Ethan Allen reports Q1 adjusted EPS 43c, consensus 44c

Reports Q1 revenue $146.98M, consensus $149.15M. Farooq Kathwari, Ethan Allen’s (ETD) chairman, president and CEO commented, “Despite many macroeconomic challenges, we were pleased to deliver retail segment written order growth and a strong gross margin during the just completed first quarter. Our wholesale segment written orders were down 7.1% due to lower U.S. government business. For the quarter ended September 30, 2025, we reported consolidated net sales of $147.0 million, gross margin of 61.4%, adjusted operating income of $10.6 million, adjusted operating margin of 7.2% and adjusted diluted EPS of $0.43. Our adjusted operating margin was impacted by lower consolidated net sales, increased promotional activity, additional marketing campaigns and sales of inventory in our retail division to make room for new products. We generated strong operating cash flow of $16.8 million and ended the quarter with total cash and investments of $193.7 million, up $7.3 million from a year ago. We continued our history of returning capital to shareholders by paying $16.4 million in cash dividends, including $6.4 million in special cash dividends. We are also pleased to announce that yesterday our Board approved a regular quarterly cash dividend of $0.39 per share, payable on November 26, 2025.”