Ethan Allen Interiors Inc (ETD) 2025 Q2 法說會逐字稿

Good afternoon, and welcome to the Ethan Allen fiscal 2025 second-quarter analyst conference call. (Operator Instructions) As a reminder, this conference is being recorded.

下午好，歡迎參加 Ethan Allen 2025 財年第二季分析師電話會議。（操作員指示）提醒一下，本次會議正在錄音。

It is now my pleasure to introduce our host, Matt McNulty, Senior Vice President, Chief Financial Officer, and Treasurer. Thank you. You may begin.

現在我很高興介紹我們的主持人，高級副總裁、財務長兼財務主管 Matt McNulty。謝謝。你可以開始了。

Thank you, operator. Good afternoon, and thank you for joining us today to discuss Ethan Allen's fiscal 2025 second-quarter results. With me today is Farooq Kathwari, our Chairman, President, and CEO. Mr. Kathwari will open and close our prepared remarks, while I will speak to our financial performance midway through. After our prepared remarks, we will then open the call for your questions.

謝謝您，接線生。下午好，感謝您今天加入我們討論 Ethan Allen 2025 財年第二季業績。今天和我一起的是我們的董事長、總裁兼執行長 Farooq Kathwari。卡特瓦里先生將開始和結束我們的準備好的發言，而我將在中途談論我們的財務表現。在我們發表完準備好的發言後，我們將開始回答大家的提問。

Before I begin, I'd like to remind the audience that this call is being webcast live under the News and Events tab within our Investor Relations website. A replay of today's call will also be made available on our Investor Relations website. There, you will find a copy of our press release, which contains reconciliations of non-GAAP financial measures referred to on this call and in the press release. We believe the non-GAAP presentation better reflects underlying operating trends and performance of the business.

在我開始之前，我想提醒聽眾，本次電話會議正在我們投資者關係網站的「新聞和活動」標籤下進行網路直播。今天的電話會議重播也將在我們的投資者關係網站上提供。您將在那裡找到我們的新聞稿副本，其中包含本次電話會議和新聞稿中提及的非 GAAP 財務指標的對帳。我們認為非公認會計準則的呈現方式能更能反映業務的基本營運趨勢和績效。

Our comments today may include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. The most significant risk factors that could affect our future results are described in our quarterly report on Form 10-Q. Please refer to our SEC filings for a complete review of those risks. The company assumes no obligation to update or revise any forward-looking matters discussed during this call.

我們今天的評論可能包括前瞻性陳述，這些陳述受風險和不確定性的影響，可能導致實際結果大不相同。我們在 10-Q 表季度報告中描述了可能影響我們未來業績的最重要風險因素。請參閱我們的 SEC 文件以全面了解這些風險。本公司不承擔更新或修改本次電話會議中討論的任何前瞻性事項的義務。

With that, I am pleased to turn the call over to Mr. Kathwari.

現在，我很高興將電話轉給卡特瓦里先生。

Thank you, Matt, and thanks for participating in our second-quarter results ended December 31, 2024. I would like to start with the devastating effects of wildfires in Southern California, which have resulted in loss of life and devastated many communities. Our team members and our clients have been impacted, and we pray for their safety. Fortunately, our design center in Pasadena closest to the fires escaped the fire and is back in operations along with all of our six design centers and a major retail service center in the area.

謝謝你，馬特，謝謝您參與我們截至 2024 年 12 月 31 日的第二季業績。首先我想談談南加州野火造成的破壞性影響，野火造成了傷亡，並摧毀了許多社區。我們的團隊成員和客戶受到了影響，我們為他們的安全祈禱。幸運的是，我們位於帕薩迪納距離火災最近的設計中心躲過了一劫，並與該地區的所有六個設計中心和一個大型零售服務中心一起恢復運作。

As we mentioned in our press release, despite the challenging political and economic environment, we had strong financial results in our second quarter, especially in our book orders. We reported consolidated net sales of $157 million, gross margin of 60.3%, operating income of $18.2 million, operating margin of 11.5%, and diluted EPS of $0.59.

