Ethan Allen Reports Fiscal 2026 First Quarter Results
Rhea-AI Summary
Ethan Allen (NYSE:ETD) reported fiscal 2026 first quarter results for the period ended September 30, 2025, with consolidated net sales of $147.0M, gross margin 61.4%, adjusted operating income of $10.6M (adjusted operating margin 7.2%) and adjusted diluted EPS $0.43.
The company generated $16.8M of operating cash flow, ended the quarter with $193.7M in cash and investments and reported no debt. Retail written orders rose 5.2% while wholesale written orders declined 7.1%. The Board declared a regular quarterly dividend of $0.39 per share, payable November 26, 2025.
Positive
- Gross margin improved to 61.4%
- Operating cash flow increased to $16.8M
- No outstanding debt at September 30, 2025
- Board declared $0.39 regular quarterly dividend
Negative
- Adjusted operating margin declined to 7.2% (from 11.5%)
- Adjusted diluted EPS fell to $0.43 (from $0.58)
- Consolidated net sales decreased to $147.0M (from $154.3M)
News Market Reaction
On the day this news was published, ETD declined 3.55%, reflecting a moderate negative market reaction. Argus tracked a trough of -3.4% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $24M from the company's valuation, bringing the market cap to $645M at that time. Trading volume was very high at 3.4x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Highlighted by Positive Demand and Strong Gross Margin Reflecting Commitment to North American Manufacturing; Operating Margin Impacted by Lower Delivered Sales and Increased Marketing; Named America’s #1 Premium Furniture Retailer for 3rd Consecutive Year
DANBURY, CT, Oct. 29, 2025 (GLOBE NEWSWIRE) -- Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE: ETD), a leading interior design destination, today reported its results for the fiscal 2026 first quarter ended September 30, 2025.
Farooq Kathwari, Ethan Allen’s Chairman, President and CEO commented, “Despite many macroeconomic challenges, we were pleased to deliver retail segment written order growth and a strong gross margin during the just completed first quarter. Our wholesale segment written orders were down
“Retail segment written order growth of
“Our vertical integration is a competitive advantage for us. Our North American manufacturing and logistics operations are an integral part of an overall strategy to maximize production efficiencies and maintain this competitive advantage. We’re proud of our ability to manufacture about
“As I’ve said before, crisis creates opportunity. We are working through an operating environment faced with lower consumer confidence, increased tariffs and a challenging housing market. We remain confident in the investments that we are making for the future and the strength of our business model. Our vertical integration, strong talent and robust balance sheet provide a solid foundation and position us well. We are very proud to have recently been named as America's #1 Premium Furniture Retailer for the third consecutive year. We look forward to continuing our progress and remain cautiously optimistic,” concluded Mr. Kathwari.
FISCAL 2026 FIRST QUARTER HIGHLIGHTS*
- Consolidated net sales of
$147.0 million ; prior year$154.3 million - Retail net sales of
$128.6 million ; prior year$132.8 million - Wholesale net sales of
$87.0 million ; prior year$86.1 million
- Retail net sales of
- Written orders
- Retail segment written orders increased
5.2% - Wholesale segment written orders lower by
7.1%
- Retail segment written orders increased
- Consolidated gross margin of
61.4% ; prior year60.8% - Selling, general and administrative expenses increased
4.8% over last year - Increased marketing spend to
$5.1 million , up from$3.5 million last year to further the Company’s brand and reach - Operating margin of
6.8% ; adjusted operating margin of7.2% ; adjusted prior year11.5% - Diluted EPS of
$0.41 ; adjusted diluted EPS of$0.43 ; adjusted prior year$0.58 - Generated
$16.8 million in cash from operating activities; prior year$15.1 million - Paid total cash dividends of
$16.4 million in August 2025, including a$0.25 per share special cash dividend and a regular quarterly cash dividend of$0.39 per share - Capital expenditures were
$2.4 million ;$3.6 million a year ago - Ended the quarter with
$193.7 million in total cash and investments; no outstanding debt - Reduced inventory carrying levels to
$139.9 million at September 30, 2025, down2.3% from a year ago - Ended the quarter with 3,189 associates;
4.7% fewer than a year ago and31.3% less than September 2019 - For the third year in a row Ethan Allen was named America’s #1 Premium Furniture Retailer
