Ethan Allen Interiors Inc. reported its financial results for the second quarter of fiscal 2025, revealing a decline in both revenue and profitability compared to the same period last year. The company generated net sales of $157.3 million, a decrease of 6.0% from $167.3 million in the prior year. For the first half of the fiscal year, net sales totaled $311.6 million, down 5.9% from $331.2 million. The decline in sales was attributed to lower delivered unit volumes, a decrease in starting backlog, and fewer contract sales, although this was partially offset by an increase in average retail ticket prices and reduced returns.
In terms of profitability, Ethan Allen's net income for the second quarter was $15.0 million, down 13.8% from $17.4 million a year earlier. For the first six months, net income decreased 8.1% to $29.7 million from $32.4 million. The diluted earnings per share (EPS) also fell to $0.59 from $0.68 in the prior year quarter. The company maintained a gross margin of 60.3%, slightly up from 60.2% in the previous year, due to lower raw material costs and a favorable sales mix, despite facing elevated freight and financing costs.
Operationally, Ethan Allen reported a total of 141 company-operated retail design centers as of December 31, 2024, unchanged from the previous year. The company also noted a 14.3% increase in wholesale written orders and a 15.8% increase in retail written orders, indicating a positive trend in order growth despite the overall sales decline. The company’s workforce has decreased by 6.9% over the past year, reflecting ongoing efforts to streamline operations and improve efficiency.
Looking ahead, Ethan Allen remains focused on enhancing its product offerings and leveraging its vertical integration to maintain competitive advantages. The company ended the quarter with cash, cash equivalents, and investments totaling $184.2 million and no outstanding debt, positioning itself well for future growth. The management expressed optimism about improving sales performance in the latter half of the fiscal year, driven by a stronger backlog and increased customer engagement.
About ETHAN ALLEN INTERIORS INC
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