10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2014

OR

[   ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 1-11692

Ethan Allen Interiors Inc

(Exact name of registrant as specified in its charter)

Delaware	06-1275288
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Ethan Allen Drive, Danbury, Connecticut	06811
(Address of principal executive offices)	(Zip Code)

(203) 743-8000

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     [X] Yes     [  ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files).     [X] Yes      [  ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act

Large accelerated filer   [  ]	Accelerated filer                     [X]
Non-accelerated filer     [  ]	Smaller reporting company   [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     [ ] Yes     [X] No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

At April 24, 2014, there were 28,925,735 shares of Class A Common Stock,

par value $.01, outstanding.

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements		2
	Consolidated Balance Sheets	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Cash Flows	4
	Consolidated Statements of Shareholders’ Equity	5
	Notes toConsolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		20
Item 3. Quantitative and Qualitative Disclosures About Market Risk		27
Item 4. Controls and Procedures		28
PART II - OTHER INFORMATION
Item 1. Legal Proceedings		28
Item 1A. Risk Factors		28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		29
Item 3. Defaults Upon Senior Securities		29
Item 4. Mine Safety Disclosures		29
Item 5. Other Information		29
Item 6. Exhibits		30
SIGNATURES		31

1

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands)

	March 31, 2014			June 30, 2013
ASSETS
Current assets:
Cash and cash equivalents	$	95,804		$	72,601
Marketable securities		20,138			15,529
Accounts receivable, less allowance for doubtful accounts of $1,284 at March 31, 2014 and $1,230 at June 30, 2013		16,003			12,277
Inventories		145,055			137,256
Prepaid expenses and other current assets		20,914			22,907
Total current assets		297,914			260,570
Property, plant and equipment, net		286,797			291,672
Goodwill and other intangible assets		45,128			45,128
Restricted cash and investments		8,907			15,433
Other assets		6,154			4,482
Total assets	$	644,900		$	617,285
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt	$	496		$	480
Customer deposits		65,200			59,098
Accounts payable		24,107			22,995
Accrued compensation and benefits		23,442			27,205
Accrued expenses and other current liabilities		27,611			23,161
Total current liabilities		140,856			132,939
Long-term debt		130,513			130,809
Other long-term liabilities		20,657			19,180
Total liabilities		292,026			282,928
Shareholders' equity:
Class A common stock		486			486
Additional paid-in-capital		365,104			363,938
Less: Treasury stock (at cost)		(584,041	)		(584,041	)
Retained earnings		570,217			553,083
Accumulated other comprehensive income		838			684
Total Ethan Allen Interiors Inc. shareholders' equity		352,604			334,150
Noncontrolling interests		270			207
Total shareholders' equity		352,874			334,357
Total liabilities and shareholders' equity	$	644,900		$	617,285

See accompanying notes to consolidated financial statements. 

2

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Unaudited)

(In thousands, except per share data)

	Three months ended March 31,					Nine months ended March 31,
	2014		2013			2014		2013
Net sales	$	173,061	$	168,144		$	547,824	$	546,832
Cost of sales		79,931		76,359			249,952		246,827
Gross profit		93,130		91,785			297,872		300,005
Selling, general and administrative expenses		83,578		83,125			252,526		256,034
Operating income		9,552		8,660			45,346		43,971
Interest and other income		103		(10	)		228		192
Interest and other related financing costs		1,870		2,195			5,614		6,592
Income before income taxes		7,785		6,455			39,960		37,571
Income tax expense		2,527		2,081			14,113		13,287
Net income	$	5,258	$	4,374		$	25,847	$	24,284
Per share data:
Basic earnings per common share:
Net income per basic share	$	0.18	$	0.15		$	0.89	$	0.84
Basic weighted average common shares		28,920		28,869			28,916		28,850
Diluted earnings per common share:
Net income per diluted share	$	0.18	$	0.15		$	0.88	$	0.83
Diluted weighted average common shares		29,271		29,273			29,284		29,213
Comprehensive income:
Net income	$	5,258	$	4,374		$	25,847	$	24,284
Other comprehensive income
Currency translation adjustment		142		300			126		440
Other		31		7			91		47
Other comprehensive income net of tax		173		307			217		487
Comprehensive income	$	5,431	$	4,681		$	26,064	$	24,771

See accompanying notes to consolidated financial statements. 

3

ETHAN ALLEN INTERIORS INC.

Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

	Nine months ended March 31,
	2014			2013
Operating activities:
Net income	$	25,847		$	24,284
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		13,276			13,514
Compensation expense related to share-based payment awards		990			1,115
Provision (benefit) for deferred income taxes		(1,382	)		597
Loss on disposal of property, plant and equipment		2,164			3,696
Other		425			172
Change in operating assets and liabilities, net of effects of acquired businesses:
Accounts receivable		(3,726	)		2,855
Inventories		(7,799	)		13,808
Prepaid and other current assets		613			2,054
Customer deposits		6,102			(6,567	)
Accounts payable		1,112			(1,899	)
Accrued expenses and other current liabilities		288			(8,241	)
Other assets and liabilities		2,109			(943	)
Net cash provided by operating activities		40,019			44,445
Investing activities:
Proceeds from the disposal of property, plant & equipment		2,667			3,226
Change in restricted cash and investments		6,526			(14	)
Capital expenditures		(12,588	)		(16,545	)
Acquisitions		-			(598	)
Purchases of marketable securities		(17,500	)		(17,547	)
Sales of marketable securities		12,323			7,990
Other investing activities		253			1,333
Net cash used in investing activities		(8,319	)		(22,155	)
Financing activities:
Payments on long-term debt and capital lease obligations		(358	)		(187	)
Payment of cash dividends		(8,399	)		(19,617	)
Other financing activities		314			1,423
Net cash used in financing activities		(8,443	)		(18,381	)
Effect of exchange rate changes on cash		(54	)		15
Net increase (decrease) in cash & cash equivalents		23,203			3,924
Cash & cash equivalents at beginning of period		72,601			79,721
Cash & cash equivalents at end of period	$	95,804		$	83,645

See accompanying notes to consolidated financial statements.

4

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Consolidated Statements of Shareholders’ Equity

Nine Months Ended March 31, 2014

(Unaudited)

(In thousands)

	Common Stock		Additional Paid-in Capital			Treasury Stock			Accumulated Other Comprehensive Income		Retained Earnings			Non-Controlling Interests		Total
Balance at June 30, 2013	$	486	$	363,938		$	(584,041	)	$	684	$	553,083		$	207	$	334,357
Stock issued on share-based awards		-		263			-			-		-			-		263
Compensation expense associated with share-based awards		-		990			-			-		-			-		990
Tax benefit associated with exercise of share based awards		-		(87	)		-			-		-			-		(87	)
Dividends declared on common stock		-		-			-			-		(8,713	)		-		(8,713	)
Comprehensive income		-		-			-			154		25,847			63		26,064
Balance at March 31, 2014	$	486	$	365,104		$	(584,041	)	$	838	$	570,217		$	270	$	352,874

See accompanying notes to consolidated financial statements.

5

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

(1) Basis of Presentation

Ethan Allen Interiors Inc. ("Interiors") is a Delaware corporation incorporated on May 25, 1989. The consolidated financial statements include the accounts of Interiors, its wholly owned subsidiary Ethan Allen Global, Inc. ("Global"), and Global’s subsidiaries (collectively "we", "us", "our", "Ethan Allen", or the "Company"). All intercompany accounts and transactions have been eliminated in the consolidated financial statements. All of Global’s capital stock is owned by Interiors, which has no assets or operating results other than those associated with its investment in Global.

We prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States, 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 revenues 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, revenue recognition, the allowance for doubtful accounts receivable, inventory obsolescence, tax valuation allowances, useful lives for property, plant and equipment and definite-lived intangible assets, goodwill and indefinite-lived intangible asset impairment analyses, the evaluation of uncertain tax positions and the fair value of assets acquired and liabilities assumed in business combinations.

Our consolidated financial statements include the accounts of an entity in which we are a majority shareholder and have 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 Statement of Comprehensive Income within interest and other income, net.

(2) Interim Financial Presentation

In our opinion, all adjustments, consisting only of normal recurring adjustments necessary for fair presentation, have been included in the consolidated financial statements. The results of operations for the three and nine months ended March 31, 2014 are not necessarily indicative of results that may be expected for the entire fiscal year. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended June 30, 2013.

(3) Income Taxes

The Company reviews its expected annual effective income tax rates and makes changes on a quarterly basis as necessary based on certain factors such as changes in forecasted annual operating income; changes to actual or forecasted permanent book to tax differences; impacts from future tax audits with state, federal or foreign tax authorities; impacts from tax law changes; or change in judgment as to the realizability of deferred tax assets. The Company identifies items which are not normal and are non-recurring in nature and treats these as discrete events. The tax effect of discrete items is recorded in the quarter in which the discrete events occur. Due to the volatility of these factors, the Company's consolidated effective income tax rate can change significantly on a quarterly basis.

The Company conducts business globally and, as a result, the Company or one or more of its subsidiaries files income tax returns in the U.S., various state, and foreign jurisdictions. In the normal course of business, the Company is subject to examination in such domestic and foreign jurisdictions. As of March 31, 2014, the Company and certain subsidiaries are currently under audit in the U.S. from 2006 through 2012. While the amount of uncertain tax benefits with respect to the entities and years under audit may change within the next twelve months, it is not anticipated that any of the changes will be significant. It is reasonably possible that some of these audits may be completed during the next twelve months. It is reasonable to expect that various issues relating to uncertain tax benefits will be resolved within the next twelve months as exams are completed or as statutes expire and will impact the effective tax rate.

The Company’s consolidated effective tax rate was 32.5% and 35.3% for the three and nine months ended March 31, 2014, respectively, and 32.2% and 35.4% for the three and nine months ended March 31, 2013, respectively. The current year effective tax rate primarily includes tax expense on net income, additions to unrecognized tax benefits, interest expense on uncertain tax positions, and the impact of maintaining valuation allowances on certain retail segment deferred tax assets. The prior year effective tax rate primarily includes the tax expense on net income, interest expense on uncertain tax positions, and the impact of maintaining valuation allowances on certain retail segment deferred tax assets, partly offset by the recognition of some uncertain tax positions.

6

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

(4) Restricted Cash and Investments

At March 31, 2014 and June 30, 2013, we held $8.9 million and $15.4 million respectively, of restricted cash and investments in lieu of providing letters of credit for the benefit of the provider of our workmen’s compensation and other insurance and for the benefit of the issuer of our private label credit card. These funds can be invested in high quality money market mutual funds, U.S. Treasuries and U.S. Government agency fixed income instruments, and cannot be withdrawn without the prior written consent of the secured party. These assets are carried at cost, which approximates market value and are classified as long-term assets because they are not expected to be used within one year to fund operations. See also Note 12, “Fair Value Measurements". In January 2014 under the terms of the amended agreement with our provider of our private label credit card program, $6 million of restricted cash was released and moved into the Company’s operating cash accounts.

(5) Marketable Securities

At March 31, 2014 and June 30, 2013, the Company held marketable securities of $20.1 million and $15.5 million respectively, classified as current assets, consisting of U.S. municipal and corporate bonds with maturities ranging from less than one year to less than two years, which were rated A/A2 or better by the rating services Standard & Poors (“S&P”) and Moodys Investors Service (“Moodys”) respectively. There were no material realized or unrealized gains or losses for the nine months ended March 31, 2014 and March 31, 2013. We do not believe there are any impairments considered to be other than temporary at March 31, 2014. See also Note 12, “Fair Value Measurements".

(6) Inventories

Inventories at March 31, 2014 and June 30, 2013 are summarized as follows (in thousands):

	March 31, 2014			June 30, 2013
Finished goods	$	117,106		$	110,220
Work in process		8,601			6,961
Raw materials		22,152			22,787
Valuation allowance		(2,804	)		(2,712	)
	$	145,055		$	137,256

(7) Borrowings

Total debt obligations at March 31, 2014 and June 30, 2013 consist of the following (in thousands):

	March 31, 2014		June 30, 2013
5.375% Senior Notes due 2015	$	129,230	$	129,152
Capital leases and other		1,779		2,137
Total debt		131,009		131,289
Less current maturities		496		480
Total long-term debt	$	130,513	$	130,809

7

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

In September 2005, we issued $200.0 million in ten-year senior unsecured notes due October 1, 2015 (the "Senior Notes"). The Senior Notes were issued by Global, bearing an annual coupon rate of 5.375% with interest payable semi-annually in arrears on April 1 and October 1. We have used the net proceeds of $198.4 million to improve our retail network, invest in our manufacturing and logistics operations, and for other general corporate purposes. In fiscal years 2011 through 2013, the Company repurchased an aggregate $70.6 million of the Senior Notes in several unsolicited transactions.

We also maintain a $50 million senior secured, asset-based revolving credit facility (the “Facility”). We have not had any revolving loans under the Facility at any time. At March 31, 2014 and June 30, 2013, there was $0.7 million and $0.6 million of standby letters of credit outstanding, respectively, under the Facility. The Facility is subject to borrowing base availability and includes a right for the Company to increase the total facility to $100 million subject to certain conditions. The Facility is secured by all property owned, leased or operated by the Company in the United States excluding any real property owned by the Company and contains customary covenants which may limit the Company’s ability to incur debt, engage in mergers and consolidations, make restricted payments (including dividends), sell certain assets, and make investments. Remaining availability under the Facility totaled $49.3 million at March 31, 2014 and $49.4 million at June 30, 2013 and as a result, covenants and other restricted payment limitations did not apply. The Facility expires March 25, 2016, or June 26, 2015 if the Senior Notes have not been refinanced prior to that date.

At both March 31, 2014 and June 30, 2013, we were in compliance with all covenants of the Senior Notes and the Facility.

(8) Litigation

We are routinely involved in various investigations or as a defendant in litigation, in the ordinary course of business. 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 investigations and proceedings typically concern air emissions, water discharges, and/or management of solid and hazardous wastes. Under these laws, we and/or our subsidiaries are, or may be, required to remove or mitigate the effects on the environment of the disposal or release of certain hazardous materials.

Regulations issued under the Clean Air Act Amendments of 1990 required the industry to reformulate certain furniture finishes or institute process changes to reduce emissions of volatile organic compounds. Compliance with many of these requirements has been facilitated through the introduction of high solids coating technology and alternative formulations. In addition, we have instituted a variety of technical and procedural controls, including reformulation of finishing materials to reduce toxicity, implementation of high velocity low pressure spray systems, development of storm water protection plans and controls, and further development of related inspection/audit teams, all of which have served to reduce emissions per unit of production. We remain committed to implementing new waste minimization programs and/or enhancing existing programs with the objective of (i) reducing the total volume of waste, (ii) limiting the liability associated with waste disposal, and (iii) continuously improving environmental and job safety programs on the factory floor which serve to minimize emissions and safety risks for employees. We will continue to evaluate the most appropriate, cost effective, control technologies for finishing operations and design production methods to reduce the use of hazardous materials in the manufacturing process. We believe that our facilities are in material compliance with all such applicable laws and regulations. Our currently anticipated capital expenditures for environmental control facility matters are not material.

Although the outcome of the various claims and proceedings against us cannot be predicted with certainty, management believes that the likelihood is remote that any existing claims or proceedings will have a material adverse effect on our financial position, results of operations or cash flows.

8

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

(9) Share-Based Compensation

During the nine months ended March 31, 2014, the Company awarded options to purchase 172,499 shares of our common stock, including 149,000 shares which vest based upon the financial performance of the Company. Awarded options had a weighted average exercise price per share of $25.83, a weighted average grant date fair value of $11.42 and vest over three to five years. During the nine months ended March 31, 2014, options covering 452,864 shares of common stock were cancelled, primarily due to the expiration of their 10 year terms. At March 31, 2014, there are 1,348,678 shares of common stock available for future issuance pursuant to the 1992 Stock Option Plan.

(10) Earnings Per Share

Basic and diluted earnings per share are calculated using the following weighted average share data (in thousands):

	Three months ended March 31,				Nine months ended March 31,
	2014		2013		2014		2013
Weighted average common shares outstanding for basic calculation		28,920		28,869		28,916		28,850
Effect of dilutive stock options and other share-based awards		351		404		368		363
Weighted average common shares outstanding adjusted for dilution calculation		29,271		29,273		29,284		29,213

As of March 31, 2014 and 2013, stock options to purchase 620,392 and 885,600 common shares, respectively, were excluded from the respective diluted earnings per share calculations because their impact was anti-dilutive.

(11) Accumulated Other Comprehensive Income

The following table sets forth the activity in accumulated other comprehensive income for the year to date period ended March 31, 2014 (in thousands):

	Foreign currency translation adjustments		Derivative instruments			Unrealized gains and losses on investments		Total
Balance June 30, 2013	$	747	$	(69	)	$	6	$	684
Changes before reclassifications	$	126	$	-		$	5	$	131
Amounts reclassified from accumulated other comprehensive income	$	-	$	23		$	-	$	23
Current period other comprehensive income	$	126	$	23		$	5	$	154
Balance March 31, 2014	$	873	$	(46	)	$	11	$	838

Foreign currency translation adjustments are the result of changes in foreign currency exchange rates related to our operations in Canada, Belgium, Honduras, and Mexico, and exclude income taxes given that the earnings of non-U.S. subsidiaries are deemed to be reinvested for an indefinite period of time. The derivative instruments are reclassified to interest expense in our consolidated statements of operations.

9

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

(12) Fair Value Measurements

We determine fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value is calculated based on assumptions that market participants use in pricing the asset or liability, and not on assumptions specific to the Company. In addition, the fair value of liabilities includes consideration of non-performance risk including our own credit risk. Each fair value measurement is reported in one of three levels, determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

Level 1      Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

Level 2      Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3      Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

The following section describes the valuation methodologies we use to measure different financial assets and liabilities at fair value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents our assets and liabilities measured at fair value on a recurring basis at March 31, 2014 and June 30, 2013 (in thousands):

March 31, 2014
	Level 1		Level 2		Level 3		Balance
Cash equivalents	$	104,711	$	-	$	-	$	104,711
Available-for-sale securities		-		20,138		-		20,138
Total	$	104,711	$	20,138	$	-	$	124,849

June 30, 2013
	Level 1		Level 2		Level 3		Balance
Cash equivalents	$	88,034	$	-	$	-	$	88,034
Available-for-sale securities		-		15,529		-		15,529
Total	$	88,034	$	15,529	$	-	$	103,563

Cash equivalents consist of money market accounts and mutual funds in U.S. government and agency fixed income securities. We use quoted prices in active markets for identical assets or liabilities to determine fair value. There were no transfers between level 1 and level 2 during the first nine months of fiscal 2014 or fiscal 2013. At March 31, 2014 and June 30, 2013, $8.9 million and $15.4 million respectively, of the cash equivalents were restricted, and classified as long-term assets.

