Ethan Allen begins a leadership transition as it faces activist pressure and declining sales, with the board aiming to appoint a new CEO by mid-2025 to drive digital and supply chain improvements.
Ethan Allen announced a CEO search amid activist pressure and declining sales, with net sales down 8.5% in Q4 and 5.7% for the full year.
Ethan Allen has launched a formal search for a new CEO to replace long-time leader Farooq Kathwari by June 30. The move follows mounting pressure from activist investor Doug Bergeron, who criticized the retailer's management after net sales dropped 8.5% in the fourth quarter and 5.7% for the full fiscal year.
The search follows pressure from activist investor Doug Bergeron and a period of declining financial performance, including an 8.5% drop in Q4 net sales.
Kathwari will step down as CEO on June 30, 2025, but will remain a non-executive member of the board until the 2027 annual shareholder meeting.