long-term liabilities June 30, 2023 2022 Unrecognized tax benefits $ 2,654 $ 2,023 Customer financing program rebate 730 183 Long-term financing lease liabilities 204 579 Other long-term liabilities 405 220 Other long-term liabilities $ 3,993 $ 3,005 |
Note 13 - Income Taxes
Note 13 - Income Taxes | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | (13) Income Taxes Income tax expense is based on taxable income determined in accordance with current enacted laws and tax rates. Deferred income taxes are recorded for the temporary differences between the financial statement and tax bases of assets and liabilities using currently enacted tax rates. Income tax expense for the fiscal years ended June 30 were as follows (in thousands): 2023 2022 2021 U.S. operations $ 138,941 $ 135,077 $ 75,458 Non-U.S. operations 2,084 3,044 953 Income before income taxes $ 141,025 $ 138,121 $ 76,411 U.S. operations $ 34,679 $ 34,682 $ 15,812 Non-U.S. operations 539 159 594 Total income tax expense $ 35,218 $ 34,841 $ 16,406 Effective tax rate 25.0 % 25.2 % 21.5 % The components of income tax expense for the fiscal years ended June 30 were as follows (in thousands): 2023 2022 2021 Current: U.S. Federal $ 29,139 $ 28,144 $ 10,617 U.S. State and Local 7,076 6,474 1,647 Foreign 185 575 492 Total current 36,400 35,193 12,756 Deferred: U.S. Federal (1,362 ) (610 ) 4,462 U.S. State and Local (174 ) 674 (914 ) Foreign 354 (416 ) 102 Total deferred (1,182 ) (352 ) 3,650 Total income tax expense $ 35,218 $ 34,841 $ 16,406 The following is a reconciliation of our effective tax rate to the U.S. federal income tax rate for the fiscal years ended June 30 (in thousands): 2023 2022 2021 Income tax expense at U.S. Federal statutory tax rate $ 29,616 21.0 % $ 29,005 21.0 % $ 16,046 21.0 % Increase (decrease) in income taxes resulting from: State and local income taxes, net of U.S. federal income benefit 5,203 3.7 % 5,208 3.8 % 2,565 3.4 % Change in valuation allowance - - (591 ) (0.4 %) (2,565 ) (3.4 %) Foreign derived intangible income ("FDII") deduction 428 0.3 % (289 ) (0.2 %) (130 ) (0.2 %) Unrecognized tax benefits (229 ) (0.2 %) 390 0.3 % 48 0.1 % Share-based compensation 5 - 189 0.1 % 72 0.1 % Other, net 195 0.2 % 929 0.6 % 370 0.5 % Total income tax expense (and corresponding effective tax rate) $ 35,218 25.0 % $ 34,841 25.2 % $ 16,406 21.5 % The significant components of deferred tax assets recorded within the consolidated balance sheet were as follows (in thousands): June 30, 2023 2022 Lease liabilities $ 32,411 $ 28,621 Employee compensation 2,218 2,167 Share-based compensation 139 271 Net operating loss carryforwards 318 340 Property, plant and equipment 151 1,309 Other 3,802 3,321 Total deferred tax assets $ 39,039 $ 36,029 The significant components of deferred tax liabilities recorded within the consolidated balance sheet were as follows (in thousands): June 30, 2023 2022 Operating lease right-of-use assets $ 28,724 $ 24,965 Intangible assets other than goodwill 9,047 9,041 Commissions 3,032 5,006 Other 652 615 Total deferred tax liabilities $ 41,455 $ 39,627 Deferred tax balances are classified in the consolidated balance sheets as follows (in thousands): June 30, 2023 2022 Other assets $ 640 $ 820 Other non-current liabilities (3,056 ) (4,418 ) Total net deferred tax asset (liability) $ (2,416 ) $ (3,598 ) We evaluate our deferred taxes to determine if the “more likely than not” standard of evidence has not been met thereby supporting the need for a valuation allowance. The evaluation of the amount of net deferred tax assets expected to be realized necessarily involves forecasting the amount of taxable income that will be generated in future years. We have forecasted future results using estimates management believes to be reasonable. Our forecasts are based on our best estimate of expected trends resulting from certain leading economic indicators. The realization of deferred income tax assets is dependent on future events. Actual results inevitably will vary from management's forecasts which may be impacted by a sustained economic downturn, or significantly extended economic recovery. Such variances could result in adjustments to the valuation allowance on deferred tax assets in future periods, and such adjustments could be material to the financial statements. A valuation allowance must be established for deferred tax assets when it is more likely than not that assets will not be realized. At June 30, 2023, there was no The deferred tax assets as of June 30, 2023 associated with net operating loss carryforwards and the related expiration dates are as follows (in thousands): Deferred Net Operating Loss Tax Assets Carryforwards Various U.S. state net operating losses, expiring between 2031 and 2040 $ 208 $ 2,689 Canada net operating loss, expiring 2039 $ 110 $ 417 Uncertain Tax Positions We recognize interest and penalties related to income tax matters as a component of income tax expense. As of June 30, 2023, we had gross unrecognized tax benefits totaling $3.0 million, an increase from $2.5 million as of June 30, 2022. We had approximately $0.3 million accrued for interest as of June 30, 2023 and 2022, respectively. If the $3.0 million of unrecognized tax benefits and related interest as of June 30, 2023 were recognized, approximately $2.4 million would be recorded as a benefit to income tax expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits including related interest is as follows (in thousands): June 30, 2023 2022 Beginning balance $ 2,474 $ 1,984 Additions for tax positions related to the current year 817 853 Additions for tax positions of prior years 170 94 Reductions resulting from a lapse of the applicable statute of limitations (461 ) (457 ) Ending balance $ 3,000 $ 2,474 It is reasonably possible that various issues relating to approximately $0.3 million of the total gross unrecognized tax benefits as of June 30, 2023 will be resolved within the next twelve months as exams are completed or statutes expire. If recognized, approximately $0.3 million of unrecognized tax benefits would reduce our income tax expense in the period realized. While the amount of uncertain tax benefits with respect to the entities may change within the next twelve months, it is not anticipated that any of the changes will be significant. The Company conducts business globally and, as a result, the Company or one or more of its subsidiaries files income tax returns in the United States, various state, local, and foreign jurisdictions. In the normal course of business, our tax filings are subject to examination by federal, state and foreign taxing authorities. As of June 30, 2023, our U.S. federal income tax return for the tax year of 2019 2018 2018 |
Note 14 - Shareholders' Equity
Note 14 - Shareholders' Equity | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | (14) Shareholders Equity Shares Authorized for Issuance Our authorized capital stock consists of 150,000,000 shares of common stock, par value $0.01 per share, and 1,055,000 shares of Preferred Stock, par value $0.01 per share. The Board of Directors may provide for the issuance of all or any shares of Preferred Stock in one or more classes or series, and to fix for each such class or series such voting powers, full or limited, or no voting powers, and such distinctive designations, preferences and relative, participating, optional or other special rights and such qualifications, limitations or restrictions thereof, as shall be stated and expressed in the resolution or resolutions adopted by the Board of Directors providing for the issuance of such class or series and as may be permitted by the General Corporation Law of the State of Delaware. As of June 30, 2023 and 2022, there were no shares of Preferred Stock issued or outstanding. Share Repurchase Program There were no share repurchases under the Company’s existing multi-year share repurchase program during fiscal years 2023, 2022 or 2021. As of June 30, 2023, we had a remaining Board authorization to repurchase 2,007,364 shares of our common stock pursuant to our share repurchase program. There is no expiration date on the repurchase authorization. The timing and amount of any future share repurchases in the open market and through privately negotiated transactions will be determined by the Company’s officers at their discretion and based on a number of factors, including an evaluation of market and economic conditions while also maintaining financial flexibility. Dividends In August 2022 we paid a special cash dividend of $0.50 per share. In April 2023, the Board of Directors increased the cash dividend by 12.5% to $0.36 per share. In addition to the special cash dividend paid during August 2022, we paid four regular quarterly cash dividends during fiscal 2023. Total cash dividends paid to shareholders in fiscal 2023 were $1.82 per share and totaled $46.4 million. During fiscal 2022, total cash dividends paid were $48.3 million. |
Note 15 - Earnings Per Share
Note 15 - Earnings Per Share | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | (15) Earnings Per Share Basic and diluted EPS are calculated using the following weighted average share data (in thousands): Fiscal Year Ended 2023 2022 2021 Weighted average shares outstanding for basic calculation 25,473 25,413 25,265 Dilutive effect of stock options and other share-based awards 131 109 87 Weighted average shares outstanding adjusted for dilution calculation 25,604 25,522 25,352 Dilutive potential common shares consist of stock options, restricted stock units and performance units. As of June 30, 2023, 2022 and 2021, total share-based awards of 39,065, 65,545 and 46,827, respectively, were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive. As of June 30, 2023, 2022 and 2021, the number of performance units excluded from the calculation of diluted EPS was 92,638 89,969 and 251,867, respectively. Contingently issuable shares with performance conditions are evaluated for inclusion in diluted EPS if, at the end of the current period, conditions would be satisfied as if it were the end of the contingency period. |
Note 16 - Accumulated Other Com
Note 16 - Accumulated Other Comprehensive Loss | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | (16) Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of foreign currency translation adjustments and unrealized gains or losses on investments, net of tax. Foreign currency translation adjustments are the result of changes in foreign currency exchange rates related to our operations in Canada, Honduras and Mexico. Assets and liabilities are translated into U.S. dollars using the current period-end exchange rate and income and expense amounts are translated using the average exchange rate for the period in which the transaction occurred. Our investments as of June 30, 2023 consist of United States Treasury Bills with maturities of one year or less. As of June 30, 2022, our investments consisted of municipal bonds, commercial paper and certificates of deposit with maturities of one year or less. All unrealized gains and losses are included, net of tax, in Accumulated other comprehensive loss The components of accumulated other comprehensive loss are as follows (in thousands): June 30, 2023 2022 Accumulated foreign currency translation adjustments $ (3,219 ) $ (6,397 ) Accumulated unrealized gains (losses) on investments, net of tax 434 (65 ) $ (2,785 ) $ (6,462 ) The following table sets forth the activity in accumulated other comprehensive loss (in thousands): Fiscal Year Ended 2023 2022 Beginning balance at July 1 $ (6,462 ) $ (5,931 ) Other comprehensive income (loss), net of tax 3,681 (532 ) Less amounts attributable to noncontrolling interests (4 ) 1 Ending balance at June 30 $ (2,785 ) $ (6,462 ) |
Note 17 - Share-based Compensat
Note 17 - Share-based Compensation | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | (17) Share-Based Compensation We recognized total share-based compensation expense of $1.3 million, $1.1 million, and $1.3 million in fiscal years 2023, 2022 and 2021, respectively. These amounts have been included in the consolidated statements of comprehensive income within SG&A expenses no At June 30, 2023, there were 1,346,671 shares of common stock available for future issuance pursuant to the Ethan Allen Interiors Inc. Stock Incentive Plan (the “Plan”). Under this Plan, the initial aggregate number of shares of common stock that may be issued through awards of any form was 6,487,867 shares. The Plan provides for the grant of stock options, restricted stock and stock units. The Plan also provides for the issuance of stock appreciation rights (“SARs”) on issued options, however no SARs have been issued to date. All share-based awards are approved by the Compensation Committee of the Board of Directors after consideration of recommendations proposed by the Chief Executive Officer. Stock options are granted with an exercise price equal to the market price of our common stock at the date of grant, vest ratably over a specified service period and have a contractual term of 10 years. Equity awards can also include performance vesting conditions. Company policy further requires an additional one-year holding period beyond the service vest date for executive officers. Stock Option Activity A summary of stock option activity is presented below. Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Value Options Price Term (yrs) ($ in thousands) Outstanding at June 30, 2020 403,106 $ 21.24 4.4 $ - Granted 37,008 $ 12.97 n/a n/a Exercised (174,662 ) $ 16.95 n/a $ 667 Canceled (forfeited/expired) (11,497 ) $ 18.62 n/a n/a Outstanding at June 30, 2021 253,955 $ 23.10 5.6 $ 1,368 Granted 25,410 $ 23.61 n/a n/a Exercised (55,220 ) $ 20.23 n/a $ 287 Canceled (forfeited/expired) (117,105 ) $ 23.98 n/a n/a Outstanding at June 30, 2022 107,040 $ 23.75 4.4 $ 120 Granted 23,970 $ 25.03 n/a n/a Exercised (2,666 ) $ 28.05 n/a $ 4 Canceled (forfeited/expired) (13,507 ) $ 23.64 n/a n/a Outstanding at June 30, 2023 114,837 $ 23.93 4.8 $ 560 Exercisable at June 30, 2023 85,104 $ 24.22 3.5 $ 406 The aggregate intrinsic value of stock options exercised during fiscal years 2023, 2022 and 2021 was less than $0.1 million, $0.3 million and $0.7 million, respectively. We received proceeds from employee stock option exercises of $0.1 million, $1.1 million, and $3.0 million during fiscal years 2023, 2022, and 2021, respectively. A summary of the nonvested shares as of June 30, 2023 and changes during the fiscal year then ended is presented below. Weighted Average Options Exercise Price Nonvested at June 30, 2022 20,492 $ 18.22 Granted 23,970 $ 25.03 Vested (10,734 ) $ 17.39 Canceled (forfeited) (3,995 ) $ 25.03 Nonvested at June 30, 2023 29,733 $ 23.09 As of June 30, 2023, $0.1 million of total unrecognized compensation expense related to non-vested stock options is expected to be recognized over a weighted average remaining period of 1.9 years. Employee Stock Option Grants. no . Non-Employee Stock Option Grants. Non-employee (independent) directors were granted stock options during the first quarter of each fiscal year presented and valued using the Black-Scholes option pricing model with the following assumptions: 2023 2022 2021 Volatility 41.6 % 39.3 % 38.2 % Risk-free rate of return 2.92 % 0.73 % 0.35 % Dividend yield 4.25 % 3.79 % 3.26 % Expected average life (years) 4.9 5.5 5.5 Grant date fair value $ 5.98 $ 5.04 $ 3.20 Fair value as a % of exercise price 23.9 % 21.3 % 24.7 % There were no other non-employee stock option grants during fiscal 2023 or 2022. Restricted Stock Unit Activity A summary of restricted stock unit activity is presented below. Weighted Restricted Average Stock Units Fair Value Outstanding at June 30, 2020 56,000 $ 9.15 Granted 38,000 $ 9.58 Vested (12,375 ) $ 9.15 Canceled (forfeited) (10,625 ) $ 9.15 Outstanding at June 30, 2021 71,000 $ 9.38 Granted 51,100 $ 20.71 Vested (29,000 ) $ 9.43 Canceled (forfeited) (17,000 ) $ 12.66 Outstanding at June 30, 2022 76,100 $ 16.23 Granted 21,257 $ 19.48 Vested (32,150 ) $ 13.47 Canceled (forfeited) (11,344 ) $ 18.16 Outstanding at June 30, 2023 53,863 $ 18.76 During fiscal 2023 we granted 21,257 non-performance based restricted stock units (“RSUs”), with a weighted average grant date fair value of $19.48. The RSUs granted to employees entitle the holder to receive the underlying shares of common stock as the unit vests over the relevant vesting period. The RSUs do not entitle the holder to receive dividends declared on the underlying shares while the RSUs remain unvested and vest in three equal annual installments on the anniversary of the date of grant. During fiscal 2022, we granted 51,100 RSUs with a weighted average grant date fair value of $20.71. The fiscal 2022 RSUs vest in four equal annual installments on the anniversary date of the grant. We account for these RSUs as equity-based awards because when they vest, they will be settled in shares of our common stock. The grant date fair value of RSUs is measured by reducing the grant date price of the Company's common stock by the present value of the dividends expected to be paid on the underlying stock during the requisite service period, discounted at the appropriate risk-free interest rate. As of June 30, 2023, $0.7 million of total unrecognized compensation expense related to non-vested restricted stock units is expected to be recognized over a weighted average remaining period of 2.0 years. A total of 32,150 restricted stock units vested with an aggregate fair value of $0.9 million during fiscal 2023 compared to 29,000 restricted stock units vesting in fiscal 2022 with a total fair value of $0.8 million. Performance Stock Unit ( “ PSU ” ) Activity The following table summarizes PSU activity at the maximum award amounts: Weighted Average Grant Date Units Fair Value Outstanding at June 30, 2020 325,107 $ 19.05 Granted 117,338 $ 8.76 Vested - n/a Canceled (forfeited) (64,578 ) $ 18.29 Outstanding at June 30, 2021 377,867 $ 15.98 Granted 90,367 $ 17.15 Vested (35,124 ) $ 18.19 Canceled (forfeited) (112,975 ) $ 11.86 Outstanding at June 30, 2022 320,135 $ 17.53 Granted 103,096 $ 18.75 Vested (31,635 ) $ 12.53 Canceled (forfeited) (4,600 ) $ 18.75 Outstanding at June 30, 2023 386,996 $ 18.25 Share-based compensation expense related to PSUs recognized in our consolidated statements of comprehensive income are presented in the following table (in thousands). Fiscal Year Ended 2023 2022 2021 Fiscal 2020 grants $ - $ 107 $ 234 Fiscal 2021 grants 236 143 301 Fiscal 2022 grants 317 413 - Fiscal 2023 grants 280 - - Total expense $ 833 $ 663 $ 535 As of June 30, 2023, $1.0 million of total unrecognized compensation expense related to non-vested PSUs is expected to be recognized over a weighted average remaining period of 1.6 years. Under the Plan, the Compensation Committee of the Board of Directors is authorized to award common shares to certain employees based on the attainment of certain financial goals over a given performance period. The awards are offered at no cost to the employees. In the event of an employee's termination during the performance period, the right to earn shares under this program is forfeited. Payout of PSU grants depend on the attainment of certain financial and shareholder-return goals over a specific performance period, which is generally three fiscal years. The number of awards that will vest, as well as unearned and canceled awards, depend on the achievement of certain financial and shareholder-return goals over the three-year performance periods, and will be settled in shares if service conditions are met, requiring employees to remain employed with us through the end of the three-year performance periods. We account for PSU awards as equity-based awards because upon vesting, they will be settled in common shares. We expense as compensation cost the fair value of the PSUs as of the grant date and amortize expense ratably over the total performance and time vest period, considering the probability that we will satisfy the performance goals. During fiscal 2023 we granted 103,096 PSUs compared with 90,367 PSUs in fiscal 2022. The weighted average assumptions used for PSUs granted during fiscal 2023, 2022 and 2021, respectively, are presented below. Fiscal Year Ended 2023 2022 2021 Volatility 47.7 % 43.3 % 56.0 % Risk-free rate of return 3.16 % 0.62 % 0.14 % Dividend yield 4.25 % 3.79 % 3.26 % |
Note 18 - Employee Retirement P
Note 18 - Employee Retirement Programs | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | (18) Employee Retirement Programs The Company established its Ethan Allen Retirement Savings Plan (the “401(k) Plan”) in 1994. The 401(k) Plan is a defined contribution plan subject to the provisions of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 (“IRC”). Effective January 1, 2021, all full-time U.S. employees of the Company are eligible to participate in the Plan on the first day of employment. Prior to such date, all full-time United States employees were eligible to participate in the 401(k) Plan on the first day of any subsequent April, July, October or January coincident with or next following the three-month anniversary of their date of hire. Each year, participants may contribute up to 100% of their eligible annual compensation, subject to annual limitations established by the IRC. We may, at our discretion, make a matching and profit-sharing contribution to the 401(k) Plan on behalf of each eligible participant. All participants with a date of hire on or after January 1, 2021 shall cliff vest 100% of Company contributions received after three years of service. Those employees hired before January 1, 2021 will continue to vest immediately in all Company contributions. The Company, at its discretion, may elect to match a portion of employee contributions. Total defined contribution plan expense incurred by the Company in matching and profit-sharing contributions to employee 401(k) accounts during fiscal years 2023, 2022 and 2021, was $2.7 million, $2.6 million and $2.7 million, respectively. In addition to the 401(k) Plan, Ethan Allen provides additional benefits to select management in the form of deferred compensation arrangements. The total cost of these benefits were immaterial to the Company during each period presented. |
Note 19 - Segment Information
Note 19 - Segment Information | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (19) Segment Information Ethan Allen conducts business globally and has strategically aligned its business into two Summary of Significant Accounting Policies Wholesale Segment. ten Within the wholesale segment, we record revenue information according to each respective product line (i.e. case goods, upholstery and home accents). Wholesale profitability includes (i) the wholesale gross margin, which represents the difference between the wholesale net sales price and the cost associated with manufacturing and/or sourcing the related product, and (ii) other operating costs associated with wholesale segment activities. The wholesale segment’s product line revenue, expressed as a percentage of net sales during fiscal 2023, is comprised of 49% upholstered products, 33% case goods and the remaining 18% home accents and other. Our independent retailers are required to enter into license agreements with us, which authorize the use of certain Ethan Allen trademarks and require adherence to certain standards of operation, including a requirement to fulfill related warranty service agreements. We are not subject to any territorial or exclusive retailer agreements in North America. The geographic distribution of manufacturing and distribution locations is disclosed under Item 2, Properties, Retail Segment. two two Properties, Retail segment revenue is generated upon the sale and delivery of our products to our retail customers through our network of home delivery centers. Retail profitability reflects (i) the retail gross margin, which represents the difference between the retail net sales price and the cost of goods, purchased from the wholesale segment, and (ii) other operating costs associated with retail segment activities. We measure the performance of our design centers primarily based on net sales and operating income on a comparable period basis. The frequency of our promotional events as well as the timing of the end of those events can affect the comparability of net sales during a given period. Due to the nature of the business in which the retail segment operates, there are no customer concentration risks. The retail segment’s product line revenue, expressed as a percentage of net sales during fiscal 2023, is comprised of 51% upholstered products, 29% case goods and the remaining 20% home accents and other. Intersegment. Information for each of the last three fiscal years is provided below (in thousands): Fiscal Year Ended 2023 2022 2021 Net sales Wholesale segment $ 449,591 $ 483,842 $ 413,076 Less: intersegment sales (320,764 ) (355,964 ) (282,878 ) Wholesale sales to external customers 128,827 127,878 130,198 Retail segment 662,555 689,884 554,971 Consolidated total $ 791,382 $ 817,762 $ 685,169 Income before income taxes Wholesale segment $ 68,792 $ 63,930 $ 52,281 Retail segment 67,256 80,496 28,824 Elimination of intercompany profit (a) 1,148 (6,176 ) (3,820 ) Operating income 137,196 138,250 77,285 Interest and other income (expense), net 4,042 72 (393 ) Interest expense and other financing costs 213 201 481 Consolidated total $ 141,025 $ 138,121 $ 76,411 Depreciation and amortization Wholesale segment $ 6,328 $ 6,439 $ 6,714 Retail segment 9,286 9,548 9,671 Consolidated total $ 15,614 $ 15,987 $ 16,385 Capital expenditures Wholesale segment $ 6,787 $ 8,125 $ 5,618 Retail segment 7,098 5,262 6,411 Consolidated total $ 13,885 $ 13,387 $ 12,029 (a) Represents the change in wholesale profit contained in the retail segment inventory at the end of the period. June 30, (in thousands) 2023 2022 2021 Total Assets Wholesale segment $ 373,921 $ 341,466 $ 298,332 Retail segment 403,651 412,176 412,066 Inventory profit elimination (a) (32,119 ) (33,747 ) (27,153 ) Consolidated total $ 745,453 $ 719,895 $ 683,245 (a) Represents the wholesale profit contained in the retail segment inventory that has not yet been realized. These profits are realized when the related inventory is sold. Geographic Information Our international net sales are comprised of our wholesale segment sales to independent retailers and our retail segment sales to customers through our Company-operated design centers in Canada. The following table sets forth consolidated net sales by geographic area for each of the past three fiscal years: Fiscal Year Ended Sales by Country 2022 2022 2021 United States 97.0 % 96.0 % 94.9 % All Others 3.0 % 4.0 % 5.1 % The following table sets forth long-lived assets by geographic area at June 30 (in thousands): 2023 2022 2021 United States $ 301,951 $ 295,747 $ 311,529 Mexico 20,695 15,085 15,381 Honduras 10,686 9,967 8,347 Canada 4,696 3,513 4,919 Total long-lived assets (1) $ 338,028 $ 324,312 $ 340,176 (1) Long-lived assets consist of property, plant and equipment and operating lease right-of-use assets and exclude goodwill, intangible assets, deferred income taxes and other assets. |
Note 20 - Commitments and Conti