At March 31, 2014, available-for-sale securities consist of $20.1 million in U.S. municipal bonds, and at June 30, 2013, available-for-sale securities consisted of $14.0 million in U.S. municipal bonds and $1.5 million of corporate bonds, all with maturities of less than two years. The bonds are rated A/A2 or better by S&P/Moodys respectively. As of March 31, 2014 and June 30, 2013, there were no material gross unrealized gains or losses on available-for-sale securities.

10

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

As of March 31, 2014 and June 30, 2013, the contractual maturities of our available-for-sale securities were as follows:

March 31, 2014
	Cost		Estimated Fair Value
Due in one year or less	$	14,411	$	14,304
Due after one year through five years	$	5,823	$	5,834

June 30, 2013
	Cost		Estimated Fair Value
Due in one year or less	$	13,213	$	13,067
Due after one year through five years	$	2,463	$	2,462

No investments have been in a continuous loss position for more than one year, and no other-than-temporary impairments were recognized. See also Note 4, "Restricted Cash and Investments" and Note 5, "Marketable Securities".

Assets and Liabilities Measured at Fair Value on a Non-recurring Basis

We measure certain assets at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be impaired. During the nine months ended March 31, 2014, we did not record any impairments on those assets required to be measured at fair value on a non-recurring basis and during the nine months ended March 31, 2013 we recorded a $1.6 million impairment relating to real estate assets held for sale.

(13) Segment Information

Our operations are classified into two operating segments: wholesale and retail. These operating segments represent strategic business areas of our vertically integrated business which, although they operate separately and provide their own distinctive services, enable us to more efficiently control the quality and cost of our complete line of home furnishings and accessories.

The wholesale segment is principally involved in the development of the Ethan Allen brand, which encompasses the design, manufacture, domestic and offshore sourcing, sale and distribution of a full range of home furnishings and accessories to a network of independently operated and Ethan Allen operated design centers as well as related marketing and brand awareness efforts. Wholesale revenue is generated upon the wholesale sale and shipment of our product to all retail design centers, including those operated by Ethan Allen. Wholesale profitability includes (i) the wholesale gross margin, which represents the difference between the wholesale 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 retail segment sells home furnishings and accessories to consumers through a network of Company operated design centers. Retail revenue is generated upon the retail sale and delivery of our product to our customers. Retail profitability includes (i) the retail gross margin, which represents the difference between the retail sales price and the cost of goods purchased from the wholesale segment, and (ii) other operating costs associated with retail segment activities.

Inter-segment eliminations result, primarily, from the wholesale sale of inventory to the retail segment, including the related profit margin.

11

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

We evaluate performance of the respective segments based upon revenues and operating income. While the manner in which our home furnishings and accessories are marketed and sold is consistent, the nature of the underlying recorded sales (i.e. wholesale versus retail) and the specific services that each operating segment provides (i.e. wholesale manufacturing, sourcing, and distribution versus retail selling) are different. Within the wholesale segment, we maintain revenue information according to each respective product line (i.e. case goods, upholstery, or home accessories and other). The allocation of retail sales by product line is reasonably similar to that of the wholesale segment. A breakdown of wholesale sales by these product lines for the three and nine months ended March 31, 2014 and 2013 is provided as follows:

	Three months ended March 31,						Nine months ended March 31,
	2014			2013			2014			2013
Case Goods		38	%		36	%		35	%		37	%
Upholstered Products		46	%		48	%		48	%		48	%
Home Accessories and Other		16	%		16	%		17	%		15	%
		100	%		100	%		100	%		100	%

Segment information for the three and nine months ended March 31, 2014 and 2013 is provided below (in thousands):

	Three months ended March 31,						Nine months ended March 31,
	2014			2013			2014			2013
Net sales:
Wholesale segment	$	111,143		$	108,101		$	337,474		$	327,690
Retail segment		131,813			132,056			425,136			432,962
Elimination of inter-company sales		(69,895	)		(72,013	)		(214,786	)		(213,820	)
Consolidated Total	$	173,061		$	168,144		$	547,824		$	546,832
Operating income:
Wholesale segment	$	13,009		$	12,754		$	43,507		$	37,651
Retail segment		(1,591	)		(2,283	)		2,411			4,782
Adjustment of inter-company profit (1)		(1,866	)		(1,811	)		(572	)		1,538
Consolidated Total	$	9,552		$	8,660		$	45,346		$	43,971
Depreciation & Amortization:
Wholesale segment	$	2,018		$	2,135		$	5,824		$	6,116
Retail segment		2,559			2,413			7,452			7,398
Consolidated Total	$	4,577		$	4,548		$	13,276		$	13,514
Capital expenditures:
Wholesale segment	$	1,991		$	1,381		$	6,483		$	6,024
Retail segment		2,039			1,599			6,105			10,521
Acquisitions		-			-			-			598
Consolidated Total	$	4,030		$	2,980		$	12,588		$	17,143

	March 31, 2014			June 30, 2013
Total Assets:
Wholesale segment	$	323,198		$	291,942
Retail segment		352,405			355,233
Inventory profit elimination (2)		(30,703	)		(29,890	)
Consolidated Total	$	644,900		$	617,285

(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.

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Our international net sales are comprised of our wholesale segment sales to independent retailers and our retail segment sales to consumers through the Company operated design centers. The number of international design centers, and the related net sales as a percent of our consolidated net sales is shown in the following table.

	Nine months ended March 31,
	2014			2013
Independent design centers		90			86
Company operated design centers		8			7
Total international design centers		98			93
Percentage of consolidated net sales		10.3	%		9.3	%

(14) Recently Issued Accounting Pronouncements

There have been no recently issued accounting pronouncements during the nine months ended March 31, 2014 or impending accounting changes that are expected to have a material effect on the Company’s financial statements.

(15) Financial Information About the Parent, the Issuer and the Guarantors

On September 27, 2005, Global (the "Issuer") issued $200 million aggregate principal amount of Senior Notes which have been guaranteed on a senior basis by Interiors (the "Parent"), and other wholly owned domestic subsidiaries of the Issuer and the Parent, including Ethan Allen Retail, Inc., Ethan Allen Operations, Inc., Ethan Allen Realty, LLC, Lake Avenue Associates, Inc. and Manor House, Inc. The subsidiary guarantors (other than the Parent) are collectively called the "Guarantors". The guarantees of the Guarantors are unsecured. All of the guarantees are full, unconditional and joint and several and the Issuer and each of the Guarantors are 100% owned by the Parent. Our other subsidiaries which are not guarantors are called the "Non-Guarantors".

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The following tables set forth the condensed consolidating balance sheets as of March 31, 2014 and June 30, 2013, the condensed consolidating statements of operations for the three and nine months ended March 31, 2014 and 2013, and the condensed consolidating statements of cash flows for the nine months ended March 31, 2014 and 2013 of the Parent, the Issuer, the Guarantors and the Non-Guarantors.

CONDENSED CONSOLIDATING BALANCE SHEET

(In thousands)

March 31, 2014
	Parent		Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	79,893		$	12,407		$	3,504		$	-		$	95,804
Marketable securities		-		20,138			-			-			-			20,138
Accounts receivable, net		-		15,743			255			5			-			16,003
Inventories		-		-			169,518			6,240			(30,703	)		145,055
Prepaid expenses and other current assets		-		5,199			13,758			1,957			-			20,914
Intercompany receivables		-		838,999			315,744			(3,453	)		(1,151,290	)		-
Total current assets		-		959,972			511,682			8,253			(1,181,993	)		297,914
Property, plant and equipment, net		-		8,845			260,872			17,080			-			286,797
Goodwill and other intangible assets		-		37,905			7,223			-			-			45,128
Restricted cash and investments		-		8,907			-			-			-			8,907
Other assets		-		3,893			1,483			778			-			6,154
Investment in affiliated companies		713,554		(113,256	)		-			-			(600,298	)		-
Total assets	$	713,554	$	906,266		$	781,260		$	26,111		$	(1,782,291	)	$	644,900
Liabilities and Shareholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	-	$	-		$	496		$	-		$	-		$	496
Customer deposits		-		-			61,582			3,618			-			65,200
Accounts payable		-		5,352			18,237			518			-			24,107
Accrued expenses and other current liabilities		3,039		32,199			14,400			1,415			-			51,053
Intercompany payables		357,641		(8,468	)		773,829			28,288			(1,151,290	)		-
Total current liabilities		360,680		29,083			868,544			33,839			(1,151,290	)		140,856
Long-term debt		-		129,230			1,283			-			-			130,513
Other long-term liabilities		-		4,181			16,032			444			-			20,657
Total liabilities		360,680		162,494			885,859			34,283			(1,151,290	)		292,026
Shareholders’ equity		352,874		743,772			(104,599	)		(8,172	)		(631,001	)		352,874
Total liabilities and shareholders’ equity	$	713,554	$	906,266		$	781,260		$	26,111		$	(1,782,291	)	$	644,900

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

CONDENSED CONSOLIDATING BALANCE SHEET

(In thousands)

June 30, 2013
	Parent		Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	57,307		$	12,463		$	2,831		$	-		$	72,601
Marketable securities		-		15,529			-			-			-			15,529
Accounts receivable, net		-		12,061			212			4			-			12,277
Inventories		-		-			161,683			5,463			(29,890	)		137,256
Prepaid expenses and other current assets		-		9,882			11,275			1,750			-			22,907
Intercompany receivables		-		831,238			302,577			(3,726	)		(1,130,089	)		-
Total current assets		-		926,017			488,210			6,322			(1,159,979	)		260,570
Property, plant and equipment, net		-		9,432			265,698			16,542			-			291,672
Goodwill and other intangible assets		-		37,905			7,223			-			-			45,128
Restricted cash and investments		-		15,433			-			-			-			15,433
Other assets		-		2,188			1,488			806			-			4,482
Investment in affiliated companies		686,451		(111,647	)		-			-			(574,804	)		-
Total assets	$	686,451	$	879,328		$	762,619		$	23,670		$	(1,734,783	)	$	617,285
Liabilities and Shareholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	-	$	-		$	480		$	-		$	-		$	480
Customer deposits		-		-			56,030			3,068			-			59,098
Accounts payable		-		7,390			15,097			508			-			22,995
Accrued expenses and other current liabilities		2,720		29,710			16,683			1,253			-			50,366
Intercompany payables		349,374		(7,460	)		766,039			22,136			(1,130,089	)		-
Total current liabilities		352,094		29,640			854,329			26,965			(1,130,089	)		132,939
Long-term debt		-		129,152			1,657			-			-			130,809
Other long-term liabilities		-		4,492			14,355			333			-			19,180
Total liabilities		352,094		163,284			870,341			27,298			(1,130,089	)		282,928
Shareholders’ equity		334,357		716,044			(107,722	)		(3,628	)		(604,694	)		334,357
Total liabilities and shareholders’ equity	$	686,451	$	879,328		$	762,619		$	23,670		$	(1,734,783	)	$	617,285

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 ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(In thousands)

Three months ended March 31, 2014
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	109,795		$	185,221		$	9,655		$	(131,610	)	$	173,061
Cost of sales		-			83,285			119,365			6,721			(129,440	)		79,931
Gross profit		-			26,510			65,856			2,934			(2,170	)		93,130
Selling, general and administrative expenses		45			12,939			65,866			4,728			-			83,578
Operating income (loss)		(45	)		13,571			(10	)		(1,794	)		(2,170	)		9,552
Interest and other income (expense)		5,303			(1,932	)		(30	)		31			(3,269	)		103
Interest and other related financing costs		-			1,850			20			-			-			1,870
Income (loss) before income taxes		5,258			9,789			(60	)		(1,763	)		(5,439	)		7,785
Income tax expense		-			2,316			130			81			-			2,527
Net income/(loss)	$	5,258		$	7,473		$	(190	)	$	(1,844	)	$	(5,439	)	$	5,258

Three months ended March 31, 2013
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	108,595		$	188,589		$	9,311		$	(138,351	)	$	168,144
Cost of sales		-			81,631			124,977			5,959			(136,208	)		76,359
Gross profit		-			26,964			63,612			3,352			(2,143	)		91,785
Selling, general and administrative expenses		45			12,817			65,310			4,953			-			83,125
Operating income (loss)		(45	)		14,147			(1,698	)		(1,601	)		(2,143	)		8,660
Interest and other income (expense)		4,419			(2,404	)		5			(131	)		(1,899	)		(10	)
Interest and other related financing costs		-			2,180			15			-			-			2,195
Income (loss) before income taxes		4,374			9,563			(1,708	)		(1,732	)		(4,042	)		6,455
Income tax expense		-			3,001			(943	)		23			-			2,081
Net income/(loss)	$	4,374		$	6,562		$	(765	)	$	(1,755	)	$	(4,042	)	$	4,374

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 ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(In thousands)

Nine months ended March 31, 2014
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	332,623		$	587,149		$	30,596		$	(402,544	)	$	547,824
Cost of sales		-			252,701			378,522			20,460			(401,731	)		249,952
Gross profit		-			79,922			208,627			10,136			(813	)		297,872
Selling, general and administrative expenses		135			34,481			203,205			14,705			-			252,526
Operating income (loss)		(135	)		45,441			5,422			(4,569	)		(813	)		45,346
Interest and other income (expense)		25,982			(1,302	)		(73	)		(7	)		(24,372	)		228
Interest and other related financing costs		-			5,551			63			-			-			5,614
Income (loss) before income taxes		25,847			38,588			5,286			(4,576	)		(25,185	)		39,960
Income tax expense		-			11,793			2,227			93			-			14,113
Net income/(loss)	$	25,847		$	26,795		$	3,059		$	(4,669	)	$	(25,185	)	$	25,847

Nine months ended March 31, 2013
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	327,987		$	594,200		$	29,040		$	(404,395	)	$	546,832
Cost of sales		-			247,433			387,459			17,894			(405,959	)		246,827
Gross profit		-			80,554			206,741			11,146			1,564			300,005
Selling, general and administrative expenses		135			35,171			207,116			13,612			-			256,034
Operating income (loss)		(135	)		45,383			(375	)		(2,466	)		1,564			43,971
Interest and other income (expense)		24,419			(2,923	)		30			(206	)		(21,128	)		192
Interest and other related financing costs		-			6,546			46			-			-			6,592
Income (loss) before income taxes		24,284			35,914			(391	)		(2,672	)		(19,564	)		37,571
Income tax expense		-			13,059			159			69			-			13,287
Net income/(loss)	$	24,284		$	22,855		$	(550	)	$	(2,741	)	$	(19,564	)	$	24,284

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 ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)

Nine months ended March 31, 2014
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	8,136		$	21,223		$	8,818		$	1,842		$	-	$	40,019
Cash flows from investing activities:
Capital expenditures		-			(314	)		(11,159	)		(1,115	)		-		(12,588	)
Proceeds from the disposal of property, plant and equipment		-			24			2,643			-			-		2,667
Change in restricted cash and investments		-			6,526			-			-			-		6,526
Purchases of marketable securities		-			(17,500	)		-			-			-		(17,500	)
Sales of marketable securities		-			12,323						-			-		12,323
Other		-			253			-			-			-		253
Net cash provided by (used in) investing activities		-			1,312			(8,516	)		(1,115	)		-		(8,319	)
Cash flows from financing activities:
Payments on long-term debt		-			-			(358	)		-			-		(358	)
Dividends paid		(8,399	)		-			-			-			-		(8,399	)
Other		263			51			-			-			-		314
Net cash provided by (used in) financing activities		(8,136	)		51			(358	)		-			-		(8,443	)
Effect of exchange rate changes on cash		-			-			-			(54	)		-		(54	)
Net increase (decrease) in cash and cash equivalents		-			22,586			(56	)		673			-		23,203
Cash and cash equivalents – beginning of period		-			57,307			12,463			2,831			-		72,601
Cash and cash equivalents – end of period	$	-		$	79,893		$	12,407		$	3,504		$	-	$	95,804

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)

Nine months ended March 31, 2013
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	18,360		$	12,214		$	10,950		$	2,921		$	-	$	44,445
Cash flows from investing activities:
Capital expenditures		-			(1,115	)		(13,165	)		(2,265	)		-		(16,545	)
Acquisitions		-			-			(598	)		-			-		(598	)
Proceeds from the disposal of property, plant and equipment		-			51			3,175			-			-		3,226
Change in restricted cash and investments		-			(14	)		-			-			-		(14	)
Purchases of marketable securities		-			(17,547	)		-			-			-		(17,547	)
Sales of marketable securities		-			7,990			-			-			-		7,990
Other		-			783			550			-			-		1,333
Net cash provided by (used in) investing activities		-			(9,852	)		(10,038	)		(2,265	)		-		(22,155	)
Cash flows from financing activities:
Payments on long-term debt		-			-			(187	)		-			-		(187	)
Dividends paid		(19,617	)		-			-			-			-		(19,617	)
Other		1,257			166			-			-			-		1,423
Net cash provided by (used in) financing activities		(18,360	)		166			(187	)		-			-		(18,381	)
Effect of exchange rate changes on cash		-			-			-			15			-		15
Net increase (decrease) in cash and cash equivalents		-			2,528			725			671			-		3,924
Cash and cash equivalents – beginning of period		-			64,946			12,276			2,499			-		79,721
Cash and cash equivalents – end of period	$	-		$	67,474		$	13,001		$	3,170		$	-	$	83,645

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 ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of financial condition and results of operations should be read in conjunction with (i) our Consolidated Financial Statements, and notes thereto, included in Item 1 of Part I of this Quarterly Report on Form 10-Q and (ii) our Annual Report on Form 10-K for the year ended June 30, 2013.

Forward-Looking Statements

Management's discussion and analysis of financial condition and results of operations and other sections of this Quarterly Report contain forward-looking statements relating to our future results. Such forward-looking statements are identified by use of forward-looking words such as "anticipates", "believes", "plans", "estimates", "expects", and "intends" or words or phrases of similar expression. These forward-looking statements are subject to management decisions and various assumptions, risks and uncertainties, including, but not limited to: the potential effects of natural disasters affecting our suppliers or trading partners; the effects of labor strikes; weather conditions that may affect sales; volatility in fuel, utility, transportation and security costs; changes in global or regional political or economic conditions, including changes in governmental and central bank policies; changes in business conditions in the furniture industry, including changes in consumer spending patterns and demand for home furnishings; effects of our brand awareness and marketing programs, including changes in demand for our existing and new products; our ability to locate new design center sites and/or negotiate favorable lease terms for additional design centers or for the expansion of existing design centers; competitive factors, including changes in products or marketing efforts of others; pricing pressures; fluctuations in interest rates and the cost, availability and quality of raw materials; the effects of terrorist attacks or conflicts or wars involving the United States or its allies or trading partners; those matters discussed in Items 1A and 7A of our Annual Report on Form 10-K for the year ended June 30, 2013 and in our SEC filings; and our future decisions. Accordingly, actual circumstances and results could differ materially from those contemplated by the forward-looking statements.

