Ethan Allen Reports Lower Q3 Revenue at $142.7 Million

Ethan Allen Interiors reported third-quarter revenue of $142.7 million and adjusted diluted EPS of $0.38, both falling short of analyst expectations, largely due to continued challenges from elevated interest rates and a sluggish housing market. Despite softer consumer demand, the company maintained a strong gross margin of 61.2%, generated $10.2 million in operating cash flow, and ended the quarter with $183.0 million in cash and investments and no outstanding debt. Ethan Allen's vertically integrated model and domestic manufacturing presence remain key strategic advantages, supporting its resilience amid industry headwinds. The company continues to return capital to shareholders with regular quarterly dividends and maintains a cautious outlook given ongoing economic uncertainties. Analyst sentiment is neutral with a consensus "Hold" rating, a one-year price target of $32.00, and a GuruFocus estimated fair value of $23.37, indicating some divergence in expectations for the stock's future performance.