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Ethan Allen
(NYSE:ETD)
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Rating:69Neutral
Price Target:
$26.00
▲(13.94% Upside)
Action:Downgraded
Date:07/30/26
ETD scores as a solid-but-not-high conviction setup: strong margins, consistent free cash flow, and a conservative balance sheet (including management’s debt-free position) support stability, and the dividend/valuation profile is attractive. Offsetting these positives are ongoing demand softness (double-digit order declines and lower backlog) and tariff-driven margin risk, which constrain near-term earnings momentum despite the stock trading above key moving averages.
Positive Factors
Sustained Gross Margins
Gross margins have remained high and stable (~59%–61%), reflecting durable pricing power, sourcing discipline and product mix. Sustained gross profitability provides a recurring buffer for operating profit and cash generation even if top-line volumes moderate, supporting long-term financial resilience.
Negative Factors
Declining Written Orders & Backlog
Double-digit declines in written orders and a lower backlog signal persistent demand weakness that reduces future revenue visibility and scale. Lower incoming orders shrink throughput and can prolong margin pressure as fixed costs are spread over fewer deliveries, challenging near- to medium-term recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Gross Margins
Gross margins have remained high and stable (~59%–61%), reflecting durable pricing power, sourcing discipline and product mix. Sustained gross profitability provides a recurring buffer for operating profit and cash generation even if top-line volumes moderate, supporting long-term financial resilience.
Read all positive factors
Ethan Allen Key Performance Indicators (KPIs)
Any
Net Sales by Segment
Shows revenue split across company segments (retail showrooms, wholesale, design services, international), revealing which parts drive growth and where demand is strongest. A concentrated revenue base or rapid shifts between segments can signal vulnerability or opportunity in Ethan Allen’s sales model.
Shows revenue split across company segments (retail showrooms, wholesale, design services, international), revealing which parts drive growth and where demand is strongest. A concentrated revenue base or rapid shifts between segments can signal vulnerability or opportunity in Ethan Allen’s sales model.
Data provided by:
The Fly
The FlyEthan Allen (ETD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$600.28M
Dividend Yield7.9%
Average Volume (3M)631.68K
Price to Earnings (P/E)15.1
Beta (1Y)0.62
Revenue Growth-5.72%
EPS GrowthN/A
CountryUS
Employees3,105
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)1.56
Shares Outstanding25,446,339
10 Day Avg. Volume397,361
30 Day Avg. Volume631,679
Financial Highlights & Ratios
PEG Ratio-0.62
Price to Book (P/B)1.21
Price to Sales (P/S)0.99
P/FCF Ratio10.89
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$22.00Price Target Upside-3.59% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.33
Revenue Forecast (FY)$568.00M
Ethan Allen Business Overview & Revenue Model
Company Description
Ethan Allen Interiors Inc. (ETD) operates as a comprehensive home furnishings enterprise, encompassing interior design services, manufacturing, and retail sales. Its operations span across North America, including the United States, Mexico, Hondur...
How the Company Makes Money
Ethan Allen primarily makes money by selling home furnishings to consumers under the Ethan Allen brand through its retail distribution network. The main revenue stream is retail sales generated via company-operated and independent (licensed) Ethan...
Ethan Allen Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: management highlighted resilient profitability, a strong cash position, debt-free balance sheet, continued dividends and buybacks, and structural strengths from vertical integration and a large interior design network. Offsetting these positives were meaningful declines in written orders (~11.9% wholesale, ~10.8% retail), a 9% decline in backlog, Q4 operating margin contraction (from 9.7% to 7.4%), and continued tariff and input-cost headwinds with an estimated $15 million tariff exposure. Given the balance of solid liquidity and margin resilience against continued demand softness and tariff risks, the tone was cautiously constructive but reflects near-term challenges.Positive Updates
Stable Full-Year Sales and Q4 Revenue
Fiscal 2026 consolidated net sales of $579 million with fourth quarter sales of $147 million, demonstrating the company maintained significant revenue despite a challenging environment.
Negative Updates
Order Volume Declines
Wholesale written orders declined 11.9% in the quarter and retail written orders decreased 10.8%, driven by lower traffic, macroeconomic uncertainty and a difficult prior-year comparison.
