by Company reports $12.3 million in net income for quarter, $51.6 million for full year ended June 30
DANBURY, Conn. — Amid a still sluggish housing market and uncertainties regarding tariffs, furniture retailer and manufacturer Ethan Allen remained profitable in its fourth quarter and full year ended June 30, despite declines in its wholesale and retail segments.
The company reported consolidated net sales of $160.4 million, down 4.9% from $168.6 million the prior year.
Retail sales totaled $138.5 million, compared with $145.1 million the year before, a 4.5% decrease. Wholesale net sales totaled $87.2 million, down 4.4% from $91.2 million last year.
The company reported that net income totaled $12.3 million or 48 cents per share, compared with $18.5 million, or 72 cents per share a year earlier, a 33.7% decrease.
It also reported consolidated gross margin of 59.9% compared with 60.8% the prior year.
“Our fourth quarter results are highlighted by retail segment written order growth, strong gross margin and $24.8 million in operating cash flow despite an industry faced with lower consumer confidence, a challenging housing market and uncertainty surrounding trade tariffs,” said Chairman, President and CEO Farooq Kathwari, adding that the company also “generated strong operating cash flow, which helped us grow our cash and investments total to $196.2 million at June 30, 2025. We continued our history of returning capital to shareholders by paying a regular quarterly cash dividend of $10 million during the quarter 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 28, 2025.”
The company also said during the quarter it expanded its marketing efforts with advertising expenses equal to 3.4% of sales compared with 2.8% a year earlier. It also said it generated $24.8 million in operating cash flow compared with $26.2 million a year earlier.
For the full year, the company reported $614.6 million in consolidated net sales, down 4.9% with $646.2 million a year earlier.
The company said retail net sales totaled $523.1 million, down 3.2% from $540.6 million a year earlier, while wholesale net sales totaled $359.1 million, also down 3.2% from $371.1 million last year.
Written retail orders were 1.5% lower than the same period last year and wholesale written sales were down by 3.2%.
The company also reported $51.6 million in net income, or $2.01 per share, down 19.1.% from $63.8 million, or $2.49 per share a year earlier.
Other highlights of the annual results were as follows.
+ The company said that selling general and administrative expenses were 50.4% of sales, down 1.7% from last year. The company reported generating $61.7 million of cash from operating activities, down from $80.2 million last year.
+ The company reported investing $11.3 million capital expenditures, up from $9.6 million last year.
+ The company said it ended the fiscal year with $196.2 million in total cash and investments and had no outstanding debt.
+ It also reported inventory levels of $140.9 million as of June 30, down 6.3% during the last three months and $1.1 million from last year. It said that the balances declined “as increased levels of clearance sales helped offset the introduction of new products.”
+ It also ended the year with 3,211 associates, down 5.7% from a year earlier and down 32.2% from June 2019.
+ It opened four new company operated design centers in Middleton, Wisconsin; Toronto, Canada; Peoria, Arizona; and Watchung, New Jersey that showcase Ethan Allen home furnishings while “combining complimentary interior design services with technology.”
+ It ended the fiscal year with 172 retail design centers in North America including 142 company operated and 30 independently owned and operated locations as well as Ethan Allen design centers outside North America.
+ In FY 2026, the company plans to open new design centers in Albuquerque, New Mexico; Colorado Springs, Colorado; Concord, Ontario (Canada); San Diego, California and Webster, Texas.
