Ethan Allen Interiors Stock Earnings Reports

Ethan Allen reported fiscal 2026 Q1 results with consolidated net sales of $147.0M and retail written orders up 5.2% (second consecutive quarter of retail order growth). Strong consolidated gross margin of 61.4% and adjusted operating margin of 7.2% were driven by sales mix, lower raw material costs, selective price increases and cost discipline, partially offset by increased promotions and higher inbound freight including tariffs. Adjusted diluted EPS was $0.43. The company generated $16.8M in operating cash flow, ended the quarter with $193.7M in cash and investments and remains debt-free. Wholesale orders fell 7.1% due largely to reduced government/contract spending and a temporarily lower contract backlog, though backlog rose $4.7M over the last 3 months. Management increased national marketing spend (~44% year-over-year at the national level) focused on direct mail, paid search and paid social, and emphasized investments in technology, product refreshes, North American vertical integration and design-center rationalization. Headcount declined ~4.7% year-over-year as the company seeks operational efficiencies. Management reiterated cautious optimism: they believe the vertically integrated model, domestic manufacturing footprint and designer-led retail network position Ethan Allen well despite macro and tariff uncertainty; the timing of government orders remains a key near-term wildcard.