Ethan Allen Reports Fiscal Q1 2026 Sales Decline Amid Retail Growth, Stable Margins

Ethan Allen reported a 4.7% decrease in consolidated net sales to $147 million for its fiscal first quarter 2026, impacted by a 3.1% decline in retail sales partially offset by a 1% increase in wholesale sales. While retail segment written orders grew 5.2%, reflecting brand strength and customer loyalty, wholesale orders dropped 7.1% due to lower U.S. government business and contract delays. The company achieved a strong gross margin of 61.4%, supported by changes in sales mix, cost efficiencies, and price increases, but adjusted operating margin was 7.2%, affected by promotional activities and increased marketing. Net income and earnings per share declined compared to the prior year, with EPS at $0.43 missing consensus estimates, while the company maintained robust operating cash flow and increased cash and investments to $193.7 million. Ethan Allen continued returning capital to shareholders through $16.4 million in dividends and announced a quarterly dividend of $0.39 per share, emphasizing ongoing investments in retail expansion and focus areas such as talent, service, marketing, technology, and social responsibility.