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Note 17 - Segment Information | 6 Months Ended
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Dec. 31, 2022
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] |
(17) | Segment Information
Ethan Allen conducts business globally and has strategically aligned its business into two reportable segments: Wholesale and Retail. These two segments represent strategic business areas of our vertically integrated enterprise that operate separately and provide their own distinctive services. Our operating segments are aligned with how the Company, including our chief operating decision maker, manages the business. This vertical structure enables us to offer our complete line of home furnishings and accents more effectively while controlling quality and cost. We evaluate performance of the respective segments based upon sales and operating income. Wholesale Segment. The wholesale segment is principally involved in the development of the Ethan Allen brand and encompasses all aspects of design, manufacturing, sourcing, merchandising, marketing and distribution of our broad range of home furnishings and accents. Our wholesale segment net sales include sales to our retail segment, which are eliminated in consolidation, and sales to our independent retailers and other third parties. Wholesale revenue is generated upon the sale and shipment of our products to our retail network of independently operated design centers, Company-operated design centers and other contract customers. Retail Segment. The retail segment sells home furnishings and accents to clients through a network of Company-operated design centers. Retail revenue is generated upon the retail sale and delivery of our products to our retail customers through our network of retail 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. As of December 31, 2022, the Company operated 139 design centers within our retail segment. Intersegment. We account for intersegment sales transactions between our segments consistent with independent third-party transactions, that is, at current market prices. As a result, the manufacturing profit related to sales to our retail segment is included within our wholesale segment. Operating income realized on intersegment revenue transactions is therefore generally consistent with the operating income realized on our revenue from independent third-party transactions. Segment operating income is based on profit or loss from operations before interest and other financing costs, other income (expense), net and income taxes. Sales are attributed to countries on the basis of the customer's location. Segment information is provided below (in thousands):
|  | Three months ended |  |  | Six months ended |
|  | December 31, |  |  | December 31, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Net sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wholesale segment |  | $ | 106,247 |  |  | $ | 115,921 |  |  | $ | 220,898 |  |  | $ | 225,369 |
Less: intersegment sales |  |  | (74,849 | ) |  |  | (87,411 | ) |  |  | (158,628 | ) |  |  | (169,518 | )
Wholesale sales to external customers |  |  | 31,398 |  |  |  | 28,510 |  |  |  | 62,270 |  |  |  | 55,851 |
Retail segment |  |  | 171,763 |  |  |  | 179,583 |  |  |  | 355,421 |  |  |  | 334,569 |
Consolidated total |  | $ | 203,161 |  |  | $ | 208,093 |  |  | $ | 417,691 |  |  | $ | 390,420 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wholesale segment |  | $ | 14,569 |  |  | $ | 9,744 |  |  | $ | 29,982 |  |  | $ | 22,563 |
Retail segment |  |  | 18,080 |  |  |  | 22,635 |  |  |  | 40,069 |  |  |  | 36,980 |
Elimination of intercompany profit (a) |  |  | 4,420 |  |  |  | 3,913 |  |  |  | 6,668 |  |  |  | 4,109 |
Operating income |  |  | 37,069 |  |  |  | 36,292 |  |  |  | 76,719 |  |  |  | 63,652 |
Interest and other income, net |  |  | 901 |  |  |  | (26 | ) |  |  | 1,297 |  |  |  | 2 |
Interest expense and other financing costs |  |  | 50 |  |  |  | 48 |  |  |  | 105 |  |  |  | 96 |
Consolidated total |  | $ | 37,920 |  |  | $ | 36,218 |  |  | $ | 77,911 |  |  | $ | 63,558 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wholesale segment |  | $ | 1,575 |  |  | $ | 1,588 |  |  | $ | 3,166 |  |  | $ | 3,228 |
Retail segment |  |  | 2,263 |  |  |  | 2,274 |  |  |  | 4,529 |  |  |  | 4,959 |
Consolidated total |  | $ | 3,838 |  |  | $ | 3,862 |  |  | $ | 7,695 |  |  | $ | 8,187 |
Capital expenditures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wholesale segment |  | $ | 2,701 |  |  | $ | 1,324 |  |  | $ | 4,762 |  |  | $ | 2,412 |
Retail segment |  |  | 2,593 |  |  |  | 877 |  |  |  | 3,711 |  |  |  | 1,318 |
Consolidated total |  | $ | 5,294 |  |  | $ | 2,201 |  |  | $ | 8,473 |  |  | $ | 3,730 |
| (a) | Represents the change in wholesale profit contained in the retail segment inventory at the end of the period.
(in thousands) |  | December 31, |  |  | June 30, |
Total Assets |  | 2022 |  |  | 2022 |
Wholesale segment |  | $ | 351,282 |  |  | $ | 341,466 |
Retail segment |  |  | 389,087 |  |  |  | 412,176 |
Inventory profit elimination (a) |  |  | (26,388 | ) |  |  | (33,747 | )
Consolidated total |  | $ | 713,981 |  |  | $ | 719,895 |
| (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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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