Overview

* Ethan Allen fiscal Q1 net sales decline, missing analyst expectations

* Adjusted EPS for fiscal Q1 misses analyst estimates

* Company reports strong gross margin of 61.4% for fiscal Q1

Outlook

* Company remains confident in investments despite lower consumer confidence and increased tariffs

* Ethan Allen emphasizes vertical integration as a competitive advantage

* Company expresses cautious optimism about future progress

Result Drivers

* RETAIL ORDER GROWTH - Retail segment written orders increased by 5.2%, driven by brand strength and effective execution by associates

* WHOLESALE DECLINE - Wholesale segment orders fell 7.1% due to reduced U.S. government business

* GROSS MARGIN IMPROVEMENT - Gross margin rose to 61.4%, aided by increased promotional activity and inventory clearance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Miss $147 mln $149.20

mln (2

Analysts

)

Q1 Miss $0.43 $0.45 (2

Adjusted Analysts

EPS )

Q1 EPS $0.41

Q1 Gross 61.40%

Margin

Q1 7.20%

Adjusted

Operatin

g Margin

Q1 $16.80

Operatin mln

g Cash

Flow

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "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 ( ETD ) is $30.00, about 6% above its October 28 closing price of $28.19

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)