by Despite sales declines for the quarter and full year, company remains profitable, with $11.8 million in net income for the quarter and $39.9 million for the full year
DANBURY, Conn. — Ethan Allen reported a decrease in fiscal Q4 and full year sales for its year ended June 30, 2026.
Sales for the quarter totaled $146.8 million, down 8.5% from $160.4 million the same period a year earlier.
It reported retail sales of $132 million, down 4.7% from $138.5 million a year earlier. Wholesale net sales totaled $79.7 million, down 8.6% from $87.2 million a year earlier. Retail segment written orders declined 10.8% and wholesale written orders declined 11.9%.
Net income for the fourth quarter was $11.8 million, or 46 cents per share, compared with $12.3 million, or 48 cents per share last year.
Gross profit was $92.6 million, or 63% of sales, compared with $96.1 million, or 60% of sales last year and operating income was $14.3 million, or 9.8% of sales compared with $15.3 million, or 9.5% of sales a year earlier.
For the full year, the company reported $579.5 million in sales, down 5.7% from $614.6 million the prior year.
Retail net sales totaled $511.2 million; down 2.3% from $523.1 million a year earlier. Wholesale sales totaled $330.7 million, down 7.9% from $359.1 million a year earlier. Written retail orders declined 6.1% and wholesale written orders declined 11.2%.
Net income for the full year totaled $39.9 million, or $1.56 per share, compared with $51.6 million, or $2.01 per share a year earlier.
Gross profit was $354.8 million, or 61.2% of sales, compared with $372.1 million, or 60.5% of sales a year earlier and operating income was $45 million, or 7.8% of sales, compared with $62 million, or 10.1% of sales a year earlier.
“We are pleased to report our fiscal 2026 financial and operating results, which include strong margins and a robust balance sheet despite a challenging operating environment,” said Farooq Kathwari, chairman, president and chief executive officer. “Fiscal 2026 marked a year where we further strengthened many areas of our vertically integrated enterprise, including our talent, product offerings, marketing, technology, retail network, manufacturing, logistics and social responsibility. Recent product introductions, which portray classics with a modern perspective, resonate with our clients. We remain confident in our long-term strategy as the interior design destination, operating a vertically integrated enterprise with 171 Ethan Allen Retail Design Centers in North America and more internationally, and supported by strong North American manufacturing and logistics.”
“We remain debt-free with substantial liquidity and a robust balance sheet to support long-term growth,” he added. “During the just completed fourth quarter we generated $22.4 million in operating cash flow, including $5 million from tariff refunds. Our strong operating cash flow combined with disciplined capital management helped drive our ending total cash and investments to $187.5 million, which reflects our commitment to maintaining the financial strength needed in today’s challenging environment. We continued our history of returning capital to shareholders by paying a regular quarterly cash dividend of $10 million 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 26, 2026.”
For more commentary and other highlights from the quarter and the full year, click here.