正如我們在新聞稿中提到的，儘管政治和經濟環境充滿挑戰，但我們第二季的財務業績強勁，尤其是書籍訂單。我們報告的綜合淨銷售額為 1.57 億美元，毛利率為 60.3%，營業收入為 1,820 萬美元，營業利潤率為 11.5%，稀釋每股收益為 0.59 美元。

We had strong operating cash flow and ended with $184.2 million, an increase of $16.4 million from a year ago. We paid $10 million in cash dividends and pleased that yesterday, our Board approved a regular cash dividend of $0.39 per share payable on February 26, 2025.

我們的營運現金流強勁，最終達到 1.842 億美元，比一年前增加了 1,640 萬美元。我們支付了 1000 萬美元的現金股息，並且很高興昨天董事會批准了每股 0.39 美元的定期現金股息，將於 2025 年 2 月 26 日支付。

After Matt presents a more detailed financial information, I will review our ongoing initiatives to continue our progress. Matt?

在馬特提供更詳細的財務資訊後，我將回顧我們正在進行的舉措，以繼續取得進展。馬特？

Thank you, Mr. Kathwari. Our financial results in the just completed second quarter were highlighted by strong demand, margins, and operating cash flow. Our consolidated net sales were $157.3 million compared with $167.3 million a year ago, and a higher average retail ticket price and lower sales returns helped to offset lower backlogs, fewer contract sales and a lower delivered unit volume. Demand levels improved sequentially throughout the quarter and concluded with a strong December aided by our special promotion.

謝謝你，Kathwari 先生。剛結束的第二季的財務業績突顯了強勁的需求、利潤率和經營現金流。我們的綜合淨銷售額為1.573 億美元，而去年同期為1.673 億美元，較高的平均零售票價和較低的銷售回報有助於抵消較低的積壓訂單、較少的合約銷售和較低的交付單位數量。整個季度的需求水準持續提高，並在我們的特別促銷的幫助下於 12 月份取得了強勁的業績。

Retail segment orders grew by 15.8%, while wholesale segment orders were up 14.3%. Written order improvement was driven by increased promotional activity, strong financing programs, and elevated interest in the home post the US elections held in early November. We ended the quarter with 172 Ethan Allen retail design centers in North America, including 141 company-operated and 31 independently owned and operated locations.

零售部分訂單成長15.8%，批發部分訂單成長14.3%。書面訂單的成長得益於促銷活動的增加、強勁的融資計劃以及 11 月初美國大選後人們對住房的興趣增強。截至本季度，我們在北美擁有 172 個 Ethan Allen 零售設計中心，其中包括 141 個公司營運的地點和 31 個獨立擁有和營運的地點。

Wholesale backlog at December 31 totaled $57.7 million, up 5% from a year ago. As expected, our wholesale backlog declined in the past three months as our state department delivered sales outpaced incoming orders. Our distribution center in North Carolina, that previously sustained flooding from Hurricane Helene in September, resumed operations, and we are thankful to those who helped us recover. Strong consolidated gross margin of 60.3% was driven by a favorable change in the sales mix, lower headcount, selective price increases, lower raw material input costs, and a higher retail average ticket price.

截至 12 月 31 日的批發積壓訂單總額為 5,770 萬美元，比去年同期成長 5%。正如預期的那樣，由於我們州部門的銷售額超過了收到的訂單，我們過去三個月的批發積壓訂單有所下降。我們位於北卡羅來納州的配送中心在 9 月遭受了颶風海倫 (Hurricane Helene) 的洪水侵襲，現已恢復運營，我們感謝那些幫助我們恢復的人們。60.3% 的強勁綜合毛利率得益於銷售組合的有利變化、員工人數的減少、選擇性價格上漲、原材料投入成本的降低以及零售平均票價的提高。

Our consolidated headcount totaled 3,318 associates at December 31, 2024, a decrease of 6.9% from a year ago as we continue to identify operational efficiencies and leverage the use of technology to streamline workflows throughout our vertically integrated enterprise.

截至 2024 年 12 月 31 日，我們的合併員工總數為 3,318 名，比一年前減少了 6.9%，因為我們繼續確定營運效率並利用技術簡化整個垂直整合企業的工作流程。

Adjusted operating margin was 11.5% compared with 12.8% a year ago. Our double-digit operating margin reflects our ability to tightly manage expenses. Compared to our pre-pandemic quarter ended December 31, 2019, our adjusted operating margin has improved 610 basis points due to streamlining our vertically integrated enterprise.