Note 20 - Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | (20) Commitments and Contingencies Commitments represent obligations, such as those for future purchases of goods or services that are not yet recorded on the balance sheet as liabilities. We record liabilities for commitments when incurred (specifically when the goods or services are received). Fluctuations in our operating results, levels of inventory on hand, the degree of success of our accounts receivable collection efforts, the timing of tax and other payments, as well as necessary capital expenditures to support growth of our operations will impact our liquidity and cash flows in future periods. The effect of our commitments, including contractual obligations, on our liquidity and capital resources in future periods should be considered in conjunction with the factors mentioned here. Lease Commitments We enter into operating and financing leases in the normal course of business. Most lease arrangements provide us with the option to renew the leases at defined terms. Purchase Commitments with Suppliers Purchase obligations are defined as agreements that are enforceable and legally binding that specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. We do, in the normal course of business, initiate purchase orders for the procurement of selected finished goods sourced from third-party suppliers, lumber, fabric, leather and other raw materials used in production, and certain outsourced services. All purchase orders are based on current needs and are fulfilled by suppliers within a relatively short time period. Our open purchase orders with respect to such goods and services was $29.2 million at June 30, 2023 and are expected to be paid in the next 12 months. Other Purchase Commitments Other purchase commitments represent payment due for services such as telecommunication, computer-related software, finance and accounting services, web development, insurance and other maintenance contracts. These commitments are generally payable within one year and totaled approximately $16.9 million as of June 30, 2023. Legal Matters We are routinely party to various legal proceedings in the ordinary course of business, including investigations or as a defendant in litigation. Such legal proceedings may include claims related to our employment practices; wage and hour claims; claims of intellectual property infringement, including with respect to patents; and consumer action claims relating to our consumer products and practices. In addition, from time to time, we are subject to actions commenced by third-parties such as product liability claims for products we manufacture and sell, personal injury claims and allegations that properties we operate do not comply with legally required access requirements for persons with disabilities. We could also face a wide variety of employee claims against us, including general discrimination, privacy, labor and employment, ERISA and disability claims. We are also subject to various federal, state and local environmental protection laws and regulations and are involved, from time to time, in investigations and proceedings regarding environmental matters. Such environmental investigations and proceedings typically concern air emissions, water discharges, and/or management of solid and hazardous wastes. We believe that our facilities are in material compliance with all such applicable laws and regulations. On a quarterly basis, we review our litigation activities and determine if an unfavorable outcome to us is considered “remote”, “reasonably possible” or “probable” as defined by ASC 450, Contingencies. Indemnifications As permitted or required under Delaware law and to the maximum extent allowable under that law, the Company has certain obligations to indemnify its current and former officers and directors for certain events or occurrences while the officer or director is, or was serving, at our request in such capacity. These indemnification obligations are valid as long as the director or officer acted in good faith and in a manner the person reasonably believed to be in, or not opposed to, the best interests of the Company, and with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The maximum potential amount of future payments Ethan Allen could be required to make under these indemnification obligations is unlimited; however, the Company has a director and officer insurance policy that it believes mitigates our exposure and may enable us to recover a portion of any future amounts paid. |
Note 21 - Subsequent Event
Note 21 - Subsequent Event | 12 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | (21) Subsequent Event In July 2023, our Case Goods manufacturing facility located in Orleans, Vermont was damaged by flood waters from the Barton River. The Company's incurred losses from the disposal of damaged inventory, inoperable machinery equipment from water damage, business interruption, facility cleanup, and restoration, are not yet determinable. We are working through insurance to recover a portion of our incurred losses. The manufacturing facility in Orleans resumed operations during August 2023 and is focused on reducing its backlog. The losses incurred from the flooding had no effect on the fiscal 2023 consolidated financial statements and are not expected to have a material impact on the fiscal 2024 consolidated financial statements. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and short-term, highly liquid investments with original maturities of three months or less are considered cash and cash equivalents and are reported at fair value. Our corporate money market funds are readily convertible into cash and the net asset value of each fund on the last day of the month is used to determine its fair value. We maintain our cash and cash equivalent accounts in various financial institutions and as such, perform ongoing evaluations of these institutions to limit our concentration of credit risk. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash We present restricted cash as a component of total cash and cash equivalents on our consolidated statements of cash flows and within Other Assets |
Investment, Policy [Policy Text Block] | Investments Our investments as of June 30, 2023 consist solely of United States Treasury Bills with maturities of one year or less. Previously held investments included fixed income securities including municipal bonds, commercial paper and certificates of deposits with maturities of less than one year. We classify our investments as available-for-sale debt investments and are held in the custody of major financial institutions. These short-term investments are recorded in our consolidated balance sheets at fair value. The fair value of our underlying investments is based on observable inputs and classified as Level 2. Unrealized gains and losses on these investments are included, net of tax, as a separate component of Accumulated other comprehensive loss no . |
Accounts Receivable [Policy Text Block] | Accounts Receivable Accounts receivable arise from the sale of products on trade credit terms and is presented net of allowance for doubtful accounts. The allowance for doubtful accounts is based on a review of specifically identified accounts in addition to an overall aging analysis. On a monthly basis, we review all accounts as to their past due balances, as well as collectability of the outstanding trade accounts receivable for possible write-off. It is our policy to write-off the accounts receivable against the allowance account when we deem the receivable to be uncollectible. Additionally, we review orders from retailers that are significantly past due, and we ship product only when our ability to collect payment from our customer for the new order is probable. At June 30, 2023 and 2022, the allowance for doubtful accounts was immaterial. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost (on first-in, first-out basis) or net realizable value. Cost is determined based solely on those charges incurred in the acquisition and production of the related inventory (i.e., material, labor and manufacturing overhead costs). We estimate inventory reserves for excess quantities and obsolete items based on specific identification and historical write-offs, taking into account future demand and market conditions. If actual demand or market conditions in the future are less favorable than those estimated, additional inventory write-downs may be required. At June 30, 2023 and 2022, our inventory reserves were $1.9 million and $2.1 million, respectively. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation of property, plant and equipment is provided over the estimated useful lives of the respective assets on a straight-line basis. Estimated useful lives of the respective assets typically range from 20-40 years for buildings and improvements and from three to twenty years for machinery and equipment. Information systems, computer hardware and software, which are included within the machinery and equipment category, are typically depreciated from three to five years. Leasehold improvements are amortized over the shorter of the underlying lease term or the estimated useful life. Repairs and maintenance expenditures, which are not considered leasehold improvements and do not extend the useful life of the property and equipment, are expensed as incurred. Retirement, sales or dispositions of long-lived assets are recorded based on carrying value and proceeds received. Any resulting gains or losses are recorded as a component of operating expenses. Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. For further discussion regarding impairments refer to the Impairment of Long-Lived Assets |
Assets Held for Sale, Policy [Policy Text Block] | Assets Held for Sale An asset is considered to be held for sale when all of the following criteria are met: (i) management commits to a plan to sell the property; (ii) it is unlikely that the disposal plan will be significantly modified or discontinued; (iii) the property is available for immediate sale in its present condition; (iv) actions required to complete the sale of the property have been initiated; (v) sale of the asset is probable and the completed sale is expected to occur within one year; and (vi) the property is actively being marketed for sale at a price that is reasonable given its current market value. Upon designation as an asset held for sale, the carrying value of the asset is recorded at the lower of its carrying value or its estimated fair value less estimated costs to sell, and the Company ceases depreciating the asset. As of June 30, 2023 and 2022, we did not |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets We review the carrying value of our long-lived assets, which includes our right-of-use lease assets, for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Our assessment of recoverability is based on our best estimates using either quoted market prices or an analysis of the undiscounted projected future cash flows by asset group in order to determine if there is any indicator of impairment requiring us to further assess the fair value of our long-lived assets. If the sum of the estimated undiscounted future cash flows related to the asset is less than the carrying value, we recognize a loss equal to the difference between the carrying value and the fair value, usually determined by the estimated discounted cash flow analysis of the assets. Our asset groups consist of our operating segments within our wholesale reportable segment, each of our retail design centers and other corporate assets. The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets, which for our retail segment is the individual retail design center and for our wholesale segment is the manufacturing plant level. We estimate future cash flows based on design center-level historical results, current trends, third-party appraisals and operating and cash flow projections. Our estimates are subject to uncertainty and may be affected by a number of factors outside our control, including general economic conditions and the competitive environment. While we believe our estimates and judgments about future cash flows are reasonable, future impairment charges may be required if the expected cash flow estimates, as projected, do not occur or if events change requiring us to revise our estimates. Refer to Note 10, Restructuring and Other Impairment Activities, |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Indefinite-Lived Intangible Assets Our goodwill and intangible assets are comprised primarily of goodwill, which represents the excess of cost over the fair value of net assets acquired, and our Ethan Allen trade name and related trademarks. Both goodwill and indefinite-lived intangible assets are assigned to our wholesale reporting unit, which is principally involved in the development of the Ethan Allen brand and encompasses all aspects of design, manufacturing, sourcing, marketing, sale and distribution of the Company’s broad range of home furnishings and accents, and are not amortized as they are estimated to have an indefinite life. We are required to test goodwill and indefinite-lived intangibles for potential impairment annually, or more frequently if impairment indicators occur. Goodwill and other indefinite-lived intangible assets are evaluated for impairment on an annual basis during the fourth quarter of each fiscal year, and between annual tests whenever events or circumstances indicate that the carrying value of the goodwill or other intangible asset may exceed its fair value. Goodwill. Other Indefinite-Lived Intangible Assets (trade name). |
Lessor, Leases [Policy Text Block] | Leases We determine if an arrangement contains a lease at inception based on our right to control the use of an identified asset and our right to obtain substantially all of the economic benefits from the use of that identified asset. Lease right-of-use (“ROU”) assets represent the right to use an underlying asset pursuant to the lease for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Lease ROU assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease ROU asset, unless an implicit rate is readily determinable. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. As we do not have any outstanding public debt, we estimated the incremental borrowing rate based on our estimated credit rating and available market information. The incremental borrowing rate is subsequently reassessed upon a modification to the lease agreement. We combine lease and certain non-lease components for our design center real estate leases in determining the lease payments subject to the initial present value calculation. Lease ROU assets include upfront lease payments and exclude lease incentives, where applicable. Certain operating leases have renewal options and rent escalation clauses as well as various purchase options. We assess these options to determine if we are reasonably certain of exercising these options based on all relevant economic and financial factors. Any options that meet these criteria are included in the lease term at lease commencement. Operating leases are included in operating lease ROU assets, current operating lease liabilities and long-term operating lease liabilities in our consolidated balance sheets. Financing leases are included in property, plant and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets. Lease expense for operating leases consists of both fixed and variable components. Expense related to fixed lease payments are recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred, where applicable, and include certain index-based changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. We have elected the short-term lease exemption, whereby leases with initial terms of one year or less are not capitalized and instead expensed on a straight-line basis over the lease term. In addition, certain of our equipment lease agreements include variable lease payments, which are based on the usage of the underlying asset. The variable portion of payments are not included in the initial measurement of the asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. Refer to Note 6, Leases, |
