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Ethan Allen (ETD)
NYSE:ETD
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Ethan Allen
(NYSE:ETD)
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Rating:66Neutral
Price Target:
$26.00
▼(-5.66% Downside)
Ethan Allen's overall stock score reflects a solid financial foundation and attractive valuation, but is tempered by bearish technical indicators and mixed earnings call results. The company's strong dividend yield and gross margins are positive, but declining revenue and profitability, along with market challenges, pose risks.
Ethan Allen (ETD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$600.28M
Dividend Yield7.67%
Average Volume (3M)235.85K
Price to Earnings (P/E)12.8
Beta (1Y)0.65
Revenue Growth-4.61%
EPS Growth-25.66%
CountryUS
Employees3,294
SectorN/A
Sector StrengthN/A
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.43
Shares Outstanding25,446,339
10 Day Avg. Volume171,927
30 Day Avg. Volume235,853
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 Cap1.17
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit1.91
Enterprise Value/Ebitda8.90
Forecast
1Y Price Target
$30.00Price Target Upside8.85% 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 (ETD) is a leading American furniture and home décor retailer known for its high-quality, handcrafted products. The company operates in the home furnishings sector, offering a diverse range of products including upholstered furniture, case goods, and home accessories. With a strong emphasis on design and craftsmanship, Ethan Allen provides customers with customizable options and a full-service experience through its network of design centers and an e-commerce platform.
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:Oct 29, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance. The company showed strong financial stability with growth in retail orders, high gross margins, and increased marketing efforts. However, challenges such as decreased wholesale orders, government sales impacts, reduced traffic, and tariff effects were significant concerns.Q1-2026 Updates
Positive Updates
Retail Written Order Growth
Retail written orders grew for the second consecutive quarter with a growth of 5.2%, driven by improved order conversion and increased promotional activities.
Strong Financial Position
The company ended the quarter with $193.7 million in cash and no debt, indicating a robust balance sheet.
High Gross Margin
Consolidated gross margin was strong at 61.4%, driven by a change in sales mix, lower raw material costs, and selective price increases.
Focus on Technology and Integration
Ethan Allen emphasized its investment in technology and vertical integration, which includes North American manufacturing that produces 75% of its furniture.
Increased Marketing Investment
National marketing costs increased by 44%, focusing on additional direct mail and paid search and social campaigns.
Negative Updates
Wholesale Orders Decrease
Wholesale orders decreased by 7.1% during the quarter, impacted by lower contract business and reductions in government spending.
Challenges with Government Sales
U.S. government sales were impacted by delays due to the government shutdown, affecting new orders.
Reduced Traffic
Despite an increase in written sales, the company experienced a significant drop in traffic, with about 30% lower traffic into design centers.
Impact of Tariffs
The company continues to be impacted by tariffs, particularly on non-furniture products, and has implemented price increases of 5-10% in some areas.
Retail Segment Sales Decline
Despite positive demand, retail segment sales were still down by 3%, with delivered retail sales lower by 3.3%.
Company Guidance
In the Ethan Allen Fiscal 2026 First Quarter Analyst Conference Call, the company's leadership provided detailed guidance on several key metrics. The first quarter saw written sales increase by 5.2% despite challenges like tariffs and government shutdowns impacting U.S. government sales. The company paid $16.4 million in cash dividends and maintained a strong cash position of $193.7 million with no debt. Retail written orders grew for the second consecutive quarter, driven by improved order conversion, promotional activities, and new product introductions, although wholesale orders decreased by 7.1%. The gross margin was robust at 61.4%, and the adjusted operating margin was 7.2%, with a headcount decrease of 4.7% to 3,189 employees. The company generated $16.8 million in operating cash flow, with capital expenditures of $2.4 million. Ethan Allen emphasized its investment in technology and marketing, with national marketing costs increasing by 44%. The company remains focused on strategic initiatives, including expanding its North American manufacturing base and continuing to provide custom furniture and design services, while navigating economic uncertainties with a strong, vertically integrated business model.Ethan Allen Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
75
Positive
Cash Flow
65
Positive
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Ethan Allen Technical Analysis
Negative
27.56
Price Trends
24.55
Negative
26.64
Negative
26.52
Negative
Market Momentum
-0.01
Negative
43.42
Neutral
19.84
Positive
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 27.56 is above the 20-day moving average (MA) of 24.01, above the 50-day MA of 24.55, and above the 200-day MA of 26.52, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 43.42 is Neutral, neither overbought nor oversold. The STOCH value of 19.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETD.
Ethan Allen Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
77 Outperform | $1.62B | 18.17 | 8.82% | 2.29% | 1.78% | -25.36% | |
67 Neutral | $794.60M | 12.91 | 6.82% | ― | -10.71% | -37.03% | |
66 Neutral | $600.28M | 12.78 | 9.96% | 7.67% | -4.61% | -25.66% | |
66 Neutral | $153.22M | 19.75 | 4.70% | 4.54% | -2.74% | ― | |
57 Neutral | $1.24B | -47.07 | -1.95% | 4.13% | 4.34% | -141.36% | |
53 Neutral | $118.66M | -3.90 | -11.27% | 7.31% | -12.09% | -204.66% |
* Sector Average
ETD
Ethan Allen
23.59
-2.93
-11.05%
AMWD
American Woodmark
54.54
-26.21
-32.46%
BSET
Bassett Furniture
17.64
4.48
34.04%
MLKN
MillerKnoll
18.17
-3.02
-14.25%
HOFT
Hooker Furniture
11.01
-2.03
-15.57%
LZB
La-Z-Boy Incorporated
39.39
-2.90
-6.86%
Ethan Allen Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
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.
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.