Ethan Allen Net Sales Fall as Written Orders Decline
The home furnishings retailer reported full-year consolidated net sales of $579.5 million, a 5.7% decrease from the prior year.
Ethan Allen Interiors (ETD), the home furnishings retailer, reported a decline in consolidated net sales for the fourth quarter and full fiscal year. The results reflected a broader downturn in demand across both its retail and wholesale channels.
Fourth quarter consolidated net sales decreased 8.5% to $146.8 million from $160.4 million in the prior year period. For the full fiscal year 2026, consolidated net sales fell 5.7% to $579.5 million, compared to $614.6 million in the previous year.
The decline was driven by a drop in written orders. Retail segment written orders fell 10.8% in the fourth quarter and 6.1% for the full year. The wholesale segment saw a steeper decline, with written orders falling 11.9% in the fourth quarter and 11.2% for the full year.
Adjusted operating margin for the fourth quarter compressed to 7.4% from 9.7% in the prior year quarter, due to higher tariffs and fixed cost deleveraging. Full year adjusted operating margin declined to 8.1% from 10.2% in the prior year.
GAAP gross margin for the fourth quarter rose to 63.1% from 59.9% YoY. This increase was driven by a $5.0 million recovery of previously paid IEEPA tariffs, which added 340 basis points to both gross and operating margins.
To manage costs, the company reduced SG&A expenses by 4.4% in the fourth quarter through headcount reductions, lower marketing costs, and reduced variable expenses. Full year headcount decreased 4.6% to 3,062 associates.
Inventory levels increased 5.4% to $148.5 million as of June 30, 2026, due to price increases and new product introductions. Customer deposits from undelivered written orders decreased to $62.7 million from $75.1 million a year ago, as delivered sales outpaced incoming retail orders. Wholesale backlog also decreased 9.3% to $44.3 million.
Full year adjusted diluted EPS fell 21.1% to $1.61 from $2.04 in the prior year.
Ethan Allen announced a regular quarterly cash dividend of $0.39 per share and a special cash dividend of $0.25 per share, both payable August 26, 2026.