Furniture retailer Ethan Allen Q1 sales, adjusted EPS miss estimates

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

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 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: ID:nGNX8qs3fX

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