調整後營業利益率為 11.5%，去年同期為 12.8%。我們的兩位數的營業利潤率反映了我們嚴格管理費用的能力。與截至 2019 年 12 月 31 日的疫情前季度相比，由於精簡了垂直整合企業，我們的調整後營業利潤率提高了 610 個基點。

Adjusted diluted EPS was $0.59 compared with $0.68 a year ago. For historical context, adjusted diluted EPS for the three months ended December 31, 2019, was $0.27. Our effective tax rate was 25.4% for the quarter, which varies from the 21% federal statutory rate primarily due to state taxes.

調整後攤薄每股收益為 0.59 美元，去年同期為 0.68 美元。從歷史背景來看，截至 2019 年 12 月 31 日的三個月的調整後稀釋每股收益為 0.27 美元。本季我們的有效稅率為 25.4%，與 21% 的聯邦法定稅率不同，主要原因是州稅。

Now, turning to our liquidity. We ended the quarter with a robust balance sheet including cash and investments of $184.2 million and no outstanding debt. We generated $11.6 million of cash from operating activities and kept inventory levels consistent with a year ago. Capital expenditures were $3.8 million and included additional investments in technology, retail design center relocations and improvements, and remodeling costs associated with our hotel. New and relocated state-of-the-art design centers in Watchung, New Jersey and Peoria, Arizona were opened during fiscal 2025 that showcase our unique style while combining complementary interior design services with technology.

現在，談談我們的流動性。本季結束時，我們的資產負債表強勁，包括 1.842 億美元的現金和投資，且沒有未償還債務。我們從經營活動中產生了 1,160 萬美元的現金，且庫存水準與去年同期保持一致。資本支出為 380 萬美元，包括對技術、零售設計中心搬遷和改進以及與我們酒店相關的改造費用的額外投資。2025 財年，我們在美國新澤西州沃奇頓和亞利桑那州皮奧裡亞開設了新的和遷移的最先進的設計中心，展示了我們獨特的風格，同時將互補的室內設計服務與技術相結合。

We also continued our practice of returning capital to shareholders in the form of cash dividends and have a current yield of 5.5%. In October, our Board declared a regular quarterly cash dividend of $0.39 per share, which was paid on November 27. Also, as just announced in our earnings release, our Board declared a regular quarterly cash dividend of $0.39 per share which will be paid this February.

我們也繼續以現金股利的形式向股東返還資本，目前的收益率為 5.5%。十月份，我們的董事會宣布派發每股 0.39 美元的定期季度現金股息，並於 11 月 27 日支付。此外，正如我們在收益報告中宣布的那樣，我們的董事會宣布定期季度現金股息為每股 0.39 美元，並將於今年 2 月支付。

In summary, we are pleased with our performance that saw incremental consumer interest return back to the home. Disciplined investments and solid execution throughout our vertically integrated business produced strong written demand, positive operating cash flow, and a double-digit operating margin. Our robust balance sheet has us well-positioned as we continue to move through the calendar year.

總而言之，我們對我們的表現感到滿意，看到消費者對家庭的興趣逐漸增加。我們垂直整合業務中的嚴謹投資和穩健執行產生了強勁的書面需求、正的經營現金流量和兩位數的經營利潤率。我們強勁的資產負債表為我們在未來一年的持續發展做好了準備。

With that, I will now turn the call back over to Mr. Kathwari.

說完這些，我現在將電話轉回卡特瓦里先生。

Well, thank you, Matt. We are positioned well as a vertically integrated enterprise, which includes a very strong and dedicated team, the ability to provide interior design services with state-of-the-art technology, offering relevant, high-quality products that offer both a modern design with a classic perspective and a classic design with a modern perspective. And this is very important, these two attitudes.

好吧，謝謝你，馬特。我們是一家垂直整合的企業，擁有一支非常強大和敬業的團隊，能夠提供採用最先進技術的室內設計服務，提供具有現代設計感和經典的視角以及具有現代視角的經典設計。這兩種態度非常重要。

75% of our furniture is made in our North American facilities. Our national and retail logistics is unique, and a great competitive advantage enabling us to deliver our products with, what we say, white glove delivery at one cost in North America to our clients.