Critical Accounting Policies

The Company’s consolidated financial statements are based on the accounting policies used. Certain accounting polices require that estimates and assumptions be made by management for use in the preparation of the financial statements. Critical accounting policies are those that are central to the presentation of the Company’s financial condition and results and that require subjective or complex estimates by management. There have been no material changes with respect to the Company’s critical accounting policies from those disclosed in its 2013 Annual Report on Form 10-K filed with the SEC on August 16, 2013.

Overview

We are a leading interior design company and manufacturer and retailer of quality home furnishings. Founded over 80 years ago, today we’re a leading international home fashion brand doing business throughout North America, Europe, Asia and the Middle East. We are vertically integrated from design through delivery, affording our clientele a value equation of style, quality and price that is unique to the industry. We offer free interior design service to our clients and sell a full range of furniture products and decorative accessories through ethanallen.com and a network of approximately 300 design centers in the United States and abroad. The design centers represent a mix of independent licensees and our own Company operated retail segment. We own and operate eight manufacturing facilities including five manufacturing plants and one sawmill in the United States and a manufacturing plant in each of Mexico and Honduras.

Our strong and innovative marketing campaigns continue to expand our reach to more consumers. We continue to invest significantly in (i) getting our messages across with strong advertising and marketing campaigns, (ii) the strength of our interior design professionals and management in our retail business, (iii) new technologies across key aspects of our vertically integrated business, and (iv) the ramp up of our North American manufacturing capacity where we manufacture approximately 70% of our products.

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Our competitive advantages arise from:

● providing fashionable high quality products of the finest craftsmanship,

● offering complimentary design service through an estimated 2,000 motivated interior design professionals network-wide,

● our wide array of custom product offerings across our upholstery, case goods, and accessory product categories,

● enhancing our technology in all aspects of the business, and

● leveraging our vertically integrated structure.

We continue to make considerable investments to strengthen the level of service, professionalism, and interior design competence, as well as to improve the efficiency of our retail operations. We believe that over time, we will continue to benefit from (i) continuous repositioning of our retail network, (ii) frequent new product introductions, (iii) new and innovative marketing promotions and effective use of targeted advertising media, and (iv) continued use of the latest technology coupled with personal service from our interior design professionals. We believe our network of professionally trained interior design professionals differentiates us significantly from others in our industry.

Results of Operations

In the third quarter of fiscal 2014, consolidated net sales of $173.1 million increased 2.9% compared to the third quarter of fiscal 2013. During the same period, consolidated operating margin increased to 5.5% compared to 5.2%, and net earnings improved to $0.18 from $0.15 per diluted share.

The severe winter weather negatively impacted sales for the third quarter of fiscal 2014, notably during the January and February months in the mid-Atlantic, Northeast and North Central United States. Despite the weather, sales improved in our wholesale segment, where net sales of $111.1 million increased 2.8% during the third quarter of fiscal 2014 compared to the third quarter of fiscal 2013. The retail segment net sales were down 0.2% for the three months ended March 31, 2014 at $131.8 million compared to $132.1 million in the third quarter of fiscal 2013.

The wholesale gross margin improved slightly for the third quarter of fiscal 2014 from the third quarter of fiscal 2013, and the retail gross margin for the third quarter of fiscal 2014 remained unchanged from the third quarter of fiscal 2013. The ratio of retail segment net sales to consolidated net sales decreased during the third quarter (76.2% compared to 78.5% the prior year), which impacted the consolidated gross margin. The consolidated gross margin of 53.8% for the third quarter of fiscal 2014 was a decrease compared to 54.6% in the third quarter of fiscal 2013 as a result. This gross margin change was offset by a decrease in operating expenses as a percentage of total net sales.

Written orders booked by the retail segment in the third quarter of fiscal 2014 were also impacted by the severe winter weather. Written orders booked decreased 2.4% for the fiscal 2014 third quarter compared to the third quarter of fiscal 2013, including a comparable design center written orders booked decrease of 0.5%. For the nine months year to date fiscal 2014 period the retail segment written orders booked are up 1.7% compared to nine months year to date fiscal 2013, with comparable design center written orders booked growth of 3.9%. The retail segment undelivered backlog at March 31, 2014 is up 10.1% from March 31, 2013.

We measure the performance of our retail design centers based on net sales and written orders booked on a comparable period to period basis. Comparable design centers are those which have been operating for at least 15 months. Minimal net sales derived from the delivery of customer ordered product are generated during the first three months of operations of newly opened (including relocated) design centers. Design centers acquired by us from independent retailers are included in comparable design center sales in their 13th full month of Ethan Allen-owned operations. The frequency of our promotional events as well as the timing of the end of those events can impact the orders booked during a given quarter.

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Third Quarter Ended March 31, 2014 Compared to Third Quarter Ended March 31, 2013

Consolidated net sales for the third quarter of fiscal 2014 increased 2.9% to $173.1 million, from $168.1 million in the third quarter of fiscal 2013. The increase is due to increased net sales in our wholesale segment discussed below.

At March 31, 2014, the Company operated 145 of the 296 global network design centers compared with 148 of the 296 at March 31, 2013. Our global network included 70 design centers in China at the end of the current quarter compared to 69 at the end of the third quarter of fiscal 2013. Our international net sales, including those of the Company operated retail segment, were approximately 11.5% of consolidated net sales for the third quarter of fiscal 2014 and 7.9% for the third quarter of fiscal 2013.

Wholesale net sales for the third quarter of fiscal 2014 increased 2.8% to $111.1 million from $108.1 million in the third quarter of fiscal 2013, supported by increased shipments to our international retailers. Our wholesale undelivered backlog at the end of the third quarter of fiscal 2014 was significantly higher than one year ago.

Retail net sales from the Company’s retail segment for the third quarter of fiscal 2014 decreased 0.2% to $131.8 million from $132.1 million for the third quarter of fiscal 2013. The Company believes sales during the third quarter of fiscal 2014 were negatively impacted by the severe winter weather primarily in the mid-Atlantic, Northeast and North Central United States. Also contributing to the sales decrease was the transition of our Houston design centers. In the second quarter of fiscal 2013, we sold two Company operated design centers in Houston to our independent retailer operating in that market, and during the third quarter of fiscal 2013 net sales for the two design centers continued as the remaining order backlog was delivered. We ended the current quarter with 145 Company operated design centers, as compared to 148 at the end of the third quarter of fiscal 2013. Our written business (new orders booked) in the third quarter fiscal 2014 decreased 2.4% while comparable design center written business decreased 0.5% compared to the third quarter of fiscal 2013. At March 31, 2014, the retail undelivered backlog was 10.1% higher than a year ago.

Gross profit was $93.1 million for the third quarter of fiscal 2014, up 1.5% from the $91.8 million in the third quarter of fiscal 2013 due to the growth in sales in our wholesale business. Consolidated gross margin for the third quarter of fiscal 2014 was 53.8%, down from 54.6% for the third quarter of fiscal 2013 due to a lower proportion of retail segment net sales to our consolidated net sales, partly offset by an increase in wholesale gross margin. Retail gross margin remained the same in both periods.

Operating expenses for the third quarter of fiscal 2014 increased $0.5 million or 0.5% to $83.6 million from $83.1 million for the third quarter of fiscal 2013 with no significant changes in costs between the two quarterly periods.

Operating income and profit margin for the third quarter of fiscal 2014 was $9.6 million, or 5.5% of net sales, an increase of $0.9 million or 10.3% from $8.7 million, or 5.2% of net sales for the third quarter of fiscal 2013.

Wholesale operating income for the third quarter of fiscal 2014 was $13.0 million, or 11.7% of sales, compared to $12.8 million, or 11.8% of sales, for the third quarter of fiscal 2013, improving largely due to the increase in sales. Retail operating loss for the third quarter of fiscal 2014 was $1.6 million, or 1. 2% of sales, compared to an operating loss of $2.3 million, or 1.7% of sales for third quarter of fiscal 2013, with the improvement in operating loss margin driven primarily by reduced variable costs on lower retail net sales in the current fiscal quarter, partially offset by startup losses in new markets. During our 2013 fiscal year, the Company’s retail segment expanded into new markets in Montreal, Canada and Belgium.

Interest and other income was not material in either the third quarter of the current or prior fiscal year.

Interest and other related financing costs amounted to $1.9 million in the third quarter of fiscal 2014 compared to $2.2 million in the third quarter of fiscal 2013. The $0.3 million reduction resulted from reductions in debt outstanding. Since March 2013, debt has been reduced by $24.0 million through Senior Note repurchases.

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 ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Income tax expense for the third quarter of fiscal 2014 totaled $2.5 million compared to $2.1 million for the third quarter of fiscal 2013. Our effective tax rate for the current quarter was 32.5% compared to 32.2% in the prior year quarter. The current quarter effective tax rate primarily includes tax expense on the current quarter’s net income, additions to unrecognized tax benefits, interest expense on uncertain tax positions, and the impact of maintaining valuation allowances on certain retail segment deferred tax assets. The prior period effective tax rate primarily includes the tax expense on that quarter’s net income, interest expense on uncertain tax positions, and the impact of maintaining valuation allowances on certain retail segment deferred tax assets, partly offset by the recognition of some uncertain tax positions.

Net income for the third quarter of fiscal 2014, was $5.3 million compared to $4.4 million for the third quarter of fiscal 2013. This resulted in net income per diluted share of $0.18 for the third quarter of fiscal 2014 compared to $0.15 per diluted share for the third quarter of fiscal 2013.

Nine Months Ended March 31, 2014 Compared to Nine Months Ended March 31, 2013

Consolidated net sales for the nine months ended March 31, 2014 increased 0.2% to $547.8 million, from $546.8 million for the nine months ended March 31, 2013. The increase is due to higher shipments in our wholesale segment, which is discussed below.

Our international net sales, including those of the Company operated design centers, were approximately 10.3% of consolidated net sales for the nine months year to date fiscal year 2014 compared to 9.3% in fiscal year 2013 comparable period.

Wholesale net sales for the nine months ended March 31, 2014 increased 3.0% to $337.5 million from $327.7 million in the prior year comparable period. Our wholesale net sales benefitted from higher shipments to our independent retailers worldwide.

Retail net sales from Company operated design centers for the nine months ended March 31, 2014 decreased 1.8% to $425.1 million from $433.0 million for the nine months ended March 31, 2013. We sold two design centers in Houston to our independent retailer in fiscal 2013. At March 31, 2014, there were 145 Company operated design centers as compared to 148 in the prior year. Our written business (new orders booked) generated by our retail division increased 1.7% while comparable design center written business increased 3.9% during the first nine months of fiscal 2014 compared to the comparable period of fiscal 2013.

Gross profit was $297.9 million for the nine months ended March 31, 2014, down 0.7% from the $300.0 million in the prior year comparable period. The decrease was driven by lower net sales and gross margin in our retail segment. Gross margin for the nine months ended March 31, 2014 was 54.4%, down from 54.9% the prior year, due to (i) a greater volume of clearance sales by our retail segment as we prepared for our new product launch which began in October 2013, (ii) a lower proportion of retail division net sales to our consolidated net sales (77.6% compared to 79.2% the prior year), and (iii) a higher proportion of our retail sales with promotional discounts in lieu of full price sales utilizing promotional financing with related program fees. This was partially offset by improved gross margin in our wholesale segment due to increased sales.

Operating expenses for the nine months ended March 31, 2014 decreased $3.5 million or 1.4% to $252.5 million from $256.0 million in the prior year comparable period due primarily to lower charges on vacant real estate in the current fiscal period compared to the prior fiscal period.

Operating income and profit margin for the nine months ended March 31, 2014 was $45.3 million, or 8.3% of net sales, an increase of $1.4 million or 3.1% from the prior year comparable period’s $44.0 million, or 8.0% of net sales.

Wholesale operating income for the nine months ended March 31, 2014 was $43.5 million, or 12.9% of sales, compared to $37.7 million, or 11.5% of sales, in the prior year comparable period. Retail operating income for the first nine months of fiscal 2014 was $2.4 million, or 0.6% of sales, compared to $4.8 million, or 1.1% of sales in the prior year comparable period. This decrease was driven primarily by lower retail net sales in fiscal 2014.

Interest and other income remained relatively even with the prior year at $0.2 million for both the nine month periods ended March 31, 2014 and 2013.

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Interest and other related financing costs amounted to $5.6 million for the nine months ended March 31, 2014 compared to $6.6 million in the prior year comparable period. The $1.0 million reduction resulted from reductions in debt outstanding. Since March 2013, debt has been reduced by $24.0 million through Senior Note repurchases.

Income tax expense for the nine months ended March 31, 2014 totaled $14.1 million compared to $13.3 million for the nine months ended March 31, 2013. Our effective tax rate in the current year was 35.3% compared to 35.4% in the prior year. The current effective tax rate primarily includes tax expense on the current net income, additions to unrecognized tax benefits, interest expense on uncertain tax positions, and the impact of maintaining valuation allowances on certain retail segment deferred tax assets. The prior period effective tax rate primarily includes the tax expense on the previous year’s net income, interest expense on uncertain tax positions, and the impact of maintaining valuation allowances on certain retail segment deferred tax assets, partly offset by the recognition of some uncertain tax positions.

Net income for the nine months ended March 31, 2014, was $25.8 million compared to $24.3 million in the prior year comparable period. This resulted in net income per diluted share of $0.88 for the nine months ended March 31, 2014 compared to $0.83 per diluted share for the nine month period ended March 31, 2013.

Liquidity and Capital Resources

At March 31, 2014, we held unrestricted cash and cash equivalents of $95.8 million, marketable securities of $20.1 million, and restricted cash and investments of $8.9 million. At June 30, 2013, we held unrestricted cash and cash equivalents of $72.6 million, marketable securities of $15.5 million, and restricted cash and investments of $15.4 million. Our principal sources of liquidity include cash and cash equivalents, marketable securities, cash flow from operations, amounts available under our credit facility, and other borrowings.

In September 2005, we issued $200.0 million in ten-year senior unsecured notes due October 1, 2015 (the "Senior Notes"). The Senior Notes were issued by Global, bearing an annual coupon rate of 5.375% with interest payable semi-annually in arrears on April 1 and October 1. We used the net proceeds of $198.4 million to improve our retail network, invest in our manufacturing and logistics operations, and for other general corporate purposes. In fiscal years 2011 through 2013, the Company repurchased an aggregate $70.6 million of the Senior Notes.

We also maintain a $50 million senior secured, asset-based revolving credit facility (the “Facility”). We have not had any revolving loans under the Facility at any time. At March 31, 2014 and June 30, 2013, there was $0.7 million and $0.6 million of standby letters of credit outstanding, respectively, under the Facility. The Facility is subject to borrowing base availability and includes a right for the Company to increase the total facility to $100 million subject to certain conditions. The Facility is secured by all property owned, leased or operated by the Company in the United States excluding any real property owned by the Company and contains customary covenants which may limit the Company’s ability to incur debt, engage in mergers and consolidations, make restricted payments (including dividends), sell certain assets, and make investments. Remaining availability under the Facility totaled $49.3 million at March 31, 2014 and $49.4 million at June 30, 2013 and as a result, covenants and other restricted payment limitations did not apply. The Facility expires March 25, 2016, or June 26, 2015 if the Senior Notes have not been refinanced prior to that date.

At both March 31, 2014 and June 30, 2013, we were in compliance with all covenants of the Senior Notes and the Facility.

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

A summary of net cash provided by (used in) operating, investing, and financing activities for the nine months ended March 31, 2014 and 2013 is provided below (in millions):

	Nine months ended March 31,
	2014			2013
Operating Activities
Net income plus depreciation and amortization	$	39.1		$	37.8
Working capital items		(3.4	)		2.0
Other operating activities		4.3			4.6
Total provided by operating activities	$	40.0		$	44.4
Investing Activities
Capital expenditures and acquisitions	$	(12.6	)	$	(17.1	)
Net purchases of marketable securities		(5.2	)		(9.6	)
Other investing activities		9.5			4.5
Total used in investing activities	$	(8.3	)	$	(22.2	)
Financing Activities
Payments on long-term debt and capital lease obligations	$	(0.4	)	$	(0.2	)
Payment of cash dividends		(8.4	)		(19.6	)
Other financing activities		0.3			1.4
Total used in financing activities	$	(8.4	)	$	(18.4	)

Operating Activities

In the first nine months of fiscal 2014, cash of $40.0 million was generated by operating activities, a decrease of $4.4 million from the prior year comparable period. This was largely due to cash used in fiscal year 2014 for increases in inventories, as compared to cash generated due to reductions in inventory in fiscal year 2013. This was partly offset by cash generated in fiscal 2014 due to increases in customer deposits compared to cash used during fiscal 2013 for decreases in customer deposits, as well as changes to other working capital items (defined below). There was $0.3 million less cash generated from other operating activities in fiscal 2014 than in fiscal 2013. Working capital items consist of current assets (accounts receivable, inventories, prepaid and other current assets) less current liabilities (customer deposits, payables, and accrued expenses and other current liabilities).

Investing Activities

In the first nine months of fiscal 2014, $8.3 million of cash was used in investing activities, which is $13.9 million less cash used than was used during the first nine months of fiscal 2013. Less cash was used in the first nine months of fiscal 2014 primarily due to the release of the restricted cash from the cash collateral account by the issuer of our private label credit card, sales of marketable securities and a decrease in capital expenditures, all in the current fiscal year. We anticipate that cash from operations will be sufficient to fund future capital expenditures.

Financing Activities

In the first nine months of fiscal 2014, $8.4 million was used in financing activities, which is $9.9 million less cash used than was used during the first nine months of fiscal 2013. Three quarterly dividends were paid in the first nine months of fiscal 2014, and with a dividend increase from $0.09 to $0.10 per share paid in October 2013. In the first nine months of fiscal 2013, three quarterly dividends of $0.09 were paid, and the declaration and payment of a special dividend of $0.41 per share occurred in December 2012. The Company has continuously paid dividends for every quarter since 1996 and we expect to continue to do so as economic conditions and liquidity permit.

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

As of March 31, 2014, our outstanding debt totaled $131.0 million, which consists of $129.2 million in Senior Notes which mature in September 2015 (fiscal 2016) and $1.8 million in capital leases which mature at various times through February 2018. The aggregate scheduled maturities of long-term debt for each of the next five fiscal years are $0.5 million in fiscal 2015, $129.8 million in fiscal 2016, $0.5 million in fiscal 2017 and $0.2 million in fiscal 2018. At June 30, 2013, our outstanding debt totaled $131.3 million, the current and long-term portions of which amounted to less than $0.5 million and $130.8 million respectively.

