by Company saw a decline in its retail segment sales, which were offset by an increase in sales on the wholesale side of the business
DANBURY, Conn. — Ethan Allen reported a 4.7% decrease in consolidated sales for its fiscal first quarter 2026 ended Sept. 30, related to declines in its retail segment, but offset by growth in its wholesale business.
The company reported consolidated net sales of $147 million, compared with $154.3 million the same period last year. Retail net sales declined just over 3.1% to $128.6 million, from $132.8 million the same period last year, while wholesale net sales rose just over 1% to $87 million, from $86.1 million last year.
The company reported written orders in the retail segment rose 5.2% while wholesale written orders declined 7.1%.
Net income totaled $10.4 million, or 41 cents per share, compared with $14.7 million, or 57 cents per share, last year.
“Despite many macroeconomic challenges, we were pleased to deliver retail segment written order growth and a strong gross margin during the just completed first quarter,” said Farooq Kathwari, Ethan Allen chairman, president and chief executive officer, adding that lower written orders in the wholesale segment were because of lower U.S. government business.
He said that written order growth in the retail segment “reflects the strength of our brand, the loyalty of our clients, and the strong execution by our associates across our enterprise. As we continue to operate our business, including opening new design centers in Colorado Springs, Colorado, Greater Toronto and the Greater Houston area, we remain focused on five key areas: talent, service, marketing, technology and social responsibility. As the interior design destination, we are building on our reputation for handcrafted quality, our unique blend of personal service combined with technology, and our vision of classic design from a modern perspective.”
The company reported gross profit of $90.2 million, with a margin of 61.4%, compared with $93.8 million, with a margin of 60.8%, the same period last year. Operating income totaled $9.97 million, representing a margin of 6.8%, compared with $17.6 million, or 7.2%, last year.
It also said selling, general and administrative expenses increased 4.8% over last year and that the company increased its marketing spend to $5.1 million, up from $3.5 million last year.
Kathwari concluded his comments by reflecting on the challenges in today’s marketplace, noting that “crisis creates opportunity.”
“We are working through an operating environment faced with lower consumer confidence, increased tariffs and a challenging housing market,” he said. “We remain confident in the investments that we are making for the future and the strength of our business model. Our vertical integration, strong talent and robust balance sheet provide a solid foundation and position us well. We are very proud to have recently been named as America’s #1 Premium Furniture Retailer for the third consecutive year. We look forward to continuing our progress and remain cautiously optimistic.”
Other highlights of the report were as follows:
+ The company said it generated $16.8 million in cash from operating activities compared with $15.1 million the prior year.
+ It reported capital expenditures of $2.4 million compared with $3.6 million last year.
+ It reduced inventory carrying levels to $139.9 million as of Sept. 30, down 2.3% from last year.
+ It paid total cash dividends of $16.4 million in August, including a $0.25 per share special cash dividend and a regular quarterly cash dividend of $0.39 per share.
+ It said it ended the quarter with 3,189 associates, 4.7% fewer than a year ago and 31.3% less than September 2019.
+ It also reported no debt outstanding as of Sept. 30.
