Ethan Allen Interiors Inc. (ETD) operates as a comprehensive home furnishings enterprise, encompassing interior design services, manufacturing, and retail sales. Its operations ...
Ethan Allen Interiors Inc. (NYSE: ETD) is a leading interior design destination and global luxury home fashion brand, headquartered in Danbury, Connecticut. Founded in 1932 by Nathan S. Ancell and Theodore Baumritter, the company has evolved into a vertically integrated enterprise, encompassing design, manufacturing, and retail. As of June 30, ...Ethan Allen Interiors Inc. (NYSE: ETD) is a leading interior design destination and global luxury home fashion brand, headquartered in Danbury, Connecticut. Founded in 1932 by Nathan S. Ancell and Theodore Baumritter, the company has evolved into a vertically integrated enterprise, encompassing design, manufacturing, and retail. As of June 30, 2021, it operated approximately 302 design centers across North America, including the U.S., Mexico, Honduras, and Canada, and maintains a strong online presence via ethanallen.com.
The company is organized into two principal segments: Wholesale and Retail. Its product portfolio includes case goods (beds, dressers, tables), upholstery (sofas, recliners, custom fabrics), and home accents (window treatments, lighting, wall decor, rugs, and garden furnishings). Ethan Allen is known for its free interior design services, combining state-of-the-art technology like 3D virtual design tools with personal service, offering thousands of custom options.
Financially, the company reported net annual sales of $791.4 million as of June 30, 2023. Its TTM revenue per share is $22.74, with a net profit margin of 6.9%. The company maintains a strong balance sheet with a current ratio of 2.06, a debt-to-equity ratio of 0.26, and an enterprise value of approximately $650 million. The stock trades on the NYSE with a market cap of about $603 million and offers a dividend yield of 7.6%. Under the leadership of Chairman, President, and CEO Farooq Kathwari, who has been with the company since 1985, Ethan Allen continues to reposition its retail network, open new design centers, and innovate in the home furnishings industry.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$579.5M
-5.7%
+8.0%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$39.9M
-22.7%
+98.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+61.2%
+1.1%
+6.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+8.0%
-21.1%
+120.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+6.9%
-18.0%
+83.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$52.5M
+4.1%
+85.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+9.1%
+10.4%
+71.5%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
25.5%
-1.0%
+0.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.06x
+1.5%
+6.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings, and welcome to the Ethan Allen Fiscal 26 Fourth Quarter Analyst Conference Call. This time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Matthew McNulty, senior vice president, chief financial officer, and treasurer.
Matthew J. McNulty: Thank you.
Operator: You may begin.
Matthew J. McNulty: Thank you, operator. Good afternoon, and thank you for joining us today to discuss Ethan Allen's fiscal 26 full year and fourth quarter results. With me today is Farooq Kathwari, our Chairman, President and CEO. Mr. Kathwari will open and close our prepared remarks while I will speak to our financial performance midway through. After our prepared remarks, we will then open up the call for your questions. Before we begin, I would like to remind the audience that this call is being web live under the News and Events tab within our Investor Relations website. A replay and transcript of today's call will also be made available on our Investor Relations website. There you will find a copy of today's press release, which contains reconciliations of non GAAP financial measures referred to on this call and in the press release. Our comments today may include forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. The most significant risk factors that could affect our future results are described in our most recent quarterly report on Form 10 Q. Please refer to our SEC filings for a complete review of those risks. The company assumes no obligation to update or revise any forward looking matters discussed during this call. With that, I am pleased to now turn the call over to Mr. Kathwari.
Farooq Kathwari: Well, thank you, Matthew. As we reported despite challenging economic environment and strong prior year comparisons, we did well. And reported strong margins and a robust balance sheet. We have continued to strengthen various areas of our unique vertically integrated enterprise, which includes having strong talent, continued strengthening our offerings, our North American-based manufacturing our strong and repositioned retail network, our national and regional logistics, and implementing technology in various areas of our enterprise. We have also continued with a strong cash position and gave very good cash dividends. We are positioned well and after Matthew provides a brief financial overview, I will discuss our initiatives to continue to grow our business. Matthew?
Matthew J. McNulty: Thank you, Mr. Kathwari. Fiscal 26 consolidated net sales were $579 million which included fourth quarter sales of $147 million Quarterly sales benefited from a higher average ticket price and recent product introductions offset by lower contract sales a decline in delivered unit volume and fewer incoming orders. Wholesale segment …
