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Ethan Allen Faces Fewer Tariffs Than Rivals, but Consumer Worries Still Bite
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Good morning, CFOs. Ethan Allen waits for consumer demand to pick up; the Fed forecasts stagflation; Nvidia’s business is still booming; and E.l.f. buys Hailey Bieber’s cosmetics brand.
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Ethan Allen manufactures 75% of its goods across North America, primarily in the U.S. and Mexico. PHOTO: STEPHEN ZENNER/ZUMA PRESS
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Ethan Allen’s decision decades ago to make most of its couches, chairs and more in North America should be paying off as the rapidly shifting global trade environment roils others in the industry. So far, it isn’t.
Even though the upscale furniture maker isn’t facing the same tariffs as its competitors, it has struggled to get consumers, who are generally more cautious because of tariff uncertainty, to buy its furniture that can retail for over $15,000.
“People say we shouldn’t have to worry,” said Chief Executive Farooq Kathwari. “But if consumers aren’t going to come in, it’s going to affect everybody.”
Ethan Allen manufactures 75% of its goods across North America, primarily in the U.S. and Mexico, from which the company’s products are currently exempted from import levies. Making furniture in the Americas has at times been a disadvantage as it competes against companies with lower overseas manufacturing costs. But now, while Ethan Allen is less exposed to tariffs, the company has yet to see the benefits.
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Meeting Finance Priorities in an ERP Implementation
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📆 Earnings
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Best Buy
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Costco Wholesale
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Dell Technologies
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Gap
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Hormel Foods
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NetApp
📈 Economic Indicators
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The BEA releases its second estimate of first-quarter gross-domestic-product growth.
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The National Association of Realtors releases its Pending Home Sales Index for April.
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E.l.f. Buys Hailey Bieber’s Rhode Cosmetics Brand in $1 Billion Deal
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Hailey Bieber built a $1 billion beauty brand in three years. E.l.f. Beauty is acquiring the American model’s cosmetics and skin-care line, Rhode. “It’s one of the most beautiful businesses I’ve ever seen,” e.l.f Chief Executive Tarang Amin said in an interview.
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What Else Matters to CFOs
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Federal Reserve Chair Jerome Powell PHOTO: SHAWN THEW/EPA-EFE/SHUTTERSTOCK/SHUTTERSTOCK
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Federal Reserve officials signaled concern at their meeting earlier this month that large tariff hikes would push up prices and could risk stoking higher inflation.
Policymakers largely agreed that heightened economic uncertainty and increased risks of both higher unemployment and inflation warranted no change in their wait-and-see policy stance, according to minutes of the May 6-7 meeting released Wednesday.
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$19 Billion
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Approximate amount that U.S. public companies collectively pay annually for audits of their financials, according to Ideagen Audit Analytics.
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Jack in the Box, the San Diego-based fast-food chain, named Dawn Hooper as chief financial officer, effective immediately. She had been serving as interim principal financial officer since October 2024, when Brian Scott resigned. She previously served in that interim role during periods in 2023 and 2020, as well. Hooper has worked at the company for 25 years, holding several leadership positions and was most recently senior vice president, controller.
Jack in the Box said it plans to pay Hooper a base salary of $620,000.
Elanco Animal Health, the Greenfield, Ind.-based animal-health company, is replacing its top finance executive, hiring Robert VanHimbergen as executive vice president and CFO. Elanco said VanHimbergen, who has been senior vice president and chief financial officer of industrial company Hillenbrand since April 2022, is joining the company on July 7. Todd Young, who joined Elanco as finance chief in November 2018, will continue to serve as an adviser through Aug. 31. Elanco said VanHimbergen will receive an annual base salary of $660,000, an annual cash bonus with a target of 75% of his base pay, and more than $2.6 million in cash and
restricted stock as make-whole awards for compensation left on the table at Hillenbrand.
Vertiv Holdings, the Columbus, Ohio-based provider of digital infrastructure and continuity solutions, said its top finance executive, David Fallon, plans to retire from the company. Vertiv said Fallon, who joined the company as chief financial officer in 2017, will remain in his post until a successor has been named and has assumed the role, which the company expects will occur in the second half of the year. Fallon will stay on as a consultant through the end of 2026 to assist with the transition, Vertiv said.
—Colin Kellaher and Katherine Hamilton contributed to today’s Ledger.
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The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax accounting, regulation, capital markets, management and strategy. Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew. You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.
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