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Ethan Allen (ETD)
NYSE:ETD
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Ethan Allen
(NYSE:ETD)
Select Model
Select Model
Rating:70Outperform
Price Target:
$27.00
▲(17.75% Upside)
ETD scores highest on financial stability and shareholder return potential (strong margins, conservative balance sheet, and a high dividend yield), but the overall score is held back by weakening sales/profit trends and mixed near-term demand signals from the latest earnings call; technicals remain only mildly constructive.
Positive Factors
Strong Financial Position
A robust cash position and no debt enhance financial flexibility, allowing Ethan Allen to invest in growth opportunities and weather economic uncertainties.
High Gross Margin
High gross margins indicate efficient production and pricing strategies, supporting profitability and competitive positioning in the market.
Investment in Technology and Integration
Investments in technology and vertical integration enhance operational efficiency and product quality, strengthening long-term competitive advantages.
Negative Factors
Decreased Wholesale Orders
A decline in wholesale orders reflects challenges in expanding distribution channels, potentially impacting revenue growth and market reach.
Impact of Tariffs
Ongoing tariff impacts can increase costs and affect pricing strategies, challenging profitability and competitive positioning in the market.
Reduced Traffic
Reduced customer traffic can limit sales opportunities and revenue growth, necessitating strategic adjustments to attract and retain customers.
Ethan Allen (ETD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$588.06M
Dividend Yield7.86%
Average Volume (3M)321.85K
Price to Earnings (P/E)13.4
Beta (1Y)0.65
Revenue Growth-4.26%
EPS GrowthN/A
CountryUS
Employees3,294
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.44
Shares Outstanding25,446,339
10 Day Avg. Volume453,434
30 Day Avg. Volume321,849
Financial Highlights & Ratios
PEG Ratio-0.71
Price to Book (P/B)1.48
Price to Sales (P/S)1.16
P/FCF Ratio14.16
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue1.08
Enterprise Value/Gross Profit1.77
Enterprise Value/Ebitda9.14
Forecast
1Y Price Target
$27.00Price Target Upside17.75% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ethan Allen Business Overview & Revenue Model
Company DescriptionEthan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in the United States, Mexico, Honduras, and Canada. The company operates in two segments, Wholesale and Retail. Its products include case goods items, such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents; upholstery items comprising sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics, and leather; and home accent items consisting of window treatments and drapery hardware, wall decors, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, wall coverings, and home and garden furnishings. The company markets and sells its products under the Ethan Allen brand through home furnishing retail networks and independent retailers, as well as through ethanallen.com website. As of June 30, 2021, it operated a network of approximately 302 design centers. Ethan Allen Interiors Inc. was founded in 1932 and is headquartered in Danbury, Connecticut.
How the Company Makes MoneyEthan Allen generates revenue primarily through the sale of furniture and home décor products, both through its retail showrooms and online sales. The company employs a direct-to-consumer sales model, which allows it to capture a higher margin by selling its products without the need for third-party retailers. Key revenue streams include sales of custom and ready-to-assemble furniture, as well as design services offered to customers. Additionally, Ethan Allen benefits from strategic partnerships with designers and industry influencers that help enhance its brand visibility and attract a broader customer base. The company's focus on high-quality, American-made products also appeals to a market segment willing to pay a premium for craftsmanship and sustainability.
Ethan Allen Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: meaningful near-term demand weakness (retail and wholesaler orders down ~18-19%, design center traffic down 11% and government contract disruption) and tariff-related cost pressures are offset by strong margins (gross margin 60.9%, up 60 bps), improved operating profitability (9% adjusted operating margin), a debt-free balance sheet with $179.3M in cash, maintained dividends, and early positive signs in January after the quarter end. Management emphasized structural advantages (75% North American manufacturing), marketing investments, and cost discipline to navigate headwinds.Q2-2026 Updates
Positive Updates
Strong Liquidity and Debt-Free Balance Sheet
Total cash and investments of $179.3 million with no debt at quarter end; continued payment of regular quarterly cash dividend of $0.39 per share (~$10 million) and Board-declared dividend to be paid in February.
Robust Gross Margin Expansion
Consolidated gross margin of 60.9%, up 60 basis points year-over-year, driven by favorable sales mix, reduced headcount, higher average ticket, and lower inbound freight.