Customer Deposits and Deferred Revenue [Policy Text Block] | Customer Deposits In most cases we collect deposits from customers on a portion of the total purchase price at the time a written order is placed, but before we have transferred control of our product to our customers, resulting in contract liabilities. These customer deposits are reported as a current liability in Customer deposits |
Deferred Charges, Policy [Policy Text Block] | Deferred Financing Fees Deferred financing fees related to our revolving credit facility are included in Prepaid expenses and other current assets Other assets Interest and other financing costs |
Insurance, Long-Duration Contract [Policy Text Block] | Insurance The Company maintains insurance coverage for significant exposures, as well as those risks that, by law, must be insured. In the case of the Company’s health care coverage for employees, the Company has an insurance program related to claims filed that also includes a stop-loss insurance policy to protect from individual losses over a specified dollar value. Expenses related to this insured program are computed on an actuarial basis, based on claims experience, regulatory requirements, an estimate of claims incurred but not yet reported (“IBNR”) and other relevant factors. The projections involved in this process are subject to uncertainty related to the timing and amount of claims filed, levels of IBNR, fluctuations in health care costs and changes to regulatory requirements. We recorded an estimated liability related to health care coverage of $2.4 million and $2.0 million, as of June 30, 2023 and 2022, respectively. These liabilities are recorded within Accrued compensation and benefits We also carry workers’ compensation insurance subject to a deductible amount for which the Company is responsible on each claim. We recorded an estimated liability related to workers’ compensation claims, primarily for claims that do not meet the per-incident deductible, of $4.2 million and $3.8 million as of June 30, 2023 and 2022, respectively. The workers’ compensation insurance reserve is recorded within Accrued compensation and benefits |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments Because of their short-term nature, the carrying value of our cash and cash equivalents, investments, receivables and payables, and customer deposit liabilities approximates fair value. We believe the fair value of any future borrowings under our credit facility will approximate its carrying amount as the terms and interest rate approximate market rates given its floating interest rate basis. |
Income Tax, Policy [Policy Text Block] | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance must be established for deferred tax assets when it is more likely than not that the assets will not be realized. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Most of the unrecognized tax benefits, if recognized, would be recorded as a benefit to income tax expense. The liability associated with an unrecognized tax benefit is classified as a long-term liability except for the amount for which a cash payment is expected to be made or tax positions settled within one year. We recognize interest and penalties related to income tax matters as a component of income tax expense. |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition Our reported revenue (net sales) consist substantially of product sales. We report product sales net of discounts and recognize them at the point in time when control transfers to the customer. For sales to our customers in our wholesale segment, control typically transfers when the product is shipped. The majority of our shipping agreements are freight-on-board shipping point and risk of loss transfers to our wholesale customer once the product is out of our control. Accordingly, revenue is recognized for product shipments on third-party carriers at the point in time that our product is loaded onto the third-party container or truck. For sales in our retail segment, control generally transfers upon delivery to the customer. We recognize the promised amount of consideration without adjusting for the effects of a significant financing component if the contract has a duration of one year or less. As our contracts typically are less than one year in length and do not have significant financing components, we have not adjusted consideration. Shipping and Handling. Sales Taxes. Accounts payable and accrued expenses Returns and Allowances. Prepaid expenses and other current assets Other current liabilities Commissions. Prepaid expenses and other current assets Customer Financing Program The Ethan Allen Platinum Card consumer credit program offers clients a menu of custom financing options. Financing offered through this program is administered by a third-party financial institution and is granted to our clients on a non-recourse basis to the Company. Clients may apply for an Ethan Allen Platinum Card at a design center or online at ethanallen.com. During fiscal 2023 we offered various interest-free financing options and will continue to evaluate the use of such financing options and their related costs during fiscal 2024 as interest rates remain elevated. |
Cost of Goods and Service [Policy Text Block] | Cost of Sales Our cost of sales consist of the cost to manufacture our merchandise including materials, direct labor and overhead costs as well as the cost to purchase import products, including inbound freight. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Selling, General and Administrative Expenses SG&A expenses include the costs of selling our products and general and administrative costs. Selling expenses primarily consist of shipping and handling costs, commissions, advertising, and compensation and benefits of employees performing various sales and designer functions. Occupancy costs, depreciation, compensation and benefit costs for administrative employees and other administrative costs are included in SG&A. All store pre-opening costs are included in SG&A expenses and are expensed as incurred. |
Advertising Cost [Policy Text Block] | Advertising Expenses Advertising expenses primarily represent the costs associated with our digital marketing, direct mailings, national television spots, on-air radio and other mediums. Our total advertising costs were $17.2 million in fiscal 2023, $15.6 million in fiscal 2022 and $20.7 million in fiscal 2021. These amounts include advertising media expenses, outside and inside agency expenses, certain website related fees and photo and video production. Advertising costs from our direct mailers are expensed when provided to the carrier for distribution. Website, print and other advertising expenses, which include e-commerce advertising, web creative content, national television and direct marketing activities such as print media and radio, are expensed as incurred or upon the release of the content or the initial advertisement. Prepaid advertising costs were immaterial at June 30, 2023 and 2022, respectively. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs Research and development costs are charged to expense in the periods incurred and are included as a component of SG&A. Expenditures for research and development costs were immaterial in each fiscal year presented. |
Interest Expense, Policy [Policy Text Block] | Interest and Other Financing Costs Interest expense consists primarily from borrowings under our revolving credit facility and the amortization of deferred financing fees. For the twelve months ended June 30, 2023, 2022 and 2021, we recorded interest expense of $0.2 million, $0.2 million and $0.5 million, respectively. |
Other Income (Expense), Net [Policy Text Block] | Interest and Other Income (Expense), Net Interest and other income (expense), net includes interest income on investments, foreign currency gains or losses and other income or expense incurred outside our normal course of business. There were no material transactions recorded within Interest and ther income (expense), net |
Supplemental Cash Flow Information [Policy Text Block] | Supplemental Cash Flow Information The Company’s supplemental cash flow information is presented at the bottom of its consolidated statement of cash flows, with the exception of required lease disclosures. Refer to Note 6, Leases, |
Share-Based Payment Arrangement [Policy Text Block] | Share-Based Compensation Share-based compensation expense is included within SG&A expenses. Tax benefits associated with our share-based compensation arrangements are included within income tax expense. We estimate, as of the date of grant, the fair value of stock options awarded using the Black-Scholes option pricing model. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs, including anticipated changes in the underlying stock price (i.e., expected volatility) and option exercise activity (i.e., expected life). Expected volatility is based on the historical volatility of our stock and other contributing factors. The risk-free rate of return is based on the United States Treasury bill rate extrapolated to the term matching the expected life of the grant. The dividend yield is based on the annualized dividend rate at the grant date relative to the grant date stock price. The expected life of options granted, which represents the period of time that the options are expected to be outstanding, is based, primarily, on historical data. We estimate, as of the date of grant, the fair value of non-performance based restricted stock units awarded using a discounted cash flow model, which requires management to make certain assumptions with respect to model inputs including anticipated future dividends not paid during the restriction period, and a discount for lack of marketability for a one-year holding period after vesting. We account for these restricted stock units as equity-based awards because when they vest, they will be settled in shares of our common stock. We estimate, as of the date of grant, the fair value of performance units with a discounted cash flow model, using as model inputs the risk-free rate of return as the discount rate, dividend yield for dividends not paid during the restriction period, and a discount for lack of marketability for a one-year post-vest holding period. The lack of marketability discount used is the present value of a future put option using the Chaffe model. Performance units require management to make assumptions regarding the likelihood of achieving Company performance targets on a quarterly basis. The number of performance units that vest will be predicated on the Company achieving certain performance levels. A change in the financial performance levels the Company achieves could result in changes to our current estimate of the vesting percentage and related share-based compensation. As share-based compensation expense recognized is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures are estimated based primarily on historical experience. Windfall tax benefits, defined as tax deductions that exceed recorded share-based compensation, are classified as cash inflows from operating activities. The value of the portion of the equity-based awards that are ultimately expected to vest is recognized as expense over the requisite service periods in our consolidated statement of comprehensive income. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share We compute basic earnings per share (“EPS”) by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated similarly, except that the weighted average outstanding shares are adjusted to include the effects of converting all potentially dilutive share-based awards issued under our stock incentive plan. The number of potential common shares outstanding are determined in accordance with the treasury stock method to the extent they are dilutive. For the purpose of calculating EPS, common shares outstanding include common shares issuable upon the exercise of outstanding share-based compensation awards. Under the treasury stock method, the exercise price paid by the optionee and future share-based compensation expense that the Company has not yet recognized are assumed to be used to repurchase shares. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The functional currency of each Company-operated foreign location is the respective local currency. Assets and liabilities are translated into U.S. dollars using the current period-end exchange rate and income and expense amounts are translated using the average exchange rate for the period in which the transaction occurred. Resulting translation adjustments are reported as a component of Accumulated other comprehensive loss |
