Ethan Allen Interiors posts Q2 sales drop

Ethan Allen Interiors

28/01/2026 21:13

Overview

Interior design firm's fiscal Q2 net sales declined yr/yr, missing analyst expectations

Adjusted EPS for fiscal Q2 beat analyst expectations

Company announced regular quarterly cash dividend of $0.39 per share

Outlook

Company remains cautiously optimistic about navigating the current operating environment

Company highlights advantages of North American manufacturing and refreshed retail centers

Ethan Allen does not provide specific financial guidance for the current quarter or full year

Result Drivers

GROSS MARGINS - Co maintained strong gross margins of 60.9% despite sales decline, aided by cost control and operational efficiencies

MARKETING SPEND - Co increased marketing spend by 25.2% to $4.9 mln, impacting operating margins

ORDER DECLINE - Retail and wholesale written orders decreased 17.9% and 19.3%, respectively, due to macroeconomic challenges

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$149.90 mln
$152.25 mln (2 Analysts)
Q2 Adjusted EPS
Beat
$0.44
$0.38 (2 Analysts)
Q2 EPS
$0.46
Q2 Gross Margin
60.90%
Q2 Adjusted Operating Margin
9.00%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the home furnishings peer group is "hold"

Wall Street's median 12-month price target for Ethan Allen Interiors Inc is $28.00, about 15.2% above its January 27 closing price of $24.30

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX2TNj58

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)