ETD Stock Forecast & Price Target

Ethan Allen Interiors Inc. reported a notable increase in order intake, with retail orders rising by 15.8% and wholesale orders by 14.3%. The company's fiscal projections for FY26 indicate an expected EPS of $2.58, up from a prior estimate of $2.55, alongside anticipated sales growth of 3.0%. Additionally, Ethan Allen experienced an expansion in gross margin to 60.3%, exceeding earlier estimates, suggesting improved operational efficiency and potential for enhanced profitability.

Ethan Allen Interiors reported a 2QF25 EPS that fell short of expectations, alongside a 6.0% year-over-year decline in sales to $157 million, indicating a struggle with revenue generation. The company’s operating margin decreased by approximately 130 basis points year-over-year to 11.5%, suggesting profitability pressures that may be exacerbated by anticipated deleveraging of SG&A expenses due to declining sales. Additionally, sales trends have lagged behind peers, with FY24 figures showing a 13% decline compared to FY19 levels, further reinforcing concerns about the company's market position and overall financial health.