Read all updates
Q4-2026 Updates
Positive
Negative
Stable Full-Year Sales and Q4 Revenue
Fiscal 2026 consolidated net sales of $579 million with fourth quarter sales of $147 million, demonstrating the company maintained significant revenue despite a challenging environment.
Read all positive updates
Company Guidance
Management provided limited formal forward guidance but emphasized operational priorities with several quantifiable items: FY26 consolidated net sales were $579M (Q4 $147M), wholesale written orders fell 11.9% and retail written orders fell 10.8% in Q4, wholesale backlog was $44M (down 9%), FY gross margin 61.2% (Q4 adjusted gross margin 59.7%), FY operating income $45M (7.8%) and Q4 adjusted operating income $11M (7.4%), adjusted diluted EPS $1.61 for the year ($0.36 in Q4), effective tax rate ~25% (24.8% Q4), headcount 3.06k (down 5%), operating cash flow $52M for the year ($22M Q4), cash & investments $187.5M while remaining debt‑free; they expect FY27 CapEx to be similar to FY26, approved a regular $0.39 and special $0.25 dividend payable Aug 26 (total dividends paid $46M in FY26), repurchased 250k shares for $5M with 1.8M shares remaining authorized, estimate total tariff exposure of ~$15M (received ~$5M refund), and plan to leverage North American manufacturing, 171 design centers and ~500 interior designers to drive growth (including an improving State Department order trend).Ethan Allen Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
76
Positive
Cash Flow
67
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 579.49M | 614.65M | 646.22M | 791.38M | 817.76M |
| Gross Profit | 354.77M | 372.12M | 393.06M | 480.37M | 484.71M |
| EBITDA | 45.02M | 84.79M | 93.87M | 156.85M | 154.31M |
| Net Income | 39.88M | 51.60M | 63.82M | 105.81M | 103.28M |
Balance Sheet | |||||
| Total Assets | 719.67M | 737.10M | 744.92M | 745.45M | 719.89M |
| Cash, Cash Equivalents and Short-Term Investments | 73.63M | 136.13M | 161.03M | 172.71M | 121.12M |
| Total Debt | 120.37M | 124.36M | 129.28M | 130.35M | 116.33M |
| Total Liabilities | 248.21M | 254.83M | 262.00M | 274.45M | 312.57M |
| Stockholders Equity | 471.46M | 482.36M | 482.98M | 471.03M | 407.35M |
Cash Flow | |||||
| Free Cash Flow | 52.48M | 50.43M | 70.59M | 86.78M | 55.97M |
| Operating Cash Flow | 52.48M | 61.70M | 80.19M | 100.66M | 69.36M |
| Investing Cash Flow | 0.00 | -2.36M | -19.99M | -101.52M | -13.97M |
| Financing Cash Flow | 0.00 | -52.60M | -52.33M | -47.59M | -49.00M |
Ethan Allen Technical Analysis
Positive
22.82
Price Trends
21.63
Positive
21.43
Positive
22.33
Positive
Market Momentum
0.41
Negative
58.59
Neutral
50.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETD, the sentiment is Positive. The current price of 22.82 is above the 20-day moving average (MA) of 22.48, above the 50-day MA of 21.63, and above the 200-day MA of 22.33, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 58.59 is Neutral, neither overbought nor oversold. The STOCH value of 50.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETD.
Ethan Allen Risk Analysis
Ethan Allen disclosed 26 risk factors in its most recent earnings report. Ethan Allen reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ethan Allen Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.64B | 16.59 | 9.83% | 2.38% | 0.83% | 4.17% | |
69 Neutral | $600.28M | 15.06 | 8.40% | 7.93% | -5.72% | ― | |
64 Neutral | $147.48M | -6.50 | -13.04% | 4.18% | -25.67% | -96.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $169.01M | 31.27 | 3.32% | 4.10% | 1.96% | 122.75% | |
56 Neutral | $1.56B | 17.88 | 6.94% | 3.40% | 4.68% | ― |
* Consumer Cyclical Sector Average
ETD
Ethan Allen
22.40
-4.11
-15.50%
BSET
Bassett Furniture
18.97
4.19
28.37%
MLKN
MillerKnoll
22.52
5.04
28.87%
HOFT
Hooker Furniture
13.97
5.32
61.47%
LZB
La-Z-Boy Incorporated
39.38
4.87
14.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.