Ethan Allen Interiors Inc. reported its financial results for the first quarter of fiscal 2026, revealing a consolidated net sales figure of $146.98 million, a decrease of 4.8% compared to $154.34 million in the same period last year. The decline was attributed to lower delivered unit volumes, reduced design center traffic, and a decrease in contract sales, which were partially offset by an increase in average ticket prices and higher designer floor sample sales. The company's gross profit for the quarter was $90.20 million, resulting in a gross margin of 61.4%, an improvement from 60.8% in the prior year, driven by a favorable sales mix and lower raw material costs.
Operating income for the quarter was reported at $9.97 million, down 43.3% from $17.57 million a year earlier, with an operating margin of 6.8%. The decrease in operating income was primarily due to increased selling, general, and administrative (SG&A) expenses, which rose to $79.70 million from $76.07 million in the previous year. The company also incurred restructuring charges of $0.53 million, compared to $0.23 million in the prior year. Net income for the quarter was $10.45 million, or $0.41 per diluted share, down from $14.72 million, or $0.57 per diluted share, in the same quarter last year.
Ethan Allen's operational metrics showed a mixed performance, with wholesale written orders declining by 7.1%, while retail written orders increased by 5.2%. The company opened three new design centers during the quarter, bringing the total to 188, which includes 143 company-operated and 45 independently owned locations. The company’s workforce totaled 3,189 employees, reflecting a 4.7% reduction in headcount over the past year as part of ongoing operational efficiencies.
Looking ahead, Ethan Allen remains focused on enhancing its product offerings and marketing strategies to adapt to market conditions. The company ended the quarter with total cash, cash equivalents, and investments of $193.7 million and no outstanding debt. Management expressed confidence in the company's liquidity and operational strategies, emphasizing a commitment to North American manufacturing and the introduction of new products to drive future growth. The company also continued its practice of returning capital to shareholders, paying a special dividend of $0.25 per share alongside a regular quarterly dividend of $0.39 per share.
About ETHAN ALLEN INTERIORS INC
Ethan Allen Interiors is a leading global luxury home furnishings company specializing in designing, manufacturing, and retailing high-quality, artisanal furniture and home decor. Its vertically integrated model combines product design, manufacturing, and personalized interior design services through a network of retail design centers and online platforms, serving customers in North America and abroad. The company emphasizes craftsmanship, innovation, social responsibility, and a strong brand identity rooted in classic American style with a modern perspective.
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