ETHAN ALLEN INTERIORS INC. has recently released its 10-K report, providing a detailed look into the company's financial performance and operations. The company operates as an interior design company, manufacturer, and retailer of home furnishings in the United States and internationally, with two segments: Wholesale and Retail. Its products include case goods, upholstery, window treatments, and various home decor items, marketed under the Ethan Allen brand through design centers, independent retailers, and online at ethanallen.com.
In the recently released 10-K report, Ethan Allen Interiors Inc. provided an in-depth analysis of its financial condition and results of operations. The report highlighted the company's strong operating cash flow of $61.7 million, which contributed to growing its cash, cash equivalents, and investments to a total of $196.2 million at the end of the fiscal year on June 30, 2025. The company also emphasized its history of returning capital to shareholders, having paid four regular cash dividends of $0.39 and declared a special cash dividend of $0.40 per share, totaling $50.1 million during fiscal 2025.
Despite operating in a challenging environment characterized by lower consumer confidence, a weak housing market, and uncertainty surrounding global trade policies, Ethan Allen Interiors Inc. reported consolidated net sales of $614.6 million, a 4.9% decrease compared to the prior year. The company attributed this decline to lower delivered unit volume, reduced available backlog, less design center traffic, and fewer contract sales, partially offset by higher average ticket prices.
In terms of its operating segments, wholesale net sales decreased by 3.2%, primarily due to a decline in contract sales, while retail net sales from company-operated design centers also decreased by 3.2% due to reduced delivered unit volumes and lower written orders. Despite these challenges, the company highlighted signs of improvement in demand patterns during the fourth quarter, with retail written orders rising by 1.6%.
Ethan Allen Interiors Inc. also provided insights into its gross profit and margin, reporting a 5.3% decrease in consolidated gross profit compared to the prior year. The decline was attributed to lower unit volume sales, increased promotional levels, and higher financing costs. However, the company managed to maintain its consolidated gross margin at 60.5%, with benefits from a change in sales mix, lower input costs, reduced headcount, and selective price increases offsetting the challenges.
The 10-K report also addressed the company's Selling, General & Administrative (“SG&A”) expenses, which decreased by 1.7% compared to the prior year. Additionally, the report detailed the company's strategic initiatives to strengthen its talent, introduce new products, run strong marketing campaigns, invest in North American manufacturing, and maintain its logistics network throughout North America.
Following these announcements, the company's shares moved 4.24%, and are now trading at a price of $30.03. Check out the company's full 10-K submission here.
