Ethan Allen Interiors (NYSE:ETD) Issues Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Ethan Allen reported Q results with $0.24 EPS, beating the consensus by $0.03, while revenue was $135.84 million (down 4.8% year‑over‑year) and EPS declined from $0.38 in the prior year period.
• Management attributes margin pressure primarily to tariff exposure of about $15–$20 million annually (including a 25% Section 232 and 10% Section 122), and noted wholesale weakness with written orders down 7.6% and backlog down 23% to $42 million, with a State Department contract renewal still pending.
• Liquidity remains strong: the company is debt‑free with $181 million in cash and investments, generated $15 million of operating cash flow in the quarter (and $22 million free cash flow YTD), and declared a quarterly dividend of $0.39 per share.

Ethan Allen Interiors (NYSE:ETD - Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $0.24 EPS for the quarter, beating the consensus estimate of $0.21 by $0.03, FiscalAI reports. The company had revenue of $135.84 million for the quarter, compared to the consensus estimate of $134.85 million. Ethan Allen Interiors had a net margin of 7.35% and a return on equity of 9.28%. The firm's revenue was down 4.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.38 EPS.

Here are the key takeaways from Ethan Allen Interiors' conference call:

• The company estimates current tariff exposure of $15 million–$20 million annually, driven by a 25% Section 232 tariff on Mexican-made upholstery and a 10% Section 122 tariff on certain imports, which management called the main reason for reduced earnings and margin pressure.
• Retail written orders held roughly flat year-over-year and management said retail trends were positive in April, supported by several new product introductions this spring that they expect will complement their offering.
• Wholesale written orders declined 7.6% and wholesale backlog fell 23% to $42 million, largely from reduced U.S. State Department work and weaker international sales, while the State Department contract renewal is still pending and could affect near-term wholesale volumes.
• Liquidity and cash generation remain strong — the company is debt-free with $181 million in cash and investments, generated $15 million of operating cash flow in the quarter (and $22 million free cash flow year-to-date), and declared a regular quarterly dividend of $0.39 per share.
• Management highlighted cost-control measures (SG&A down 3%, headcount down 6%) alongside increased digital/technology investment, promotional activity and mitigation steps for tariffs (sourcing diversification, vendor cost-sharing, selective price increases), which could offset or delay margin recovery.

Ethan Allen Interiors Stock Performance

Ethan Allen Interiors stock traded down $0.28 during trading hours on Wednesday, hitting $22.16. The company had a trading volume of 358,574 shares, compared to its average volume of 375,780. The firm has a market cap of $563.78 million, a P/E ratio of 12.88 and a beta of 1.16. Ethan Allen Interiors has a 1 year low of $21.20 and a 1 year high of $31.41. The company has a 50-day moving average price of $22.41 and a two-hundred day moving average price of $23.61.

Analyst Ratings Changes

Several equities analysts recently commented on ETD shares. Weiss Ratings upgraded shares of Ethan Allen Interiors from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, February 10th. Wall Street Zen upgraded shares of Ethan Allen Interiors from a "sell" rating to a "hold" rating in a report on Sunday, March 1st. Zacks Research raised shares of Ethan Allen Interiors from a "strong sell" rating to a "hold" rating in a research report on Wednesday, April 15th. Finally, Telsey Advisory Group lowered their price objective on shares of Ethan Allen Interiors from $28.00 to $27.00 and set a "market perform" rating for the company in a research report on Thursday, January 29th. Three equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $27.00.

Institutional Investors Weigh In On Ethan Allen Interiors

Large investors have recently added to or reduced their stakes in the stock. California State Teachers Retirement System boosted its position in Ethan Allen Interiors by 13.8% in the 4th quarter. California State Teachers Retirement System now owns 24,085 shares of the company's stock valued at $550,000 after buying an additional 2,926 shares during the period. CANADA LIFE ASSURANCE Co lifted its position in shares of Ethan Allen Interiors by 4.7% in the 4th quarter. CANADA LIFE ASSURANCE Co now owns 23,875 shares of the company's stock worth $544,000 after purchasing an additional 1,077 shares during the period. Vident Advisory LLC lifted its position in shares of Ethan Allen Interiors by 22.2% in the 4th quarter. Vident Advisory LLC now owns 23,599 shares of the company's stock worth $539,000 after purchasing an additional 4,282 shares during the period. Franklin Resources Inc. lifted its position in shares of Ethan Allen Interiors by 4.6% in the 3rd quarter. Franklin Resources Inc. now owns 17,426 shares of the company's stock worth $513,000 after purchasing an additional 770 shares during the period. Finally, XTX Topco Ltd lifted its position in shares of Ethan Allen Interiors by 67.4% in the 4th quarter. XTX Topco Ltd now owns 21,671 shares of the company's stock worth $495,000 after purchasing an additional 8,723 shares during the period. 83.80% of the stock is owned by hedge funds and other institutional investors.

About Ethan Allen Interiors

Ethan Allen Interiors Inc NYSE: ETD is a vertically integrated manufacturer and retailer of home furnishings, offering a broad range of furniture, upholstery, case goods and decorative accessories. The company designs and produces the majority of its products in its own North American manufacturing facilities, maintaining close control over quality, craftsmanship and production schedules. Through its network of company-operated and franchised Design Centers and galleries, Ethan Allen delivers a full-service offering that includes on-site interior design consultations and project management.

Founded in 1932 as a small Colonial-Revival furniture maker in northern Vermont, Ethan Allen has grown into a global brand known for its timeless styles and customization options.

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