“We remain focused on implementing meaningful strategies to further strengthen our business. We have been able to improve operating efficiency and run a leaner enterprise despite a reduction in business with the
“We remain debt-free with substantial liquidity and a robust balance sheet to support long-term growth. During the just completed fourth quarter we generated
“Our vertical integration and focus on one brand are our strengths. Throughout our 94-year history, we’ve navigated many economic and housing cycles through constant reinvention. We are committed to offering relevant quality products, providing complimentary interior design service and manufacturing approximately 75% of the custom furniture in our own North American facilities. We acknowledge the ways technology is changing the furniture shopping experience and through investments in our people, our design centers, our marketing and our technology, we are creating a stronger client engagement experience while expanding into additional retail markets. We want to thank our teams across Ethan Allen for their continued dedication and execution, and our shareholders for their ongoing support as we remain focused on driving long-term shareholder value. We look forward to continuing our progress and remain cautiously optimistic,” concluded
FISCAL 2026 FOURTH QUARTER HIGHLIGHTS*
- Consolidated net sales of
$146.8 million ; prior year$160.4 million - Retail net sales of
$132.0 million ; prior year$138.5 million - Wholesale net sales of
$79.7 million ; prior year$87.2 million
- Retail net sales of
- Written orders
- Retail segment written orders declined 10.8%
- Wholesale segment written orders decreased 11.9%
- Consolidated gross margin of 63.1%; adjusted gross margin of 59.7%; prior year 59.9%; included in the current year consolidated gross margin was the recovery of
$5.0 million in previously paid tariffs imposed under the International Emergency Economic Protection Act (“IEEPA”); these refunds reflect claims made through theU.S. Customs and Border Protection refund system and increased both consolidated gross and operating margin by 340 basis points in the just completed fourth quarter - Selling, general and administrative (“SG&A”) expenses decreased 4.4% from last year from reduced variable expenses, strong cost control, reduced headcount and lower marketing costs
- Marketing spend totaled
$4.7 million or 3.2% of consolidated net sales; prior year 3.4% - Consolidated operating margin of 9.8%; adjusted consolidated operating margin of 7.4%; adjusted prior year 9.7%; current year operating margin impacted by higher tariffs and fixed cost deleveraging from lower consolidated net sales
- Diluted EPS of
$0.46 ; adjusted diluted EPS of$0.36 ; adjusted prior year$0.49 - Generated
$22.4 million in operating cash flow; prior year$24.8 million - Paid cash dividends of
$10.0 million or$0.39 per share, the same as a year ago - Repurchased 250,000 shares of Company stock for
$4.8 million under the existing share repurchase program; remaining authorization to repurchase 1,757,364 shares of stock pursuant to the program
FISCAL 2026 FULL YEAR HIGHLIGHTS*
- Consolidated net sales of
$579.5 million ; prior year$614.6 million - Retail net sales of
$511.2 million ; prior year$523.1 million - Wholesale net sales of
$330.7 million ; prior year$359.1 million
- Retail net sales of
- Written orders
- Retail segment written orders declined 6.1%
- Wholesale segment written orders decreased 11.2%
- Consolidated gross margin of 61.2%; prior year 60.5%
- SG&A expenses, representing 53.3% of sales, decreased 0.4%
- Consolidated operating margin of 7.8%; adjusted operating margin of 8.1%; adjusted prior year 10.2%
- Diluted EPS of
$1.56 ; adjusted diluted EPS of$1.61 ; adjusted prior year$2.04 - Generated
$52.5 million of cash from operating activities;$61.7 million a year ago - Paid cash dividends totaling
$46.3 million during fiscal 2026, including a special cash dividend of$0.25 per share inAugust 2025 - Invested
$11.0 million in capital expenditures; comparable to$11.3 million a year ago - Ended the fiscal year with