我們 75% 的家具都是在北美工廠生產的。我們的全國和零售物流是獨一無二的，並且具有巨大的競爭優勢，使我們能夠以北美一次性成本向客戶提供我們的產品，也就是我們所說的白手套送貨。

Our retail network of 172 design centers in North America and additional design centers internationally are well-positioned. During the last two years, we have continued to strengthen our network with new and relocated design centers and especially with freshening the interiors of all with our products and attitudes. We continue to relocate to stronger locations and add new design centers.

我們的零售網路由北美的 172 個設計中心和國際上的其他設計中心組成，地理位置優越。在過去的兩年裡，我們透過新建和遷移設計中心不斷加強我們的網絡，特別是透過我們的產品和態度來更新所有人的內部。我們將繼續遷移到更強大的地點並增加新的設計中心。

After the pause due to COVID, we have been introducing new products to strengthen our offerings. Our marketing initiatives continue to get our message across. This includes direct mail magazines, digital magazines, our website, local, and regional advertising. During the last few years, while strengthening our offerings, our retail network, our manufacturing, our logistics marketing, and technologies, we have been able to also reduce our headcount. Technology has played a very important role in that. At December 31, 2024, was 3,318, down 7% from a year ago and 27% less than December 2019. During this period, we also repositioned our manufacturing, our national logistics, and our retail network.

在因疫情而暫停之後，我們一直在推出新產品來增強我們的產品範圍。我們的行銷活動繼續傳達我們的訊息。這包括直郵雜誌、數位雜誌、我們的網站、本地和地區廣告。在過去的幾年裡，我們在加強產品、零售網路、製造、物流行銷和技術的同時，也減少了員工人數。科技在其中發揮了非常重要的作用。截至 2024 年 12 月 31 日，為 3,318 人，比去年同期下降 7%，比 2019 年 12 月下降 27%。在此期間，我們也重新定位了我們的製造業、全國物流和零售網路。

In summary, we continue to strengthen the various areas of our vertically integrated enterprise and are well-positioned to meet the opportunities and challenges ahead.

總而言之，我們將繼續加強垂直整合企業的各個領域，並做好充分準備迎接未來的機會和挑戰。

With this, I would like to open it up for any questions or comments.

在此，我願意接受大家的提問或評論。

(Operator Instructions) Brad Thomas, KeyBanc Capital Markets.

（操作員指示）布拉德·托馬斯，KeyBanc 資本市場。

Yeah. Hello, Brad.

是的。你好，布拉德。

Hi. Good afternoon, Farooq. Good afternoon, Matt. And first and foremost, congratulations on the very strong end of the year -- end of the quarter, I should say, end of the calendar year on the order front.

你好。下午好，法魯克。下午好，馬特。首先，我要祝賀您今年年底——本季末，或者說，日曆年末的訂單量非常強勁。

Yeah, thank you. It was -- it is very encouraging to see that.

是的，謝謝。看到這一點非常令人鼓舞。

It really is. We've all been waiting for a turn in the industry, and I think we're hopeful that, that is what's coming to fruition here. I guess that was going to be my first question was, what's the degree of confidence that you have, Farooq, that this is the turning point here for the company and for the industry?

確實如此。我們一直在等待產業的轉折，我想，我們希望這就是即將實現的轉折。我想我的第一個問題是，法魯克，您有多大信心認為這是公司和產業的轉捩點？

Well, I can also mention that there are factors that led to this as well. So certainly, obviously, it reflected our enterprise, our strong product programs, our network, but it also reflected the fact that we did give a special savings during this quarter, which helped. Now -- but it would not have happened without all the other factors. So I think that all of those factors helped make this quarter, especially on the written business, very, very strong.

嗯，我也可以提一下，也有一些因素導致了這種情況。因此，顯然，這反映了我們的企業、強大的產品計劃和網絡，但也反映了我們在本季度確實進行了特別節省的事實，這有所幫助。現在——但是如果沒有其他因素的話，這一切都不會發生。所以我認為所有這些因素都有助於本季業績表現非常強勁，特別是書面業務。

Now, your next question about -- as we move forward, we are positioned very, very well. January did start weak, mostly because of weather. We had very tough weather in many parts of the country for the first three weeks. But when the weather improved in the last week or so, we can see more robust activity. We feel good about it.

