Ethan Allen beats Q4 sales estimates, declares special dividend

Overview

• Ethan Allen fiscal Q4 net sales beat analyst expectations, per LSEG data

• Adjusted EPS for fiscal Q4 beats consensus, per LSEG data

• Co announces special cash dividend of $0.25 per share

Outlook

• Ethan Allen plans to open new design centers in fiscal 2026

• Company remains cautiously optimistic amid uncertain economic environment

• Company acknowledges challenges from lower consumer confidence

Result Drivers

• VERTICAL INTEGRATION - Co attributes performance to its vertically integrated enterprise, including manufacturing 75% of furniture in North America

• RETAIL ORDER GROWTH - Retail segment written orders increased 1.6% despite lower consumer confidence and challenging housing market

• TECHNOLOGY INVESTMENTS - Investments in technology improved operational efficiency, contributing to operating cash flow

Key Details

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 is $30.00, about 2.6% above its July 29 closing price of $29.22

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX30R2s7