Operating margins have significantly compressed to 4.8% in 2026Q3, reflecting the inability of the high fixed-cost structure to scale amidst a persistent 4.8% year-over-year revenue decline.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Sales/Revenue | 593.09M | 614.65M | 646.22M | 791.38M | 817.76M | 685.17M | 589.84M | 746.68M | 766.78M | 763.38M | 794.2M | 754.6M | 746.66M | 729.08M | 729.37M | 678.96M | 590.05M | 674.28M | 980.04M | 1.01B | 1.07B | 949.01M | 955.11M | 907.26M | 892.29M | 904.13M | 856.17M | 762.2M | 679.3M | 571.8M | 509.8M |
| Revenue Growth % | -4.79% | -4.89% | -18.34% | -3.23% | 19.35% | 16.16% | -21.01% | -2.62% | 0.45% | -3.88% | 5.25% | 1.06% | 2.41% | -0.04% | 7.42% | 15.07% | -12.49% | -31.2% | -2.51% | -5.73% | 12.37% | -0.64% | 5.27% | 1.68% | -1.31% | 5.6% | 12.33% | 12.2% | 18.8% | 12.16% | 7.08% |
| Cost of Goods Sold | 235.05M | 242.53M | 253.16M | 311.01M | 333.06M | 292.06M | 266.7M | 337.19M | 350.82M | 343.66M | 351.97M | 343.44M | 340.16M | 330.73M | 339.08M | 329.5M | 309.78M | 326.94M | 453.98M | 478.73M | 525.41M | 487.96M | 494.03M | 457.88M | 470.98M | 490.48M | 438.59M | 391.1M | 348.2M | 307.8M | 287.9M |
| COGS % of Revenue | - | 39.46% | 39.18% | 39.3% | 40.73% | 42.63% | 45.22% | 45.16% | 45.75% | 45.02% | 44.32% | 45.51% | 45.56% | 45.36% | 46.49% | 48.53% | 52.5% | 48.49% | 46.32% | 47.62% | 49.27% | 51.42% | 51.72% | 50.47% | 52.78% | 54.25% | 51.23% | 51.31% | 51.26% | 53.83% | 56.47% |
| Gross Profit | 358.04M | 372.12M | 393.06M | 480.37M | 484.71M | 393.11M | 323.13M | 409.49M | 415.96M | 419.72M | 442.24M | 411.16M | 406.5M | 398.35M | 390.29M | 349.46M | 280.28M | 347.34M | 526.07M | 526.58M | 540.98M | 461.05M | 461.08M | 449.38M | 421.31M | 413.66M | 417.58M | 371.1M | 331.1M | 264M | 221.9M |
| Gross Margin % | 60.37% | 60.54% | 60.82% | 60.7% | 59.27% | 57.37% | 54.78% | 54.84% | 54.25% | 54.98% | 55.68% | 54.49% | 54.44% | 54.64% | 53.51% | 51.47% | 47.5% | 51.51% | 53.68% | 52.38% | 50.73% | 48.58% | 48.28% | 49.53% | 47.22% | 45.75% | 48.77% | 48.69% | 48.74% | 46.17% | 43.53% |
| Gross Profit Growth % | - | -5.33% | -18.18% | -0.89% | 23.3% | 21.66% | -21.09% | -1.56% | -0.9% | -5.09% | 7.56% | 1.15% | 2.05% | 2.07% | 11.68% | 24.68% | -19.31% | -33.97% | -0.1% | -2.66% | 17.34% | -0.01% | 2.6% | 6.66% | 1.85% | -0.94% | 12.53% | 12.08% | 25.42% | 18.97% | 10.23% |
| Operating Expenses | 312M | 310.13M | 315.07M | 343.17M | 346.46M | 315.82M | 308.49M | 357.16M | 367.1M | 361.77M | 353.06M | 345.23M | 336.86M | 337.91M | 340.68M | 316.4M | 289.57M | 353.11M | 423.23M | 402.02M | 394.07M | 332.3M | 320.75M | 315.58M | 286.29M | 280.7M | 271.49M | 238.4M | 211.7M | 178.8M | 167.1M |
| OpEx % of Revenue | - | 50.46% | 48.76% | 43.36% | 42.37% | 46.09% | 52.3% | 47.83% | 47.87% | 47.39% | 44.45% | 45.75% | 45.12% | 46.35% | 46.71% | 46.6% | 49.08% | 52.37% | 43.18% | 39.99% | 36.95% | 35.01% | 33.58% | 34.78% | 32.08% | 31.05% | 31.71% | 31.28% | 31.16% | 31.27% | 32.78% |
