Ethan Allen Reports Fiscal 2025 and Fourth Quarter Results Highlighted by Strong Margins and Positive Demand

Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”), a leading interior design destination, reported its results for the fiscal 2025 full year and fourth quarter ended June 30, 2025 and announced a special and regular cash dividend.

Farooq Kathwari, Ethan Allen’s Chairman, President and CEO commented, “Our fiscal 2025 performance reflects the strength of our vertically integrated enterprise, including our interior design retail network, relevant product offerings and ability to manufacture about 75% of our furniture in our own North American facilities. We executed well throughout the fiscal year as we remained focused on five key areas: talent, service, marketing, technology and social responsibility. The strengthening of our team and investing in technology has been a game changer and helped us operate more efficiently. At June 30, 2025, our headcount was 5.7% lower than a year ago and has been reduced by 32.2% since 2019. We are confident in the investments that we are making for the future, but recognize the need to remain cognizant of the uncertain economic environment.”

“Our fourth quarter results are highlighted by retail segment written order growth, strong gross margin and $24.8 million in operating cash flow despite an industry faced with lower consumer confidence, a challenging housing market and uncertainty surrounding trade tariffs. For the quarter ended June 30, 2025, we reported consolidated net sales of $160.4 million, gross margin of 59.9%, adjusted operating income of $15.6 million, adjusted operating margin of 9.7% and adjusted diluted EPS of $0.49. Our retail written orders surpassed the prior year by 1.6%. We generated strong operating cash flow, which helped us grow our cash and investments total to $196.2 million at June 30, 2025. We continued our history of returning capital to shareholders by paying a regular quarterly cash dividend of $10.0 million during the quarter and are pleased to announce that yesterday our Board approved 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,” continued Mr. Kathwari.

Mr. Kathwari further commented, “We are also pleased to have recently been named America’s #1 Premium Furniture Retailer by Newsweek for the third year in a row, which is a testament to the craftspeople who safeguard our reputation for quality, the logistics teams that create an industry-leading delivery experience, and the designers and retailers who are the ambassadors of our brand. We maintain a strong focus on talent, and as a result, our 3,211 dedicated associates continually prove to be our greatest asset.”

“We are confident in the strength of our business model as Ethan Allen has successfully navigated challenging times to serve our clients and deliver value to our shareholders throughout its 93-year history. Our robust balance sheet and financial stability provide a solid foundation and position us well as we head into fiscal 2026. We look forward to continuing our progress and remain cautiously optimistic,” concluded Mr. Kathwari.

Fiscal 2025 Fourth Quarter Highlights*

• Consolidated net sales of $160.4 million; prior year $168.6 million
  • Retail net sales of $138.5 million; prior year $145.1 million
  • Wholesale net sales of $87.2 million; prior year $91.2 million
• Written orders
  • Retail segment written orders increased 1.6%
  • Wholesale segment written orders lower by 6.8%
• Consolidated gross margin of 59.9%; prior year 60.8%
• Operating margin of 9.5%; adjusted operating margin of 9.7%; adjusted prior year 13.1%
• Expanded marketing with advertising expenses equal to 3.4% of sales compared with 2.8% a year ago
• Diluted EPS of $0.48; adjusted diluted EPS of $0.49; adjusted prior year $0.70
• Generated $24.8 million in operating cash flow; prior year $26.2 million
• Paid cash dividends totaling $10.0 million or $0.39 per share

