Ethan Allen Interiors Inc. (NYSE: ETD) issued a shareholder mailing outlining five reasons to vote in favor of its director nominees ahead of a Nov. 4 shareholder vote, as the company faces a proxy contest from an activist investor group identified as DGB.

The Danbury, Connecticut-based furniture maker said its board is conducting a CEO search with a nationally recognized firm and has committed to publicly naming the next chief executive no later than June 30, 2027. Four of the company's five director nominees are described as independent, with three of the four independent directors having joined the board within the past five years.

Ethan Allen contends that DGB has not provided sufficient financial analysis to support its projected revenue and profitability targets, stating that DGB's own first-100-days framework acknowledges that priorities, economics, and trade-offs still need to be validated after the election. The company also noted that DGB nominated a full slate on Aug. 5 before presenting its strategic framework.

The company said it operates without debt and has expanded its product assortment, resumed new design center openings, and recorded higher average order values. It attributed recent revenue pressure to lower State Department, China, and dealer sales, as well as softer core retail traffic.

Ethan Allen said many of the strategic priorities DGB is proposing — including brand development, digital investment, and design center productivity — are already underway at the company. The board argued that replacing its directors would remove relevant expertise during an active CEO transition.

The company filed an investor presentation with the Securities and Exchange Commission on Oct. 15, 2026, according to the statement.