$187.5 million in total cash and investments; no outstanding debt - Inventory levels rose to
$148.5 million atJune 30, 2026 , up 5.4% - Headcount totaled 3,062 associates at fiscal year-end, down 4.6%
- Four new Company-operated design centers located in
Colorado Springs (CO),San Diego (CA),Vancouver (Canada) andThornhill (Canada) were opened during fiscal 2026 that showcase Ethan Allen home furnishings while combining complimentary interior design services with technology - Ended the fiscal year with 171 Ethan Allen retail design centers in
North America , including 141 Company-operated and 30 independently owned and operated New Company -operated design centers to be opened during fiscal 2027 include locations inVictoria Gardens (CA), Aventura (FL),Burlington (VT),Brooklyn (NY) andNaples (FL)- New tariffs under Section 301 of the Trade Act of 1974 became effective on
July 24, 2026 , and range between 10% and 12.5%; these tariffs replace the previously issued 10% global tariffs imposed under Section 122, which recently expired - For the third year in a row Ethan Allen was named America’s #1 Premium Furniture Retailer
The Sustainable Furnishings Council and theNational Wildlife Federation awarded Ethan Allen a “High Score” on their Wood Furniture Scorecard for its commitment to the use of sustainable wood in furniture manufacturing- Ethan Allen’s upholstery operation in
Silao, Mexico was awarded theGreat Place to Work® certification for the eighth consecutive year; in addition to this designation, theSilao operation was recognized as “Empresa Socialmente Responsible” (Environmentally and Socially Responsible) for the seventh consecutive year - Celebrated
Ethan Allen Day in June to honor the pioneering spirit of its namesake and celebrate the 94-year history of Ethan Allen as an iconic American brand - Held the Company’s annual convention at its headquarters and livestreamed across the world; under the theme of Always Moving Forward, the program 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 fourth quarter and full fiscal 2025 year
KEY FINANCIAL MEASURES*
| (Unaudited) | ||||||||||||||
| (In thousands, except per share data) | ||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net sales | $ | 146,752 | $ | 160,357 | $ | 579,487 | $ | 614,649 | ||||||
| GAAP gross profit | $ | 92,616 | $ | 96,059 | $ | 354,771 | $ | 372,121 | ||||||
| Adjusted gross profit* | $ | 87,661 | $ | 96,059 | $ | 354,771 | $ | 372,121 | ||||||
| GAAP operating income | $ | 14,347 | $ | 15,269 | $ | 45,016 | $ | 61,988 | ||||||
| Adjusted operating income* | $ | 10,823 | $ | 15,588 | $ | 46,651 | $ | 62,895 | ||||||
| GAAP operating margin | 9.8 | % | 9.5 | % | 7.8 | % | 10.1 | % | ||||||
| Adjusted operating margin* | 7.4 | % | 9.7 | % | 8.1 | % | 10.2 | % | ||||||
| GAAP net income | $ | 11,754 | $ | 12,268 | $ | 39,883 | $ | 51,596 | ||||||
| Adjusted net income* | $ | 9,122 | $ | 12,505 | $ | 41,104 | $ | 52,271 | ||||||
| GAAP diluted EPS | $ | 0.46 | $ | 0.48 | $ | 1.56 | $ | 2.01 | ||||||
| Adjusted diluted EPS* | $ | 0.36 | $ | 0.49 | $ | 1.61 | $ | 2.04 | ||||||
| Cash flows from operating activities | $ | 22,419 | $ | 24,817 | $ | 52,477 | $ | 61,696 | ||||||
* 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 during fiscal 2026 totaled
Inventories, net totaled
Customer deposits from undelivered written orders totaled
No debt outstanding at
DIVIDENDS
On
CONFERENCE CALL
Ethan Allen will host a conference call today,
The following information is provided for those who would like to participate in the live conference call:
U.S . Toll-Free: 877-705-2976- International: 201-689-8798
- Conference ID: 13760759
An archived recording of the conference call will remain available on the Company’s Investor Relations website referenced above for 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 75% of its custom-crafted furniture in its own North American manufacturing facilities and has been recognized for product quality and craftsmanship since 1932. Learn more at www.ethanallen.com and follow Ethan Allen on Facebook, Instagram, and LinkedIn.
