Core Insights - Ethan Allen has been awarded a "High Score" on the 2025 Wood Furniture Scorecard by The Sustainable Furnishings Council and the National Wildlife Federation, recognizing its commitment to sustainable wood use in furniture manufacturing [1][6][7]. Sustainability Practices - The company sources Forest Stewardship Council (FSC) certified raw timber and purchases logs and lumber from the Appalachian Hardwood Region, which includes 344 counties certified as legal and sustainable by the U.S. Forest Service and Appalachian Hardwood Manufacturers, Inc. [2] - Ethan Allen has been Certified Legal and Sustainable by AHMI, with this certification verified through independent audits and renewed every two years [2]. - Approximately 75% of Ethan Allen's products are manufactured in North America, and the company actively works to eliminate wood from unacceptable sources, including illegally traded timber and timber from poorly managed forests [3]. Company Overview - Ethan Allen is recognized as America's 1 Premium Furniture Retailer by Newsweek for three consecutive years and operates a mix of company-operated and independent licensee locations [4]. - The company offers complimentary interior design services and a full range of home furnishings, with about 75% of its custom-crafted products manufactured in North America [4].

Core Insights - Ethan Allen's upholstery operations in Silao, Mexico, have achieved the Great Place to Work® Mexico certification for the eighth consecutive year, highlighting the company's commitment to employee experience and workplace culture [1][2] Employee Experience - The certification reflects the company's dedication to dignity and respect within its culture, as noted by the Chairman, President, and CEO, Farooq Kathwari [2] - Employees at Ethan Allen Silao benefit from on-site medical staff, health services, daily transportation, and low-cost meals, contributing to a supportive work environment [2] Community Engagement - Associates are actively involved in local community initiatives, including blood drives and holiday gift distributions for children, showcasing the company's social responsibility [2] Corporate Recognition - Ethan Allen's Silao operations have also been recognized multiple times as "Empresa Socialmente Responsable" by the Mexican Center for Corporate Philanthropy and the Alliance for Corporate Social Responsibility, further emphasizing its commitment to social and environmental responsibility [3] Company Overview - Ethan Allen is recognized as America's 1 Premium Furniture Retailer by Newsweek for three consecutive years and operates a vertically integrated model, manufacturing approximately 75% of its custom-crafted products in North America [4]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported a gross margin of 60.5% and an operating margin of 10.2%, demonstrating resilience despite a challenging economic environment [5][6] - The company ended the fiscal year with cash and investments totaling $196 million and no debt, while distributing over $50 million in cash dividends [6] Business Line Data and Key Metrics Changes - The company has reduced the number of designers by 50% over the past decade but has achieved a 73% increase in business per retail associate, indicating improved efficiency [5] Market Data and Key Metrics Changes - The company manufactures approximately 75% of its furniture in North America, which provides a competitive advantage and allows for custom orders to be fulfilled efficiently [5] Company Strategy and Development Direction - The company focuses on five key areas: talent, service, marketing, technology, and social responsibility, which are integral to its operational strategy [4] - Investments in technology have been highlighted as a game changer, enhancing operational efficiency across various functions [4] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for fiscal 2026, citing the strength of the business model and a robust balance sheet as foundations for future growth [6] - The company remains committed to social responsibility and treating associates and clients with respect [5] Other Important Information - The company has a strong and diverse Board of Directors, with all current members standing for election [2][3] - The meeting confirmed that all proposals, including the election of directors and the appointment of independent auditors, were approved [11] Q&A Session Summary - No questions or comments were presented during the Q&A session, indicating a lack of inquiries from stockholders [15][16]

Core Insights - The company experienced a decline in consumer confidence and traffic due to government shutdowns, impacting overall sales performance [1][2] - Despite challenges, written sales in the retail division increased by 5.2% during the quarter, indicating resilience in certain areas [2] - The company increased its marketing spend from 2.3% to 3.4% to strengthen its market position [3] Financial Performance - The company reported cash reserves of $194 million, up from $187 million the previous year, despite paying regular dividends of $0.39 per share and a special dividend of $6 million [4] - The company maintains a vertically integrated structure, manufacturing approximately 80% of its products in North America [4][5] Operational Strategy - The company has a strong interior design network and offers consistent delivery pricing across North America, enhancing customer service [6] - Continuous monitoring of tariff impacts is a priority, especially with manufacturing operations in Mexico and Honduras [7]

