Order declines - The company said retail written orders fell 10.8% and wholesale written orders dropped 11.9% due to lower design center traffic and macroeconomic uncertainty.
Tariff impact - Higher tariffs and fixed cost deleveraging from lower sales pressured operating margin, partly offset by cost controls.
Tariff refunds - $5 mln in tariff refunds temporarily boosted gross and operating margins.
Outlook and tariff pressure
The company said sluggish demand and macroeconomic uncertainty are expected to create near-term pressure on sales.
New tariffs ranging from 10% to 12.5% effective July 24, 2026 may impact future results.
The company plans to open five new design centers during fiscal 2027.
Q4 revenue and profit details
US furniture retailer's fiscal Q4 revenue fell 8.5% yr/yr to $146.8 mln.
Adjusted EPS for fiscal Q4 declined to from a year ago.
The company declared a $0.25/share special dividend and maintained its regular dividend at $0.39/share.
Key figures and analyst coverage
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Miss
$146.80 mln
$148.70 mln (2 Analysts)
Q4 Adjusted EPS
Beat
$0.36
$0.34 (2 Analysts)
Q4 EPS
$0.46
Q4 Gross Margin
63.10%
Q4 Adjusted Operating Margin
7.40%
Q4 Operating Cash Flow
$22.4 mln
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the home furnishings peer group is "hold".
Wall Street's median 12-month price target for Ethan Allen Interiors Inc is $24.00, about 0.8% above its July 28 closing price of $23.80.
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago.
ETD•