Investor Relations Contact:
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 gross profit and margin, 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.
| Condensed Consolidated Statements of Comprehensive Income | |||||||||
| (Unaudited) | |||||||||
| (In thousands, except per share data) | |||||||||
| Three months ended | Twelve months ended | ||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||
| Net sales | $ | 146,752 | $ | 160,357 | $ | 579,487 | $ | 614,649 | |
| Cost of sales | 54,136 | 64,298 | 224,716 | 242,528 | |||||
| Gross profit | 92,616 | 96,059 | 354,771 | 372,121 | |||||
| Selling, general and administrative expenses | 77,208 | 80,791 | 308,646 | 309,790 | |||||
| Restructuring and other charges, net of gains | 1,061 | (1 | ) | 1,109 | 343 | ||||
| Operating income | 14,347 | 15,269 | 45,016 | 61,988 | |||||
| Interest and other income, net | 1,328 | 1,449 | 8,388 | 7,275 | |||||
| Interest and other financing costs | 53 | 60 | 227 | 243 | |||||
| Income before income taxes | 15,622 | 16,658 | 53,177 | 69,020 | |||||
| Income tax expense | 3,868 | 4,390 | 13,294 | 17,424 | |||||
| Net income | $ | 11,754 | $ | 12,268 | $ | 39,883 | $ | 51,596 | |
| Net income per diluted share | $ | 0.46 | $ | 0.48 | $ | 1.56 | $ | 2.01 | |
| Diluted weighted average common shares | 25,489 | 25,665 | 25,584 | 25,634 | |||||
| Condensed Consolidated Balance Sheets | ||||||
| (Unaudited) | ||||||
| (In thousands) | ||||||
| ASSETS | 2026 | 2025 | ||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 73,628 | $ | 76,178 | ||
| Investments, short-term | 59,622 | 59,955 | ||||
| Accounts receivable, net | 4,386 | 6,066 | ||||
| Inventories, net | 148,463 | 140,893 | ||||
| Prepaid expenses and other current assets | 19,354 | 26,841 | ||||
| Total current assets | 305,453 | 309,933 | ||||
| Property, plant and equipment, net | 205,651 | 210,238 | ||||
| 25,388 | 25,388 | |||||
| Intangible assets | 19,740 | 19,740 | ||||
| Operating lease right-of-use assets | 107,710 | 109,173 | ||||
| Deferred income taxes | 144 | 369 | ||||
| Investments, long-term | 54,244 | 60,030 | ||||
| Other assets | 1,343 | 2,228 | ||||
| Total ASSETS | $ | 719,673 | $ | 737,099 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued expenses | $ | 30,120 | $ | 22,137 | ||
| Customer deposits | 62,730 | 75,068 | ||||
| Accrued compensation and benefits | 22,876 | 23,625 | ||||
| Current operating lease liabilities | 26,910 | 27,403 | ||||
| Other current liabilities | 5,728 | 4,618 | ||||
| Total current liabilities | 148,364 | 152,851 | ||||
| Operating lease liabilities, long-term | 93,463 | 96,263 | ||||
| Deferred income taxes | 2,359 | 2,054 | ||||
| Other long-term liabilities | 4,026 | 3,662 | ||||
| Total LIABILITIES | 248,212 | 254,830 | ||||
| Shareholders’ equity | ||||||
| 471,546 | 482,355 | |||||
| Noncontrolling interests | (85 | ) | (86 | ) | ||
| Total SHAREHOLDERS’ EQUITY | 471,461 | 482,269 | ||||