現在，您的下一個問題是—隨著我們不斷前進，我們的定位非常非常好。一月份的開局確實比較疲軟，主要原因是天氣原因。最初三週，全國很多地方的天氣都十分惡劣。但當過去一周左右天氣好轉時，我們可以看到更強勁的活動。我們對此感覺很好。

To answer your question, we have strong programs. Our retail network has been repositioned. Our -- we have strong manufacturing logistics. And as I said, we have been able to do all of this while making it extremely efficient. So I think the opportunity of having strong product programs, the opportunity of the efficiency that we have brought in, and really a strong designer network and combined with technology.

回答你的問題，我們有強大的計劃。我們的零售網路已經重新定位。我們的－我們擁有強大的製造物流。正如我所說的，我們能夠做到這一切，並且極其有效率。因此，我認為擁有強大的產品計劃的機會、我們所帶來的效率的機會以及真正強大的設計師網絡並與技術相結合的機會。

As I mentioned, this major decrease in the headcount is mostly due to combining good talent with technology. And I think as we do that, we feel confident that we'll keep -- we'll continue with the progress.

正如我所提到的，員工人數的大幅減少主要是因為優秀人才與科技的結合。我認為，當我們這樣做時，我們有信心我們將繼續取得進展。

That's great. And clearly, the incremental promotions seem to be a positive for you here. Do you intend on keeping up these incremental promotions or will you be more normalized going forward?

那太棒了。顯然，增量促銷似乎對您來說是有利的。您是否打算繼續這些漸進式的促銷活動，還是會採取更常態化的促銷方式？

We'll use both. It depends on the opportunities take place as there are certain opportunities of timing, certain special timing of holidays, events, gives us an opportunity to do that. So we'll combine both as we go forward.

我們將同時使用兩者。這取決於機會的發生，因為有一定的時機，一定的特殊假期、活動時間，為我們提供了這樣做的機會。因此，在未來的發展中，我們將把兩者結合起來。

Great. And maybe just one more last one for me here, Farooq. It was such again, impressive acceleration from your September quarter to your December quarter in terms of orders. Any other nuances that you might highlight? Is this all new customers or incremental customers coming in or is there anything different happening in terms of the average ticket or the types of customers or the types of products? Just any other detail would be really interesting.

偉大的。也許這裡對我來說只剩下最後一個問題了，法魯克。就訂單量而言，從 9 月季度到 12 月季度，這再次令人矚目。您還想強調其他細微差別嗎？這些都是新客戶還是新增客戶，或者在平均票價、客戶類型或產品類型方面有什麼不同嗎？任何其他細節都會非常有趣。

Yeah. I would say that in the last year or so, we have also been introducing new product. We will continue to do that because, again, before -- prior to that, we were cautious because we had very high backlogs and we didn't want to introduce new products because of service. Our service position is very good right now so that we are now being more aggressive introducing new products.

是的。我想說，在過去一年左右的時間裡，我們也一直在推出新產品。我們將繼續這樣做，因為在此之前，我們非常謹慎，因為我們的積壓訂單非常多，而且我們不想因為服務而推出新產品。我們的服務地位目前非常好，因此我們現在更積極地推出新產品。

The other one is that we are also increasing our marketing. In fact, in this last quarter, we increased our marketing spend. And we will -- in terms of -- and a lot of that we are doing is in terms of marketing, in terms of getting more new customers in and the new forms of marketing, utilizing technology to bring people in. So we increase our marketing by about $0.5 million?

另外一個就是我們也在加大行銷力道。事實上，在上個季度，我們增加了行銷支出。而我們所做的工作很多都是在行銷方面，在吸引更多新客戶和新行銷形式方面，利用科技來吸引人們。那麼我們的行銷費用將增加約 50 萬美元？

Correct.

正確的。

Increased our marketing. Think of this in last quarter by $0.5 million, which was what about 0.5%?