分组1 - Ethan Allen reported quarterly earnings of $0.43 per share, missing the Zacks Consensus Estimate of $0.44 per share, and down from $0.58 per share a year ago, representing an earnings surprise of -2.27% [1] - The company posted revenues of $146.98 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.09%, and down from $154.34 million year-over-year [2] - Over the last four quarters, Ethan Allen has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] 分组2 - The stock has added about 0.3% since the beginning of the year, underperforming the S&P 500's gain of 17.2% [3] - The company's earnings outlook is crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.52 on $155 million in revenues, and for the current fiscal year, it is $1.90 on $620.7 million in revenues [7] 分组3 - The Zacks Industry Rank indicates that the Retail - Home Furnishings sector is currently in the bottom 24% of over 250 Zacks industries, which can materially impact stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The estimate revisions trend for Ethan Allen was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Financial Data and Key Metrics Changes - Consolidated net sales were $147 million, with a retail written order growth of 5.2% despite lower delivered unit volumes and reduced traffic [5][6][9] - Adjusted diluted EPS was $0.43, and the effective tax rate was 25.4% [8][9] - The company ended the quarter with total cash and investments of $193.7 million and no debt, generating $16.8 million in operating cash flow [8][9] Business Line Data and Key Metrics Changes - Retail written orders grew by 5.2%, driven by improved order conversion and increased promotional activities, while wholesale orders decreased by 7.1% due to lower contract business [5][6] - The wholesale backlog was $53.5 million, with a $4.7 million increase in the last three months due to incoming contract orders [6][9] Market Data and Key Metrics Changes - U.S. government sales were impacted by delays ahead of the government shutdown, affecting new orders [4][28] - The company noted a 30% decrease in traffic to design centers, but those who visited were more qualified buyers [19] Company Strategy and Development Direction - The company focuses on a vertically integrated business model, emphasizing technology investments and a strong retail footprint [4][10] - Marketing costs increased by 44%, with a focus on national marketing initiatives, including direct mail and paid search campaigns [11][30] - The company aims to maintain its brand strength and improve customer service through technology and talent [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about future performance despite ongoing economic uncertainty [15][35] - The company is focused on operational efficiencies and has reduced headcount by 4.7% from a year ago [8][12] Other Important Information - The company has paid a special cash dividend of $0.25 per share and a regular quarterly cash dividend of $0.39 per share [9] - New product launches are expected to enhance sales, with products introduced in design centers by spring 2026 [14][15] Q&A Session Summary Question: Retail written order trends during the quarter - Management noted lower traffic but more qualified customers, leading to consistent increases in written orders [19] Question: Promotional activity and expectations for the year - The company has maintained promotional activities without major changes, which has helped maintain margins [20] Question: Impact of tariffs on pricing - Management indicated that tariffs have less impact due to a strong North American manufacturing presence, with some price increases implemented [22][23] Question: Retail segment performance and future growth - Management aims to approach last year's performance despite challenges, with a focus on qualified customer interactions [26][27] Question: Contract side challenges with the State Department - The government shutdown has impacted new orders, with hopes for normalization once the government reopens [28][29] Question: Increased marketing spend and its effectiveness - The increase in marketing spend is directed towards direct mail and digital campaigns, with expected long-term benefits [30][31]

