10-Q · April 29, 2026
Ethan Allen reported strong Q3 FY2026 results with revenue of $135.8 million, a slight decrease of 1% from the prior quarter but up 4.8% from the prior year. EPS also exceeded expectations, with a reported figure of…
Earnings analysis · 10-K
ETD earnings analysis
Filed September 3, 2026 · Our reading of the company's report
The latest report
Ethan Allen retains meaningful strategic strengths, including vertical integration, a 61.2% gross margin, debt-free liquidity and continued investment in design centers, technology and customization. However, fiscal…
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Ethan Allen retains meaningful strategic strengths, including vertical integration, a 61.2% gross margin, debt-free liquidity and continued investment in design centers, technology and customization. However, fiscal 2026 marked another year of contraction: revenue fell 5.7%, operating margin declined to 7.8%, diluted EPS dropped 22.4%, and both wholesale and retail operating income deteriorated sharply. Tariffs, weak housing-sensitive demand, reduced government contracts and lower backlog create a challenging near-term outlook, despite improving fourth-quarter contract orders and strong liquidity.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.56
What stood out
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Vertically integrated luxury positioning
Vertical integration remains a core competitive advantage: the company manufactures approximately 75% of its furniture in North American plants and operates 11 manufacturing facilities. Its strategy combines customization, complimentary interior design services, technology, logistics and an omni-channel model.
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Gross margin remained resilient
Despite lower sales, consolidated gross margin improved to 61.2% from 60.5% in fiscal 2025, supported by sales mix, lower inbound freight, reduced headcount and a higher average ticket price. The company also received $5.0 million of refunds for previously paid IEEPA tariffs.
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Debt-free balance sheet
The company ended fiscal 2026 debt-free with $187.5 million of cash and investments and $308.7 million of total available liquidity, including $121.2 million of unused credit availability.
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Consistent capital returns
Ethan Allen continued substantial shareholder returns, paying $46.3 million in dividends, or $1.81 per share, and repurchasing 250,000 shares for $4.8 million during fiscal 2026. The remaining repurchase authorization was 1,757,364 shares with no expiration date.
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Continued product and retail investment
Product and retail investment continued despite weak demand: four new Company-operated design centers opened in Colorado Springs, Concord, San Diego and Vancouver, while product assortment expanded through Home Accents, Lighting, Outdoor, Area Rugs and greater customization.
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Contract orders showed late-year improvement
Fourth-quarter contract order volume improved 14.8% year over year, providing a potential early stabilization signal after full-year contract sales declined 56.0%. The company also reported that its wholesale backlog was $44.3 million, with improved customer lead times.
What to watch
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Tariff exposure pressures margins
Tariffs became a materially larger cost risk during fiscal 2026. The company estimates annual tariff exposure of approximately $15.0 million; Mexican upholstered wood products face a 25% tariff, while certain Honduras, Asian and other imported products face tariffs of approximately 10%. Management said incremental tariffs negatively impacted wholesale and consolidated margins.
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Demand weakness and operating deleverage
Demand and profitability deteriorated across the business: fiscal 2026 consolidated sales declined 5.7% to $579.5 million, diluted EPS fell 22.4% to $1.56, and operating margin fell to 7.8% from 10.1%. Retail operating income declined 66.3% to $6.7 million, while retail written orders fell 6.1%.
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Contract and international sales volatility
Government and international contract exposure worsened materially. Contract sales, including GSA shipments, declined 56.0% due to fewer orders following the change in presidential administration and a U.S. government shutdown; wholesale international sales declined 43.6% and represented 0.9% of wholesale sales.
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Digital disruption and AI adoption
A material shift toward online-only purchasing could weaken the company’s design-center-led advantage because a majority of sales are finalized in physical design centers. The filing also identifies AI and agentic commerce as emerging technologies that could change consumer purchasing behavior and competitive dynamics.
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Retail footprint and lease risk
Commercial real estate weakness could create impairment risk. The company owns 48 and leases 93 of its 141 Company-operated design centers, while unamortized right-of-use assets totaled $107.7 million; closure or abandonment of locations could trigger additional impairment charges.
Management's outlook
The 10-K provides no revenue or EPS guidance. Management expects fiscal 2027 capital expenditures of $12 million to $14 million, primarily for new design centers and manufacturing-related investments.
Earlier filings 4
10-Q · February 9, 2026
Ethan Allen reported quarterly net sales of $149,916,000 and diluted EPS of $0.46 for the three months ended December 31, 2025. Revenue and profitability were down versus the prior-year quarter, but gross margin…
10-Q · January 29, 2025
Ethan Allen reported quarterly net sales of $157,260,000 and diluted EPS of $0.59 for the three months ended December 31, 2024, both down versus the prior year. Gross profit and operating income declined to $94,837,000…
10-Q · October 25, 2023
Ethan Allen reported Q1 net sales of $163,892,000 and diluted EPS of $0.58, with gross profit of $100,141,000. Revenue and profitability declined materially versus the prior-year quarter (net sales down from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.