There has been no material change to the amount or timing of cash payments related to our outstanding contractual obligations as set forth in Part II, Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended June 30, 2013 as filed with the SEC on August 16, 2013.

We believe that our cash flow from operations, together with our other available sources of liquidity including refinancing alternatives, will be adequate to make all required payments of principal and interest on our debt, to permit anticipated capital expenditures, and to fund working capital and other cash requirements. As of March 31, 2014, we had working capital of $157.1 million compared to $127.6 million at June 30, 2013, an increase of $29.5 million, or 23.1%. The Company had a current ratio of 2.12 to 1 at March 31, 2014 and 1.96 to 1 at June 30, 2013.

In addition to using available cash to fund changes in working capital, capital expenditures, acquisition activity, the repayment of debt, the payment of dividends, and debt repurchases, we have been authorized by our Board of Directors to repurchase shares of our common stock from time to time, either directly or through agents, in the open market at prices and on terms satisfactory to us. All of our common stock repurchases and retirements are recorded as treasury stock and result in a reduction of shareholders’ equity. During both nine month periods ending March 31, 2014 and 2013, there were no repurchases and/or retirements of our common stock. At March 31, 2014, we had a remaining Board authorization to repurchase 1,101,490 shares of our common stock.

Off-Balance Sheet Arrangements and Other Commitments, Contingencies and Contractual Obligations

We do not utilize or employ any off-balance sheet arrangements, including special-purpose entities, in operating our business. As such, we do not maintain any (i) retained or contingent interests, (ii) derivative instruments (other than as specified below), or (iii) variable interests which could serve as a source of potential risk to our future liquidity, capital resources and results of operations.

We may, from time to time in the ordinary course of business, provide guarantees on behalf of selected affiliated entities or become contractually obligated to perform in accordance with the terms and conditions of certain business agreements. The nature and extent of these guarantees and obligations may vary based on our underlying relationship with the benefiting party and the business purpose for which the guarantee or obligation is being provided. The only such program in place both at March 31, 2014 and June 30, 2013 was for our consumer credit program.

Ethan Allen Consumer Credit Program

The terms and conditions of our consumer credit program, which is financed and administered by a third-party financial institution on a non-recourse basis to Ethan Allen, are set forth in an agreement between the Company and that financial service provider (the “Program Agreement”) which was last amended effective January 2014. Any independent retailer choosing to participate in the consumer credit program is required to enter into a separate agreement with that same third-party financial institution which sets forth the terms and conditions under which the retailer is to perform in connection with its offering of consumer credit to its customers (the “Retailer Agreement”). We have obligated ourselves on behalf of any independent retailer choosing to participate in our consumer credit program by agreeing, in the event of default, breach, or failure of the independent retailer to perform under such Retailer Agreement, to take on certain responsibilities of the independent retailer, including, but not limited to, delivery of goods and reimbursement of customer deposits. Customer receivables originated by independent retailers remain non-recourse to Ethan Allen. The term of the Program Agreement ends July 31, 2019, including a provision for automatic one year renewals unless either party gives notice of termination. While the maximum potential amount of future payments (undiscounted) that we could be required to make under this obligation is indeterminable, recourse provisions exist that would enable us to recover, from the independent retailer, any amount paid or incurred by us related to our performance. Based on the underlying creditworthiness of our independent retailers, including their historical ability to satisfactorily perform in connection with the terms of our consumer credit program, we believe this obligation will expire without requiring funding by us. To ensure funding for delivery of products sold, the terms of the Program Agreement also contain a right for the financial services provider to demand from the Company collateral at a variable rate based on the volume of program sales if the Company does not meet certain financial covenants. If collateral had been required, it would have been between $5 million and $10 million depending on the variable rate. As of March 31, 2014 no collateral was required under the Program Agreement. At June 30, 2013, a $6 million restricted cash and investment collateral account was maintained to satisfy the collateral requirement.

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Product Warranties

Our products, including our case goods, upholstery and home accents, generally carry explicit product warranties that extend from one to ten years and are provided based on terms that are generally accepted in the industry. All of our domestic independent retailers are required to enter into and perform in accordance with the terms and conditions of a warranty service agreement. We record provisions for estimated warranty and other related costs at time of sale based on historical warranty loss experience and make periodic adjustments to those provisions to reflect actual experience. On rare occasions, certain warranty and other related claims involve matters of dispute that ultimately are resolved by negotiation, arbitration or litigation. In certain cases, a material warranty issue may arise which is beyond the scope of our historical experience. We provide for such warranty issues as they become known and are deemed to be both probable and estimable. It is reasonably possible that, from time to time, additional warranty and other related claims could arise from disputes or other matters beyond the scope of our historical experience. As of March 31, 2014 and June 30, 2013, our product warranty liability totaled $0.9 million and $0.8 million, respectively.

Business Outlook

We expect the home furnishings industry to remain extremely competitive with respect to both the sourcing of products and the wholesale and retail sale of those products for the foreseeable future. Domestic manufacturers continue to face pricing pressures because of the lower manufacturing costs in some other countries, particularly within Asia. While we have also turned to overseas sourcing to remain competitive, we choose to differentiate ourselves by maintaining a substantial North American manufacturing base, where we can leverage our vertically integrated structure to our advantage. We continue to believe that a balanced approach to product sourcing, which includes the domestic manufacture of certain product offerings coupled with the import of other selected products, provides the greatest degree of flexibility and is the most effective approach to ensuring that acceptable levels of quality, service and value are attained. 

Many U.S. macroeconomic factors have improved during the past three years including lowered unemployment, improved consumer confidence, and the growth of housing related market indicators. However, a change in consumer confidence could have an impact on consumer discretionary spending habits and, as a result, our business. We therefore remain cautiously optimistic about our performance due to the many strong programs already in place and others we currently plan to introduce in the coming months. Our retail strategy involves (i) a continued focus on providing new product introductions, a wide array of product solutions, and superior interior design solutions through our large staff of interior design professionals, (ii) continuing strong advertising and marketing campaigns to get our message across and to continue broadening our customer base, (iii) the opening of new or relocated design centers in more prominent locations, and encouraging independent retailers to do the same, (iv) leveraging the use of technology and personal service within our retail network, and (v) further expansion internationally. We believe this strategy provides an opportunity to grow our business.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes to the market risks disclosed in our Annual Report on Form 10-K for the year ended June 30, 2013 as filed with the SEC on August 16, 2013.

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Item 4. Controls and Procedures

Management’s Report on Disclosure Controls and Procedures

Our management, including the Chairman of the Board and Chief Executive Officer ("CEO") and the Executive Vice President Administration and interim Chief Financial Officer ("CFO"), conducted an evaluation of the effectiveness of disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this report. Based on such evaluation, the CEO and CFO have concluded that, as of March 31, 2014, our disclosure controls and procedures were effective in ensuring that material information relating to us (including our consolidated subsidiaries), which is required to be disclosed by us in our periodic reports filed or submitted under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (ii) accumulated and communicated to management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter ended March 31, 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

There have been no material changes to the matters discussed in Part I, Item 3 - Legal Proceedings in our Annual Report on Form 10-K for the year ended June 30, 2013 as filed with the SEC on August 16, 2013.

Item 1A. Risk Factors

The following additional Risk Factors should be read in conjunction with the Risk Factors set forth in Item 1A of the Annual Report.

Continuing uncertainty concerning U.S. macroeconomic conditions could adversely affect consumer confidence and discretionary spending habits and, as a result, our business.

Historically, the home furnishings industry has been subject to variations in the general economy and to uncertainty regarding future economic prospects. We believe that our business was negatively affected in September and the first half of October 2013 by consumer concerns related to the potential effects of a government shutdown and a potential default on U.S. debt. If U.S. macroeconomic factors worsen or deteriorate, the continuing uncertainty about those issues could adversely affect the U.S. economy, consumer demand and discretionary spending habits and, as a result, our business.

We could incur substantial costs due to compliance with conflict mineral regulations, which may materially adversely affect our business, operating results, and financial condition.

The SEC has adopted rules regarding disclosure of the use of conflict minerals (commonly referred to as tantalum, tin, tungsten, and gold), which are mined from the Democratic Republic of the Congo and surrounding countries. This requirement could affect the sourcing of materials used in some of our products as well as the companies we use to manufacture our products. If our products are found to contain conflict minerals sourced from the Democratic Republic of the Congo or surrounding countries, the Company may take actions to change materials or designs to reduce the possibility that the purchase of conflict minerals may fund armed groups in the region. These actions could add engineering and other costs to the manufacture of our products.

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

We expect to incur costs to design and implement a process to discover the origin of the tantalum, tin, tungsten, and gold used in our products, and to audit our conflict minerals disclosures. Our reputation and consequently our financial condition may also suffer if we have included conflict minerals originating in the Democratic Republic of the Congo or surrounding countries in our products, and those conflict minerals funded armed groups in the region.

For a more complete discussion of these and other factors, see “Risk Factors”, in Part 1, Item 1A of the Annual Report.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

Neither we nor any affiliated purchaser of us (as defined in Rule 10b-18(a)(3) under the Exchange Act) repurchased any shares of our common stock during the three months ended March 31, 2014. The maximum number of shares that may yet be purchased under our publicly announced repurchase program is 1,101,490.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

Not applicable.

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Item 6. Exhibits

Exhibit Number	Description
10(g)-5	Form of performance condition option agreement for employees
31.1	Rule 13a-14(a)Certification of Principal Executive Officer
31.2	Rule 13a-14(a)Certification of Principal Financial Officer
32.1	Section 1350Certification of Principal Executive Officer
32.2	Section 1350 Certification of Principal Financial Officer
101.INS**	XBRL Instance
101.SCH**	XBRL Taxonomy Extension Schema
101.CAL**	XBRL Taxonomy Extension Calculation
101.DEF**	XBRL Taxonomy Extension Definition
101.LAB**	XBRL Taxonomy Extension Labels
101.PRE**	XBRL Taxonomy Extension Presentation

** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is not deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ETHAN ALLEN INTERIORS INC.

(Registrant)

DATE: May 1, 2014	BY:/s/ M. Farooq Kathwari
	M. Farooq Kathwari
	Chairman, President and Chief Executive Officer
	(Principal Executive Officer)

DATE: May 1, 2014	BY:/s/ Corey Whitely
	Corey Whitely
	Executive Vice President Administration
	Interim Chief Financial Officer and Treasurer
	(Principal Financial Officer)

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ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

EXHIBIT INDEX

Exhibit Number	Exhibit
10(g)-5	Form of performance condition option agreement for employees
31.1	Rule 13a-14(a)Certification of Principal Executive Officer
31.2	Rule 13a-14(a)Certification of Principal Financial Officer
32.1	Section 1350Certification of Principal Executive Officer
32.2	Section 1350Certification of Principal Financial Officer
101.INS**	XBRL Instance
101.SCH**	XBRL Taxonomy Extension Schema
101.CAL**	XBRL Taxonomy Extension Calculation
101.DEF**	XBRL Taxonomy Extension Definition
101.LAB**	XBRL Taxonomy Extension Labels
101.PRE**	XBRL Taxonomy Extension Presentation

** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is not deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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EX-10

Exhibit 10.(g)-5

STOCK OPTION AGREEMENT

GRANTS TO EMPLOYEES

THIS AGREEMENT, made as of the ___ day of _________, 20__ (“Grant Date”) by and between Ethan Allen Interiors Inc. (the "Company") and the undersigned (the "Participant").

WHEREAS, the Company maintains the Amended and Restated 1992 Stock Option Plan, as amended from time to time, (the "Plan"); and

WHEREAS, the Participant has been selected by the Compensation Committee of the Board of Directors of the Company (the “Committee”) to receive an award under the Plan; and

WHEREAS, to the extent not specified in the Plan, the terms of the award have been determined by the Committee and are set forth in this Agreement;

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Participant agree as follows:

1. Award; Option Price. The Participant is hereby awarded, as of the Grant Date, the Option to purchase            shares of Common Stock (the “Award”). The Option Price of each share of Common Stock subject to the Stock Option shall be $_____.

2. Vesting; Forfeitures.

(a)     The Stock Option shall fully vest and become exercisable based upon the successful and complete satisfaction of two consecutive partial triggering conditions, both of which must be satisfied prior to full vesting; (1) a first level Performance Based Vesting and (2) a second level Time Based Vesting.

1. Condition 1: Performance Based Vesting. The Award will performance vest ratably in ___tranches over fiscal years 20__, 20__, and 20__ for each fiscal year and effective as of the end of each such fiscal year where the Adjusted Operating Income when compared to the immediately prior fiscal year reflects a __ or greater growth rate (“Performance Vested”). In the event the minimum ___ growth rate objective is not met for any fiscal year 20__, 20__ and 20__, the tranche for that fiscal year performance shall be forfeited; provided however, in the event that the three year cumulative growth rate is ___ or greater at the end of fiscal year 20__ the total Award shall be Performance Vested.

2. Condition 2: Time Based Vesting. The Performance Vested stock options shall then fully vest ratably in three tranches effective as of the third, fourth and fifth year anniversary of the Grant Date.

Anniversary	Date	Vesting
Year __
Year __
Year __

(b)     The Stock Option shall be forfeited as of the date of the Participant's employment with the Company and its subsidiaries terminates for any reason to the extent that such Options have not fully performance and time vested and are not then exercisable pursuant to the foregoing schedule.

(c)     For purposes of computing the Performance Based Vesting, the Company’s Operating Income for each fiscal year shall be as set forth in the Company’s financial statements, adjusted by adding thereto the charges, expenses or accruals, if any, charged against such operating income for (1) nonrecurring or extraordinary items, (2) annual incentive bonuses paid in respect of the immediately prior fiscal year under this Agreement, (3) the issuance to the Company’s executives, managers, employees, dealers and other business associates of capital stock of the Company, or the issuance or exercise to or by such persons of options, warrants or other rights to acquire capital stock of the Company, or stock appreciation rights of the Company or similar equity equivalents, including in respect of the Stock Options contemplated by this Agreement, and (4) any increased depreciation, amortization or other charges resulting from purchase accounting adjustments; provided, however, that no such adjustments shall be made under this clause “4” with respect to acquisitions occurring prior to the Grant Date (collectively the “Adjusted Operating Income” or “AOI”) . The calculation of Operating Income will be confirmed by the Company’s independent public accountants or any other independent, recognized financial or accounting expert retained by the Committee. The Committee shall not exercise any discretion in determining the Company’s Operating Income pursuant to this Section 2.

(d)     Notwithstanding the foregoing provisions of this Section 2, if the Company effects a major acquisition which acquisition constitutes a change of ownership or control of the Company within the meaning of Treas. Reg. Section 1.162-27(e)(2)(v) during any fiscal year, the Committee may make an appropriate revision to the threshold amount set forth in this Section 2 to implement the purpose of the Performance Based Vesting such that the options may be vested even if the threshold amount is not achieved with respect to such fiscal year. However, in no event shall an acquisition or change in control be a Change in Control, unless the change in control is also a Change in Control pursuant to the Amended and Restated 1992 Stock Option Plan. In the event of a Change of Control pursuant to the Amended and Restated 1992 Stock Option Plan, then, effective as of the closing of the Change of Control, this option will be fully performance and time vested in accordance with the Plan.

(e)     As soon as practicable after the end of each fiscal year but before the Performance Based Vesting is determined in respect of such fiscal year, the Committee shall certify in writing (i) whether (and to the extent that) the performance goals described in Condition 1 of Section 2(a)1 of this Agreement have been attained and (ii) the amount of the options Performance Vested in respect of the fiscal year. Under no circumstance may the Performance Vested Options be greater than the amount described in this Section 2(a). The Performance Vested Options become exercisable upon expiration of the Time Based Vesting periods set forth in this Section 2(a)2.

3. Exercise. Subject to the terms of this Agreement and the Plan, the Stock Option may be exercised in accordance with the following:

(a)     To the extent that it is exercisable, the Stock Option may be exercised in whole or in part at any time prior to the Expiration Date (as defined in paragraph 4); provided, however, that the Stock Option may only be exercised with respect to whole shares of Common Stock.

(b)     The Stock Option may be exercised with respect to no less than 100 shares of Common Stock, or if less than 100 shares are then exercisable, the number of whole shares then exercisable.

(c)     Payment of the Option Price (and the amount of any required taxes) may be made by cash or check or by the delivery of shares of Common Stock having a Fair Market Value equal to the aggregate Option Price (and the amount of any required taxes).

4. Expiration Date. For purposes of this Agreement, the "Expiration Date" shall be the close of business on the earlier of the following dates (or if such date is not a business day, the last business day preceding such date, unless either such date is within a restricted trading period in which the employee is not permitted to trade in company securities under the Company’s governance policies for in such case the date shall be nine days after the end of the restricted trading period):

(a)     the date which is 10 years from the Grant Date; or ________ __, ____.

(b)     the date which is 90 days after the Participant's employment with the Company and its subsidiaries is terminated for any reason)     

5. Stock Retention.     “Named Executive Officers” of the Company for purposes of its public reporting and other executives of the Company expressly subject to the Company’s Statement of Policy Concerning Trading in the Company’s Securities will hold any Company stock acquired upon the exercise of stock options issued to them for one year following their exercise except to the extent necessary to (a) pay income and other taxes assessed upon exercise of the options or (b) to provide for funds for the exercise of the options (including any “cashless” exercise of the options).

6. Defined Terms; Terms of Plan. Unless the context clearly indicates otherwise, defined terms as used in this Agreement shall have the same meaning as ascribed to those terms under the Plan. Notwithstanding any other provision of this Agreement, the terms of the Plan shall govern and the Stock Option shall be subject, in all respects, to the terms and conditions of the Plan.

7. Counterparts. This Agreement may be exercised in counterparts.

IN WITNESS WHEREOF, the Participant has hereunto set his hand and the Company has caused these presents to be executed in its name and on its behalf, all as of the date first above written.

PARTICIPANT

_________________________ 

Employee Name

ETHAN ALLEN INTERIORS INC.