| Selling, General & Admin | 312.81M | 309.79M | 314.69M | 346.89M | 350.92M | 313.41M | 311.51M | 356.88M | 367.1M | 361.77M | 353.06M | 345.23M | 336.86M | 337.91M | 340.68M | 316.4M | 289.57M | 353.11M | 423.23M | 402.02M | 394.07M | 332.3M | 320.75M | 315.58M | 286.29M | 280.7M | 254.51M | 222.1M | 195.8M | 162.4M | 149.6M |
| SG&A % of Revenue | - | 50.4% | 48.7% | 43.83% | 42.91% | 45.74% | 52.81% | 47.8% | 47.87% | 47.39% | 44.45% | 45.75% | 45.12% | 46.35% | 46.71% | 46.6% | 49.08% | 52.37% | 43.18% | 39.99% | 36.95% | 35.01% | 33.58% | 34.78% | 32.08% | 31.05% | 29.73% | 29.14% | 28.82% | 28.4% | 29.34% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -815K | 343K | 376K | -3.72M | -4.46M | 2.41M | -3.02M | 338K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 16.98M | 16.3M | 15.9M | 16.4M | 17.5M |
| Operating Income | 46.04M | 61.99M | 77.99M | 137.2M | 138.25M | 77.28M | 14.64M | 33.95M | 48.87M | 57.95M | 89.18M | 65.93M | 69.64M | 60.44M | 49.7M | 31.93M | -11.73M | -72.77M | 96M | 111.12M | 142.67M | 128.98M | 127.81M | 120.58M | 129.9M | 126.05M | 146.1M | 132.7M | 119.4M | 85.2M | 54.8M |
| Operating Margin % | 7.76% | 10.09% | 12.07% | 17.34% | 16.91% | 11.28% | 2.48% | 4.55% | 6.37% | 7.59% | 11.23% | 8.74% | 9.33% | 8.29% | 6.81% | 4.7% | -1.99% | -10.79% | 9.8% | 11.05% | 13.38% | 13.59% | 13.38% | 13.29% | 14.56% | 13.94% | 17.06% | 17.41% | 17.58% | 14.9% | 10.75% |
| Operating Income Growth % | - | -20.52% | -43.15% | -0.76% | 78.88% | 427.76% | -56.86% | -30.53% | -15.67% | -35.02% | 35.25% | -5.32% | 15.22% | 21.61% | 55.63% | 372.12% | 83.87% | -175.8% | -13.61% | -22.12% | 10.62% | 0.92% | 5.99% | -7.17% | 3.06% | -13.72% | 10.1% | 11.14% | 40.14% | 55.47% | 21.78% |
| EBITDA | 61.41M | 77.51M | 93.95M | 152.81M | 154.24M | 93.67M | 31.5M | 53.58M | 68.7M | 78.06M | 108.53M | 85.08M | 87.57M | 78.44M | 68.28M | 52.75M | 17.66M | -47.14M | 120.67M | 134.13M | 164.27M | 150.32M | 149.08M | 141.88M | 149.21M | 146.27M | 163.07M | 149M | 135.3M | 101.6M | 72.3M |
| EBITDA Margin % | 10.35% | 12.61% | 14.54% | 19.31% | 18.86% | 13.67% | 5.34% | 7.18% | 8.96% | 10.23% | 13.67% | 11.27% | 11.73% | 10.76% | 9.36% | 7.77% | 2.99% | -6.99% | 12.31% | 13.34% | 15.4% | 15.84% | 15.61% | 15.64% | 16.72% | 16.18% | 19.05% | 19.55% | 19.92% | 17.77% | 14.18% |
| EBITDA Growth % | -26.99% | -17.5% | -38.52% | -0.93% | 64.66% | 197.34% | -41.21% | -22% | -12% | -28.07% | 27.57% | -2.84% | 11.63% | 14.89% | 29.44% | 198.64% | 137.47% | -139.06% | -10.04% | -18.35% | 9.28% | 0.83% | 5.08% | -4.92% | 2.01% | -10.31% | 9.45% | 10.13% | 33.17% | 40.53% | 16.05% |
| D&A (Non-Cash Add-back) | 15.37M | 15.52M | 15.96M | 15.61M | 15.99M | 16.39M | 16.86M | 19.64M | 19.83M | 20.11M | 19.35M | 19.14M | 17.93M | 18.01M | 18.58M | 20.82M | 29.4M | 25.64M | 24.67M | 23.01M | 21.6M | 21.34M | 21.28M | 21.3M | 19.31M | 20.22M | 16.98M | 16.3M | 15.9M | 16.4M | 17.5M |
| EBIT | 46.67M | 69.26M | 77.91M | 141.24M | 138.32M | 79.7M | 11.63M | 33.95M | 49.39M | 57.95M | 89.57M | 65.93M | 69.94M | 58.95M | 50.26M | 37.5M | -6.86M | -69.42M | 102.84M | 124.56M | 146.91M | 128.76M | 138.92M | 132.59M | 135.02M | 132.95M | 146.1M | 132.7M | 119.4M | 85.2M | 54.8M |
