Ethan Allen(ETD) - 2026 Q2 - Quarterly Results

Financial Performance - Consolidated net sales for Q2 FY2026 were $149.9 million, down from $157.3 million in the prior year[3] - Adjusted operating income was $13.5 million, with an adjusted operating margin of 9.0%, down from 11.5% in the prior year[3] - Diluted EPS for the quarter was $0.46, with adjusted diluted EPS at $0.44, compared to $0.59 in the prior year[3] - Net sales for the three months ended December 31, 2025, were $149.916 million, a decrease of 4.7% compared to $157.260 million for the same period in 2024[21] - Operating income for the three months ended December 31, 2025, was $14.228 million, a decrease of 21.6% from $18.157 million in 2024[25] - Net income for the six months ended December 31, 2025, was $22.195 million, down 25.3% from $29.723 million in 2024[25] - Adjusted diluted EPS for the three months ended December 31, 2025, was $0.44, a decrease of 25.4% compared to $0.59 in 2024[25] - The company reported a GAAP operating margin of 9.5% for the three months ended December 31, 2025, compared to 11.5% in 2024[25] - Adjusted operating income for the three months ended December 31, 2025, was $13.468 million, a decline of 25.8% from $18.163 million in 2024[25] Cash and Investments - Total cash and investments at the end of the quarter were $179.3 million, with no outstanding debt[5][11] - Total current assets as of December 31, 2025, were $312.043 million, slightly up from $309.933 million as of June 30, 2025[22] - Total liabilities decreased to $236.683 million as of December 31, 2025, from $254.830 million as of June 30, 2025[22] - Shareholders' equity as of December 31, 2025, was $478.083 million, down from $482.269 million as of June 30, 2025[22] Sales and Orders - Written orders in the retail segment decreased by 17.9%, while wholesale segment written orders fell by 19.3%[3] - Customer deposits from undelivered written orders totaled $63.6 million, down from $75.1 million at the end of the previous quarter[10] Expenses and Dividends - Marketing expenses increased by 25.2% to $4.9 million, representing 3.2% of consolidated net sales[3] - A regular quarterly cash dividend of $0.39 per share was declared, payable on February 25, 2026[12] Workforce - The company operates 172 retail design centers, with a total headcount of 3,149, which is 5.1% lower than a year ago[8] Gross Margin - Gross margin improved to 60.9%, compared to 60.3% in the prior year[3] - Gross profit for the six months ended December 31, 2025, was $181.469 million, down from $188.706 million in 2024, reflecting a decline of 3.8%[21]