Improved Operating Profitability
Adjusted operating income of $13.5 million and adjusted operating margin of 9.0% (360 basis points higher than the pre-pandemic 2019 Q2 operating margin of 5.4%).
Adjusted EPS and Backlog
Adjusted diluted EPS of $0.44 for the quarter; ended the quarter with a wholesale backlog of $49.8 million (backlog reduced by lower contract volume and improved customer lead times).
Headcount Reduction and Productivity Gains
Total associates of 3,149, a 5.1% decrease year-over-year, reflecting productivity improvements from technology and talent (cited as a contributor to margin strength).
Marketing Investment and Early Demand Recovery
Marketing spend increased ~25%, mostly in digital channels; company reported stronger traffic and positive written sales in January (start of Q3), indicating early demand improvement following the quarter.
Targeted Price Actions and Sourcing Mitigation
Selective retail price increases averaging ~5% implemented in October and ongoing supplier/vendor cost-sharing and sourcing diversification efforts to mitigate recently enacted tariffs; North American manufacturing (~75% of product) cited as structural tariff mitigation.
Negative Updates
Decline in Retail Written Orders
Retail written orders declined 17.9% year-over-year and decelerated sequentially through the quarter (monthly decreases averaged ~18% with worse performance later in the quarter).
Wholesaler Orders Weakness
Wholesaler orders were down 19.3% year-over-year, contributing to lower volumes and cost deleveraging pressure on operating results.
Lower Design Center Traffic
Design center traffic declined 11% year-over-year during the quarter, cited as a driver of lower retail demand.
Government Contract Disruption
U.S. government shutdown materially impacted contract orders (orders stopped during the shutdown); while orders have resumed, management reported they remain below last year and are returning gradually.
Tariff Headwinds and Uncertain Relief
New Section 232 tariffs (mid-October) and other tariff exposures (IEEPA and Section 301) created ongoing cost pressure; management noted IEEPA litigation could remove ~40% of tariff exposure and potentially yield ~ $8 million of annual savings if resolved favorably, but outcome is uncertain. Company did not disclose total tariff headwind percentage.
Working Capital and Cash Flow Timing
Operating cash flow deficit of $1.8 million in the quarter due to working capital changes (lower customer deposits) and payroll timing, despite overall strong liquidity.
Company Guidance
Management guidance emphasized that the company has entered Q3 with stronger traffic and positive written sales in January and expects government contract orders to ramp back up (improving weekly) though still below last year; Q2 results were: consolidated net sales $149.9M, retail written orders down 17.9%, wholesaler orders down 19.3%, design center traffic down 11%, wholesale backlog $49.8M, gross margin 60.9% (up 60 bps), adjusted operating income $13.5M (9% operating margin), adjusted diluted EPS $0.44, effective tax rate 25.3%, cash investments $179.3M with no debt and an operating cash flow deficit of $1.8M, headcount 3,149 (down 5.1%), and a $0.39/share quarterly dividend (about $10M) paid and declared; management expects to sustain stronger margins through disciplined expense control and North American manufacturing (≈75% of furniture made in North America), is mitigating recently enacted tariffs (25% Section 232 on some products, non-U.S. case goods at 10%, tariff exposure split roughly 40% Section 232 / 40% IEEPA / remainder Section 301) via vendor cost sharing, sourcing diversification and selective ~5% retail price increases, and is maintaining increased digital marketing (advertising up 25%) while reallocating other ad spend.Ethan Allen Financial Statement Overview
Summary
Strong gross margin (~60%) and a conservative balance sheet support stability, but declining profitability (net margin down to 8.39% TTM), slight revenue contraction (-1.20% TTM), and weaker free cash flow growth (-23.54% TTM) temper the score.Income Statement
