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Dec 31, 2025
Ethan Allen Q2 2026 Earnings Report
Ethan Allen reported its second quarter fiscal year 2026 results, showing strong margins and a robust balance sheet despite economic challenges.
Key Takeaways
Ethan Allen reported consolidated net sales of $149.9 million and a net income of $11.744 million for the second quarter of fiscal year 2026. The company maintained strong gross and adjusted operating margins despite a challenging economic environment and a U.S. government shutdown. Diluted EPS was $0.46, with adjusted diluted EPS at $0.44. The company ended the quarter with $179.3 million in total cash and investments and no outstanding debt.
Consolidated net sales for Q2 fiscal 2026 were $149.9 million, a decrease from $157.3 million in the prior year.
Gross margin remained strong at 60.9%, slightly up from 60.3% in the prior year, contributing to robust profitability.
Adjusted diluted EPS was $0.44, compared to $0.59 in the prior year, reflecting a challenging economic environment.
The company maintained a strong financial position with $179.3 million in total cash and investments and no outstanding debt.
Revenue by Segment
Forward Guidance
Ethan Allen is well-positioned for the 2026 calendar year, leveraging its North American manufacturing presence, product introductions, and refreshed retail design centers. The company remains cautiously optimistic about continued progress.
Positive Outlook
- New product introductions are resonating with clients.
- Repositioned and refreshed 172 retail design centers in North America and internationally.
- Ability to offer relevant high-quality products and complimentary interior design service.
- Manufactures 75% of custom furniture in North American facilities.
- Strong balance sheet with no outstanding debt provides financial flexibility.
Challenges Ahead
- Challenging economic environment, including the U.S. government shutdown, impacted prior quarter results.
- Written order growth was impacted by difficult prior year comparisons.
- Lower net income compared to the prior year period.
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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