Farooq Kathwari

The fact is that consumers are cautious.

We have seen that, even though we have had, I would say, a significant decline in people coming in.

The only good news is that people who are coming in are more likely to buy.

Now, we are, as I said, a vertically integrated company.

We have one of the largest interior design networks.

We have our interior designers work with clients.

We also have, and it took us years and years to do it.

For me, I got started when I was pretty young.

I started running Ethan Allen 40 years back.

We have established one of the, I would say, efficient logistics network.

We deliver our products to our clients at one delivered price with good service, whether you're living in Seattle

Miami, New York, anywhere.

Now, it took us a lot of time to do that.

That has given us an advantage.

No, we are looking at it.

Obviously, the impact of the oil prices, it has increased our fuel costs and our costs have gone up.

But at this stage, because of the fact of a vertical integration and the efficiencies we have, we are impacted.

but somewhat less.

Where we are impacted more is what was said earlier, is that consumers are cautious.

Our traffic is down.