增加了我們的行銷。想想上個季度的數字是 50 萬美元，大約是 0.5%？

15% higher.

高出 15%。

Yeah, but 2.5% [of net sales?] (added by company after the call)

是的，但是是 2.5%（淨銷售額？）（公司在通話後補充）

Yeah.

是的。

From 2% to 2.5%, 15% higher, Brad. So we will continue to do that also, but to continue to utilize more innovative ways of marketing than the old traditional ways we used to do.

從 2% 到 2.5%，高出 15%，布拉德。因此，我們也會繼續這樣做，但會繼續採用比過去傳統的行銷方式更具創新性的行銷方式。

That's great. We've certainly heard some good data points out of the industry, but this really exceeded anything that we've heard out of any way else here of late. So congratulations, and I'll turn it over to others.

那太棒了。我們確實聽到了來自業界的一些好的數據點，但這確實超出了我們最近從其他任何地方聽到的任何數據。恭喜你，現在我會把這個機會交給其他人。

Thanks very much.

非常感謝。

Cristina Fernandez, Telsey Advisory Group.

克里斯蒂娜‧費爾南德斯 (Cristina Fernandez)，Telsey 顧問集團。

Yeah. Hello, Christina. How are you?

是的。你好，克里斯蒂娜。你好嗎？

How are you? Good afternoon, Farooq and Matt. I wanted to follow up on Brad's questions about the demand trends. I mean, you talked about progression through the quarter. How were trends in October and November? I guess what I'm trying to get through was how much is that special promotion in December help or how you already started to see an improvement in the prior months.

你好嗎？下午好，法魯克和馬特。我想跟進布拉德關於需求趨勢的問題。我的意思是，您談到了本季的進展。十月和十一月的趨勢如何？我想我想表達的是，十二月份的特別促銷活動有多大幫助，或者你在前幾個月已經開始看到哪些改善了。

Cristina, I think that there was improvement, but a major improvement did take place in December because of the special -- and look, it was not that a major promotion. It was a 5% more savings. And so it was the combination of all factors that made it happen.

克里斯蒂娜，我認為有所改善，但是 12 月份確實取得了重大改善，因為有特別活動 — — 而且你看，這並不是什麼重大的促銷活動。節省了 5% 以上。所以，是所有因素的結合才使得這事件發生。

And then I guess, what was the impetus for increasing the promotions? I feel like you've been pretty steady over the past couple of years, usually like 20%, 15% off with it. Is it a response to competition that you saw out there, just wanting to accelerate the order intake? Maybe walk us through, I guess, that decision that you haven't done too much of that before.

然後我想問一下，增加促銷的動力是什麼？我覺得過去幾年你的業績一直很穩定，通常都有 20% 到 15% 的折扣。這是對您所看到的競爭的反應嗎？我想，也許您可以向我們介紹這個決定，因為您之前並沒有做過太多這樣的決定。

Well, it's a combination of a number of factors. It is the fact that we felt that because we were in a much better service position that we will be able to deliver the products. That is a very important factor. Because I didn't want to spend a lot of money, and we had delays of service because of the backlogs. So that was an important factor. We felt we are ready, and that's why that was a major factor in investing in marketing.

嗯，這是多種因素共同作用的結果。事實上，我們覺得，由於我們處於更好的服務地位，我們將能夠交付產品。這是一個非常重要的因素。因為我不想花太多錢，而且由於積壓，我們的服務也延遲了。所以這是一個重要因素。我們覺得我們已經準備好了，這就是為什麼這是投資行銷的一個主要因素。

And with the higher promotions, should we expect an impact to the gross margin, which has been very high in the past couple of quarters going forward?

而且隨著促銷活動的增加，我們是否應該預期會對毛利率產生影響？

Yeah. Keep in mind that if you take a look at historically, it was not that many years back, we used to spend close to 5% of sales on our marketing.

是的。請記住，如果回顧歷史，不久前，我們曾經將近 5% 的銷售額花在行銷上。

Now, with all the technology and other elements, we took it to half of that. So keep in mind, we have reduced our total marketing by almost 50% as a percentage of sales than what we used to do. We increased this time by about 0.5%.

