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Ethan Allen Interiors (ETD) investor relations material
Ethan Allen Interiors Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Second quarter results were negatively impacted by the government shutdown, leading to lower consumer confidence, reduced design center traffic, and decreased retail and contract orders, especially from U.S. government contracts.
Achieved strong gross margin of 60.9% and maintained a robust balance sheet despite economic headwinds, including a U.S. government shutdown.
Consolidated net sales were $149.9 million, down 4.7% year-over-year, with retail net sales flat and wholesale net sales declining.
Adjusted operating income was $13.5 million, with an operating margin of 9%, up from 5.4% in the pre-pandemic 2019 second quarter.
Ended the quarter with $179.3 million in cash and investments and no outstanding debt.
Financial highlights
Consolidated net sales were $149.9 million, supported by a higher retail backlog, higher average ticket price, incremental clearance sales, and fewer returns, but offset by lower contract sales and demand.
Gross margin improved to 60.9% from 60.3% in the prior year.
Adjusted diluted EPS was $0.44, down from $0.59 year-over-year; effective tax rate was 25.3%.
Operating margin was 9.5%; adjusted operating margin was 9.0% versus 11.5% last year.
Paid $10.0 million in cash dividends and made $2.9 million in capital expenditures.
Outlook and guidance
Positive written order growth in January suggests improving demand trends.
Management remains cautiously optimistic, citing strong brand positioning and operational improvements.
Management expects to maintain strong gross margins due to ongoing investments in talent and technology, though volume remains a key factor.
Price increases and cost mitigation strategies are expected to help offset tariff headwinds, with further benefits anticipated in future quarters.
Recent product introductions are resonating with clients, supporting future growth.
Next Ethan Allen Interiors earnings date
Next Ethan Allen Interiors earnings date
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