Treasury Stock, Policy [Policy Text Block] | Treasury Stock The Company accounts for repurchased common stock on a trade date basis under the cost method and includes such treasury stock as a component of its shareholders’ equity. We account for the formal retirement of treasury stock by deducting its par value from common stock, reducing additional paid-in capital (“APIC”) by the average amount recorded in APIC when the stock was originally issued and any remaining excess of cost deducted from retained earnings. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements New Accounting Standards or Updates Adopted in Fiscal 2023 The Company evaluates all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) for consideration of their applicability to our consolidated financial statements. As of the beginning of fiscal 2023, we implemented all applicable new standards and updates, none of which had a material impact on our consolidated financial statements. Recent Accounting Standards or Updates Not Yet Effective Business Combinations. Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Derivatives and Hedging. Derivatives and Hedging (Topic 801): Fair Value Hedging Portfolio Layer Method Inflation Reduction Act of 2022. No other new accounting pronouncements issued or effective as of June 30, 2023 have had or are expected to have a material impact on our consolidated financial statements. |
Note 4 - Revenue Recognition (T
Note 4 - Revenue Recognition (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Fiscal Year Ended June 30, Wholesale Retail Eliminations (1) Total Upholstery (2) $ 224,272 $ 318,131 $ (163,589 ) $ 378,814 Case goods (3) 149,664 180,079 (93,022 ) 236,721 Accents (4) 82,181 129,385 (64,153 ) 147,413 Other (5) (6,526 ) 34,960 - 28,434 Fiscal 2023 $ 449,591 $ 662,555 $ (320,764 ) $ 791,382 Upholstery (2) $ 262,592 $ 350,737 $ (188,661 ) $ 424,668 Case goods (3) 148,536 175,697 (96,110 ) 228,123 Accents (4) 80,665 133,354 (71,193 ) 142,826 Other (5) (7,951 ) 30,096 - 22,145 Fiscal 2022 $ 483,842 $ 689,884 $ (355,964 ) $ 817,762 Upholstery (2) $ 217,517 $ 275,887 $ (144,268 ) $ 349,136 Case goods (3) 126,690 149,912 (79,206 ) 197,396 Accents (4) 75,572 115,578 (59,404 ) 131,746 Other (5) (6,703 ) 13,594 - 6,891 Fiscal 2021 $ 413,076 $ 554,971 $ (282,878 ) $ 685,169 |
Note 5 - Fair Value Measureme_2
Note 5 - Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Fair Value Measurements at June 30, 2023 Assets Level 1 Level 2 Level 3 Total Corporate money market funds (1) $ 23,923 $ - $ - $ 23,923 Investments (2) - 110,577 - 110,577 Total $ 23,923 $ 110,577 $ - $ 134,500 Fair Value Measurements at June 30, 2022 Assets Level 1 Level 2 Level 3 Total Corporate money market funds (1) $ 51,035 $ - $ - $ 51,035 Investments (2) - 11,199 - 11,199 Total $ 51,035 $ 11,199 $ - $ 62,234 |
Note 6 - Leases (Tables)
Note 6 - Leases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Fiscal Year Ended Statements of Comprehensive Income Location 2023 2022 Operating lease cost (1) SG&A expenses $ 30,235 $ 30,261 Financing lease cost Depreciation of property SG&A expenses 503 489 Interest on lease liabilities Interest expense and other financing costs 26 24 Short-term lease cost (2) SG&A expenses 1,099 1,222 Variable lease cost (3) SG&A expenses 9,117 9,351 Less: Sublease income SG&A expenses (1,162 ) (1,384 ) Total lease expense $ 39,818 $ 39,963 Fiscal Year Ended Statements of Comprehensive Income Location 2023 2022 Operating lease cost (1) SG&A expenses $ 30,235 $ 30,261 Financing lease cost Depreciation of property SG&A expenses 503 489 Interest on lease liabilities Interest expense and other financing costs 26 24 Short-term lease cost (2) SG&A expenses 1,099 1,222 Variable lease cost (3) SG&A expenses 9,117 9,351 Less: Sublease income SG&A expenses (1,162 ) (1,384 ) Total lease expense $ 39,818 $ 39,963 |
Lease, Balance Sheet Disclosure [Table Text Block] | June 30, Consolidated Balance Sheet Location 2023 2022 Assets Operating leases Operating lease right-of-use assets (non-current) $ 115,861 $ 100,782 Financing leases Property, plant and equipment, net 550 1,060 Total lease assets $ 116,411 $ 101,842 Liabilities Current: Operating leases Current operating lease liabilities $ 26,045 $ 25,705 Financing leases Other current liabilities 378 535 Noncurrent: Operating leases Operating lease liabilities, long-trem 104,301 89,506 Financing leases Other long-term liabilities 204 579 Total lease liabilities $ 130,928 $ 116,325 June 30, 2023 2022 Retail $ 115,861 $ 100,800 Wholesale 550 1,042 Total ROU assets $ 116,411 $ 101,842 |
Lessee, Leases, Liability, Maturity [Table Text Block] | Fiscal Year Operating Leases Financing Leases 2024 $ 32,145 $ 392 2025 29,607 80 2026 25,520 72 2027 19,127 66 2028 15,947 - Thereafter 30,007 - Total undiscounted future minimum lease payments 152,353 610 Less: imputed interest (22,007 ) (28 ) Total present value of lease obligations (1) $ 130,346 $ 582 |
Lease, Supplemental Lease Information [Table Text Block] | Fiscal Year Ended 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 31,013 $ 33,588 Operating cash flows from financing leases $ 525 $ 512 Operating lease assets obtained in exchange for new operating lease liabilities $ 40,240 $ 18,674 Financing lease obligations obtained in exchange for new financing lease assets $ - $ 315 |
Lessor, Operating Lease, Payment to be Received, Maturity [Table Text Block] | Sublease Fiscal Year Income 2024 $ 1,616 2025 1,641 2026 1,509 2027 1,171 2028 634 Thereafter 2,242 Total future minimum sublease income $ 8,813 |
Note 7 - Inventories (Tables)
Note 7 - Inventories (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, 2023 2022 Finished goods $ 108,873 $ 131,021 Work in process 12,606 15,098 Raw materials 29,653 32,490 Inventory reserves (1,937 ) (2,105 ) Inventories, net $ 149,195 $ 176,504 |
Note 8 - Property, Plant and _2
Note 8 - Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | June 30, 2023 2022 Land and improvements $ 77,940 $ 78,443 Building and improvements 352,582 356,622 Machinery and equipment 126,203 127,062 Property, plant and equipment, gross 556,725 562,127 Less: accumulated depreciation and amortization (334,558 ) (338,597 ) Property, plant and equipment, net $ 222,167 $ 223,530 |
Note 10 - Restructuring and O_2
Note 10 - Restructuring and Other Impairment Activities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | Fiscal Year Ended 2023 2022 Gain on sale-leaseback transaction (1) $ (4,222 ) $ - Gain on sales of property, plant and equipment (2) (311 ) (5,431 ) Severance and other charges 813 970 Total Restructuring and other impairment charges, net of gains $ (3,720 ) $ (4,461 ) Fiscal 2023 Activity Balance June 30, 2022 New Charges (Income) Non-Cash (Payments) Receipts Balance June 30, 2023 Lease exit costs $ 185 $ - $ - $ (185 ) $ - Sale of property, plant and equipment - (311 ) 1,398 1,809 100 Sale-leaseback transaction - (4,222 ) 1,043 8,103 2,838 (1) Severance and other charges 268 813 - (860 ) 221 Total Restructuring and other impairment activities $ 453 $ (3,720 ) $ 2,441 $ 8,867 $ 3,159 |
Note 12 - Other Current and L_2
Note 12 - Other Current and Long-term Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Other Current Liabilities [Table Text Block] | June 30, 2023 2022 Income taxes payable $ 266 $ 4,558 Deferred liability, short-term (1) 2,620 - Financing lease liabilities, short-term 378 535 Customer financing program rebate 433 216 Other current liabilities 3,491 3,479 Other current liabilities $ 7,188 $ 8,788 |
Other Noncurrent Liabilities [Table Text Block] | June 30, 2023 2022 Unrecognized tax benefits $ 2,654 $ 2,023 Customer financing program rebate 730 183 Long-term financing lease liabilities 204 579 Other long-term liabilities 405 220 Other long-term liabilities $ 3,993 $ 3,005 |
Note 13 - Income Taxes (Tables)
Note 13 - Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2023 2022 2021 U.S. operations $ 138,941 $ 135,077 $ 75,458 Non-U.S. operations 2,084 3,044 953 Income before income taxes $ 141,025 $ 138,121 $ 76,411 U.S. operations $ 34,679 $ 34,682 $ 15,812 Non-U.S. operations 539 159 594 Total income tax expense $ 35,218 $ 34,841 $ 16,406 Effective tax rate 25.0 % 25.2 % 21.5 % 2023 2022 2021 Current: U.S. Federal $ 29,139 $ 28,144 $ 10,617 U.S. State and Local 7,076 6,474 1,647 Foreign 185 575 492 Total current 36,400 35,193 12,756 Deferred: U.S. Federal (1,362 ) (610 ) 4,462 U.S. State and Local (174 ) 674 (914 ) Foreign 354 (416 ) 102 Total deferred (1,182 ) (352 ) 3,650 Total income tax expense $ 35,218 $ 34,841 $ 16,406 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2023 2022 2021 Income tax expense at U.S. Federal statutory tax rate $ 29,616 21.0 % $ 29,005 21.0 % $ 16,046 21.0 % Increase (decrease) in income taxes resulting from: State and local income taxes, net of U.S. federal income benefit 5,203 3.7 % 5,208 3.8 % 2,565 3.4 % Change in valuation allowance - - (591 ) (0.4 %) (2,565 ) (3.4 %) Foreign derived intangible income ("FDII") deduction 428 0.3 % (289 ) (0.2 %) (130 ) (0.2 %) Unrecognized tax benefits (229 ) (0.2 %) 390 0.3 % 48 0.1 % Share-based compensation 5 - 189 0.1 % 72 0.1 % Other, net 195 0.2 % 929 0.6 % 370 0.5 % Total income tax expense (and corresponding effective tax rate) $ 35,218 25.0 % $ 34,841 25.2 % $ 16,406 21.5 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | June 30, 2023 2022 Lease liabilities $ 32,411 $ 28,621 Employee compensation 2,218 2,167 Share-based compensation 139 271 Net operating loss carryforwards 318 340 Property, plant and equipment 151 1,309 Other 3,802 3,321 Total deferred tax assets $ 39,039 $ 36,029 June 30, 2023 2022 Operating lease right-of-use assets $ 28,724 $ 24,965 Intangible assets other than goodwill 9,047 9,041 Commissions 3,032 5,006 Other 652 615 Total deferred tax liabilities $ 41,455 $ 39,627 June 30, 2023 2022 Other assets $ 640 $ 820 Other non-current liabilities (3,056 ) (4,418 ) Total net deferred tax asset (liability) $ (2,416 ) $ (3,598 ) |
Schedule of Deferred Tax Assets Expiration with Respect to Net Operating Losses [Table Text Block] | Deferred Net Operating Loss Tax Assets Carryforwards Various U.S. state net operating losses, expiring between 2031 and 2040 $ 208 $ 2,689 Canada net operating loss, expiring 2039 $ 110 $ 417 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | June 30, 2023 2022 Beginning balance $ 2,474 $ 1,984 Additions for tax positions related to the current year 817 853 Additions for tax positions of prior years 170 94 Reductions resulting from a lapse of the applicable statute of limitations (461 ) (457 ) Ending balance $ 3,000 $ 2,474 |
Note 15 - Earnings Per Share (T
Note 15 - Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Fiscal Year Ended 2023 2022 2021 Weighted average shares outstanding for basic calculation 25,473 25,413 25,265 Dilutive effect of stock options and other share-based awards 131 109 87 Weighted average shares outstanding adjusted for dilution calculation 25,604 25,522 25,352 |
Note 16 - Accumulated Other C_2
Note 16 - Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | June 30, 2023 2022 Accumulated foreign currency translation adjustments $ (3,219 ) $ (6,397 ) Accumulated unrealized gains (losses) on investments, net of tax 434 (65 ) $ (2,785 ) $ (6,462 ) Fiscal Year Ended 2023 2022 Beginning balance at July 1 $ (6,462 ) $ (5,931 ) Other comprehensive income (loss), net of tax 3,681 (532 ) Less amounts attributable to noncontrolling interests (4 ) 1 Ending balance at June 30 $ (2,785 ) $ (6,462 ) |
Note 17 - Share-based Compens_2
Note 17 - Share-based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Value Options Price Term (yrs) ($ in thousands) Outstanding at June 30, 2020 403,106 $ 21.24 4.4 $ - Granted 37,008 $ 12.97 n/a n/a Exercised (174,662 ) $ 16.95 n/a $ 667 Canceled (forfeited/expired) (11,497 ) $ 18.62 n/a n/a Outstanding at June 30, 2021 253,955 $ 23.10 5.6 $ 1,368 Granted 25,410 $ 23.61 n/a n/a Exercised (55,220 ) $ 20.23 n/a $ 287 Canceled (forfeited/expired) (117,105 ) $ 23.98 n/a n/a Outstanding at June 30, 2022 107,040 $ 23.75 4.4 $ 120 Granted 23,970 $ 25.03 n/a n/a Exercised (2,666 ) $ 28.05 n/a $ 4 Canceled (forfeited/expired) (13,507 ) $ 23.64 n/a n/a Outstanding at June 30, 2023 114,837 $ 23.93 4.8 $ 560 Exercisable at June 30, 2023 85,104 $ 24.22 3.5 $ 406 |
Schedule of Nonvested Share Activity [Table Text Block] | Weighted Average Options Exercise Price Nonvested at June 30, 2022 20,492 $ 18.22 Granted 23,970 $ 25.03 Vested (10,734 ) $ 17.39 Canceled (forfeited) (3,995 ) $ 25.03 Nonvested at June 30, 2023 29,733 $ 23.09 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2023 2022 2021 Volatility 41.6 % 39.3 % 38.2 % Risk-free rate of return 2.92 % 0.73 % 0.35 % Dividend yield 4.25 % 3.79 % 3.26 % Expected average life (years) 4.9 5.5 5.5 Grant date fair value $ 5.98 $ 5.04 $ 3.20 Fair value as a % of exercise price 23.9 % 21.3 % 24.7 % |
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Weighted Restricted Average Stock Units Fair Value Outstanding at June 30, 2020 56,000 $ 9.15 Granted 38,000 $ 9.58 Vested (12,375 ) $ 9.15 Canceled (forfeited) (10,625 ) $ 9.15 Outstanding at June 30, 2021 71,000 $ 9.38 Granted 51,100 $ 20.71 Vested (29,000 ) $ 9.43 Canceled (forfeited) (17,000 ) $ 12.66 Outstanding at June 30, 2022 76,100 $ 16.23 Granted 21,257 $ 19.48 Vested (32,150 ) $ 13.47 Canceled (forfeited) (11,344 ) $ 18.16 Outstanding at June 30, 2023 53,863 $ 18.76 |
Share-Based Payment Arrangement, Performance Shares, Activity [Table Text Block] | Weighted Average Grant Date Units Fair Value Outstanding at June 30, 2020 325,107 $ 19.05 Granted 117,338 $ 8.76 Vested - n/a Canceled (forfeited) (64,578 ) $ 18.29 Outstanding at June 30, 2021 377,867 $ 15.98 Granted 90,367 $ 17.15 Vested (35,124 ) $ 18.19 Canceled (forfeited) (112,975 ) $ 11.86 Outstanding at June 30, 2022 320,135 $ 17.53 Granted 103,096 $ 18.75 Vested (31,635 ) $ 12.53 Canceled (forfeited) (4,600 ) $ 18.75 Outstanding at June 30, 2023 386,996 $ 18.25 |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Fiscal Year Ended 2023 2022 2021 Fiscal 2020 grants $ - $ 107 $ 234 Fiscal 2021 grants 236 143 301 Fiscal 2022 grants 317 413 - Fiscal 2023 grants 280 - - Total expense $ 833 $ 663 $ 535 |