- New design centers in Colorado Springs, CO, Concord, Ontario (suburb of Toronto) and Webster, TX (suburb of Houston) were opened during the quarter; ended the first quarter with 173 retail design centers in North America, including 143 Company-operated and 30 independently owned and operated; there are also Ethan Allen design centers outside of North America
- Recently held the Company’s annual convention at its headquarters and livestreamed across the world; under the theme of Always Moving Forward, the program honored Ethan Allen’s history, reviewed initiatives in manufacturing, logistics, technology, marketing and retail, and celebrated interior designers both for achievement in written sales and design excellence
* See reconciliation of GAAP to adjusted key financial measures in the back of this release; comparisons are to the fiscal 2025 first quarter
KEY FINANCIAL MEASURES*
| (Unaudited) | ||||||||||
| (In thousands, except per share data) | ||||||||||
| Three months ended | ||||||||||
| September 30, | ||||||||||
| 2025 | 2024 | |||||||||
| Net sales | $ | 146,984 | $ | 154,337 | ||||||
| Gross profit | $ | 90,198 | $ | 93,869 | ||||||
| Gross margin | 61.4 | % | 60.8 | % | ||||||
| GAAP operating income | $ | 9,967 | $ | 17,565 | ||||||
| Adjusted operating income* | $ | 10,571 | $ | 17,797 | ||||||
| GAAP operating margin | 6.8 | % | 11.4 | % | ||||||
| Adjusted operating margin* | 7.2 | % | 11.5 | % | ||||||
| GAAP net income | $ | 10,451 | $ | 14,719 | ||||||
| Adjusted net income* | $ | 10,902 | $ | 14,892 | ||||||
| GAAP diluted EPS | $ | 0.41 | $ | 0.57 | ||||||
| Adjusted diluted EPS* | $ | 0.43 | $ | 0.58 | ||||||
| Cash flows from operating activities | $ | 16,832 | $ | 15,080 | ||||||
* See reconciliation of GAAP to adjusted key financial measures in the back of this release
BALANCE SHEET and CASH FLOW
Cash and investments totaled
Cash from operating activities totaled
Cash dividends paid were
Inventories, net totaled
Customer deposits from undelivered written orders totaled
No debt outstanding at September 30, 2025.
DIVIDENDS
On July 29, 2025, the Company’s Board of Directors declared a
More recently, on October 28, 2025, the Board of Directors declared a
CONFERENCE CALL
Ethan Allen will host a conference call today, October 29, 2025, at 5:00 p.m. Eastern Time to discuss these results. The conference call will be webcast live from the Company’s Investor Relations website at https://ir.ethanallen.com.
The following information is provided for those who would like to participate in the live conference call:
- U.S. Participants (Toll-Free): 877-705-2976
- International Participants: 201-689-8798
- Conference ID: 13755472
For those unable to listen live, an archived recording of the call will be available on the Company’s website referenced above for up to six months. A telephone replay will also be available for one month following the call.
ABOUT ETHAN ALLEN
Ethan Allen (NYSE:ETD), named America’s #1 Premium Furniture Retailer by Newsweek for three consecutive years, is a leading interior design destination combining state-of-the-art technology with personal service. Ethan Allen design centers, which represent a mix of Company-operated and independent licensee locations, offer complimentary interior design service and sell a full range of home furnishings, including custom furniture and artisan-crafted accents for every room in the home. Vertically integrated from product design through logistics, the Company manufactures about
Investor Relations Contact:
Matt McNulty
Senior Vice President, Chief Financial Officer and Treasurer
IR@ethanallen.com
ABOUT NON-GAAP FINANCIAL MEASURES
This release is intended to supplement, rather than to supersede, the Company's consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). In this release the Company has included financial measures that are derived from the consolidated financial statements but are not presented in accordance with GAAP. The Company uses non-GAAP financial measures, including adjusted operating income and margin, adjusted net income and adjusted diluted EPS (collectively “non-GAAP financial measures”). The Company computes these non-GAAP financial measures by adjusting the comparable GAAP measure to remove the impact of certain charges and gains and the related tax effect of these adjustments. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, or superior to, the financial performance measures prepared in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measure reported in accordance with GAAP is provided at the end of this release.