| Total LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 719,673 | $ | 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 gross profit and margin, 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 | Twelve months ended | ||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||||||||||
| Consolidated Adjusted Gross Profit / Gross Margin | ||||||||||||||||||
| GAAP Gross profit | $ | 92,616 | $ | 96,059 | (3.6 | %) | $ | 354,771 | $ | 372,121 | (4.7 | %) | ||||||
| IEEPA tariff refunds (pre-tax) | (4,955 | ) | - | - | - | |||||||||||||
| Adjusted gross profit | $ | 87,661 | $ | 96,059 | (8.7 | %) | $ | 354,771 | $ | 372,121 | (4.7 | %) | ||||||
| GAAP Gross margin | 63.1 | % | 59.9 | % | 61.2 | % | 60.5 | % | ||||||||||
| Adjusted gross margin | 59.7 | % | 59.9 | % | 61.2 | % | 60.5 | % | ||||||||||
| Consolidated Adjusted Operating Income / Operating Margin | ||||||||||||||||||
| GAAP Operating income | $ | 14,347 | $ | 15,269 | (6.0 | %) | $ | 45,016 | $ | 61,988 | (27.4 | %) | ||||||
| Adjustments (pre-tax)* | (3,524 | ) | 319 | 1,635 | 907 | |||||||||||||
| Adjusted operating income* | $ | 10,823 | $ | 15,588 | (30.6 | %) | $ | 46,651 | $ | 62,895 | (25.8 | %) | ||||||
| Consolidated Net sales | $ | 146,752 | $ | 160,357 | (8.5 | %) | $ | 579,487 | $ | 614,649 | (5.7 | %) | ||||||
| GAAP Operating margin | 9.8 | % | 9.5 | % | 7.8 | % | 10.1 | % | ||||||||||
| Adjusted operating margin* | 7.4 | % | 9.7 | % | 8.1 | % | 10.2 | % | ||||||||||
| Consolidated Adjusted Net Income / Adjusted Diluted EPS | ||||||||||||||||||
| GAAP Net income | $ | 11,754 | $ | 12,268 | (4.2 | %) | $ | 39,883 | $ | 51,596 | (22.7 | %) | ||||||
| Adjustments, net of tax* | (2,632 | ) | 237 | 1,221 | 675 | |||||||||||||
| Adjusted net income | $ | 9,122 | $ | 12,505 | (27.1 | %) | $ | 41,104 | $ | 52,271 | (21.4 | %) | ||||||
| Diluted weighted average common shares | 25,489 | 25,665 | 25,584 | 25,634 | ||||||||||||||
| GAAP Diluted EPS | $ | 0.46 | $ | 0.48 | (4.2 | %) | $ | 1.56 | $ | 2.01 | (22.4 | %) | ||||||
| Adjusted diluted EPS* | $ | 0.36 | $ | 0.49 | (26.5 | %) | $ | 1.61 | $ | 2.04 | (21.1 | %) | ||||||
* 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 | Twelve months ended | ||||||||||
| (In thousands) | | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| IEEPA tariff refunds | $ | (4,955 | ) | $ | - | $ | - | $ | - | |||
| - | 100 | (909 | ) | 100 | ||||||||
| Retail design center charges, net of insurance recoveries | 18 | - | (380 | ) | - | |||||||
| Lease exit costs | 921 | - | 1,471 | - | ||||||||
| Severance and other charges | 122 | (101 | ) | 927 | 243 | |||||||
| Other non-restructuring charges | 370 | 320 | 526 | 564 | ||||||||
| Adjustments to operating income | $ | (3,524 | ) | $ | 319 | $ | 1,635 | $ | 907 | |||
| Related income tax effects on non-recurring items(1) | 892 | (82 | ) | (414 | ) | (232 | ) | |||||
| Adjustments to net income | $ | (2,632 | ) | $ | 237 | $ | 1,221 | $ | 675 | |||
(1) Calculated using the marginal tax rate for each period presented.
