Ethan Allen Reports Q2 Earnings, Sales Decline to $157.3M

Ethan Allen Interiors Inc. reported its fiscal 2025 second-quarter results, showcasing consolidated net sales of $157.3 million, down from $167.3 million the previous year, and earnings per share of $0.59, missing analysts' expectations of $0.60. Despite these setbacks, the company highlighted strong operating cash flow and a significant increase in written orders, with retail and wholesale segments seeing growth of 15.8% and 14.3%, respectively. CEO Farooq Kathwari noted that their vertically integrated operations and focus on sustainability continue to provide a competitive edge. The company declared a quarterly cash dividend of $0.39 per share, reflecting an 8.3% increase from last year. Analysts remain cautious, with expectations for only 3.4% growth in earnings over the next year, compared to a broader market forecast of 15%. This performance has led to a lower price-to-earnings ratio for Ethan Allen, suggesting investor skepticism about future growth potential.