Ethan Allen Reports Fiscal 2025 and Fourth Quarter Results

Ethan Allen Interiors Inc., a leading interior design destination, has released its financial results for the fiscal year 2025 and the fourth quarter ending June 30, 2025. The company also announced a special and regular cash dividend.

Financial Highlights

For the fourth quarter of fiscal 2025, Ethan Allen reported consolidated net sales of $160.4 million, a decrease from $168.6 million in the prior year. The gross margin stood at 59.9%, slightly down from 60.8% the previous year. Adjusted operating income was $15.6 million, with an adjusted operating margin of 9.7%. Adjusted diluted EPS was $0.49, compared to $0.70 in the prior year. The company generated $24.8 million in operating cash flow, ending the quarter with $196.2 million in cash and investments.

For the full fiscal year 2025, consolidated net sales were $614.6 million, down from $646.2 million in the previous year. The gross margin was 60.5%, and adjusted operating income was $62.9 million. Adjusted diluted EPS for the year was $2.04, compared to $2.49 in fiscal 2024. The company generated $61.7 million in cash from operating activities and paid total cash dividends of $50.1 million.

Business and Operational Highlights

Retail segment written orders increased by 1.6% in the fourth quarter, while wholesale segment written orders decreased by 6.8%. The company opened four new design centers in Middleton, WI, Toronto, Canada, Peoria, AZ, and Watchung, NJ. Ethan Allen was named America’s #1 Premium Furniture Retailer by Newsweek for the third consecutive year.

Strategic Initiatives and Corporate Developments

The company declared a special cash dividend of $0.25 per share and a regular quarterly cash dividend of $0.39 per share, both payable on August 28, 2025. Ethan Allen has a strong history of returning capital to shareholders, marking the fifth consecutive year of declaring and paying a special cash dividend.

Management's Perspective

Farooq Kathwari, Ethan Allen’s Chairman, President, and CEO, highlighted the company's strong performance despite economic uncertainties. He emphasized the importance of the company's vertically integrated enterprise, investment in technology, and focus on talent, service, marketing, and social responsibility. Kathwari expressed confidence in the company's business model and financial stability as it heads into fiscal 2026.

Future Outlook

The company remains cautiously optimistic about the future, with plans to open new design centers in Albuquerque, NM, Colorado Springs, CO, Concord, Ontario (Canada), San Diego, CA, and Webster, TX during fiscal 2026. Ethan Allen continues to focus on delivering value to shareholders and maintaining its strong market position.

SEC Filing: ETHAN ALLEN INTERIORS INC [ ETD ] - 8-K - Jul. 30, 2025