FORWARD-LOOKING STATEMENTS
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Generally, forward-looking statements represent management’s beliefs and assumptions concerning current expectations, projections or trends relating to results of operations, financial results, financial condition, strategic initiatives, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, investments, future economic indicators, business conditions and industry performance. Such forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These forward-looking statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “continue,” “may,” “will,” “short-term,” “target,” “outlook,” “forecast,” “future,” “strategy,” “opportunity,” “would,” “guidance,” “non-recurring,” “one-time,” “unusual,” “should,” “likely,” “pandemic,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. The Company derives many of its forward-looking statements from operating budgets and forecasts, which are based upon detailed assumptions. While the Company believes that its assumptions are reasonable, it cautions that it is difficult to predict the impact of known factors and it is impossible for the Company to anticipate all factors that could affect actual results and matters that are identified as “short-term,” “non-recurring,” “unusual,” “one-time,” or other words and terms of similar meaning may in fact recur in one or more future financial reporting periods.
Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that are expected. Actual results could differ materially from those anticipated in the forward-looking statements due to a number of risks and uncertainties including, but not limited to, the risks and uncertainties disclosed in Part I, Item 1A. Risk Factors, in the Company’s 2025 Annual Report on Form 10-K and other factors identified in its reports filed with the Securities and Exchange Commission (the “SEC”), available on the SEC's website at www.sec.gov.
All forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements, as well as other cautionary statements. A reader should evaluate all forward-looking statements made in this release in the context of these risks and uncertainties. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. Many of these factors are beyond the Company’s ability to control or predict. The Company is including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. The forward-looking statements included in this release are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law.
| Ethan Allen Interiors Inc. | ||||||
| Condensed Consolidated Statements of Comprehensive Income | ||||||
| (Unaudited) | ||||||
| (In thousands, except per share data) | ||||||
| Three months ended September 30, | ||||||
| 2025 | 2024 | |||||
| Net sales | $ | 146,984 | $ | 154,337 | ||
| Cost of sales | 56,786 | 60,468 | ||||
| Gross profit | 90,198 | 93,869 | ||||
| Selling, general and administrative expenses | 79,697 | 76,072 | ||||
| Restructuring and other charges, net of gains | 534 | 232 | ||||
| Operating income | 9,967 | 17,565 | ||||
| Interest and other income, net | 4,098 | 2,198 | ||||
| Interest and other financing costs | 59 | 60 | ||||
| Income before income taxes | 14,006 | 19,703 | ||||
| Income tax expense | 3,555 | 4,984 | ||||
| Net income | $ | 10,451 | $ | 14,719 | ||
| Net income per diluted share | $ | 0.41 | $ | 0.57 | ||
| Diluted weighted average common shares | 25,619 | 25,618 | ||||
| Ethan Allen Interiors Inc. | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (Unaudited) | ||||||
| (In thousands) | ||||||
| September 30, | June 30, | |||||
| ASSETS | 2025 | 2025 | ||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 73,648 | $ | 76,178 | ||
| Investments, short-term | 49,985 | 59,955 | ||||
| Accounts receivable, net | 5,692 | 6,066 | ||||
| Inventories, net | 139,921 | 140,893 | ||||
| Prepaid expenses and other current assets | 30,094 | 26,841 | ||||
| Total current assets | 299,340 | 309,933 | ||||
| Property, plant and equipment, net | 208,458 | 210,238 | ||||
| Goodwill | 25,388 | 25,388 | ||||
| Intangible assets | 19,740 | 19,740 | ||||
| Operating lease right-of-use assets | 111,585 | 109,173 | ||||
| Deferred income taxes | 364 | 369 | ||||
| Investments, long-term | 70,045 | 60,030 | ||||
| Other assets | 2,186 | 2,228 | ||||
| Total ASSETS | $ | 737,106 | $ | 737,099 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued expenses | $ | 25,303 | $ | 22,137 | ||
| Customer deposits | 77,171 | 75,068 | ||||
| Accrued compensation and benefits | 21,153 | 23,625 | ||||
| Current operating lease liabilities | 26,873 | 27,403 | ||||
| Other current liabilities | 7,044 | 4,618 | ||||
| Total current liabilities | 157,544 | 152,851 | ||||
| Operating lease liabilities, long-term | 98,494 | 96,263 | ||||
| Deferred income taxes | 2,178 | 2,054 | ||||
| Other long-term liabilities | 3,501 | 3,662 | ||||
| Total LIABILITIES | 261,717 | 254,830 | ||||
| Shareholders’ equity | ||||||
| Ethan Allen Interiors Inc. shareholders’ equity | 475,476 | 482,355 | ||||
| Noncontrolling interests | (87 | ) | (86 | ) | ||
| Total SHAREHOLDERS’ EQUITY | 475,389 | 482,269 | ||||
| Total LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 737,106 | $ | 737,099 | ||
Reconciliation of Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with GAAP, the Company uses non-GAAP financial measures, including adjusted operating income and margin, adjusted net income and adjusted diluted EPS. The reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in tables below.
