ETD Stock Forecast & Price Target

Ethan Allen Interiors Inc operates in the home furnishings marketplace as both a manufacturer and retailer, structured into two primary segments: Wholesale and Retail, with the latter generating the majority of revenue through company-operated design centers. Despite a contraction in gross margin of approximately 86 basis points year-over-year to 59.9%, improvements were noted in the fourth quarter following a challenging third quarter. The company anticipates a sales growth of 1.0%, indicating a potential stabilization and optimistic outlook for future performance amidst earlier difficulties.

Ethan Allen Interiors has experienced declining orders with a mid-teens decrease in April and a slightly negative trend in May, despite a promotional boost in June that artificially inflated sales figures. Furthermore, the company's operating margin has contracted by 66 basis points to 9.6%, indicating a decline in profitability compared to previous periods. Looking ahead to FY26, concerns regarding gross margin pressures from tariffs and the ongoing challenges in the housing market may further hinder sales performance.