By_________________________ 

              Its President and CEO

EX-31

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Exhibit 31.1

RULE 13a-14(a) CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, M. Farooq Kathwari, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Ethan Allen Interiors Inc. ;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)      Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)      Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)     Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ M. Farooq Kathwari	Chairman, President and
(M. Farooq Kathwari)	Chief Executive Officer

May 1, 2014

EX-31

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Exhibit 31.2

RULE 13a-14(a) CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Corey Whitely, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Ethan Allen Interiors Inc. ;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)      Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)      Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)     Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Corey Whitely	Executive Vice President, Administration, Interim Chief Financial Officer and Treasurer
(Corey Whitely)

May 1, 2014

EX-32

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Exhibit 32.1

SECTION 1350 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, M. Farooq Kathwari, hereby certify that the March 31, 2014 Quarterly Report on Form 10-Q as filed by Ethan Allen Interiors Inc. (the "Company"), which contains the Company's financial statements, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) and that information contained in such Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ M. Farooq Kathwari	Chairman, President and
(M. Farooq Kathwari)	Chief Executive Officer

May 1, 2014

EX-32

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

Exhibit 32.2

SECTION 1350 CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Corey Whitely, hereby certify that the March 31, 2014 Quarterly Report on Form 10-Q as filed by Ethan Allen Interiors Inc. (the "Company"), which contains the Company's financial statements, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) and that information contained in such Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Corey Whitely	Executive Vice President Administration, Interim Chief Financial Officer and Treasurer
(Corey Whitely)

May 1, 2014

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Note 11 - Accumulated Other Comprehensive Income (Details) - Activities in Accumulated Other Comprehensive Income (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 684
Changes before reclassifications	131
Amounts reclassified from accumulated other comprehensive income	23
Current period other comprehensive income	154
Balance	838
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	747
Changes before reclassifications	126
Current period other comprehensive income	126
Balance	873
Drivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(69)
Amounts reclassified from accumulated other comprehensive income	23
Current period other comprehensive income	23
Balance	(46)
Unrealized Gains Losses On Investments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	6
Changes before reclassifications	5
Current period other comprehensive income	5
Balance	$ 11

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Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2005
Disclosure Text Block Supplement [Abstract]
Senior Notes	$ 200.0

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Note 13 - Segment Information (Details) - Assets by Segment (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014		Jun. 30, 2013
Segment Reporting Information [Line Items]
Assets	$ 644,900		$ 617,285
Operating Segments [Member] | Wholesale Segment [Member]
Segment Reporting Information [Line Items]
Assets	323,198		291,942
Operating Segments [Member] | Retail Segment [Member]
Segment Reporting Information [Line Items]
Assets	352,405		355,233
Inventory Profit Elimination [Member]
Segment Reporting Information [Line Items]
Assets	$ (30,703)	[1]	$ (29,890)	[1]

[1] 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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Note 7 - Borrowings (Details) (USD $) In Millions, unless otherwise specified					1 Months Ended	36 Months Ended
	Mar. 31, 2014	Jun. 30, 2013	Sep. 30, 2005	Mar. 31, 2014 Credit Facility Rights [Member]	Sep. 30, 2005 Senior Notes [Member]	Jun. 30, 2013 Senior Notes [Member]
Note 7 - Borrowings (Details) [Line Items]
Senior Notes			$ 200.0
Debt Instrument, Interest Rate, Stated Percentage	5.375%	5.375%			5.375%
Proceeds from Issuance of Senior Long-term Debt					198.4
Repayments of Senior Debt						70.6
Line of Credit Facility, Maximum Borrowing Capacity	50			100
Letters of Credit Outstanding, Amount	0.7	0.6
Line of Credit Facility, Remaining Borrowing Capacity	$ 49.3	$ 49.4

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Note 11 - Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Mar. 31, 2014

Disclosure Text Block [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	Foreign currency translation adjustments		Derivative instruments			Unrealized gains and losses on investments		Total
Balance June 30, 2013	$	747	$	(69	)	$	6	$	684
Changes before reclassifications	$	126	$	-		$	5	$	131
Amounts reclassified from accumulated other comprehensive income	$	-	$	23		$	-	$	23
Current period other comprehensive income	$	126	$	23		$	5	$	154
Balance March 31, 2014	$	873	$	(46	)	$	11	$	838

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Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement of Operations (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement of Operations [Line Items]
Net sales	$ 173,061	$ 168,144	$ 547,824	$ 546,832
Cost of sales	79,931	76,359	249,952	246,827
Gross profit	93,130	91,785	297,872	300,005
Operating income (loss)	9,552	8,660	45,346	43,971
Interest and other miscellaneous income (expense), net	103	(10)	228	192
Interest and other related financing costs	1,870	2,195	5,614	6,592
Income (loss) before income tax expense	7,785	6,455	39,960	37,571
Income tax expense (benefit)	2,527	2,081	14,113	13,287
Net income/(loss)	5,258	4,374	25,847	24,284
Consolidation, Eliminations [Member]
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement of Operations [Line Items]
Net sales	(131,610)	(138,351)	(402,544)	(404,395)
Cost of sales	(129,440)	(136,208)	(401,731)	(405,959)
Gross profit	(2,170)	(2,143)	(813)	1,564
Operating income (loss)	(2,170)	(2,143)	(813)	1,564
Interest and other miscellaneous income (expense), net	(3,269)	(1,899)	(24,372)	(21,128)
Income (loss) before income tax expense	(5,439)	(4,042)	(25,185)	(19,564)
Net income/(loss)	(5,439)	(4,042)	(25,185)	(19,564)
Parent Company [Member]
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement of Operations [Line Items]
Total operating expenses	45	45	135	135
Operating income (loss)	(45)	(45)	(135)	(135)
Interest and other miscellaneous income (expense), net	5,303	4,419	25,982	24,419
Income (loss) before income tax expense	5,258	4,374	25,847	24,284
Net income/(loss)	5,258	4,374	25,847	24,284
Subsidiary Issuer [Member]
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement of Operations [Line Items]
Net sales	109,795	108,595	332,623	327,987
Cost of sales	83,285	81,631	252,701	247,433
Gross profit	26,510	26,964	79,922	80,554
Total operating expenses	12,939	12,817	34,481	35,171
Operating income (loss)	13,571	14,147	45,441	45,383
Interest and other miscellaneous income (expense), net	(1,932)	(2,404)	(1,302)	(2,923)
Interest and other related financing costs	1,850	2,180	5,551	6,546
Income (loss) before income tax expense	9,789	9,563	38,588	35,914
Income tax expense (benefit)	2,316	3,001	11,793	13,059
Net income/(loss)	7,473	6,562	26,795	22,855
Guarantor Subsidiaries [Member]
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement of Operations [Line Items]
Net sales	185,221	188,589	587,149	594,200
Cost of sales	119,365	124,977	378,522	387,459
Gross profit	65,856	63,612	208,627	206,741
Total operating expenses	65,866	65,310	203,205	207,116
Operating income (loss)	(10)	(1,698)	5,422	(375)
Interest and other miscellaneous income (expense), net	(30)	5	(73)	30
Interest and other related financing costs	20	15	63	46
Income (loss) before income tax expense	(60)	(1,708)	5,286	(391)
Income tax expense (benefit)	130	(943)	2,227	159
Net income/(loss)	(190)	(765)	3,059	(550)
Non-Guarantor Subsidiaries [Member]
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement of Operations [Line Items]
Net sales	9,655	9,311	30,596	29,040
Cost of sales	6,721	5,959	20,460	17,894
Gross profit	2,934	3,352	10,136	11,146
Total operating expenses	4,728	4,953	14,705	13,612
Operating income (loss)	(1,794)	(1,601)	(4,569)	(2,466)
Interest and other miscellaneous income (expense), net	31	(131)	(7)	(206)
Income (loss) before income tax expense	(1,763)	(1,732)	(4,576)	(2,672)
Income tax expense (benefit)	81	23	93	69
Net income/(loss)	(1,844)	(1,755)	(4,669)	(2,741)
Consolidated Entities [Member]
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement of Operations [Line Items]
Net sales	173,061	168,144	547,824	546,832
Cost of sales	79,931	76,359	249,952	246,827
Gross profit	93,130	91,785	297,872	300,005
Total operating expenses	83,578	83,125	252,526	256,034
Operating income (loss)	9,552	8,660	45,346	43,971
Interest and other miscellaneous income (expense), net	103	(10)	228	192
Interest and other related financing costs	1,870	2,195	5,614	6,592
Income (loss) before income tax expense	7,785	6,455	39,960	37,571
Income tax expense (benefit)	2,527	2,081	14,113	13,287
Net income/(loss)	$ 5,258	$ 4,374	$ 25,847	$ 24,284

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Note 12 - Fair Value Measurements (Details) - Contractual Maturities of Available-for-Sale Investments (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013
Contractual Maturities of Available-for-Sale Investments [Abstract]
Due in one year or less	$ 14,411	$ 13,213
Due in one year or less	14,304	13,067
Due after one year through five years	5,823	2,463
Due after one year through five years	$ 5,834	$ 2,462

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Note 10 - Earnings Per Share (Details)	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	620,392	885,600

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Note 13 - Segment Information (Details) - International Designer Centers (International Design Centers [Member])	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]
International design centers	98	93
Independent Design Centers [Member]
Segment Reporting Information [Line Items]
International design centers	90	86
Company Operated Design Centers [Member]
Segment Reporting Information [Line Items]
International design centers	8	7
Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Percentage of consolidated net sales	10.30%	9.30%

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Note 3 - Income Taxes

9 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

(3) Income Taxes

The Company reviews its expected annual effective income tax rates and makes changes on a quarterly basis as necessary based on certain factors such as changes in forecasted annual operating income; changes to actual or forecasted permanent book to tax differences; impacts from future tax audits with state, federal or foreign tax authorities; impacts from tax law changes; or change in judgment as to the realizability of deferred tax assets. The Company identifies items which are not normal and are non-recurring in nature and treats these as discrete events. The tax effect of discrete items is recorded in the quarter in which the discrete events occur. Due to the volatility of these factors, the Company's consolidated effective income tax rate can change significantly on a quarterly basis.

The Company conducts business globally and, as a result, the Company or one or more of its subsidiaries files income tax returns in the U.S., various state, and foreign jurisdictions. In the normal course of business, the Company is subject to examination in such domestic and foreign jurisdictions. As of March 31, 2014, the Company and certain subsidiaries are currently under audit in the U.S. from 2006 through 2012. While the amount of uncertain tax benefits with respect to the entities and years under audit may change within the next twelve months, it is not anticipated that any of the changes will be significant. It is reasonably possible that some of these audits may be completed during the next twelve months. It is reasonable to expect that various issues relating to uncertain tax benefits will be resolved within the next twelve months as exams are completed or as statutes expire and will impact the effective tax rate.

The Company’s consolidated effective tax rate was 32.5% and 35.3% for the three and nine months ended March 31, 2014, respectively, and 32.2% and 35.4% for the three and nine months ended March 31, 2013, respectively. The current year effective tax rate primarily includes tax expense on net income, additions to unrecognized tax benefits, interest expense on uncertain tax positions, and the impact of maintaining valuation allowances on certain retail segment deferred tax assets. The prior year effective tax rate primarily includes the tax expense on net income, interest expense on uncertain tax positions, and the impact of maintaining valuation allowances on certain retail segment deferred tax assets, partly offset by the recognition of some uncertain tax positions.

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Note 13 - Segment Information (Details)	9 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]
Number of Operating Segments	2

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Note 3 - Income Taxes (Details)	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent	32.50%	32.20%	35.30%	35.40%

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Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Tables)

9 Months Ended

Mar. 31, 2014

Disclosure Text Block Supplement [Abstract]

Condensed Consolidating Balance Sheet [Table Text Block]

March 31, 2014
	Parent		Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	79,893		$	12,407		$	3,504		$	-		$	95,804
Marketable securities		-		20,138			-			-			-			20,138
Accounts receivable, net		-		15,743			255			5			-			16,003
Inventories		-		-			169,518			6,240			(30,703	)		145,055
Prepaid expenses and other current assets		-		5,199			13,758			1,957			-			20,914
Intercompany receivables		-		838,999			315,744			(3,453	)		(1,151,290	)		-
Total current assets		-		959,972			511,682			8,253			(1,181,993	)		297,914
Property, plant and equipment, net		-		8,845			260,872			17,080			-			286,797
Goodwill and other intangible assets		-		37,905			7,223			-			-			45,128
Restricted cash and investments		-		8,907			-			-			-			8,907
Other assets		-		3,893			1,483			778			-			6,154
Investment in affiliated companies		713,554		(113,256	)		-			-			(600,298	)		-
Total assets	$	713,554	$	906,266		$	781,260		$	26,111		$	(1,782,291	)	$	644,900
Liabilities and Shareholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	-	$	-		$	496		$	-		$	-		$	496
Customer deposits		-		-			61,582			3,618			-			65,200
Accounts payable		-		5,352			18,237			518			-			24,107
Accrued expenses and other current liabilities		3,039		32,199			14,400			1,415			-			51,053
Intercompany payables		357,641		(8,468	)		773,829			28,288			(1,151,290	)		-
Total current liabilities		360,680		29,083			868,544			33,839			(1,151,290	)		140,856
Long-term debt		-		129,230			1,283			-			-			130,513
Other long-term liabilities		-		4,181			16,032			444			-			20,657
Total liabilities		360,680		162,494			885,859			34,283			(1,151,290	)		292,026
Shareholders’ equity		352,874		743,772			(104,599	)		(8,172	)		(631,001	)		352,874
Total liabilities and shareholders’ equity	$	713,554	$	906,266		$	781,260		$	26,111		$	(1,782,291	)	$	644,900

June 30, 2013
	Parent		Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	57,307		$	12,463		$	2,831		$	-		$	72,601
Marketable securities		-		15,529			-			-			-			15,529
Accounts receivable, net		-		12,061			212			4			-			12,277
Inventories		-		-			161,683			5,463			(29,890	)		137,256
Prepaid expenses and other current assets		-		9,882			11,275			1,750			-			22,907
Intercompany receivables		-		831,238			302,577			(3,726	)		(1,130,089	)		-
Total current assets		-		926,017			488,210			6,322			(1,159,979	)		260,570
Property, plant and equipment, net		-		9,432			265,698			16,542			-			291,672
Goodwill and other intangible assets		-		37,905			7,223			-			-			45,128
Restricted cash and investments		-		15,433			-			-			-			15,433
Other assets		-		2,188			1,488			806			-			4,482
Investment in affiliated companies		686,451		(111,647	)		-			-			(574,804	)		-
Total assets	$	686,451	$	879,328		$	762,619		$	23,670		$	(1,734,783	)	$	617,285
Liabilities and Shareholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	-	$	-		$	480		$	-		$	-		$	480
Customer deposits		-		-			56,030			3,068			-			59,098
Accounts payable		-		7,390			15,097			508			-			22,995
Accrued expenses and other current liabilities		2,720		29,710			16,683			1,253			-			50,366
Intercompany payables		349,374		(7,460	)		766,039			22,136			(1,130,089	)		-
Total current liabilities		352,094		29,640			854,329			26,965			(1,130,089	)		132,939
Long-term debt		-		129,152			1,657			-			-			130,809
Other long-term liabilities		-		4,492			14,355			333			-			19,180
Total liabilities		352,094		163,284			870,341			27,298			(1,130,089	)		282,928
Shareholders’ equity		334,357		716,044			(107,722	)		(3,628	)		(604,694	)		334,357
Total liabilities and shareholders’ equity	$	686,451	$	879,328		$	762,619		$	23,670		$	(1,734,783	)	$	617,285

Condensed Consolidating Statement of Operations [Table Text Block]

Three months ended March 31, 2014
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	109,795		$	185,221		$	9,655		$	(131,610	)	$	173,061
Cost of sales		-			83,285			119,365			6,721			(129,440	)		79,931
Gross profit		-			26,510			65,856			2,934			(2,170	)		93,130
Selling, general and administrative expenses		45			12,939			65,866			4,728			-			83,578
Operating income (loss)		(45	)		13,571			(10	)		(1,794	)		(2,170	)		9,552
Interest and other income (expense)		5,303			(1,932	)		(30	)		31			(3,269	)		103
Interest and other related financing costs		-			1,850			20			-			-			1,870
Income (loss) before income taxes		5,258			9,789			(60	)		(1,763	)		(5,439	)		7,785
Income tax expense		-			2,316			130			81			-			2,527
Net income/(loss)	$	5,258		$	7,473		$	(190	)	$	(1,844	)	$	(5,439	)	$	5,258

Three months ended March 31, 2013
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	108,595		$	188,589		$	9,311		$	(138,351	)	$	168,144
Cost of sales		-			81,631			124,977			5,959			(136,208	)		76,359
Gross profit		-			26,964			63,612			3,352			(2,143	)		91,785
Selling, general and administrative expenses		45			12,817			65,310			4,953			-			83,125
Operating income (loss)		(45	)		14,147			(1,698	)		(1,601	)		(2,143	)		8,660
Interest and other income (expense)		4,419			(2,404	)		5			(131	)		(1,899	)		(10	)
Interest and other related financing costs		-			2,180			15			-			-			2,195
Income (loss) before income taxes		4,374			9,563			(1,708	)		(1,732	)		(4,042	)		6,455
Income tax expense		-			3,001			(943	)		23			-			2,081
Net income/(loss)	$	4,374		$	6,562		$	(765	)	$	(1,755	)	$	(4,042	)	$	4,374

Nine months ended March 31, 2014
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	332,623		$	587,149		$	30,596		$	(402,544	)	$	547,824
Cost of sales		-			252,701			378,522			20,460			(401,731	)		249,952
Gross profit		-			79,922			208,627			10,136			(813	)		297,872
Selling, general and administrative expenses		135			34,481			203,205			14,705			-			252,526
Operating income (loss)		(135	)		45,441			5,422			(4,569	)		(813	)		45,346
Interest and other income (expense)		25,982			(1,302	)		(73	)		(7	)		(24,372	)		228
Interest and other related financing costs		-			5,551			63			-			-			5,614
Income (loss) before income taxes		25,847			38,588			5,286			(4,576	)		(25,185	)		39,960
Income tax expense		-			11,793			2,227			93			-			14,113
Net income/(loss)	$	25,847		$	26,795		$	3,059		$	(4,669	)	$	(25,185	)	$	25,847

Nine months ended March 31, 2013
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	327,987		$	594,200		$	29,040		$	(404,395	)	$	546,832
Cost of sales		-			247,433			387,459			17,894			(405,959	)		246,827
Gross profit		-			80,554			206,741			11,146			1,564			300,005
Selling, general and administrative expenses		135			35,171			207,116			13,612			-			256,034
Operating income (loss)		(135	)		45,383			(375	)		(2,466	)		1,564			43,971
Interest and other income (expense)		24,419			(2,923	)		30			(206	)		(21,128	)		192
Interest and other related financing costs		-			6,546			46			-			-			6,592
Income (loss) before income taxes		24,284			35,914			(391	)		(2,672	)		(19,564	)		37,571
Income tax expense		-			13,059			159			69			-			13,287
Net income/(loss)	$	24,284		$	22,855		$	(550	)	$	(2,741	)	$	(19,564	)	$	24,284

Condensed Consolidating Statement Of Cash Flows [Table Text Block]

