Ethan Allen Interiors Inc. reported a consolidated net sales figure of $614.6 million for the fiscal year ending June 30, 2025, reflecting a decrease of 4.9% compared to the previous year’s sales of $646.2 million. The decline was attributed to lower delivered unit volumes, reduced backlog, and decreased design center traffic, although this was partially offset by higher average ticket prices. The company’s gross profit also fell to $372.1 million, down 5.3% from $393.1 million in the prior year, resulting in a gross margin of 60.5%, slightly lower than the previous year's 60.8%. Adjusted diluted earnings per share decreased to $2.04 from $2.49, marking an 18.1% decline.
In terms of operational changes, Ethan Allen opened four new design centers in Middleton, WI; Toronto, Canada; Peoria, AZ; and Watchung, NJ, bringing the total to 142 Company-operated design centers and 45 independently operated centers globally. The company’s employee count decreased by 5.7% to 3,211, with reductions primarily in the wholesale segment. The wholesale backlog at the end of the fiscal year was $48.9 million, down 8.7% from the previous year, reflecting lower contract volume and improved customer lead times.
Ethan Allen's strategic focus on vertical integration continues to be a competitive advantage, with approximately 75% of its furniture manufactured in North America. The company has emphasized investments in technology and marketing to enhance customer engagement and streamline operations. Despite challenges in the home furnishings market, including lower consumer confidence and a weak housing market, Ethan Allen maintained a strong balance sheet with cash and cash equivalents totaling $76.2 million at year-end.
Looking ahead, Ethan Allen remains cautious about the economic environment, particularly regarding consumer spending and housing market conditions. The company plans to continue leveraging its vertically integrated business model and investing in new technologies to enhance customer experience. Management expressed confidence in navigating the current challenges and delivering value to shareholders, supported by a history of returning capital through dividends, totaling $50.1 million in fiscal 2025.
About ETHAN ALLEN INTERIORS INC
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