Ethan Allen Reports Fiscal 2026 First Quarter Results

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]