Schedule of Share-based Payment Award, Performance Stock Units, Valuation Assumptions [Table Text Block] | Fiscal Year Ended 2023 2022 2021 Volatility 47.7 % 43.3 % 56.0 % Risk-free rate of return 3.16 % 0.62 % 0.14 % Dividend yield 4.25 % 3.79 % 3.26 % |
Note 19 - Segment Information (
Note 19 - Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Fiscal Year Ended 2023 2022 2021 Net sales Wholesale segment $ 449,591 $ 483,842 $ 413,076 Less: intersegment sales (320,764 ) (355,964 ) (282,878 ) Wholesale sales to external customers 128,827 127,878 130,198 Retail segment 662,555 689,884 554,971 Consolidated total $ 791,382 $ 817,762 $ 685,169 Income before income taxes Wholesale segment $ 68,792 $ 63,930 $ 52,281 Retail segment 67,256 80,496 28,824 Elimination of intercompany profit (a) 1,148 (6,176 ) (3,820 ) Operating income 137,196 138,250 77,285 Interest and other income (expense), net 4,042 72 (393 ) Interest expense and other financing costs 213 201 481 Consolidated total $ 141,025 $ 138,121 $ 76,411 Depreciation and amortization Wholesale segment $ 6,328 $ 6,439 $ 6,714 Retail segment 9,286 9,548 9,671 Consolidated total $ 15,614 $ 15,987 $ 16,385 Capital expenditures Wholesale segment $ 6,787 $ 8,125 $ 5,618 Retail segment 7,098 5,262 6,411 Consolidated total $ 13,885 $ 13,387 $ 12,029 June 30, (in thousands) 2023 2022 2021 Total Assets Wholesale segment $ 373,921 $ 341,466 $ 298,332 Retail segment 403,651 412,176 412,066 Inventory profit elimination (a) (32,119 ) (33,747 ) (27,153 ) Consolidated total $ 745,453 $ 719,895 $ 683,245 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Fiscal Year Ended Sales by Country 2022 2022 2021 United States 97.0 % 96.0 % 94.9 % All Others 3.0 % 4.0 % 5.1 % |
Long-Lived Assets by Geographic Areas [Table Text Block] | 2023 2022 2021 United States $ 301,951 $ 295,747 $ 311,529 Mexico 20,695 15,085 15,381 Honduras 10,686 9,967 8,347 Canada 4,696 3,513 4,919 Total long-lived assets (1) $ 338,028 $ 324,312 $ 340,176 |
Note 1 - Organization and Nat_2
Note 1 - Organization and Nature of Business (Details Textual) | 6 Months Ended |
Jun. 30, 2023 | |
Product Production [Member] | Geographic Concentration Risk [Member] | North America [Member] | |
Concentration Risk, Percentage | 75% |
Note 3 - Summary of Significa_2
Note 3 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restricted Cash | $ 500 | $ 1,000 | |
Gain (Loss) on Investments | 0 | 0 | |
Inventory Valuation Reserves | 1,937 | 2,105 | |
Asset, Held-for-Sale, Not Part of Disposal Group | 0 | 0 | |
Contract with Customer, Liability | 77,800 | 121,100 | |
Contract with Customer, Liability, Revenue Recognized | 117,600 | ||
Employee-related Liabilities | 2,400 | 2,000 | |
Contract with Customer, Asset, after Allowance for Credit Loss, Current | 12,300 | 20,200 | |
Advertising Expense | 17,200 | 15,600 | $ 20,700 |
Interest Expense | 200 | 200 | $ 500 |
Letter of Credit Issued for Workers Compensation Obligation [Member] | |||
Letters of Credit Outstanding, Amount | $ 4,200 | $ 3,800 | |
Building and Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Building and Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 40 years |
Note 4 - Revenue Recognition -
Note 4 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Net sales | $ 791,382 | $ 817,762 | $ 685,169 | |
Consolidation, Eliminations [Member] | ||||
Net sales | [1] | (320,764) | (355,964) | (282,878) |
Upholstery Furniture [Member] | ||||
Net sales | [2] | 378,814 | 424,668 | 349,136 |
Upholstery Furniture [Member] | Consolidation, Eliminations [Member] | ||||
Net sales | [1],[2] | (163,589) | (188,661) | (144,268) |
Case Goods Furniture [Member] | ||||
Net sales | [3] | 236,721 | 228,123 | 197,396 |
Case Goods Furniture [Member] | Consolidation, Eliminations [Member] | ||||
Net sales | [1],[3] | (93,022) | (96,110) | (79,206) |
Accent [Member] | ||||
Net sales | [4] | 147,413 | 142,826 | 131,746 |
Accent [Member] | Consolidation, Eliminations [Member] | ||||
Net sales | [1],[4] | (64,153) | (71,193) | (59,404) |
Manufactured Product, Other [Member] | ||||
Net sales | [5] | 28,434 | 22,145 | 6,891 |
Manufactured Product, Other [Member] | Consolidation, Eliminations [Member] | ||||
Net sales | [1],[5] | 0 | 0 | 0 |
Wholesale Segment [Member] | Operating Segments [Member] | ||||
Net sales | 449,591 | 483,842 | 413,076 | |
Wholesale Segment [Member] | Upholstery Furniture [Member] | Operating Segments [Member] | ||||
Net sales | [2] | 224,272 | 262,592 | 217,517 |
Wholesale Segment [Member] | Case Goods Furniture [Member] | Operating Segments [Member] | ||||
Net sales | [3] | 149,664 | 148,536 | 126,690 |
Wholesale Segment [Member] | Accent [Member] | Operating Segments [Member] | ||||
Net sales | [4] | 82,181 | 80,665 | 75,572 |
Wholesale Segment [Member] | Manufactured Product, Other [Member] | Operating Segments [Member] | ||||
Net sales | [5] | (6,526) | (7,951) | (6,703) |
Retail Segment [Member] | Operating Segments [Member] | ||||
Net sales | 662,555 | 689,884 | 554,971 | |
Retail Segment [Member] | Upholstery Furniture [Member] | Operating Segments [Member] | ||||
Net sales | [2] | 318,131 | 350,737 | 275,887 |
Retail Segment [Member] | Case Goods Furniture [Member] | Operating Segments [Member] | ||||
Net sales | [3] | 180,079 | 175,697 | 149,912 |
Retail Segment [Member] | Accent [Member] | Operating Segments [Member] | ||||
Net sales | [4] | 129,385 | 133,354 | 115,578 |
Retail Segment [Member] | Manufactured Product, Other [Member] | Operating Segments [Member] | ||||
Net sales | [5] | $ 34,960 | $ 30,096 | $ 13,594 |
[1]The Eliminations column in the table above represents the elimination of all intercompany wholesale segment sales to the retail segment in each period presented.[2]Upholstery includes fabric-covered items such as sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics and leather.[3]Case goods includes items such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents.[4]Accents includes items such as window treatments and drapery hardware, wall décor, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, flooring, wall coverings and home and garden furnishings.[5]Other includes product delivery sales, the Ethan Allen Hotel revenues, sales of third-party furniture protection plans and other miscellaneous product sales less prompt payment discounts, sales allowances and other incentives. |
Note 5 - Fair Value Measureme_3
Note 5 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Unrealized Gain (Loss) on Investments | $ 0 | $ 0 |
Long-Term Debt, Fair Value | $ 0 | $ 0 |
Note 5 - Fair Value Measureme_4
Note 5 - Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | |
Corporate money market funds (1) | [1] | $ 23,923 | |
Investments (2) | [2] | 110,577 | |
Total | 134,500 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Investments (2) | [2] | 0 | |
Total | 23,923 | ||
Fair Value, Inputs, Level 2 [Member] | |||
Investments (2) | [2] | 110,577 | |
Total | 110,577 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Investments (2) | [2] | 0 | |
Total | 0 | ||
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Corporate money market funds (1) | [1] | 23,923 | $ 51,035 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Corporate money market funds (1) | [1] | 0 | |
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Corporate money market funds (1) | [1] | $ 0 | |
[1]We invest excess cash in corporate money market funds and short-term investments. Our corporate money market funds are readily convertible into cash and the net asset value of each fund on the last day of the quarter is used to determine its fair value. Our corporate money market funds are classified as Level 1 assets and are included in Cash and cash equivalents Investments Accumulated other comprehensive loss no |
Note 6 - Leases (Details Textua
Note 6 - Leases (Details Textual) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |||||
Aug. 01, 2022 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | ||||
Short-Term Lease Commitment, Amount | $ 100 | $ 100 | |||||
Sale Leaseback Transaction, Gross Proceeds, Investing Activities | $ 8,100 | ||||||
Sale and Leaseback Transaction, Gain (Loss), Net | 1,800 | 2,400 | 4,222 | [1] | $ 0 | [1] | |
Sale Lease Back Transaction Deferred Liabilities | $ 5,200 | 2,800 | 2,800 | ||||
Sale Leaseback Transaction, Deferred Liabilities, Current | [2] | 2,620 | 2,620 | $ 0 | |||
Sale Leaseback Transaction, Deferred Liabilities, Noncurrent | 200 | 200 | |||||
Other Current Liabilities [Member] | |||||||
Sale Leaseback Transaction, Deferred Liabilities, Current | 2,600 | 2,600 | |||||
Other Long-term Liabilities [Member] | |||||||
Sale Leaseback Transaction, Deferred Liabilities, Noncurrent | $ 200 | $ 200 | |||||
[1]In August 2022, we sold and subsequently leased back a retail design center and recognized a net gain of $4.2 million for the year ended June 30, 2023. The remaining deferred liability of $2.8 million as of June 30, 2023 will be recognized over the remaining life of the lease. Refer to Note 6, Leases Other current liabilities Other long-term liabilities Leases |
Note 6 - Leases - Lease Costs (
Note 6 - Leases - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
Total lease expense | $ 39,818 | $ 39,963 | |
Selling, General and Administrative Expenses [Member] | |||
Operating lease cost(1) | [1] | 30,235 | 30,261 |
Depreciation of property | 503 | 489 | |
Short-term lease cost(2) | [2] | 1,099 | 1,222 |
Variable lease cost(3) | [3] | 9,117 | 9,351 |
Less: Sublease income | (1,162) | (1,384) | |
Interest Income [Member] | |||
Interest on lease liabilities | $ 26 | $ 24 | |
[1]Lease expense for operating leases consists of both fixed and variable components. Expense related to fixed lease payments are recognized on a straight-line basis over the lease term.[2]Leases with an initial term of 12 months or less are not recorded on the balance sheet and instead expensed on a straight-line basis over the lease term.[3]Variable lease payments are generally expensed as incurred, where applicable, and include certain index-based changes in rent, certain non-lease components, such as maintenance, real estate taxes, insurance and other services provided by the lessor, and other charges included in the lease. In addition, certain of our equipment lease agreements include variable lease payments, which are based on the usage of the underlying asset. The variable portion of payments are not included in the initial measurement of the asset or lease liability due to uncertainty of the payment amount and are recorded as expense in the period incurred. |
Note 6 - Leases - Lease Assets
Note 6 - Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Total lease assets | $ 116,411 | $ 101,842 |
Operating lease right-of-use assets | 115,861 | 100,782 |
Current operating lease liabilities | 26,045 | 25,705 |
Financing leases, current liabilities | 378 | 535 |
Operating lease liabilities, long-term | 104,301 | 89,506 |
Financing leases, noncurrent liabilities | 204 | 579 |
Total lease liabilities | 130,928 | 116,325 |
Property, Plant and Equipment [Member] | ||
Financing leases, assets | 550 | 1,060 |
Other Current Liabilities [Member] | ||
Financing leases, current liabilities | 378 | 535 |
Other Noncurrent Liabilities [Member] | ||
Financing leases, noncurrent liabilities | 204 | 579 |
Retail Segment [Member] | ||
Total lease assets | 115,861 | 100,800 |
Wholesale Segment [Member] | ||
Total lease assets | $ 550 | $ 1,042 |
Note 6 - Leases - Future Minimu
Note 6 - Leases - Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2023 USD ($) | |
2024, Operating Leases | $ 32,145 | |
2024, Financing Leases | 392 | |
2025, Operating Leases | 29,607 | |
2025, Financing Leases | 80 | |
2026, Operating Leases | 25,520 | |
2026, Financing Leases | 72 | |
2027, Operating Leases | 19,127 | |
2027, Financing Leases | 66 | |
2028, Operating Leases | 15,947 | |
2028, Financing Leases | 0 | |
Thereafter, Operating Leases | 30,007 | |
Thereafter, Financing Leases | 0 | |
Total undiscounted future minimum lease payments, Operating Leases | 152,353 | |
Total undiscounted future minimum lease payments, Financing Leases | 610 | |
Less: imputed interest, Operating Leases | (22,007) | |
Less: imputed interest, Financing Leases | (28) | |
Total present value of lease obligations(1) | 130,346 | [1] |
Total present value of lease obligations(1) | $ 582 | [1] |
[1]Excludes future commitments under short-term operating lease agreements of less than $0.1 million as of June 30, 2023. |
Note 6 - Leases - Supplemental
Note 6 - Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating cash flows from operating leases | $ 31,013 | $ 33,588 |
Operating cash flows from financing leases | 525 | 512 |
Operating lease assets obtained in exchange for new operating lease liabilities | 40,240 | 18,674 |
Financing lease obligations obtained in exchange for new financing lease assets | $ 0 | $ 315 |
Note 6 - Leases - Future Mini_2
Note 6 - Leases - Future Minimum Sublease Income (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
2024, Sublease income | $ 1,616 |
2025, Sublease income | 1,641 |
2026, Sublease income | 1,509 |
2027, Sublease income | 1,171 |
2028, Sublease income | 634 |
Thereafter, Sublease income | 2,242 |
Total future minimum sublease income | $ 8,813 |
Note 7 - Inventories - Inventor
Note 7 - Inventories - Inventories are Summarized as follows (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Finished goods | $ 108,873 | $ 131,021 |
Work in process | 12,606 | 15,098 |
Raw materials | 29,653 | 32,490 |
Inventory reserves | (1,937) | (2,105) |
Inventories, net | $ 149,195 | $ 176,504 |
Note 8 - Property, Plant and _3
Note 8 - Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Depreciation | $ 15.6 | $ 16 | $ 16.4 |
Note 8 - Property, Plant and _4
Note 8 - Property, Plant and Equipment - Property, Plant and Equipment Summarized as follows (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Land and improvements | $ 77,940 | $ 78,443 |
Building and improvements | 352,582 | 356,622 |
Machinery and equipment | 126,203 | 127,062 |
Property, plant and equipment, gross | 556,725 | 562,127 |