Ethan Allen's income statement shows a stable gross profit margin around 60%, indicating efficient production and pricing strategies. However, the net profit margin has decreased from 13.37% in 2023 to 8.39% in TTM, reflecting reduced profitability. Revenue has been declining, with a TTM revenue growth rate of -1.20%, suggesting challenges in maintaining sales momentum. EBIT and EBITDA margins have also slightly decreased, indicating pressure on operating efficiency.70
Positive
Balance Sheet
The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.26 in TTM, showing prudent financial leverage. The return on equity has decreased from 22.46% in 2023 to 10.78% in TTM, indicating reduced efficiency in generating returns for shareholders. The equity ratio remains healthy, suggesting a stable capital structure.75
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth, with a TTM rate of -23.54%, highlighting potential liquidity challenges. The operating cash flow to net income ratio is 0.40, indicating moderate cash generation relative to profits. The free cash flow to net income ratio of 0.85 suggests that a significant portion of earnings is converted to free cash flow, though this has decreased compared to previous years.65
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 614.65M | 646.22M | 791.38M | 817.76M | 685.17M |
| Gross Profit | 372.12M | 393.06M | 480.37M | 484.71M | 393.11M |
| EBITDA | 84.79M | 93.87M | 156.85M | 154.31M | 96.08M |
| Net Income | 51.60M | 63.82M | 105.81M | 103.28M | 60.01M |
Balance Sheet | |||||
| Total Assets | 737.10M | 744.92M | 745.45M | 719.89M | 683.25M |
| Cash, Cash Equivalents and Short-Term Investments | 136.13M | 161.03M | 172.71M | 121.12M | 104.60M |
| Total Debt | 124.36M | 129.28M | 130.35M | 116.33M | 126.09M |
| Total Liabilities | 254.83M | 262.00M | 274.45M | 312.57M | 331.83M |
| Stockholders Equity | 482.36M | 482.98M | 471.03M | 407.35M | 351.44M |
Cash Flow | |||||
| Free Cash Flow | 50.43M | 70.59M | 86.78M | 55.97M | 117.88M |
| Operating Cash Flow | 61.70M | 80.19M | 100.66M | 69.36M | 129.91M |
| Investing Cash Flow | -2.36M | -19.99M | -101.52M | -13.97M | -7.12M |
| Financing Cash Flow | -52.60M | -52.33M | -47.59M | -49.00M | -90.99M |
Ethan Allen Technical Analysis
Negative
22.93
Price Trends
23.80
Negative
25.12
Negative
26.23
Negative
Market Momentum
-0.14
Positive
45.27
Neutral
29.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETD, the sentiment is Negative. The current price of 22.93 is below the 20-day moving average (MA) of 24.00, below the 50-day MA of 23.80, and below the 200-day MA of 26.23, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 29.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.54B | 17.18 | 8.82% | 2.39% | 1.78% | -25.36% | |
70 Outperform | $588.06M | 13.44 | 9.21% | 7.86% | -4.26% | ― | |
67 Neutral | $899.79M | 15.22 | 6.82% | ― | -10.71% | -37.03% | |
66 Neutral | $137.23M | 17.69 | 4.70% | 4.59% | -2.74% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.40B | -54.03 | -1.95% | 4.16% | 4.34% | -141.36% | |
49 Neutral | $146.04M | -5.15 | -11.27% | 7.20% | -12.09% | -204.66% |
* Consumer Cyclical Sector Average
ETD
Ethan Allen
23.33
-5.34
-18.63%
AMWD
American Woodmark
64.32
-10.66
-14.22%
BSET
Bassett Furniture
15.42
2.16
16.29%
MLKN
MillerKnoll
20.79
0.09
0.42%
HOFT
Hooker Furniture
14.55
2.47
20.45%
LZB
La-Z-Boy Incorporated
37.24
-8.28
-18.19%
Ethan Allen Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Ethan Allen Confirms Directors and Approves Fiscal Plans
Neutral
Nov 5, 2025
On November 5, 2025, Ethan Allen Interiors Inc. held its 2025 Annual Meeting of Stockholders, where key proposals were voted on. The election of six directors for a one-year term was confirmed, and the fiscal 2025 compensation for named executive officers was approved through a non-binding advisory vote. Additionally, the appointment of CohnReznick LLP as the independent registered public accounting firm for fiscal 2026 was ratified. These decisions reflect the company’s ongoing governance and operational strategies, impacting its leadership continuity and financial oversight.
The most recent analyst rating on (ETD) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Ethan Allen stock, see the ETD Stock Forecast page.
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.