by Company attributes decrease to a reduction in business with the U.S. State Department, lower international sales and overall sluggish demand in the U.S. market
DANBURY, Conn. Ethan Allen reported a 4.8% decrease in sales for its fiscal third quarter ended March 31, which the company attributed to lower international sales and a challenging environment for home furnishings including harsh winter weather and macroeconomic uncertainty.
Third quarter sales totaled $135.8 million, compared with $142.7 million the same period a year earlier.
Retail net sales totaled $116.2 million, down 1.2% from $117.6 million last year, while wholesale net sales totaled $84.9 million, compared with $99 million last year, a 14.2% decrease.
The company said written orders for the retail segment were flat compared with last year, while wholesale written orders decreased 7.6%.
It remained profitable, with $5.9 million, or 23 cents per share in net income compared with $9.6 million, or 37 cents per share the same period last year.
“Our third quarter results were impacted by a reduction in business with the U.S. State Department, lower international sales and sluggish demand from a challenging environment for home furnishings, which included weather disruptions and macroeconomic uncertainty,” said Farooq Kathwari, chairman, president and chief executive officer. “We performed well despite these challenges. “
He added that the company’s adjusted operating margin of 5% “reflects the impact of tariffs partially offset by our focus on cost control and operational efficiencies.” Gross profit was $80.7 million, or 59.4% of sales, compared with $87.4 million, or 61.2% of sales last year.
“We were pleased to further strengthen many areas of our vertically integrated enterprise, including our talent, product offerings, marketing, technology, retail network, manufacturing, logistics and social responsibility during the just completed third quarter of fiscal 2026,” he added. “Our ability to manufacture approximately 75% of furniture in our own North American facilities is a major advantage and we are well-positioned as a vertically integrated enterprise with 172 retail design centers in North America and more internationally. We plan to continue to open new design centers in North America.”
Other highlights of the report were as follows”
+ Selling, general and administrative expenses decreased 3.1% from last year
+ Marketing spend totaled $4.8 million or 3.6% of consolidated net sales; comparable to 3.4% last year
+ Its operating margin was 4.8%; while its adjusted operating margin was 5% compared to an adjusted operating margin of 8% last year.
+ The company said it paid total cash dividends of $10 million or 39 cents per share in February 2026
+ Capital expenditures were $3 million compared with $2 million a year ago
+ It ended the quarter with $180.9 million in total cash and investments and had no outstanding debt
+ Net inventories totaled $148.6 million at March 31, 2026, down 1.2% from a year ago
+ It ended the quarter with 3,105 associates; 5.7% fewer than a year ago
+ It operated 172 Ethan Allen retail design centers in North America, including 142 company-operated and 30 independently owned and operated
+ New design centers to be opened during 2026 include locations in Rancho Cucamonga, California and Aventura, Florida
+ Ethan Allen’s upholstery operation in Silao, Mexico was recognized as “Empresa Socialmente Responsible” (Environmentally and Socially Responsible) for the seventh consecutive year
