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Sep 30, 2025
Ethan Allen Q1 2026 Earnings Report
Ethan Allen reported its fiscal 2026 first quarter results, highlighted by positive demand and strong gross margin, with operating margin impacted by lower delivered sales and increased marketing.
Key Takeaways
Ethan Allen reported consolidated net sales of $147.0 million and a strong gross margin of 61.4% for the first quarter of fiscal 2026. Despite macroeconomic challenges, the company achieved retail segment written order growth of 5.2% and generated strong operating cash flow of $16.8 million. However, adjusted operating margin decreased to 7.2% due to lower consolidated net sales, increased promotional activity, and higher marketing spend.
Consolidated net sales for the quarter were $147.0 million, a decrease from $154.3 million in the prior year.
Gross margin remained strong at 61.4%, an increase from 60.8% in the prior year, reflecting commitment to North American manufacturing.
Retail segment written orders grew by 5.2%, while wholesale segment written orders decreased by 7.1% due to lower U.S. government business.
Adjusted diluted EPS was $0.43, down from $0.58 in the prior year, and adjusted operating margin was 7.2%, compared to 11.5% a year ago.
Revenue by Segment
Forward Guidance
Ethan Allen remains cautiously optimistic about the future, focusing on strategic investments and leveraging its vertical integration and strong balance sheet despite ongoing macroeconomic challenges.
Positive Outlook
- Continued focus on five key areas: talent, service, marketing, technology, and social responsibility.
- Opening new design centers in Colorado Springs, CO, Greater Toronto, and the Greater Houston area.
- Leveraging vertical integration with approximately 75% of furniture manufactured in North American facilities.
- Strong logistics network for white glove service delivery across North America.
- Robust balance sheet with no outstanding debt, providing a solid foundation for future investments.
Challenges Ahead
- Operating environment faced with lower consumer confidence.
- Increased tariffs impacting business operations.
- Challenging housing market conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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