Retail

The global economy overall is mending from the 2008 crisis. Many key metrics over the past 5 years have improved materially relative to the crisis years. The S&P 500, for instance, after reaching its low in 2009 has recovered more than 150%. The financial markets are now more stable through the enactment of various legislation including Dodd-Frank and Basel III. Even unemployment has rebounded steadily as consumers are more confident of their future prospects. These trends bode very well for the furniture retailing industry which was devastated by the financial crisis. As such, I believe many companies within this sector are poised for a strong and sustained recovery. Of the many companies and competitors within the sector, Ethan Allen Interiors, Inc. is best positioned for sustainable long-term growth (Gray, 1977).

To begin, the company is fortunate enough to have a strong economic tailwind behind it. The housing sector, which...
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