現在，憑藉所有的技術和其他元素，我們將其減少到原來的一半。因此請記住，與過去相比，我們的總行銷支出佔銷售額的比例已減少了近 50%。我們將這個時間增加了約0.5%。

And then another topic I wanted to talk about was your exposure to Mexico, and you've always talked about 75% of manufacturing in North America. Obviously, we are all aware of potential tariffs. How much of that 75% is manufactured in Mexico? And if there were to be tariffs on input from that country, would you look to move it to the US or Honduras or I guess, how are you planning for the different outcomes?

然後我想談的另一個話題是您對墨西哥的了解，您一直在談論北美 75% 的製造業。顯然，我們都知道潛在的關稅。這 75% 中有多少是在墨西哥製造的？如果對來自該國的輸入產品徵收關稅，您是否會考慮將其轉移到美國或宏都拉斯，或者您計劃如何應對不同的結果？

Now that there is an important issue. And in fact, we were having a discussion with our team on that today, that Mexico is our upholstery products that are made in Mexico. We have two major operations, one in Mexico and one in North Carolina. The Mexico operation makes and cut fabrics for our operation in North Carolina. And then it also makes products -- full products in Mexico.

現在有一個重要的問題。事實上，我們今天正在與我們的團隊討論這個問題，墨西哥是我們在墨西哥生產的室內裝飾產品。我們有兩個主要業務，一個在墨西哥，一個在北卡羅來納州。墨西哥工廠為我們在北卡羅來納州的工廠生產和裁剪布料。然後它還在墨西哥生產產品——完整的產品。

So it is approximately at this stage, I would say, that close to of our total manufacturing in Mexico represents approximately 25% of our total manufacturing. So we have some flexibility as we go forward. There's a possibility we could consider raising prices. There's a possibility that more of that product could be made in North Carolina because we are manufacturing in both places.

所以我想說，大約在現階段，我們在墨西哥的製造業總量約占我們製造業總量的 25%。因此我們在前進的過程中擁有一定的彈性。我們可能會考慮提高價格。由於我們在兩個地方都有生產，因此有可能在北卡羅來納州生產更多的產品。

Thank you, and best of luck here this quarter.

謝謝，祝本季好運。

Right Well, thank you very much. And we look forward. We've got our team members. They're really motivated. They're working hard. A lot of -- we are looking at all these uncertainties. But the good news is as I said, we are well-positioned based upon our manufacturing in North America, which includes United States, Mexico, Honduras, and we do have some manufacturing comes out of countries like Indonesia and Vietnam that for furniture. We do make some accessories in other products in many other places from Italy to China, but most of it is right in North America.

好的，非常感謝。我們期待著。我們有我們的團隊成員。他們確實很有動力。他們正在努力工作。很多——我們正在考慮所有這些不確定因素。但好消息是，正如我所說的，我們在北美的製造業務佔據了有利地位，其中包括美國、墨西哥、宏都拉斯，而我們的一些家具製造業務也來自印尼和越南等國家。我們確實在從義大利到中國的許多其他地方生產其他產品的一些配件，但大部分都在北美。

(Operator Instructions) And if no further questions, I have to turn the floor back to Mr. Kathwari for any closing comments.

（操作員指示）如果沒有其他問題，我必須將發言權交還給 Kathwari 先生，請他發表最後評論。

Thank you very much. We are -- thank you for attending. We are -- our teams are working very, very hard. We are looking at all the events in the world. And the good news is we are well-positioned, and we are also positioned to take steps based upon whatever happens and whether it's a question about duties and anything else. We are all watching it very carefully. But I think at this stage, our main focus is to continue to grow our business and to continue to strengthen the various elements of our vertically integrated structure. Thanks very much for participating.

非常感謝。我們--感謝您的參加。我們的團隊正在非常非常努力地工作。我們正在關注世界上發生的一切事件。好消息是，我們已做好準備，能夠根據發生的情況，無論是有關職責還是其他問題，隨時採取措施。我們都在仔細觀察。但我認為，在現階段，我們的主要重點是繼續發展我們的業務，並繼續加強我們的垂直整​​合結構的各個要素。非常感謝您的參與。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.

今天的電話會議到此結束。現在您可以斷開您的線路。再次感謝您的參與。