Nine months ended March 31, 2014
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	8,136		$	21,223		$	8,818		$	1,842		$	-	$	40,019
Cash flows from investing activities:
Capital expenditures		-			(314	)		(11,159	)		(1,115	)		-		(12,588	)
Proceeds from the disposal of property, plant and equipment		-			24			2,643			-			-		2,667
Change in restricted cash and investments		-			6,526			-			-			-		6,526
Purchases of marketable securities		-			(17,500	)		-			-			-		(17,500	)
Sales of marketable securities		-			12,323						-			-		12,323
Other		-			253			-			-			-		253
Net cash provided by (used in) investing activities		-			1,312			(8,516	)		(1,115	)		-		(8,319	)
Cash flows from financing activities:
Payments on long-term debt		-			-			(358	)		-			-		(358	)
Dividends paid		(8,399	)		-			-			-			-		(8,399	)
Other		263			51			-			-			-		314
Net cash provided by (used in) financing activities		(8,136	)		51			(358	)		-			-		(8,443	)
Effect of exchange rate changes on cash		-			-			-			(54	)		-		(54	)
Net increase (decrease) in cash and cash equivalents		-			22,586			(56	)		673			-		23,203
Cash and cash equivalents – beginning of period		-			57,307			12,463			2,831			-		72,601
Cash and cash equivalents – end of period	$	-		$	79,893		$	12,407		$	3,504		$	-	$	95,804

Nine months ended March 31, 2013
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	18,360		$	12,214		$	10,950		$	2,921		$	-	$	44,445
Cash flows from investing activities:
Capital expenditures		-			(1,115	)		(13,165	)		(2,265	)		-		(16,545	)
Acquisitions		-			-			(598	)		-			-		(598	)
Proceeds from the disposal of property, plant and equipment		-			51			3,175			-			-		3,226
Change in restricted cash and investments		-			(14	)		-			-			-		(14	)
Purchases of marketable securities		-			(17,547	)		-			-			-		(17,547	)
Sales of marketable securities		-			7,990			-			-			-		7,990
Other		-			783			550			-			-		1,333
Net cash provided by (used in) investing activities		-			(9,852	)		(10,038	)		(2,265	)		-		(22,155	)
Cash flows from financing activities:
Payments on long-term debt		-			-			(187	)		-			-		(187	)
Dividends paid		(19,617	)		-			-			-			-		(19,617	)
Other		1,257			166			-			-			-		1,423
Net cash provided by (used in) financing activities		(18,360	)		166			(187	)		-			-		(18,381	)
Effect of exchange rate changes on cash		-			-			-			15			-		15
Net increase (decrease) in cash and cash equivalents		-			2,528			725			671			-		3,924
Cash and cash equivalents – beginning of period		-			64,946			12,276			2,499			-		79,721
Cash and cash equivalents – end of period	$	-		$	67,474		$	13,001		$	3,170		$	-	$	83,645

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Note 13 - Segment Information (Details) - Wholesale Sales by Product Line	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting, Revenue Reconciling Item [Line Items]
Wholesale sales, percentage	100.00%	100.00%	100.00%	100.00%
Case Goods [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Wholesale sales, percentage	38.00%	36.00%	35.00%	37.00%
Upholstered Products [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Wholesale sales, percentage	46.00%	48.00%	48.00%	48.00%
Home Accessories And Other [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Wholesale sales, percentage	16.00%	16.00%	17.00%	15.00%

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Note 4 - Restricted Cash and Investments (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013	Jan. 31, 2014 Private Label Credit Card Program [Member] Transfer to Operating Cash Accounts [Member]
Note 4 - Restricted Cash and Investments (Details) [Line Items]
Restricted Cash and Investments, Noncurrent	$ 8.9	$ 15.4
Restricted Cash and Cash Equivalents			$ 6

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Note 5 - Marketable Securities (Details) (USD $)	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2013
Disclosure Text Block Supplement [Abstract]
Marketable Securities, Current	$ 20,138,000		$ 15,529,000
Marketable Securities, Gain (Loss)	$ 0	$ 0

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Note 2 - Interim Financial Presentation

9 Months Ended

Mar. 31, 2014

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

(2) Interim Financial Presentation

In our opinion, all adjustments, consisting only of normal recurring adjustments necessary for fair presentation, have been included in the consolidated financial statements. The results of operations for the three and nine months ended March 31, 2014 are not necessarily indicative of results that may be expected for the entire fiscal year. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended June 30, 2013.

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Note 6 - Inventories (Details) - Inventories Summary (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013
Inventories Summary [Abstract]
Finished goods	$ 117,106	$ 110,220
Work in process	8,601	6,961
Raw materials	22,152	22,787
Valuation allowance	(2,804)	(2,712)
	$ 145,055	$ 137,256

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Note 12 - Fair Value Measurements (Details) (USD $)	9 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2013
Note 12 - Fair Value Measurements (Details) [Line Items]
Restricted Cash and Investments, Noncurrent	$ 8,900,000		$ 15,400,000
Available-for-sale Securities	20,138,000		15,529,000
Available-for-sale Securities, Gross Unrealized Gain (Loss)	0		0
Impairment of Long-Lived Assets to be Disposed of		1,600,000
Municipal Bonds [Member]
Note 12 - Fair Value Measurements (Details) [Line Items]
Available-for-sale Securities	20,100,000		14,000,000
Corporate Bond Securities [Member]
Note 12 - Fair Value Measurements (Details) [Line Items]
Available-for-sale Securities			$ 1,500,000

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013
Current assets:
Cash and cash equivalents	$ 95,804	$ 72,601
Marketable securities	20,138	15,529
Accounts receivable, less allowance for doubtful accounts of $1,284 at March 31, 2014 and $1,230 at June 30, 2013	16,003	12,277
Inventories	145,055	137,256
Prepaid expenses and other current assets	20,914	22,907
Total current assets	297,914	260,570
Property, plant and equipment, net	286,797	291,672
Goodwill and other intangible assets	45,128	45,128
Restricted cash and investments	8,907	15,433
Other assets	6,154	4,482
Total assets	644,900	617,285
Current liabilities:
Current maturities of long-term debt	496	480
Customer deposits	65,200	59,098
Accounts payable	24,107	22,995
Accrued compensation and benefits	23,442	27,205
Accrued expenses and other current liabilities	27,611	23,161
Total current liabilities	140,856	132,939
Long-term debt	130,513	130,809
Other long-term liabilities	20,657	19,180
Total liabilities	292,026	282,928
Shareholders' equity:
Class A common stock	486	486
Additional paid-in-capital	365,104	363,938
Less: Treasury stock (at cost)	(584,041)	(584,041)
Retained earnings	570,217	553,083
Accumulated other comprehensive income	838	684
Total Ethan Allen Interiors Inc. shareholders' equity	352,604	334,150
Noncontrolling interests	270	207
Total shareholders' equity	352,874	334,357
Total liabilities and shareholders' equity	$ 644,900	$ 617,285

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Note 13 - Segment Information (Details) - Income by Segment (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Mar. 31, 2014		Mar. 31, 2013		Mar. 31, 2014		Mar. 31, 2013
Segment Reporting Information [Line Items]
Net Sales	$ 173,061		$ 168,144		$ 547,824		$ 546,832
Operating Income	9,552		8,660		45,346		43,971
Depreciation and Amortization	4,577		4,548		13,276		13,514
Capital Expenditures	4,030		2,980		12,588		17,143
Operating Segments [Member] | Wholesale Segment [Member]
Segment Reporting Information [Line Items]
Net Sales	111,143		108,101		337,474		327,690
Operating Income	13,009		12,754		43,507		37,651
Depreciation and Amortization	2,018		2,135		5,824		6,116
Capital Expenditures	1,991		1,381		6,483		6,024
Operating Segments [Member] | Retail Segment [Member]
Segment Reporting Information [Line Items]
Net Sales	131,813		132,056		425,136		432,962
Operating Income	(1,591)		(2,283)		2,411		4,782
Depreciation and Amortization	2,559		2,413		7,452		7,398
Capital Expenditures	2,039		1,599		6,105		10,521
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net Sales	(69,895)		(72,013)		(214,786)		(213,820)
Adjustment For Inter-Company Profit [Member]
Segment Reporting Information [Line Items]
Operating Income	(1,866)	[1]	(1,811)	[1]	(572)	[1]	1,538	[1]
Acquisitions [Member]
Segment Reporting Information [Line Items]
Capital Expenditures							$ 598

[1] Represents the change in wholesale profit contained in the retail segment inventory at the end of the period.

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Consolidated Statements of Shareholders' Equity (Unaudited) (USD $) In Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total
Balance at Jun. 30, 2013	$ 486	$ 363,938	$ (584,041)	$ 684	$ 553,083	$ 207	$ 334,357
Stock issued on share-based awards		263					263
Compensation expense associated with share-based awards		990					990
Tax benefit associated with exercise of share based awards		(87)					(87)
Dividends declared on common stock					(8,713)		(8,713)
Comprehensive income				154	25,847	63	26,064
Balance at Mar. 31, 2014	$ 486	$ 365,104	$ (584,041)	$ 838	$ 570,217	$ 270	$ 352,874

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Note 7 - Borrowings (Details) - Debt Obligations (Parentheticals)	Mar. 31, 2014	Jun. 30, 2013
Debt Obligations [Abstract]
Senior Notes	5.375%	5.375%

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Note 6 - Inventories (Tables)

9 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

	March 31, 2014			June 30, 2013
Finished goods	$	117,106		$	110,220
Work in process		8,601			6,961
Raw materials		22,152			22,787
Valuation allowance		(2,804	)		(2,712	)
	$	145,055		$	137,256

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Note 9 - Share-Based Compensation (Details) (USD $)	9 Months Ended
	Mar. 31, 2014
Note 9 - Share-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	452,864
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	1,348,678
Officer [Member] | Based Upon Financial Performance [Member]
Note 9 - Share-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	149,000
Officer [Member]
Note 9 - Share-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	172,499
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)	$ 25.83
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share)	$ 11.42
Minimum [Member] | Officer [Member]
Note 9 - Share-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Maximum [Member] | Officer [Member]
Note 9 - Share-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years

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Note 10 - Earnings Per Share (Tables)

9 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three months ended March 31,				Nine months ended March 31,
	2014		2013		2014		2013
Weighted average common shares outstanding for basic calculation		28,920		28,869		28,916		28,850
Effect of dilutive stock options and other share-based awards		351		404		368		363
Weighted average common shares outstanding adjusted for dilution calculation		29,271		29,273		29,284		29,213

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Note 1 - Basis of Presentation

9 Months Ended

Mar. 31, 2014

Disclosure Text Block [Abstract]

Business Description and Basis of Presentation [Text Block]

(1) Basis of Presentation

Ethan Allen Interiors Inc. ("Interiors") is a Delaware corporation incorporated on May 25, 1989. The consolidated financial statements include the accounts of Interiors, its wholly owned subsidiary Ethan Allen Global, Inc. ("Global"), and Global’s subsidiaries (collectively "we", "us", "our", "Ethan Allen", or the "Company"). All intercompany accounts and transactions have been eliminated in the consolidated financial statements. All of Global’s capital stock is owned by Interiors, which has no assets or operating results other than those associated with its investment in Global.

We prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States, 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 revenues 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, revenue recognition, the allowance for doubtful accounts receivable, inventory obsolescence, tax valuation allowances, useful lives for property, plant and equipment and definite-lived intangible assets, goodwill and indefinite-lived intangible asset impairment analyses, the evaluation of uncertain tax positions and the fair value of assets acquired and liabilities assumed in business combinations.

Our consolidated financial statements include the accounts of an entity in which we are a majority shareholder and have 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 Statement of Comprehensive Income within interest and other income, net.

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Consolidated Balance Sheets (Parentheticals) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013
Accounts receivable, allowance for doubtful accounts	$ 1,284	$ 1,230

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Note 11 - Accumulated Other Comprehensive Income

9 Months Ended

Mar. 31, 2014

Disclosure Text Block [Abstract]

Comprehensive Income (Loss) Note [Text Block]

(11) Accumulated Other Comprehensive Income

The following table sets forth the activity in accumulated other comprehensive income for the year to date period ended March 31, 2014 (in thousands):

	Foreign currency translation adjustments		Derivative instruments			Unrealized gains and losses on investments		Total
Balance June 30, 2013	$	747	$	(69	)	$	6	$	684
Changes before reclassifications	$	126	$	-		$	5	$	131
Amounts reclassified from accumulated other comprehensive income	$	-	$	23		$	-	$	23
Current period other comprehensive income	$	126	$	23		$	5	$	154
Balance March 31, 2014	$	873	$	(46	)	$	11	$	838

Foreign currency translation adjustments are the result of changes in foreign currency exchange rates related to our operations in Canada, Belgium, Honduras, and Mexico, and exclude income taxes given that the earnings of non-U.S. subsidiaries are deemed to be reinvested for an indefinite period of time. The derivative instruments are reclassified to interest expense in our consolidated statements of operations.

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Document And Entity Information	9 Months Ended
	Mar. 31, 2014	Apr. 24, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	ETHAN ALLEN INTERIORS INC
Document Type	10-Q
Current Fiscal Year End Date	--06-30
Entity Common Stock, Shares Outstanding		28,925,735
Amendment Flag	false
Entity Central Index Key	0000896156
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3

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Note 12 - Fair Value Measurements

9 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

(12) Fair Value Measurements

We determine fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value is calculated based on assumptions that market participants use in pricing the asset or liability, and not on assumptions specific to the Company. In addition, the fair value of liabilities includes consideration of non-performance risk including our own credit risk. Each fair value measurement is reported in one of three levels, determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

Level 1      Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

Level 2      Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3      Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

The following section describes the valuation methodologies we use to measure different financial assets and liabilities at fair value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents our assets and liabilities measured at fair value on a recurring basis at March 31, 2014 and June 30, 2013 (in thousands):

March 31, 2014
	Level 1		Level 2		Level 3		Balance
Cash equivalents	$	104,711	$	-	$	-	$	104,711
Available-for-sale securities		-		20,138		-		20,138
Total	$	104,711	$	20,138	$	-	$	124,849

June 30, 2013
	Level 1		Level 2		Level 3		Balance
Cash equivalents	$	88,034	$	-	$	-	$	88,034
Available-for-sale securities		-		15,529		-		15,529
Total	$	88,034	$	15,529	$	-	$	103,563

Cash equivalents consist of money market accounts and mutual funds in U.S. government and agency fixed income securities. We use quoted prices in active markets for identical assets or liabilities to determine fair value. There were no transfers between level 1 and level 2 during the first nine months of fiscal 2014 or fiscal 2013. At March 31, 2014 and June 30, 2013, $8.9 million and $15.4 million respectively, of the cash equivalents were restricted, and classified as long-term assets.

At March 31, 2014, available-for-sale securities consist of $20.1 million in U.S. municipal bonds, and at June 30, 2013, available-for-sale securities consisted of $14.0 million in U.S. municipal bonds and $1.5 million of corporate bonds, all with maturities of less than two years. The bonds are rated A/A2 or better by S&P/Moodys respectively. As of March 31, 2014 and June 30, 2013, there were no material gross unrealized gains or losses on available-for-sale securities.

As of March 31, 2014 and June 30, 2013, the contractual maturities of our available-for-sale securities were as follows:

March 31, 2014
	Cost		Estimated Fair Value
Due in one year or less	$	14,411	$	14,304
Due after one year through five years	$	5,823	$	5,834

June 30, 2013
	Cost		Estimated Fair Value
Due in one year or less	$	13,213	$	13,067
Due after one year through five years	$	2,463	$	2,462

No investments have been in a continuous loss position for more than one year, and no other-than-temporary impairments were recognized. See also Note 4, "Restricted Cash and Investments" and Note 5, "Marketable Securities".

Assets and Liabilities Measured at Fair Value on a Non-recurring Basis

We measure certain assets at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be impaired. During the nine months ended March 31, 2014, we did not record any impairments on those assets required to be measured at fair value on a non-recurring basis and during the nine months ended March 31, 2013 we recorded a $1.6 million impairment relating to real estate assets held for sale.

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Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Net sales	$ 173,061	$ 168,144	$ 547,824	$ 546,832
Cost of sales	79,931	76,359	249,952	246,827
Gross profit	93,130	91,785	297,872	300,005
Selling, general and administrative expenses	83,578	83,125	252,526	256,034
Operating income	9,552	8,660	45,346	43,971
Interest and other income	103	(10)	228	192
Interest and other related financing costs	1,870	2,195	5,614	6,592
Income before income taxes	7,785	6,455	39,960	37,571
Income tax expense	2,527	2,081	14,113	13,287
Net income	5,258	4,374	25,847	24,284
Basic earnings per common share:
Net income per basic share (in Dollars per share)	$ 0.18	$ 0.15	$ 0.89	$ 0.84
Basic weighted average common shares (in Shares)	28,920	28,869	28,916	28,850
Diluted earnings per common share:
Net income per diluted share (in Dollars per share)	$ 0.18	$ 0.15	$ 0.88	$ 0.83
Diluted weighted average common shares (in Shares)	29,271	29,273	29,284	29,213
Other comprehensive income
Currency translation adjustment	142	300	126	440
Other	31	7	91	47
Other comprehensive income net of tax	173	307	217	487
Comprehensive income	$ 5,431	$ 4,681	$ 26,064	$ 24,771

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Note 6 - Inventories

9 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

(6) Inventories

Inventories at March 31, 2014 and June 30, 2013 are summarized as follows (in thousands):

	March 31, 2014			June 30, 2013
Finished goods	$	117,106		$	110,220
Work in process		8,601			6,961
Raw materials		22,152			22,787
Valuation allowance		(2,804	)		(2,712	)
	$	145,055		$	137,256

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Note 5 - Marketable Securities

9 Months Ended

Mar. 31, 2014

Disclosure Text Block Supplement [Abstract]

Cash, Cash Equivalents, and Marketable Securities [Text Block]

(5) Marketable Securities

At March 31, 2014 and June 30, 2013, the Company held marketable securities of $20.1 million and $15.5 million respectively, classified as current assets, consisting of U.S. municipal and corporate bonds with maturities ranging from less than one year to less than two years, which were rated A/A2 or better by the rating services Standard & Poors (“S&P”) and Moodys Investors Service (“Moodys”) respectively. There were no material realized or unrealized gains or losses for the nine months ended March 31, 2014 and March 31, 2013. We do not believe there are any impairments considered to be other than temporary at March 31, 2014. See also Note 12, “Fair Value Measurements".

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Note 7 - Borrowings (Tables)

9 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

	March 31, 2014		June 30, 2013
5.375% Senior Notes due 2015	$	129,230	$	129,152
Capital leases and other		1,779		2,137
Total debt		131,009		131,289
Less current maturities		496		480
Total long-term debt	$	130,513	$	130,809

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Note 13 - Segment Information

9 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

(13) Segment Information

Our operations are classified into two operating segments: wholesale and retail. These operating segments represent strategic business areas of our vertically integrated business which, although they operate separately and provide their own distinctive services, enable us to more efficiently control the quality and cost of our complete line of home furnishings and accessories.