Less: accumulated depreciation and amortization | (334,558) | (338,597) |
Property, plant and equipment, net | $ 222,167 | $ 223,530 |
Note 9 - Goodwill and Other I_2
Note 9 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Goodwill | $ 25,388 | $ 25,388 |
Other Indefinite-Lived Intangible Assets | $ 19,700 |
Note 10 - Restructuring and O_3
Note 10 - Restructuring and Other Impairment Activities (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||||
Aug. 01, 2022 | Apr. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | ||||
Sale and Leaseback Transaction, Gain (Loss), Net | $ 1,800 | $ 2,400 | $ 4,222 | [1] | $ 0 | [1] | ||
Sale Lease Back Transaction Deferred Liabilities | $ 5,200 | 2,800 | 2,800 | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | [2] | 311 | 5,431 | |||||
Sale Leaseback Transaction, Deferred Liabilities, Current | [3] | 2,620 | 2,620 | 0 | ||||
Sale Leaseback Transaction, Deferred Liabilities, Noncurrent | $ 200 | $ 200 | ||||||
Previously Closed Property [Member] | ||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 1,800 | 11,000 | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 300 | $ 5,400 | ||||||
[1]In August 2022, we sold and subsequently leased back a retail design center and recognized a net gain of $4.2 million for the year ended June 30, 2023. The remaining deferred liability of $2.8 million as of June 30, 2023 will be recognized over the remaining life of the lease. Refer to Note 6, Leases Other current liabilities Other long-term liabilities Leases |
Note 10 - Restructuring and O_4
Note 10 - Restructuring and Other Impairment Activates - Restructuring and Other Impairments Charges, Net of Gains, Were as Follows (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||||||
Aug. 01, 2022 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |||||
Gain on sale-leaseback transaction(1) | $ 1,800 | $ 2,400 | $ 4,222 | [1] | $ 0 | [1] | ||
Balance | 453 | |||||||
New Charges (Income) | (3,720) | (4,461) | ||||||
Gain on sales of property, plant and equipment(2) | [2] | 311 | 5,431 | |||||
Non-Cash | 2,441 | |||||||
(Payments) Receipts | 8,867 | |||||||
Severance and other charges | 813 | 970 | ||||||
Balance | 3,159 | 3,159 | 453 | |||||
Total Restructuring and other impairment charges, net of gains | (3,720) | (4,461) | ||||||
Lease Exit Costs [Member] | ||||||||
Balance | 185 | |||||||
New Charges (Income) | 0 | |||||||
Non-Cash | 0 | |||||||
(Payments) Receipts | (185) | |||||||
Balance | 0 | 0 | 185 | |||||
Total Restructuring and other impairment charges, net of gains | 0 | |||||||
Sale of Property, Plant and Equipment [Member] | ||||||||
Balance | 0 | |||||||
New Charges (Income) | (311) | |||||||
Non-Cash | 1,398 | |||||||
(Payments) Receipts | 1,809 | |||||||
Balance | 100 | 100 | 0 | |||||
Total Restructuring and other impairment charges, net of gains | (311) | |||||||
Sale-leaseback Transaction [Member] | ||||||||
Balance | 0 | |||||||
New Charges (Income) | (4,222) | |||||||
Non-Cash | 1,043 | |||||||
(Payments) Receipts | 8,103 | |||||||
Balance | 2,838 | [3] | 2,838 | [3] | 0 | |||
Total Restructuring and other impairment charges, net of gains | (4,222) | |||||||
Employee Severance and Other Charges (Income) [Member] | ||||||||
Balance | 268 | |||||||
New Charges (Income) | 813 | |||||||
Non-Cash | 0 | |||||||
(Payments) Receipts | (860) | |||||||
Balance | $ 221 | 221 | $ 268 | |||||
Total Restructuring and other impairment charges, net of gains | $ 813 | |||||||
[1]In August 2022, we sold and subsequently leased back a retail design center and recognized a net gain of $4.2 million for the year ended June 30, 2023. The remaining deferred liability of $2.8 million as of June 30, 2023 will be recognized over the remaining life of the lease. Refer to Note 6, Leases Restructuring and other impairment charges, net of gains Other current liabilities Other long-term liabilities |
Note 11 - Credit Agreement (Det
Note 11 - Credit Agreement (Details Textual) $ in Thousands | 12 Months Ended | |||||
Jan. 26, 2022 USD ($) | Dec. 21, 2018 | Dec. 12, 2018 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Additional Maximum Borrowing Capacity | $ 60,000 | |||||
Revolving Credit Facility [Member] | The Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 125,000 | |||||
Debt Issuance Costs, Net | 500 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 121,000 | 121,000 | ||||
Long-Term Line of Credit | 0 | 0 | ||||
Interest Expense, Debt | 0 | 0 | $ 300 | |||
Debt Instrument, Covenant, Fixed Charge Coverage Ratio | 1 | |||||
Debt Covenant, Fixed Charge Coverage Ratio, Maximum Unused Availability | $ 14,000 | 14,000 | ||||
Revolving Credit Facility [Member] | The Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.10% | |||||
Revolving Credit Facility [Member] | The Facility [Member] | Additional Margin on Variable Rate Option (Adjusted Term Sofr Rate) [Member] | Minimum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||
Revolving Credit Facility [Member] | The Facility [Member] | Additional Margin on Variable Rate Option (Adjusted Term Sofr Rate) [Member] | Maximum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | |||||
Revolving Credit Facility [Member] | The Facility [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||
Revolving Credit Facility [Member] | The Facility [Member] | OneMonthAdjusted Term SOFR Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1% | |||||
Revolving Credit Facility [Member] | The Facility [Member] | OneMonthAdditionalMarginOnVariableRateOptionMember | Minimum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||||
Revolving Credit Facility [Member] | The Facility [Member] | OneMonthAdditionalMarginOnVariableRateOptionMember | Maximum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1% | |||||
Standby Letters of Credit [Member] | The Facility [Member] | ||||||
Letters of Credit Outstanding, Amount | $ 4,000 | $ 4,000 |
Note 12 - Other Current and L_3
Note 12 - Other Current and Long-term Liabilities (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2023 | Aug. 01, 2022 | Jun. 30, 2022 | |
Sale Lease Back Transaction Deferred Liabilities | $ 2,800 | $ 5,200 | ||
Sale Leaseback Transaction, Deferred Liabilities, Current | [1] | 2,620 | $ 0 | |
Sale Leaseback Transaction, Deferred Liabilities, Noncurrent | $ 200 | |||
[1]As of June 30, 2023, the deferred liability balance associated with the sale-leaseback transaction completed on August 1, 2022 was $2.8 million, with $2.6 million in Other current liabilities Other long-term liabilities Leases |
Note 12 - Other Current and L_4
Note 12 - Other Current and Long-term Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | |
Income taxes payable | $ 266 | $ 4,558 | |
Deferred liability, short-term (1) | [1] | 2,620 | 0 |
Financing leases, current liabilities | 378 | 535 | |
Customer financing program rebate | 433 | 216 | |
Other current liabilities | 3,491 | 3,479 | |
Other current liabilities | $ 7,188 | $ 8,788 | |
[1]As of June 30, 2023, the deferred liability balance associated with the sale-leaseback transaction completed on August 1, 2022 was $2.8 million, with $2.6 million in Other current liabilities Other long-term liabilities Leases |
Note 12 - Other Current and L_5
Note 12 - Other Current and Long-term Liabilities - Schedule of Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Unrecognized tax benefits | $ 2,654 | $ 2,023 |
Customer financing program rebate | 730 | 183 |
Long-term financing lease liabilities | 204 | 579 |
Other long-term liabilities | 405 | 220 |
Other long-term liabilities | $ 3,993 | $ 3,005 |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 600 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 3,000 | 2,500 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 2,400 | $ 300 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 300 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 300 | |
Domestic Tax Authority [Member] | ||
Open Tax Year | 2019 2020 2021 2022 | |
State and Local Jurisdiction [Member] | ||
Open Tax Year | 2018 2019 2020 2021 2022 | |
Foreign Tax Authority [Member] | ||
Open Tax Year | 2018 2019 2020 2021 2022 | |
Retail Segment [Member] | ||
Deferred Tax Assets, Valuation Allowance | $ 3,000 |
Note 13 - Income Taxes - Compon
Note 13 - Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
U.S. operations income | $ 138,941 | $ 135,077 | $ 75,458 |
Current U.S. Federal | 29,139 | 28,144 | 10,617 |
Non-U.S. operations income | 2,084 | 3,044 | 953 |
Current U.S. State and Local | 7,076 | 6,474 | 1,647 |
Income before income taxes | 141,025 | 138,121 | 76,411 |
Current Foreign | 185 | 575 | 492 |
U.S. operations tax expense | 34,679 | 34,682 | 15,812 |
Total current | 36,400 | 35,193 | 12,756 |
Non-U.S. operations tax expense | 539 | 159 | 594 |
Deferred U.S. Federal | (1,362) | (610) | 4,462 |
Total income tax expense | 35,218 | 34,841 | 16,406 |
Deferred U.S. State and Local | $ (174) | $ 674 | $ (914) |
Effective tax rate | 25% | 25.20% | 21.50% |
Deferred Foreign | $ 354 | $ (416) | $ 102 |
Total deferred | $ (1,182) | $ (352) | $ 3,650 |
Note 13 - Income Taxes - Effect
Note 13 - Income Taxes - Effective Income Tax rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income tax expense at U.S. Federal statutory tax rate | $ 29,616 | $ 29,005 | $ 16,046 |
Income tax expense at U.S. Federal statutory tax rate, percent | 21% | 21% | 21% |
State and local income taxes, net of U.S. federal income benefit | $ 5,203 | $ 5,208 | $ 2,565 |
State and local income taxes, net of U.S. federal income benefit, percent | 3.70% | 3.80% | 3.40% |
Change in valuation allowance | $ 0 | $ (591) | $ (2,565) |
Change in valuation allowance, percent | (0.40%) | (3.40%) | |
Foreign derived intangible income ("FDII") deduction | $ 428 | $ 289 | $ 130 |
Foreign derived intangible income ("FDII") deduction, percent | 0.30% | 0.20% | 0.20% |
Foreign derived intangible income ("FDII") deduction | $ (428) | $ (289) | $ (130) |
Foreign derived intangible income ("FDII") deduction | (0.30%) | (0.20%) | (0.20%) |
Unrecognized tax benefits | $ (229) | $ 390 | $ 48 |
Unrecognized tax benefits, percent | (0.20%) | 0.30% | 0.10% |
Share-based compensation | $ 5 | $ 189 | $ 72 |
Share-based compensation, percent | 0% | 0.10% | 0.10% |
Other, net | $ 195 | $ 929 | $ 370 |
Other, net, percent | 0.20% | 0.60% | 0.50% |
Total income tax expense | $ 35,218 | $ 34,841 | $ 16,406 |
Total income tax expense (and corresponding effective tax rate), percent | 25% | 25.20% | 21.50% |
Note 13 - Income Taxes - Deferr
Note 13 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Lease liabilities | $ 32,411 | $ 28,621 |
Operating lease right-of-use assets | 28,724 | 24,965 |
Other assets | 640 | 820 |
Employee compensation | 2,218 | 2,167 |
Intangible assets other than goodwill | 9,047 | 9,041 |
Other non-current liabilities | (3,056) | (4,418) |
Share-based compensation | 139 | 271 |
Commissions | 3,032 | 5,006 |
Total net deferred tax asset (liability) | (2,416) | (3,598) |
Net operating loss carryforwards | 318 | 340 |
Other | 652 | 615 |
Property, plant and equipment | 151 | 1,309 |
Total deferred tax liabilities | 41,455 | 39,627 |
Other | 3,802 | 3,321 |
Total deferred tax assets | $ 39,039 | $ 36,029 |
Note 13 - Income Taxes - Expira
Note 13 - Income Taxes - Expiration With Respect to Net Operating Losses (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Domestic Tax Authority [Member] | |
Net deferred tax assets subject to expire | $ 208 |
Net operating losses subject to expire | 2,689 |
Foreign Tax Authority [Member] | |
Net deferred tax assets subject to expire | 110 |
Net operating losses subject to expire | $ 417 |
Note 13 - Income Taxes - Unreco
Note 13 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Balance | $ 2,474 | $ 1,984 |
Additions for tax positions related to the current year | 817 | 853 |
Additions for tax positions of prior years | 170 | 94 |
Reductions resulting from a lapse of the applicable statute of limitations | (461) | (457) |
Balance | $ 3,000 | $ 2,474 |
Note 14 - Shareholders' Equity
Note 14 - Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2023 | Aug. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |||
Preferred Stock, Shares Authorized (in shares) | 1,055,000 | 1,055,000 | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 2,007,364 | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.36 | $ 0.50 | $ 1.82 | ||
Common Stock, Dividends, Percentage Increase Per Share | 12.50% | ||||
Payments of Dividends | $ 46,357 | $ 48,257 | $ 43,290 |
Note 15 - Earnings Per Share (D
Note 15 - Earnings Per Share (Details Textual) - shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 39,065 | 65,545 | 46,827 |
Performance Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 92,638 | 89,969 | 251,867 |
Note 15 - Earnings Per Share -
Note 15 - Earnings Per Share - Calculation of Weighted Average Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Weighted average shares outstanding for basic calculation (in shares) | 25,473 | 25,413 | 25,265 |
Dilutive effect of stock options and other share-based awards (in shares) | 131 | 109 | 87 |
Weighted average shares outstanding adjusted for dilution calculation (in shares) | 25,604 | 25,522 | 25,352 |
Note 16 - Accumulated Other C_3
Note 16 - Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated other comprehensive loss | $ (2,785) | $ (6,462) | |
Balance | 407,323 | 351,418 | $ 328,064 |
Other comprehensive income (loss), net of tax | 3,681 | (532) | 2,486 |
Balance | 471,006 | 407,323 | 351,418 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated other comprehensive loss | (3,219) | (6,397) | |
AOCI Attributable to Parent [Member] | |||
Balance | (6,462) | (5,931) | (8,441) |
Other comprehensive income (loss), net of tax | 3,677 | (531) | 2,510 |
Balance | (2,785) | (6,462) | $ (5,931) |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |||
Other comprehensive income (loss), net of tax | 3,681 | (532) | |
Less amounts attributable to noncontrolling interests | (4) | 1 | |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member] | |||
Accumulated other comprehensive loss | $ 434 | $ (65) |