Fiscal 2025 Full Year Highlights*

• Consolidated net sales of $614.6 million; prior year $646.2 million
  • Retail net sales of $523.1 million; prior year $540.6 million
  • Wholesale net sales of $359.1 million; prior year $371.1 million
• Written order trends
  • Retail segment written orders lower by 1.5%
  • Wholesale segment written orders lower by 3.2%
• Consolidated gross margin of 60.5%; adjusted operating margin of 10.2%
• Selling, general and administrative expenses, representing 50.4% of sales, decreased 1.7% from last year
• Diluted EPS of $2.01; prior year $2.49
• Generated $61.7 million of cash from operating activities; $80.2 million a year ago
• Paid total cash dividends of $50.1 million during fiscal 2025, including a $0.40 per share special cash dividend paid in August 2024
• Invested $11.3 million in capital expenditures, up from $9.6 million a year ago
• Ended the fiscal year with $196.2 million in total cash and investments; no outstanding debt
• Inventory levels totaled $140.9 million at June 30, 2025, down 6.3% during the last three months and 0.8% lower than a year ago
• Ended the year with 3,211 total associates, down 5.7% from a year ago and 32.2% less than June 2019
• Four new Company-operated design centers in Middleton, WI, Toronto, Canada, Peoria, AZ and Watchung, NJ were opened during fiscal 2025 that showcase Ethan Allen home furnishings while combining complimentary interior design services with technology
• Ended the fiscal year with 172 retail design centers in North America, including 142 Company-operated and 30 independently owned and operated locations; there are also Ethan Allen design centers outside of North America
• New design centers to be opened during fiscal 2026 include locations in Albuquerque, NM, Colorado Springs, CO, Concord, Ontario (Canada), San Diego, CA and Webster, TX
• For the third year in a row Ethan Allen was named America’s #1 Premium Furniture Retailer
• Ethan Allen’s upholstery manufacturing operations in Silao, Mexico was recognized as environmentally and socially responsible for the sixth year in a row
• Celebrated Ethan Allen Day in June to honor the pioneering spirit of its namesake and celebrate the 93-year heritage of Ethan Allen as a proud American brand
• Ethan Allen was awarded the designation of “Most Improved” during fiscal 2025 by The Sustainable Furnishings Council and the National Wildlife Federation for its wood-sourcing policies and commitment to sustainable wood
• Held the Company’s annual convention at its headquarters and livestreamed across the world; under the theme of Focused on the Future, the program honored Ethan Allen’s history, reviewed current and future initiatives in manufacturing, logistics, technology, marketing and retail, and celebrated interior designers both for achievement in written sales and design excellence
  

* See reconciliation of GAAP to adjusted key financial measures in the back of this release; comparisons are to the fourth quarter and full fiscal 2024 year

Balance Sheet and Cash Flow

Cash and investments totaled $196.2 million at June 30, 2025, up from $195.8 million a year ago. The increase during fiscal 2025 was due to $61.7 million in cash generated from operating activities partially offset by $50.1 million in cash dividends paid and capital expenditures of $11.3 million.

Cash from operating activities totaled $61.7 million during fiscal 2025, a decrease from $80.2 million in the prior year period due to lower net income and changes in working capital. Changes in working capital reflect an increase in prepaid expenses and a decline in accounts payable, primarily due to timing of payments.

Cash dividends paid during fiscal 2025 totaled $50.1 million, which included a special cash dividend of $10.2 million, or $0.40 per share, and regular quarterly cash dividends totaling $39.9 million, or $0.39 per share. Total cash dividends paid during fiscal 2024 were $50.3 million.

Inventories, net totaled $140.9 million at June 30, 2025, a decrease of $1.1 million since last year. Inventory balances declined as increased levels of clearance sales helped offset the introduction of new products.

Customer deposits from undelivered written orders totaled $75.1 million at June 30, 2025, up from $73.5 million a year ago due to timing of retail written order growth in the just completed fourth quarter. Wholesale backlog was $48.9 million at June 30, 2025, a decline of $4.6 million from a year ago due to lower contract business.

No debt outstanding at June 30, 2025.

Dividends

On May 5, 2025, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.39 per share, which was paid on May 29, 2025. More recently, on July 29, 2025, the Board of Directors declared a $0.25 per share special cash dividend in addition to a $0.39 per share regular quarterly cash dividend, both payable on August 28, 2025 to shareholders of record as of August 13, 2025. Ethan Allen has a strong history of returning capital to shareholders and this year marks the fifth consecutive year in which the Company has declared and paid a special cash dividend, which highlights its strong balance sheet and operating results.

For full results click here.

About Ethan Allen

Ethan Allen (NYSE:ETD), named America’s #1 Premium Furniture Retailer by Newsweek, is a leading interior design destination combining state-of-the-art technology with personal service. Ethan Allen design centers, which represent a mix of Company-operated and independent licensee locations, offer complimentary interior design service and sell a full range of home furnishings, including custom furniture and artisan-crafted accents for every room in the home. Vertically integrated from product design through logistics, the Company manufactures about 75% of its custom-crafted furniture in its own North American manufacturing facilities and has been recognized for product quality and craftsmanship since 1932. Learn more at www.ethanallen.com and follow Ethan Allen on Facebook, Instagram, and LinkedIn.

Contact:

Matt McNulty – Senior Vice President, Chief Financial Officer and Treasurer – IR@ethanallen.com

Source: Ethan Allen Interiors, Inc.