The wholesale segment is principally involved in the development of the Ethan Allen brand, which encompasses the design, manufacture, domestic and offshore sourcing, sale and distribution of a full range of home furnishings and accessories to a network of independently operated and Ethan Allen operated design centers as well as related marketing and brand awareness efforts. Wholesale revenue is generated upon the wholesale sale and shipment of our product to all retail design centers, including those operated by Ethan Allen. Wholesale profitability includes (i) the wholesale gross margin, which represents the difference between the wholesale 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 retail segment sells home furnishings and accessories to consumers through a network of Company operated design centers. Retail revenue is generated upon the retail sale and delivery of our product to our customers. Retail profitability includes (i) the retail gross margin, which represents the difference between the retail sales price and the cost of goods purchased from the wholesale segment, and (ii) other operating costs associated with retail segment activities.

Inter-segment eliminations result, primarily, from the wholesale sale of inventory to the retail segment, including the related profit margin.

We evaluate performance of the respective segments based upon revenues and operating income. While the manner in which our home furnishings and accessories are marketed and sold is consistent, the nature of the underlying recorded sales (i.e. wholesale versus retail) and the specific services that each operating segment provides (i.e. wholesale manufacturing, sourcing, and distribution versus retail selling) are different. Within the wholesale segment, we maintain revenue information according to each respective product line (i.e. case goods, upholstery, or home accessories and other). The allocation of retail sales by product line is reasonably similar to that of the wholesale segment. A breakdown of wholesale sales by these product lines for the three and nine months ended March 31, 2014 and 2013 is provided as follows:

	Three months ended March 31,						Nine months ended March 31,
	2014			2013			2014			2013
Case Goods		38	%		36	%		35	%		37	%
Upholstered Products		46	%		48	%		48	%		48	%
Home Accessories and Other		16	%		16	%		17	%		15	%
		100	%		100	%		100	%		100	%

Segment information for the three and nine months ended March 31, 2014 and 2013 is provided below (in thousands):

	Three months ended March 31,						Nine months ended March 31,
	2014			2013			2014			2013
Net sales:
Wholesale segment	$	111,143		$	108,101		$	337,474		$	327,690
Retail segment		131,813			132,056			425,136			432,962
Elimination of inter-company sales		(69,895	)		(72,013	)		(214,786	)		(213,820	)
Consolidated Total	$	173,061		$	168,144		$	547,824		$	546,832
Operating income:
Wholesale segment	$	13,009		$	12,754		$	43,507		$	37,651
Retail segment		(1,591	)		(2,283	)		2,411			4,782
Adjustment of inter-company profit (1)		(1,866	)		(1,811	)		(572	)		1,538
Consolidated Total	$	9,552		$	8,660		$	45,346		$	43,971
Depreciation & Amortization:
Wholesale segment	$	2,018		$	2,135		$	5,824		$	6,116
Retail segment		2,559			2,413			7,452			7,398
Consolidated Total	$	4,577		$	4,548		$	13,276		$	13,514
Capital expenditures:
Wholesale segment	$	1,991		$	1,381		$	6,483		$	6,024
Retail segment		2,039			1,599			6,105			10,521
Acquisitions		-			-			-			598
Consolidated Total	$	4,030		$	2,980		$	12,588		$	17,143

	March 31, 2014			June 30, 2013
Total Assets:
Wholesale segment	$	323,198		$	291,942
Retail segment		352,405			355,233
Inventory profit elimination (2)		(30,703	)		(29,890	)
Consolidated Total	$	644,900		$	617,285

(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.

Our international net sales are comprised of our wholesale segment sales to independent retailers and our retail segment sales to consumers through the Company operated design centers. The number of international design centers, and the related net sales as a percent of our consolidated net sales is shown in the following table.

	Nine months ended March 31,
	2014			2013
Independent design centers		90			86
Company operated design centers		8			7
Total international design centers		98			93
Percentage of consolidated net sales		10.3	%		9.3	%

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Note 9 - Share-Based Compensation

9 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

(9) Share-Based Compensation

During the nine months ended March 31, 2014, the Company awarded options to purchase 172,499 shares of our common stock, including 149,000 shares which vest based upon the financial performance of the Company. Awarded options had a weighted average exercise price per share of $25.83, a weighted average grant date fair value of $11.42 and vest over three to five years. During the nine months ended March 31, 2014, options covering 452,864 shares of common stock were cancelled, primarily due to the expiration of their 10 year terms. At March 31, 2014, there are 1,348,678 shares of common stock available for future issuance pursuant to the 1992 Stock Option Plan.

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Note 7 - Borrowings

9 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

(7) Borrowings

Total debt obligations at March 31, 2014 and June 30, 2013 consist of the following (in thousands):

	March 31, 2014		June 30, 2013
5.375% Senior Notes due 2015	$	129,230	$	129,152
Capital leases and other		1,779		2,137
Total debt		131,009		131,289
Less current maturities		496		480
Total long-term debt	$	130,513	$	130,809

In September 2005, we issued $200.0 million in ten-year senior unsecured notes due October 1, 2015 (the "Senior Notes"). The Senior Notes were issued by Global, bearing an annual coupon rate of 5.375% with interest payable semi-annually in arrears on April 1 and October 1. We have used the net proceeds of $198.4 million to improve our retail network, invest in our manufacturing and logistics operations, and for other general corporate purposes. In fiscal years 2011 through 2013, the Company repurchased an aggregate $70.6 million of the Senior Notes in several unsolicited transactions.

We also maintain a $50 million senior secured, asset-based revolving credit facility (the “Facility”). We have not had any revolving loans under the Facility at any time. At March 31, 2014 and June 30, 2013, there was $0.7 million and $0.6 million of standby letters of credit outstanding, respectively, under the Facility. The Facility is subject to borrowing base availability and includes a right for the Company to increase the total facility to $100 million subject to certain conditions. The Facility is secured by all property owned, leased or operated by the Company in the United States excluding any real property owned by the Company and contains customary covenants which may limit the Company’s ability to incur debt, engage in mergers and consolidations, make restricted payments (including dividends), sell certain assets, and make investments. Remaining availability under the Facility totaled $49.3 million at March 31, 2014 and $49.4 million at June 30, 2013 and as a result, covenants and other restricted payment limitations did not apply. The Facility expires March 25, 2016, or June 26, 2015 if the Senior Notes have not been refinanced prior to that date.

At both March 31, 2014 and June 30, 2013, we were in compliance with all covenants of the Senior Notes and the Facility.

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Note 8 - Litigation

9 Months Ended

Mar. 31, 2014

Disclosure Text Block Supplement [Abstract]

Legal Matters and Contingencies [Text Block]

(8) Litigation

We are routinely involved in various investigations or as a defendant in litigation, in the ordinary course of business. 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 investigations and proceedings typically concern air emissions, water discharges, and/or management of solid and hazardous wastes. Under these laws, we and/or our subsidiaries are, or may be, required to remove or mitigate the effects on the environment of the disposal or release of certain hazardous materials.

Regulations issued under the Clean Air Act Amendments of 1990 required the industry to reformulate certain furniture finishes or institute process changes to reduce emissions of volatile organic compounds. Compliance with many of these requirements has been facilitated through the introduction of high solids coating technology and alternative formulations. In addition, we have instituted a variety of technical and procedural controls, including reformulation of finishing materials to reduce toxicity, implementation of high velocity low pressure spray systems, development of storm water protection plans and controls, and further development of related inspection/audit teams, all of which have served to reduce emissions per unit of production. We remain committed to implementing new waste minimization programs and/or enhancing existing programs with the objective of (i) reducing the total volume of waste, (ii) limiting the liability associated with waste disposal, and (iii) continuously improving environmental and job safety programs on the factory floor which serve to minimize emissions and safety risks for employees. We will continue to evaluate the most appropriate, cost effective, control technologies for finishing operations and design production methods to reduce the use of hazardous materials in the manufacturing process. We believe that our facilities are in material compliance with all such applicable laws and regulations. Our currently anticipated capital expenditures for environmental control facility matters are not material.

Although the outcome of the various claims and proceedings against us cannot be predicted with certainty, management believes that the likelihood is remote that any existing claims or proceedings will have a material adverse effect on our financial position, results of operations or cash flows.

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Note 10 - Earnings Per Share

9 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

(10) Earnings Per Share

Basic and diluted earnings per share are calculated using the following weighted average share data (in thousands):

	Three months ended March 31,				Nine months ended March 31,
	2014		2013		2014		2013
Weighted average common shares outstanding for basic calculation		28,920		28,869		28,916		28,850
Effect of dilutive stock options and other share-based awards		351		404		368		363
Weighted average common shares outstanding adjusted for dilution calculation		29,271		29,273		29,284		29,213

As of March 31, 2014 and 2013, stock options to purchase 620,392 and 885,600 common shares, respectively, were excluded from the respective diluted earnings per share calculations because their impact was anti-dilutive.

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Note 7 - Borrowings (Details) - Debt Obligations (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013
Debt Obligations [Abstract]
5.375% Senior Notes due 2015	$ 129,230	$ 129,152
Capital leases and other	1,779	2,137
Total debt	131,009	131,289
Less current maturities	496	480
Total long-term debt	$ 130,513	$ 130,809

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Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement Of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement Of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	$ 40,019	$ 44,445
Cash flows from investing activities:
Capital expenditures	(12,588)	(16,545)
Acquisitions		(598)
Proceeds from the disposal of property, plant and equipment	2,667	3,226
Change in restricted cash and investments	6,526	(14)
Purchase of marketable securities	(17,500)	(17,547)
Proceeds from the sale of marketable securities	12,323	7,990
Other	253	1,333
Net cash provided by (used in) investing activities	(8,319)	(22,155)
Cash flows from financing activities:
Payments on long-term debt	(358)	(187)
Dividends paid	(8,399)	(19,617)
Other	314	1,423
Net cash provided by (used in) financing activities	(8,443)	(18,381)
Effect of exchange rate changes on cash	(54)	15
Net increase (decrease) in cash and cash equivalents	23,203	3,924
Cash & cash equivalents at beginning of period	72,601	79,721
Cash & cash equivalents at end of period	95,804	83,645
Parent Company [Member]
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement Of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	8,136	18,360
Cash flows from financing activities:
Dividends paid	(8,399)	(19,617)
Other	263	1,257
Net cash provided by (used in) financing activities	(8,136)	(18,360)
Subsidiary Issuer [Member]
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement Of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	21,223	12,214
Cash flows from investing activities:
Capital expenditures	(314)	(1,115)
Proceeds from the disposal of property, plant and equipment	24	51
Change in restricted cash and investments	6,526	(14)
Purchase of marketable securities	(17,500)	(17,547)
Proceeds from the sale of marketable securities	12,323	7,990
Other	253	783
Net cash provided by (used in) investing activities	1,312	(9,852)
Cash flows from financing activities:
Other	51	166
Net cash provided by (used in) financing activities	51	166
Net increase (decrease) in cash and cash equivalents	22,586	2,528
Cash & cash equivalents at beginning of period	57,307	64,946
Cash & cash equivalents at end of period	79,893	67,474
Guarantor Subsidiaries [Member]
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement Of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	8,818	10,950
Cash flows from investing activities:
Capital expenditures	(11,159)	(13,165)
Acquisitions		(598)
Proceeds from the disposal of property, plant and equipment	2,643	3,175
Other		550
Net cash provided by (used in) investing activities	(8,516)	(10,038)
Cash flows from financing activities:
Payments on long-term debt	(358)	(187)
Net cash provided by (used in) financing activities	(358)	(187)
Net increase (decrease) in cash and cash equivalents	(56)	725
Cash & cash equivalents at beginning of period	12,463	12,276
Cash & cash equivalents at end of period	12,407	13,001
Non-Guarantor Subsidiaries [Member]
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement Of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	1,842	2,921
Cash flows from investing activities:
Capital expenditures	(1,115)	(2,265)
Net cash provided by (used in) investing activities	(1,115)	(2,265)
Cash flows from financing activities:
Effect of exchange rate changes on cash	(54)	15
Net increase (decrease) in cash and cash equivalents	673	671
Cash & cash equivalents at beginning of period	2,831	2,499
Cash & cash equivalents at end of period	3,504	3,170
Consolidated Entities [Member]
Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Statement Of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	40,019	44,445
Cash flows from investing activities:
Capital expenditures	(12,588)	(16,545)
Acquisitions		(598)
Proceeds from the disposal of property, plant and equipment	2,667	3,226
Change in restricted cash and investments	6,526	(14)
Purchase of marketable securities	(17,500)	(17,547)
Proceeds from the sale of marketable securities	12,323	7,990
Other	253	1,333
Net cash provided by (used in) investing activities	(8,319)	(22,155)
Cash flows from financing activities:
Payments on long-term debt	(358)	(187)
Dividends paid	(8,399)	(19,617)
Other	314	1,423
Net cash provided by (used in) financing activities	(8,443)	(18,381)
Effect of exchange rate changes on cash	(54)	15
Net increase (decrease) in cash and cash equivalents	23,203	3,924
Cash & cash equivalents at beginning of period	72,601	79,721
Cash & cash equivalents at end of period	$ 95,804	$ 83,645

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Note 15 - Financial Information About the Parent, the Issuer and the Guarantors

9 Months Ended

Mar. 31, 2014

Disclosure Text Block Supplement [Abstract]

Condensed Financial Statements [Text Block]

(15) Financial Information About the Parent, the Issuer and the Guarantors

On September 27, 2005, Global (the "Issuer") issued $200 million aggregate principal amount of Senior Notes which have been guaranteed on a senior basis by Interiors (the "Parent"), and other wholly owned domestic subsidiaries of the Issuer and the Parent, including Ethan Allen Retail, Inc., Ethan Allen Operations, Inc., Ethan Allen Realty, LLC, Lake Avenue Associates, Inc. and Manor House, Inc. The subsidiary guarantors (other than the Parent) are collectively called the "Guarantors". The guarantees of the Guarantors are unsecured. All of the guarantees are full, unconditional and joint and several and the Issuer and each of the Guarantors are 100% owned by the Parent. Our other subsidiaries which are not guarantors are called the "Non-Guarantors".

The following tables set forth the condensed consolidating balance sheets as of March 31, 2014 and June 30, 2013, the condensed consolidating statements of operations for the three and nine months ended March 31, 2014 and 2013, and the condensed consolidating statements of cash flows for the nine months ended March 31, 2014 and 2013 of the Parent, the Issuer, the Guarantors and the Non-Guarantors.

CONDENSED CONSOLIDATING BALANCE SHEET

(In thousands)

March 31, 2014
	Parent		Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	79,893		$	12,407		$	3,504		$	-		$	95,804
Marketable securities		-		20,138			-			-			-			20,138
Accounts receivable, net		-		15,743			255			5			-			16,003
Inventories		-		-			169,518			6,240			(30,703	)		145,055
Prepaid expenses and other current assets		-		5,199			13,758			1,957			-			20,914
Intercompany receivables		-		838,999			315,744			(3,453	)		(1,151,290	)		-
Total current assets		-		959,972			511,682			8,253			(1,181,993	)		297,914
Property, plant and equipment, net		-		8,845			260,872			17,080			-			286,797
Goodwill and other intangible assets		-		37,905			7,223			-			-			45,128
Restricted cash and investments		-		8,907			-			-			-			8,907
Other assets		-		3,893			1,483			778			-			6,154
Investment in affiliated companies		713,554		(113,256	)		-			-			(600,298	)		-
Total assets	$	713,554	$	906,266		$	781,260		$	26,111		$	(1,782,291	)	$	644,900
Liabilities and Shareholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	-	$	-		$	496		$	-		$	-		$	496
Customer deposits		-		-			61,582			3,618			-			65,200
Accounts payable		-		5,352			18,237			518			-			24,107
Accrued expenses and other current liabilities		3,039		32,199			14,400			1,415			-			51,053
Intercompany payables		357,641		(8,468	)		773,829			28,288			(1,151,290	)		-
Total current liabilities		360,680		29,083			868,544			33,839			(1,151,290	)		140,856
Long-term debt		-		129,230			1,283			-			-			130,513
Other long-term liabilities		-		4,181			16,032			444			-			20,657
Total liabilities		360,680		162,494			885,859			34,283			(1,151,290	)		292,026
Shareholders’ equity		352,874		743,772			(104,599	)		(8,172	)		(631,001	)		352,874
Total liabilities and shareholders’ equity	$	713,554	$	906,266		$	781,260		$	26,111		$	(1,782,291	)	$	644,900

CONDENSED CONSOLIDATING BALANCE SHEET

(In thousands)

June 30, 2013
	Parent		Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	57,307		$	12,463		$	2,831		$	-		$	72,601
Marketable securities		-		15,529			-			-			-			15,529
Accounts receivable, net		-		12,061			212			4			-			12,277
Inventories		-		-			161,683			5,463			(29,890	)		137,256
Prepaid expenses and other current assets		-		9,882			11,275			1,750			-			22,907
Intercompany receivables		-		831,238			302,577			(3,726	)		(1,130,089	)		-
Total current assets		-		926,017			488,210			6,322			(1,159,979	)		260,570
Property, plant and equipment, net		-		9,432			265,698			16,542			-			291,672
Goodwill and other intangible assets		-		37,905			7,223			-			-			45,128
Restricted cash and investments		-		15,433			-			-			-			15,433
Other assets		-		2,188			1,488			806			-			4,482
Investment in affiliated companies		686,451		(111,647	)		-			-			(574,804	)		-
Total assets	$	686,451	$	879,328		$	762,619		$	23,670		$	(1,734,783	)	$	617,285
Liabilities and Shareholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	-	$	-		$	480		$	-		$	-		$	480
Customer deposits		-		-			56,030			3,068			-			59,098
Accounts payable		-		7,390			15,097			508			-			22,995
Accrued expenses and other current liabilities		2,720		29,710			16,683			1,253			-			50,366
Intercompany payables		349,374		(7,460	)		766,039			22,136			(1,130,089	)		-
Total current liabilities		352,094		29,640			854,329			26,965			(1,130,089	)		132,939
Long-term debt		-		129,152			1,657			-			-			130,809
Other long-term liabilities		-		4,492			14,355			333			-			19,180
Total liabilities		352,094		163,284			870,341			27,298			(1,130,089	)		282,928
Shareholders’ equity		334,357		716,044			(107,722	)		(3,628	)		(604,694	)		334,357
Total liabilities and shareholders’ equity	$	686,451	$	879,328		$	762,619		$	23,670		$	(1,734,783	)	$	617,285

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(In thousands)

