Ethan Allen(US:ETD)2025-10-29 20:15Financial 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].