Ethan Allen Interiors (ETD) investor relations material

Executive summary

• Reported strong margins and a robust balance sheet despite a challenging economic environment, sluggish demand, and tough prior year comparisons.

• Continued focus on strengthening vertically integrated operations, talent, offerings, manufacturing, retail network, logistics, and technology.

• Maintained a strong cash position and continued regular and special cash dividends, along with share repurchases.

• Emphasized cost control, operational efficiency, and shareholder returns.

Financial highlights

• Fiscal 2026 consolidated net sales were $579.5M; Q4 net sales were $146.8M.

• Full-year consolidated gross margin was 61.2%, up from 60.5% last year; Q4 adjusted gross margin was 59.7%.

• Fiscal 2026 adjusted operating income was $46.7M (8.1% margin); Q4 adjusted operating income was $10.8M (7.4% margin).

• Adjusted diluted EPS was $1.61 for the year and $0.36 for Q4.

• Operating cash flow for the year was $52.5M, including $5M in tariff refunds.

Outlook and guidance

• Positioned well for the new fiscal year with disciplined expense management and strong liquidity.

• Focus remains on driving growth through talent, technology, product innovation, and retail network enhancements.

• Plans to open new company-operated design centers in several U.S. and Canadian locations during fiscal 2027.

• CapEx for fiscal 2027 expected to be similar to fiscal 2026.