Three months ended March 31, 2014
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	109,795		$	185,221		$	9,655		$	(131,610	)	$	173,061
Cost of sales		-			83,285			119,365			6,721			(129,440	)		79,931
Gross profit		-			26,510			65,856			2,934			(2,170	)		93,130
Selling, general and administrative expenses		45			12,939			65,866			4,728			-			83,578
Operating income (loss)		(45	)		13,571			(10	)		(1,794	)		(2,170	)		9,552
Interest and other income (expense)		5,303			(1,932	)		(30	)		31			(3,269	)		103
Interest and other related financing costs		-			1,850			20			-			-			1,870
Income (loss) before income taxes		5,258			9,789			(60	)		(1,763	)		(5,439	)		7,785
Income tax expense		-			2,316			130			81			-			2,527
Net income/(loss)	$	5,258		$	7,473		$	(190	)	$	(1,844	)	$	(5,439	)	$	5,258

Three months ended March 31, 2013
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	108,595		$	188,589		$	9,311		$	(138,351	)	$	168,144
Cost of sales		-			81,631			124,977			5,959			(136,208	)		76,359
Gross profit		-			26,964			63,612			3,352			(2,143	)		91,785
Selling, general and administrative expenses		45			12,817			65,310			4,953			-			83,125
Operating income (loss)		(45	)		14,147			(1,698	)		(1,601	)		(2,143	)		8,660
Interest and other income (expense)		4,419			(2,404	)		5			(131	)		(1,899	)		(10	)
Interest and other related financing costs		-			2,180			15			-			-			2,195
Income (loss) before income taxes		4,374			9,563			(1,708	)		(1,732	)		(4,042	)		6,455
Income tax expense		-			3,001			(943	)		23			-			2,081
Net income/(loss)	$	4,374		$	6,562		$	(765	)	$	(1,755	)	$	(4,042	)	$	4,374

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(In thousands)

Nine months ended March 31, 2014
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	332,623		$	587,149		$	30,596		$	(402,544	)	$	547,824
Cost of sales		-			252,701			378,522			20,460			(401,731	)		249,952
Gross profit		-			79,922			208,627			10,136			(813	)		297,872
Selling, general and administrative expenses		135			34,481			203,205			14,705			-			252,526
Operating income (loss)		(135	)		45,441			5,422			(4,569	)		(813	)		45,346
Interest and other income (expense)		25,982			(1,302	)		(73	)		(7	)		(24,372	)		228
Interest and other related financing costs		-			5,551			63			-			-			5,614
Income (loss) before income taxes		25,847			38,588			5,286			(4,576	)		(25,185	)		39,960
Income tax expense		-			11,793			2,227			93			-			14,113
Net income/(loss)	$	25,847		$	26,795		$	3,059		$	(4,669	)	$	(25,185	)	$	25,847

Nine months ended March 31, 2013
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	-		$	327,987		$	594,200		$	29,040		$	(404,395	)	$	546,832
Cost of sales		-			247,433			387,459			17,894			(405,959	)		246,827
Gross profit		-			80,554			206,741			11,146			1,564			300,005
Selling, general and administrative expenses		135			35,171			207,116			13,612			-			256,034
Operating income (loss)		(135	)		45,383			(375	)		(2,466	)		1,564			43,971
Interest and other income (expense)		24,419			(2,923	)		30			(206	)		(21,128	)		192
Interest and other related financing costs		-			6,546			46			-			-			6,592
Income (loss) before income taxes		24,284			35,914			(391	)		(2,672	)		(19,564	)		37,571
Income tax expense		-			13,059			159			69			-			13,287
Net income/(loss)	$	24,284		$	22,855		$	(550	)	$	(2,741	)	$	(19,564	)	$	24,284

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)

Nine months ended March 31, 2014
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	8,136		$	21,223		$	8,818		$	1,842		$	-	$	40,019
Cash flows from investing activities:
Capital expenditures		-			(314	)		(11,159	)		(1,115	)		-		(12,588	)
Proceeds from the disposal of property, plant and equipment		-			24			2,643			-			-		2,667
Change in restricted cash and investments		-			6,526			-			-			-		6,526
Purchases of marketable securities		-			(17,500	)		-			-			-		(17,500	)
Sales of marketable securities		-			12,323						-			-		12,323
Other		-			253			-			-			-		253
Net cash provided by (used in) investing activities		-			1,312			(8,516	)		(1,115	)		-		(8,319	)
Cash flows from financing activities:
Payments on long-term debt		-			-			(358	)		-			-		(358	)
Dividends paid		(8,399	)		-			-			-			-		(8,399	)
Other		263			51			-			-			-		314
Net cash provided by (used in) financing activities		(8,136	)		51			(358	)		-			-		(8,443	)
Effect of exchange rate changes on cash		-			-			-			(54	)		-		(54	)
Net increase (decrease) in cash and cash equivalents		-			22,586			(56	)		673			-		23,203
Cash and cash equivalents – beginning of period		-			57,307			12,463			2,831			-		72,601
Cash and cash equivalents – end of period	$	-		$	79,893		$	12,407		$	3,504		$	-	$	95,804

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)

Nine months ended March 31, 2013
	Parent			Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	18,360		$	12,214		$	10,950		$	2,921		$	-	$	44,445
Cash flows from investing activities:
Capital expenditures		-			(1,115	)		(13,165	)		(2,265	)		-		(16,545	)
Acquisitions		-			-			(598	)		-			-		(598	)
Proceeds from the disposal of property, plant and equipment		-			51			3,175			-			-		3,226
Change in restricted cash and investments		-			(14	)		-			-			-		(14	)
Purchases of marketable securities		-			(17,547	)		-			-			-		(17,547	)
Sales of marketable securities		-			7,990			-			-			-		7,990
Other		-			783			550			-			-		1,333
Net cash provided by (used in) investing activities		-			(9,852	)		(10,038	)		(2,265	)		-		(22,155	)
Cash flows from financing activities:
Payments on long-term debt		-			-			(187	)		-			-		(187	)
Dividends paid		(19,617	)		-			-			-			-		(19,617	)
Other		1,257			166			-			-			-		1,423
Net cash provided by (used in) financing activities		(18,360	)		166			(187	)		-			-		(18,381	)
Effect of exchange rate changes on cash		-			-			-			15			-		15
Net increase (decrease) in cash and cash equivalents		-			2,528			725			671			-		3,924
Cash and cash equivalents – beginning of period		-			64,946			12,276			2,499			-		79,721
Cash and cash equivalents – end of period	$	-		$	67,474		$	13,001		$	3,170		$	-	$	83,645

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Note 12 - Fair Value Measurements (Tables)

9 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

March 31, 2014
	Level 1		Level 2		Level 3		Balance
Cash equivalents	$	104,711	$	-	$	-	$	104,711
Available-for-sale securities		-		20,138		-		20,138
Total	$	104,711	$	20,138	$	-	$	124,849

June 30, 2013
	Level 1		Level 2		Level 3		Balance
Cash equivalents	$	88,034	$	-	$	-	$	88,034
Available-for-sale securities		-		15,529		-		15,529
Total	$	88,034	$	15,529	$	-	$	103,563

Investments Classified by Contractual Maturity Date [Table Text Block]

March 31, 2014
	Cost		Estimated Fair Value
Due in one year or less	$	14,411	$	14,304
Due after one year through five years	$	5,823	$	5,834

June 30, 2013
	Cost		Estimated Fair Value
Due in one year or less	$	13,213	$	13,067
Due after one year through five years	$	2,463	$	2,462

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Note 15 - Financial Information About the Parent, the Issuer and the Guarantors (Details) - Condensed Consolidating Balance Sheet (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2012
Current assets:
Cash and cash equivalents	$ 95,804	$ 72,601	$ 83,645	$ 79,721
Marketable securities	20,138	15,529
Inventories	145,055	137,256
Prepaid expenses and other current assets	20,914	22,907
Total current assets	297,914	260,570
Property, plant and equipment, net	286,797	291,672
Goodwill and other intangible assets	45,128	45,128
Restricted cash and investments	8,907	15,433
Other assets	6,154	4,482
Total assets	644,900	617,285
Current liabilities:
Current maturities of long-term debt	496	480
Customer deposits	65,200	59,098
Accounts payable	24,107	22,995
Accrued expenses and other current liabilities	27,611	23,161
Total current liabilities	140,856	132,939
Long-term debt	130,513	130,809
Other long-term liabilities	20,657	19,180
Total liabilities	292,026	282,928
Shareholders’ equity	352,604	334,150
Total liabilities and shareholders’ equity	644,900	617,285
Consolidation, Eliminations [Member]
Current assets:
Inventories	(30,703)	(29,890)
Intercompany receivables	(1,151,290)	(1,130,089)
Total current assets	(1,181,993)	(1,159,979)
Investment in affiliated companies	(600,298)	(574,804)
Total assets	(1,782,291)	(1,734,783)
Current liabilities:
Intercompany payables	(1,151,290)	(1,130,089)
Total current liabilities	(1,151,290)	(1,130,089)
Total liabilities	(1,151,290)	(1,130,089)
Shareholders’ equity	(631,001)	(604,694)
Total liabilities and shareholders’ equity	(1,782,291)	(1,734,783)
Parent Company [Member]
Current assets:
Investment in affiliated companies	713,554	686,451
Total assets	713,554	686,451
Current liabilities:
Accrued expenses and other current liabilities	3,039	2,720
Intercompany payables	357,641	349,374
Total current liabilities	360,680	352,094
Total liabilities	360,680	352,094
Shareholders’ equity	352,874	334,357
Total liabilities and shareholders’ equity	713,554	686,451
Subsidiary Issuer [Member]
Current assets:
Cash and cash equivalents	79,893	57,307	67,474	64,946
Marketable securities	20,138	15,529
Accounts receivable, net	15,743	12,061
Prepaid expenses and other current assets	5,199	9,882
Intercompany receivables	838,999	831,238
Total current assets	959,972	926,017
Property, plant and equipment, net	8,845	9,432
Goodwill and other intangible assets	37,905	37,905
Restricted cash and investments	8,907	15,433
Other assets	3,893	2,188
Investment in affiliated companies	(113,256)	(111,647)
Total assets	906,266	879,328
Current liabilities:
Accounts payable	5,352	7,390
Accrued expenses and other current liabilities	32,199	29,710
Intercompany payables	(8,468)	(7,460)
Total current liabilities	29,083	29,640
Long-term debt	129,230	129,152
Other long-term liabilities	4,181	4,492
Total liabilities	162,494	163,284
Shareholders’ equity	743,772	716,044
Total liabilities and shareholders’ equity	906,266	879,328
Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	12,407	12,463	13,001	12,276
Accounts receivable, net	255	212
Inventories	169,518	161,683
Prepaid expenses and other current assets	13,758	11,275
Intercompany receivables	315,744	302,577
Total current assets	511,682	488,210
Property, plant and equipment, net	260,872	265,698
Goodwill and other intangible assets	7,223	7,223
Other assets	1,483	1,488
Total assets	781,260	762,619
Current liabilities:
Current maturities of long-term debt	496	480
Customer deposits	61,582	56,030
Accounts payable	18,237	15,097
Accrued expenses and other current liabilities	14,400	16,683
Intercompany payables	773,829	766,039
Total current liabilities	868,544	854,329
Long-term debt	1,283	1,657
Other long-term liabilities	16,032	14,355
Total liabilities	885,859	870,341
Shareholders’ equity	(104,599)	(107,722)
Total liabilities and shareholders’ equity	781,260	762,619
Non-Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	3,504	2,831	3,170	2,499
Accounts receivable, net	5	4
Inventories	6,240	5,463
Prepaid expenses and other current assets	1,957	1,750
Intercompany receivables	(3,453)	(3,726)
Total current assets	8,253	6,322
Property, plant and equipment, net	17,080	16,542
Other assets	778	806
Total assets	26,111	23,670
Current liabilities:
Customer deposits	3,618	3,068
Accounts payable	518	508
Accrued expenses and other current liabilities	1,415	1,253
Intercompany payables	28,288	22,136
Total current liabilities	33,839	26,965
Other long-term liabilities	444	333
Total liabilities	34,283	27,298
Shareholders’ equity	(8,172)	(3,628)
Total liabilities and shareholders’ equity	26,111	23,670
Consolidated Entities [Member]
Current assets:
Cash and cash equivalents	95,804	72,601	83,645	79,721
Marketable securities	20,138	15,529
Accounts receivable, net	16,003	12,277
Inventories	145,055	137,256
Prepaid expenses and other current assets	20,914	22,907
Total current assets	297,914	260,570
Property, plant and equipment, net	286,797	291,672
Goodwill and other intangible assets	45,128	45,128
Restricted cash and investments	8,907	15,433
Other assets	6,154	4,482
Total assets	644,900	617,285
Current liabilities:
Current maturities of long-term debt	496	480
Customer deposits	65,200	59,098
Accounts payable	24,107	22,995
Accrued expenses and other current liabilities	51,053	50,366
Total current liabilities	140,856	132,939
Long-term debt	130,513	130,809
Other long-term liabilities	20,657	19,180
Total liabilities	292,026	282,928
Shareholders’ equity	352,874	334,357
Total liabilities and shareholders’ equity	$ 644,900	$ 617,285

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Note 12 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 104,711	$ 88,034
Available-for-sale securities	20,138	15,529
Total	124,849	103,563
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	104,711	88,034
Available-for-sale securities	0	0
Total	104,711	88,034
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Available-for-sale securities	20,138	15,529
Total	20,138	15,529
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Available-for-sale securities	0	0
Total	$ 0	$ 0

XML

Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Operating activities:
Net income	$ 25,847	$ 24,284
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,276	13,514
Compensation expense related to share-based payment awards	990	1,115
Provision (benefit) for deferred income taxes	(1,382)	597
Loss on disposal of property, plant and equipment	2,164	3,696
Other	425	172
Change in operating assets and liabilities, net of effects of acquired businesses:
Accounts receivable	(3,726)	2,855
Inventories	(7,799)	13,808
Prepaid and other current assets	613	2,054
Customer deposits	6,102	(6,567)
Accounts payable	1,112	(1,899)
Accrued expenses and other current liabilities	288	(8,241)
Other assets and liabilities	2,109	(943)
Net cash provided by operating activities	40,019	44,445
Investing activities:
Proceeds from the disposal of property, plant & equipment	2,667	3,226
Change in restricted cash and investments	6,526	(14)
Capital expenditures	(12,588)	(16,545)
Acquisitions		(598)
Purchases of marketable securities	(17,500)	(17,547)
Sales of marketable securities	12,323	7,990
Other investing activities	253	1,333
Net cash used in investing activities	(8,319)	(22,155)
Financing activities:
Payments on long-term debt and capital lease obligations	(358)	(187)
Payment of cash dividends	(8,399)	(19,617)
Other financing activities	314	1,423
Net cash used in financing activities	(8,443)	(18,381)
Effect of exchange rate changes on cash	(54)	15
Net increase (decrease) in cash & cash equivalents	23,203	3,924
Cash & cash equivalents at beginning of period	72,601	79,721
Cash & cash equivalents at end of period	$ 95,804	$ 83,645

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Note 4 - Restricted Cash and Investments

9 Months Ended

Mar. 31, 2014

Disclosure Text Block Supplement [Abstract]

Restricted Assets Disclosure [Text Block]

(4) Restricted Cash and Investments

At March 31, 2014 and June 30, 2013, we held $8.9 million and $15.4 million respectively, of restricted cash and investments in lieu of providing letters of credit for the benefit of the provider of our workmen’s compensation and other insurance and for the benefit of the issuer of our private label credit card. These funds can be invested in high quality money market mutual funds, U.S. Treasuries and U.S. Government agency fixed income instruments, and cannot be withdrawn without the prior written consent of the secured party. These assets are carried at cost, which approximates market value and are classified as long-term assets because they are not expected to be used within one year to fund operations. See also Note 12, “Fair Value Measurements". In January 2014 under the terms of the amended agreement with our provider of our private label credit card program, $6 million of restricted cash was released and moved into the Company’s operating cash accounts.

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Note 13 - Segment Information (Tables)

9 Months Ended

Mar. 31, 2014

Note 13 - Segment Information (Tables) [Line Items]

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

	Three months ended March 31,						Nine months ended March 31,
	2014			2013			2014			2013
Case Goods		38	%		36	%		35	%		37	%
Upholstered Products		46	%		48	%		48	%		48	%
Home Accessories and Other		16	%		16	%		17	%		15	%
		100	%		100	%		100	%		100	%

Independently Owned Foreign Design Centers [Member]

Note 13 - Segment Information (Tables) [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Nine months ended March 31,
	2014			2013
Independent design centers		90			86
Company operated design centers		8			7
Total international design centers		98			93
Percentage of consolidated net sales		10.3	%		9.3	%

Income Statement Section One [Member]

Note 13 - Segment Information (Tables) [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three months ended March 31,						Nine months ended March 31,
	2014			2013			2014			2013
Net sales:
Wholesale segment	$	111,143		$	108,101		$	337,474		$	327,690
Retail segment		131,813			132,056			425,136			432,962
Elimination of inter-company sales		(69,895	)		(72,013	)		(214,786	)		(213,820	)
Consolidated Total	$	173,061		$	168,144		$	547,824		$	546,832
Operating income:
Wholesale segment	$	13,009		$	12,754		$	43,507		$	37,651
Retail segment		(1,591	)		(2,283	)		2,411			4,782
Adjustment of inter-company profit (1)		(1,866	)		(1,811	)		(572	)		1,538
Consolidated Total	$	9,552		$	8,660		$	45,346		$	43,971
Depreciation & Amortization:
Wholesale segment	$	2,018		$	2,135		$	5,824		$	6,116
Retail segment		2,559			2,413			7,452			7,398
Consolidated Total	$	4,577		$	4,548		$	13,276		$	13,514
Capital expenditures:
Wholesale segment	$	1,991		$	1,381		$	6,483		$	6,024
Retail segment		2,039			1,599			6,105			10,521
Acquisitions		-			-			-			598
Consolidated Total	$	4,030		$	2,980		$	12,588		$	17,143

Total Assets [Member]

Note 13 - Segment Information (Tables) [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	March 31, 2014			June 30, 2013
Total Assets:
Wholesale segment	$	323,198		$	291,942
Retail segment		352,405			355,233
Inventory profit elimination (2)		(30,703	)		(29,890	)
Consolidated Total	$	644,900		$	617,285

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Note 10 - Earnings Per Share (Details) - Calculation of Weighted Average Shares In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Calculation of Weighted Average Shares [Abstract]
Weighted average common shares outstanding for basic calculation	28,920	28,869	28,916	28,850
Effect of dilutive stock options and other share-based awards	351	404	368	363
Weighted average common shares outstanding adjusted for dilution calculation	29,271	29,273	29,284	29,213

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Note 14 - Recently Issued Accounting Pronouncements

9 Months Ended

Mar. 31, 2014

Disclosure Text Block [Abstract]

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

(14) Recently Issued Accounting Pronouncements

There have been no recently issued accounting pronouncements during the nine months ended March 31, 2014 or impending accounting changes that are expected to have a material effect on the Company’s financial statements.