Note 17 - Share-based Compens_3
Note 17 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement, Expense | $ 1,300 | $ 1,100 | $ 1,300 | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 1,800 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days | |||
Share-Based Payment Arrangement, Amount Capitalized | $ 0 | 0 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 1,346,671 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Contractual Term | 10 years | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 4 | 287 | $ 667 | |
Proceeds from Stock Options Exercised | $ 100 | $ 1,100 | $ 3,000 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 23,970 | 25,410 | 37,008 | |
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 25.03 | $ 23.61 | $ 12.97 | |
Share-Based Payment Arrangement, Employee [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 0 | 0 | ||
Share-Based Payment Arrangement, Nonemployee [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 23,970 | |||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 25.03 | |||
Share-Based Payment Arrangement, Option [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 100 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 700 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 21,257 | 51,100 | 38,000 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 19.48 | $ 20.71 | $ 9.58 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period | 32,150 | 29,000 | 12,375 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 900 | $ 800 | ||
Performance Shares [Member] | ||||
Share-Based Payment Arrangement, Expense | 833 | $ 663 | $ 535 | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 1,000 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 7 months 6 days | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 103,096 | 90,367 | 117,338 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 18.75 | $ 17.15 | $ 8.76 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period | 31,635 | 35,124 | 0 | |
Maximum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 100 | |||
Stock Option Plan 1992 [Member] | Maximum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 6,487,867 |
Note 17 - Share-based Compens_4
Note 17 - Share-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Outstanding options (in shares) | 107,040 | 253,955 | 403,106 | |
Outstanding options, weighted average exercise price (in dollars per share) | $ 23.75 | $ 23.10 | $ 21.24 | |
Outstanding options, contractual term (Year) | 4 years 9 months 18 days | 4 years 4 months 24 days | 5 years 7 months 6 days | 4 years 4 months 24 days |
Outstanding options, intrinsic value | $ 560 | $ 120 | $ 1,368 | $ 0 |
Granted options (in shares) | 23,970 | 25,410 | 37,008 | |
Granted options, weighted average exercise price (in dollars per share) | $ 25.03 | $ 23.61 | $ 12.97 | |
Exercised options (in shares) | (2,666) | (55,220) | (174,662) | |
Exercised options, weighted average exercise price (in dollars per share) | $ 28.05 | $ 20.23 | $ 16.95 | |
Exercised options, intrinsic value | $ 4 | $ 287 | $ 667 | |
Canceled (forfeited/expired) options (in shares) | (13,507) | (117,105) | (11,497) | |
Canceled (forfeited/expired) options, weighted average exercise price (in dollars per share) | $ 23.64 | $ 23.98 | $ 18.62 | |
Outstanding options (in shares) | 114,837 | 107,040 | 253,955 | 403,106 |
Outstanding options, weighted average exercise price (in dollars per share) | $ 23.93 | $ 23.75 | $ 23.10 | $ 21.24 |
Exercisable options (in shares) | 85,104 | |||
Exercisable options, weighted average exercise price (in dollars per share) | $ 24.22 | |||
Exercisable options, contractual term (Year) | 3 years 6 months | |||
Exercisable options, intrinsic value | $ 406 |
Note 17 - Share-based Compens_5
Note 17 - Share-based Compensation - Nonvested Share Activity (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Nonvested options (in shares) | 20,492 | ||
Nonvested options, weighted average exercise price (in dollars per share) | $ 18.22 | ||
Granted options (in shares) | 23,970 | 25,410 | 37,008 |
Granted options, weighted average exercise price (in dollars per share) | $ 25.03 | $ 23.61 | $ 12.97 |
Vested options (in shares) | (10,734) | ||
Vested options, weighted average exercise price (in dollars per share) | $ 17.39 | ||
Canceled (forfeited) options (in shares) | (3,995) | ||
Canceled (forfeited) options, weighted average exercise price (in dollars per share) | $ 25.03 | ||
Nonvested options (in shares) | 29,733 | 20,492 | |
Nonvested options, weighted average exercise price (in dollars per share) | $ 23.09 | $ 18.22 |
Note 17 - Share-based Compens_6
Note 17 - Share-based Compensation - Stock Options, Valuation Assumptions (Details) - Share-Based Payment Arrangement, Nonemployee [Member] - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Volatility | 41.60% | 39.30% | 38.20% |
Risk-free rate of return | 2.92% | 0.73% | 0.35% |
Dividend yield | 4.25% | 3.79% | 3.26% |
Expected average life (years) (Year) | 4 years 10 months 24 days | 5 years 6 months | 5 years 6 months |
Grant date fair value (in dollars per share) | $ 5.98 | $ 5.04 | $ 3.20 |
Fair value as a % of exercise price | 23.90% | 21.30% | 24.70% |
Note 17 - Share-based Compens_7
Note 17 - Share-based Compensation - Restricted Stock Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Outstanding units (in shares) | 76,100 | 71,000 | 56,000 |
Outstanding unts, weighted average fair value (in dollars per share) | $ 16.23 | $ 9.38 | $ 9.15 |
Granted units (in shares) | 21,257 | 51,100 | 38,000 |
Granted units, weighted average fair value (in dollars per share) | $ 19.48 | $ 20.71 | $ 9.58 |
Vested units (in shares) | (32,150) | (29,000) | (12,375) |
Vested units, weighted average fair value (in dollars per share) | $ 13.47 | $ 9.43 | $ 9.15 |
Canceled (forfeited) units (in shares) | (11,344) | (17,000) | (10,625) |
Canceled (forfeited) units, weighted average fair value (in dollars per share) | $ 18.16 | $ 12.66 | $ 9.15 |
Outstanding units (in shares) | 53,863 | 76,100 | 71,000 |
Outstanding unts, weighted average fair value (in dollars per share) | $ 18.76 | $ 16.23 | $ 9.38 |
Note 17 - Share-based Compens_8
Note 17 - Share-based Compensation - Performance Stock Activity (Details) - Performance Shares [Member] - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Outstanding units (in shares) | 320,135 | 377,867 | 325,107 |
Outstanding unts, weighted average fair value (in dollars per share) | $ 17.53 | $ 15.98 | $ 19.05 |
Granted units (in shares) | 103,096 | 90,367 | 117,338 |
Granted units, weighted average fair value (in dollars per share) | $ 18.75 | $ 17.15 | $ 8.76 |
Vested units (in shares) | (31,635) | (35,124) | 0 |
Canceled (forfeited) units (in shares) | (4,600) | (112,975) | (64,578) |
Canceled (forfeited) units, weighted average fair value (in dollars per share) | $ 18.75 | $ 11.86 | $ 18.29 |
Vested units, weighted average fair value (in dollars per share) | $ 12.53 | $ 18.19 | |
Outstanding units (in shares) | 386,996 | 320,135 | 377,867 |
Outstanding unts, weighted average fair value (in dollars per share) | $ 18.25 | $ 17.53 | $ 15.98 |
Note 17 - Share-based Compens_9
Note 17 - Share-based Compensation - Equity Compensation Expenses Related to Performance-based Shares (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement, Expense | $ 1,300 | $ 1,100 | $ 1,300 |
Performance Shares [Member] | |||
Share-Based Payment Arrangement, Expense | 833 | 663 | 535 |
Performance Shares [Member] | Granted Within the Fiscal Year Ended June 30, 2020 [Member] | |||
Share-Based Payment Arrangement, Expense | 0 | 107 | 234 |
Performance Shares [Member] | Granted Within the Fiscal Year Ended June 30, 2021 [Member] | |||
Share-Based Payment Arrangement, Expense | 236 | 143 | 301 |
Performance Shares [Member] | Granted Within the Fiscal Year Ended June 30, 2022 [Member] | |||
Share-Based Payment Arrangement, Expense | 317 | 413 | 0 |
Performance Shares [Member] | Granted Within The Fiscal Year Ended June 30, 2023 [Member] | |||
Share-Based Payment Arrangement, Expense | $ 280 | $ 0 | $ 0 |
Note 17 - Share-based Compen_10
Note 17 - Share-based Compensation - Performance Stock Units, Valuation Assumptions (Details) - Performance Shares [Member] | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Volatility | 47.70% | 43.30% | 56% |
Risk-free rate of return | 3.16% | 0.62% | 0.14% |
Dividend yield | 4.25% | 3.79% | 3.26% |
Note 18 - Employee Retirement_2
Note 18 - Employee Retirement Programs (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 100% | ||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 2.7 | $ 2.6 | $ 2.7 |
Note 19 - Segment Information_2
Note 19 - Segment Information (Details Textual) | 11 Months Ended | 12 Months Ended | 60 Months Ended | 120 Months Ended | |
Jun. 03, 2023 | Jun. 30, 2023 ft² | Jun. 30, 2022 | Jun. 30, 2023 ft² | Jun. 30, 2023 ft² | |
Number of Reportable Segments | 2 | ||||
Number of Company Operated Design Centers | 139 | 139 | 139 | ||
Percentage of New or Relocated Design Centers | 47% | ||||
Number of New Design Centers | 18 | ||||
Average Area of New Design Centers | 8,100 | 8,100 | 8,100 | ||
Relocated Design Centers | 2 | ||||
Closed Design Centers | 2 | ||||
Company Operated Design Centers [Member] | |||||
Average Area of Design Centers | 14,100 | 14,100 | 14,100 | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | United States Government GSA [Member] | |||||
Concentration Risk, Percentage | 7% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Wholesale Segment [Member] | |||||
Concentration Risk, Percentage | 16.30% | 15.60% | |||
Number of Major Customers | 10 | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Wholesale Segment [Member] | Ten Largest Independent Retailers [Member] | |||||
Concentration Risk, Percentage | 21% | 18% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Retail Segment [Member] | |||||
Concentration Risk, Percentage | 83.70% | 84.40% | |||
Revenue, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Wholesale Segment [Member] | Upholstered Products [Member] | |||||
Concentration Risk, Percentage | 49% | ||||
Revenue, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Wholesale Segment [Member] | Case Goods [Member] | |||||
Concentration Risk, Percentage | 33% | ||||
Revenue, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Wholesale Segment [Member] | Home Accents and Other [Member] | |||||
Concentration Risk, Percentage | 18% | ||||
Revenue, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Retail Segment [Member] | Upholstered Products [Member] | |||||
Concentration Risk, Percentage | 51% | ||||
Revenue, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Retail Segment [Member] | Case Goods [Member] | |||||
Concentration Risk, Percentage | 29% | ||||
Revenue, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Retail Segment [Member] | Home Accents and Other [Member] | |||||
Concentration Risk, Percentage | 20% |
Note 19 - Segment Information -
Note 19 - Segment Information - Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Net sales | $ 791,382 | $ 817,762 | $ 685,169 | |
Assets | 745,453 | 719,895 | 683,245 | |
Operating income | 137,196 | 138,250 | 77,285 | |
Interest and other income (expense), net | 4,042 | 72 | (393) | |
Interest and other financing costs | 213 | 201 | 481 | |
Consolidated total | 141,025 | 138,121 | 76,411 | |
Depreciation and amortization | 15,614 | 15,987 | 16,385 | |
Capital Expenditures | 13,885 | 13,387 | 12,029 | |
Intersegment Eliminations [Member] | ||||
Operating income | [1] | 1,148 | (6,176) | (3,820) |
Wholesale Segment [Member] | ||||
Assets | 373,921 | 341,466 | 298,332 | |
Depreciation and amortization | 6,328 | 6,439 | 6,714 | |
Capital Expenditures | 6,787 | 8,125 | 5,618 | |
Wholesale Segment [Member] | Operating Segments [Member] | ||||
Net sales | 449,591 | 483,842 | 413,076 | |
Operating income | 68,792 | 63,930 | 52,281 | |
Wholesale Segment [Member] | Operating Segments [Member] | External Customers [Member] | ||||
Net sales | 128,827 | 127,878 | 130,198 | |
Wholesale Segment [Member] | Intersegment Eliminations [Member] | ||||
Net sales | (320,764) | (355,964) | (282,878) | |
Retail Segment [Member] | ||||
Assets | 403,651 | 412,176 | 412,066 | |
Depreciation and amortization | 9,286 | 9,548 | 9,671 | |
Capital Expenditures | 7,098 | 5,262 | 6,411 | |
Retail Segment [Member] | Operating Segments [Member] | ||||
Net sales | 662,555 | 689,884 | 554,971 | |
Operating income | 67,256 | 80,496 | 28,824 | |
Inventory Profit Elimination [Member] | ||||
Assets | [2] | $ (32,119) | $ (33,747) | $ (27,153) |
[1]Represents the change in wholesale profit contained in the retail segment inventory at the end of the period.[2]Represents the wholesale profit contained in the retail segment inventory that has not yet been realized. These profits are realized when the related inventory is sold. |
Note 19 - Segment Information_3
Note 19 - Segment Information - Revenue by Geographic Area (Details) - Geographic Concentration Risk [Member] - Revenue Benchmark [Member] | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
UNITED STATES | |||
Percentage of Sales | 97% | 96% | 94.90% |
Non-US [Member] | |||
Percentage of Sales | 3% | 4% | 5.10% |
Note 19 - Segment Information_4
Note 19 - Segment Information - Long Lived Assets by Geographical Area (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Total long-lived assets | [1] | $ 338,028 | $ 324,312 | $ 340,176 |
UNITED STATES | ||||
Total long-lived assets | 301,951 | 295,747 | 311,529 | |
MEXICO | ||||
Total long-lived assets | 20,695 | 15,085 | 15,381 | |
HONDURAS | ||||
Total long-lived assets | 10,686 | 9,967 | 8,347 | |
CANADA | ||||
Total long-lived assets | $ 4,696 | $ 3,513 | $ 4,919 | |
[1]Long-lived assets consist of property, plant and equipment and operating lease right-of-use assets and exclude goodwill, intangible assets, deferred income taxes and other assets. |
Note 20 - Commitments and Con_2
Note 20 - Commitments and Contingencies (Details Textual) $ in Millions | Jun. 30, 2023 USD ($) |
Purchase Obligation | $ 29.2 |
Other Commitment | $ 16.9 |