Financial Performance - Consolidated net sales for the first quarter of fiscal 2026 were $147.0 million, a decrease of 4.8% compared to $154.3 million in the prior year quarter[124] - Gross profit was $90.2 million, representing a gross margin of 61.4%, compared to $93.9 million and 60.8% in the prior year[127] - Adjusted operating income decreased to $10.6 million (7.2% margin) from $17.8 million (11.5% margin) year-over-year, a decline of 40.6%[127] - Consolidated gross profit decreased by $3.7 million for the three months ended September 30, 2025, driven by lower net sales and increased promotional activity[137] - Consolidated operating income decreased by $7.6 million to $10.0 million for the three months ended September 30, 2025, representing 6.8% of net sales compared to 11.4% in the prior year[144] - Net income was $10.5 million for the three months ended September 30, 2025, down 29.0% from $14.7 million in the same prior year period[151] - Diluted EPS decreased to $0.41 for the three months ended September 30, 2025, compared to $0.57 in the same prior year period, a decline of 28.1%[152] - GAAP operating income fell by 43.3% to $9.97 million in Q1 2026 compared to $17.57 million in Q1 2025[157] - Adjusted diluted EPS decreased by 25.9% to $0.43 in Q1 2026 from $0.58 in Q1 2025[157] Cash Flow and Dividends - Cash flow from operating activities increased to $16.8 million, up from $15.1 million a year ago, reflecting an 11.6% increase[127] - The company paid a special dividend of $0.25 per share and a regular quarterly cash dividend of $0.39 per share[124] - The company paid $16.4 million in dividends during Q1 2026, down from $20.2 million in the same period last year[169] - The company paid a special dividend of $0.25 per share and a regular quarterly dividend of $0.39 per share during the first three months of fiscal 2026, totaling cash dividends of $16.4 million[177] Operational Metrics - Retail written orders increased by 5.2%, while wholesale orders declined by 7.1% in the same period[124] - Employee count as of September 30, 2025, was 3,189, with a reduction of 4.7% in headcount over the last 12 months[123] - Retail written orders for the three months ended September 30, 2025 increased by 5.2% compared to the same prior year period due to improved order conversion and increased promotional activities[136] - Wholesale operating income was $7.9 million for the three months ended September 30, 2025, down 33.2% from $11.9 million in the same prior year period[145] - Retail operating income decreased by 81.2% to $1.4 million for the three months ended September 30, 2025, representing 1.1% of net sales compared to 5.6% in the prior year[146] Assets and Liabilities - The company ended the quarter with total cash and investments of $193.7 million and no outstanding debt[124] - Total available liquidity as of September 30, 2025, was $314.88 million, slightly down from $317.12 million at June 30, 2025[161] - Working capital decreased to $141.8 million at September 30, 2025, from $157.1 million at June 30, 2025[161] - As of September 30, 2025, the company had total contractual obligations of $182.8 million, including $146.3 million related to operating and finance lease commitments[179] - The fair market value of cash and cash equivalents was $73.6 million, while total investments amounted to $120.0 million as of September 30, 2025[188] Capital Expenditures and Investments - Capital expenditures in Q1 2026 were $2.4 million, a decrease from $3.6 million in the prior year[168] - The company has a remaining authorization to repurchase 2,007,364 shares of common stock under its Share Repurchase Program as of September 30, 2025[178] Market Conditions and Risks - The wholesale backlog decreased by 16.3% to $53.5 million at September 30, 2025, primarily due to lower contract business[134] - The company has been able to reduce certain manufacturing input costs by identifying lower-cost alternatives and implementing operational efficiencies to mitigate inflation impacts[197] - The company is exposed to tariff risks on imported raw materials and finished goods, which have negatively impacted wholesale and consolidated margins[195] - A hypothetical 10% weaker U.S. dollar against all foreign currencies would have had an immaterial impact on the company's consolidated results of operations[193] - The company had no fixed or variable rate borrowings outstanding as of September 30, 2025, but could be exposed to market risk from future variable rate debt[187] - The company has not engaged in any foreign currency hedging activity and does not plan to do so in the foreseeable future[193] Expansion and Development - New design centers were opened in Colorado Springs, Concord, and Webster, bringing the total to 188 retail design centers[124] - New design centers were opened in Colorado Springs, CO, and Concord, Canada, during Q1 2026[175] - The company operates 143 retail design centers, with 48 owned and 95 leased, which could be impacted by conditions in the commercial real estate market[198]