These non-GAAP measures are derived from the consolidated financial statements but are not presented in accordance with GAAP. The Company believes these non-GAAP measures provide a meaningful comparison of its results to others in its industry and prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, its financial performance measures prepared in accordance with GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than the Company does, limiting the usefulness of those measures for comparative purposes. Despite the limitations of these non-GAAP financial measures, the Company believes these adjusted financial measures and the information they provide are useful in viewing its performance using the same tools that management uses to assess progress in achieving its goals. Adjusted measures may also facilitate comparisons to historical performance.
The following tables provide a reconciliation of non-GAAP financial measures used in this release to the most directly comparable GAAP financial measures:
| (Unaudited) | |||||||||||||
| (In thousands, except per share data) | Three months ended | ||||||||||||
| September 30, | |||||||||||||
| 2025 | 2024 | % Change | |||||||||||
| Consolidated Adjusted Operating Income / Operating Margin | |||||||||||||
| GAAP Operating income | $ | 9,967 | $ | 17,565 | (43.3 | %) | |||||||
| Adjustments (pre-tax)* | 604 | 232 | |||||||||||
| Adjusted operating income* | $ | 10,571 | $ | 17,797 | (40.6 | %) | |||||||
| Consolidated Net sales | $ | 146,984 | $ | 154,337 | (4.8 | %) | |||||||
| GAAP Operating margin | 6.8 | % | 11.4 | % | |||||||||
| Adjusted operating margin* | 7.2 | % | 11.5 | % | |||||||||
| Consolidated Adjusted Net Income / Adjusted Diluted EPS | |||||||||||||
| GAAP Net income | $ | 10,451 | $ | 14,719 | (29.0 | %) | |||||||
| Adjustments, net of tax* | 451 | 173 | |||||||||||
| Adjusted net income | $ | 10,902 | $ | 14,892 | (26.8 | %) | |||||||
| Diluted weighted average common shares | 25,619 | 25,618 | |||||||||||
| GAAP Diluted EPS | $ | 0.41 | $ | 0.57 | (28.1 | %) | |||||||
| Adjusted diluted EPS* | $ | 0.43 | $ | 0.58 | (25.9 | %) | |||||||
* Adjustments to reported GAAP financial measures including operating income and margin, net income and diluted EPS have been adjusted by the following: | ||||||||
| (Unaudited) | Three months ended | |||||||
| (In thousands) | September 30, | |||||||
| 2025 | 2024 | |||||||
| Lease exit costs | $ | 550 | $ | - | ||||
| Severance and other charges | (16 | ) | 232 | |||||
| Other non-restructuring charges | 70 | - | ||||||
| Adjustments to operating income | $ | 604 | $ | 232 | ||||
| Related income tax effects on non-recurring items(1) | (153 | ) | (59 | ) | ||||
| Adjustments to net income | $ | 451 | $ | 173 | ||||
(1) Calculated using the marginal tax rate for each period presented.
FAQ
What were Ethan Allen's consolidated net sales for Q1 fiscal 2026 (ETD)?
How did Ethan Allen's adjusted diluted EPS (ETD) perform in Q1 fiscal 2026?
What drove Ethan Allen's improved gross margin in Q1 2026 (ETD)?
Did Ethan Allen generate positive operating cash flow in Q1 fiscal 2026 (ETD)?
What dividend did Ethan Allen declare in October 2025 (ETD) and when is it payable?
How did Ethan Allen's retail and wholesale written orders change in Q1 fiscal 2026 (ETD)?