Financial Performance - Consolidated net sales for Q1 FY2026 were $147.0 million, down from $154.3 million in the prior year, with retail net sales at $128.6 million and wholesale net sales at $87.0 million[3]. - Adjusted diluted EPS for the quarter was $0.43, down from $0.58 in the prior year[4][7]. - Net sales for the three months ended September 30, 2025, were $146,984,000, a decrease of 4.8% compared to $154,337,000 in the same period of 2024[22]. - Net income for the quarter was $10,451,000, a decrease of 29.0% compared to $14,719,000 in the prior year[26]. - Adjusted net income was $10,902,000, down 26.8% from $14,892,000 in the same quarter of 2024[26]. - The diluted earnings per share (EPS) decreased by 28.1% to $0.41 from $0.57 year-over-year[26]. Margins and Profitability - Gross margin improved to 61.4%, compared to 60.8% in the prior year, while adjusted operating margin decreased to 7.2% from 11.5%[4][7]. - Gross profit for the same period was $90,198,000, down from $93,869,000, reflecting a decline in gross profit margin[22]. - Operating income decreased by 43.3% to $9,967,000 from $17,565,000 year-over-year[26]. - The company reported an adjusted operating margin of 7.2% compared to 11.5% in the same quarter of the previous year[26]. Cash Flow and Assets - Cash generated from operating activities totaled $16.8 million, an increase from $15.1 million in the prior year, attributed to improved working capital[6][7]. - Total cash and investments at the end of the quarter were $193.7 million, reflecting a $7.3 million increase from the previous year[5]. - Cash and cash equivalents decreased to $73,648,000 from $76,178,000 in the previous quarter[23]. - Total current assets as of September 30, 2025, were $299,340,000, a decrease from $309,933,000 at the end of June 2025[23]. - Total liabilities increased to $261,717,000 from $254,830,000 in the previous quarter[23]. Inventory and Orders - Retail segment written orders increased by 5.2%, while wholesale segment written orders decreased by 7.1% due to lower U.S. government business[2][3]. - Inventory levels decreased by 2.3% year-over-year to $139.9 million, driven by higher clearance sales[7][8]. Company Growth and Recognition - The company opened new design centers in Colorado Springs, CO, Concord, Ontario, and Webster, TX, bringing the total to 173 retail design centers in North America[7][9]. - Ethan Allen was named America's 1 Premium Furniture Retailer for the third consecutive year, highlighting its strong brand and customer loyalty[2][7].

Core Insights - Ethan Allen Interiors Inc. reported a consolidated net sales of $147.0 million for the first quarter of fiscal 2026, a decrease of 4.8% from $154.3 million in the prior year [3][4][25] - The company achieved a gross margin of 61.4%, up from 60.8% in the previous year, reflecting strong demand and commitment to North American manufacturing [3][4][25] - Adjusted operating income was $10.6 million with an adjusted operating margin of 7.2%, down from 11.5% in the prior year, impacted by lower sales and increased marketing expenses [2][3][25] Financial Performance - Retail segment net sales were $128.6 million, down from $132.8 million year-over-year, while wholesale segment net sales increased slightly to $87.0 million from $86.1 million [3][4] - Selling, general and administrative expenses rose by 4.8% compared to the previous year, with marketing spend increasing to $5.1 million from $3.5 million [3][4] - The company reported a diluted EPS of $0.41, adjusted diluted EPS of $0.43, compared to $0.57 in the prior year [3][4][25] Cash Flow and Dividends - Operating cash flow for the quarter was $16.8 million, an increase from $15.1 million in the prior year, attributed to improved working capital [5][6][8] - Total cash and investments at the end of the quarter were $193.7 million, a slight decrease from $196.2 million at the end of the previous quarter [5][8] - The company paid $16.4 million in cash dividends, including a special cash dividend of $6.4 million, and announced a regular quarterly cash dividend of $0.39 per share [7][11][12] Market Position and Strategy - Ethan Allen was named America's 1 Premium Furniture Retailer for the third consecutive year, highlighting its strong brand loyalty and market presence [2][8] - The company continues to focus on vertical integration, manufacturing approximately 75% of its furniture in North America, which enhances production efficiency [2][3][8] - New design centers were opened in Colorado Springs, Greater Toronto, and Greater Houston, expanding the company's retail footprint [8][9]

Core Insights - Ethan Allen Interiors Inc. will release its financial and operating results for the fiscal 2026 first quarter on October 29, 2025, after market close [1] - A conference call to discuss these results will be held at 5:00 p.m. Eastern Time on the same day, with a live webcast available [2] Company Overview - Ethan Allen is recognized as America's 1 Premium Furniture Retailer by Newsweek for three consecutive years [3] - The company combines advanced technology with personal service, offering complimentary interior design services and a full range of home furnishings [3] - Approximately 75% of Ethan Allen's custom-crafted furniture is manufactured in its own North American facilities, highlighting its vertical integration from product design to logistics [3]