| Net Interest Income | 2.76M | 7.03M | 7.46M | 3.83M | -129K | -874K | -455K | -425K | 200K | -955K | -1.22M | -9.25M | -7.23M | -10.26M | -8.46M | -5.56M | -7.05M | -8.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 3M | 7.28M | 7.7M | 4.04M | 72K | 0 | 0 | 0 | 525K | 268K | 395K | 0 | 276K | 0 | 562K | 5.56M | 4.87M | 3.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 234K | 243K | 245K | 213K | 201K | 874K | 455K | 425K | 325K | 1.22M | 1.62M | 9.25M | 7.51M | 10.26M | 9.02M | 11.13M | 11.92M | 11.76M | 3.82M | 1.39M | 4.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 8.17M | 7.03M | 7.46M | 3.83M | -129K | -874K | -455K | -87K | 200K | -955K | -1.22M | -9.25M | -7.23M | -10.26M | -8.46M | -5.56M | -7.05M | -8.41M | -3.82M | -1.39M | -4.57M | 442K | 4.09M | -609K | 2.34M | 2.06M | 671K | 0 | -900K | -4.5M | -7.9M |
| Pretax Income | 54.21M | 69.02M | 85.45M | 141.03M | 138.12M | 76.41M | 14.19M | 33.86M | 49.07M | 56.99M | 87.96M | 56.68M | 62.4M | 50.17M | 41.24M | 26.37M | -18.79M | -81.18M | 92.18M | 109.73M | 138.1M | 129.42M | 130.5M | 121.19M | 132.24M | 128.1M | 146.77M | 132.7M | 118.5M | 80.7M | 46.9M |
| Pretax Margin % | 9.14% | 11.23% | 13.22% | 17.82% | 16.89% | 11.15% | 2.41% | 4.53% | 6.4% | 7.47% | 11.07% | 7.51% | 8.36% | 6.88% | 5.65% | 3.88% | -3.18% | -12.04% | 9.41% | 10.91% | 12.95% | 13.64% | 13.66% | 13.36% | 14.82% | 14.17% | 17.14% | 17.41% | 17.44% | 14.11% | 9.2% |
| Income Tax | 13.82M | 17.42M | 21.63M | 35.22M | 34.84M | 16.41M | 5.29M | 8.16M | 12.7M | 20.8M | 31.32M | 19.54M | 19.47M | 17.7M | -8.46M | -2.88M | 25.53M | -28.49M | 34.11M | 40.5M | 52.42M | 50.08M | 50.16M | 45.81M | 49.99M | 48.42M | 56.2M | 51.4M | 46.6M | 32M | 18.8M |
| Effective Tax Rate % | 25.48% | 25.24% | 25.31% | 24.97% | 25.22% | 21.47% | 37.28% | 24.11% | 25.87% | 36.5% | 35.61% | 34.47% | 31.2% | 35.27% | -20.5% | -10.92% | -135.89% | 35.1% | 37% | 36.91% | 37.96% | 38.7% | 38.43% | 37.8% | 37.8% | 37.8% | 38.29% | 38.73% | 39.32% | 39.65% | 40.09% |
| Net Income | 40.4M | 51.6M | 63.82M | 105.81M | 103.28M | 60.01M | 8.9M | 25.7M | 36.37M | 36.19M | 56.64M | 37.14M | 42.93M | 32.48M | 49.69M | 29.25M | -44.32M | -52.69M | 58.07M | 69.23M | 85.68M | 79.34M | 80.34M | 75.38M | 82.26M | 79.68M | 90.57M | 81.3M | 71.1M | 48.7M | 28.1M |
| Net Margin % | 6.81% | 8.39% | 9.88% | 13.37% | 12.63% | 8.76% | 1.51% | 3.44% | 4.74% | 4.74% | 7.13% | 4.92% | 5.75% | 4.45% | 6.81% | 4.31% | -7.51% | -7.81% | 5.93% | 6.89% | 8.03% | 8.36% | 8.41% | 8.31% | 9.22% | 8.81% | 10.58% | 10.67% | 10.47% | 8.52% | 5.51% |
| Net Income Growth % | -30.16% | -19.15% | -39.69% | 2.45% | 72.12% | 574.21% | -65.37% | -29.34% | 0.49% | -36.09% | 52.49% | -13.48% | 32.18% | -34.64% | 69.89% | 166% | 15.89% | -190.73% | -16.11% | -19.2% | 8% | -1.25% | 6.58% | -8.36% | 3.23% | -12.02% | 11.4% | 14.35% | 46% | 73.31% | 27.15% |
| Net Income (Continuing) | 40.4M | 51.6M | 63.82M | 105.81M | 103.28M | 60.01M | 8.9M | 25.7M | 36.37M | 36.19M | 56.64M | 37.14M | 42.93M | 32.48M | 49.69M | 29.25M | -44.32M | -52.69M | 58.07M | 69.23M | 85.68M | 79.34M | 79.48M | 74.62M | 82.26M | 79.68M | 90.57M | 81.3M | 71.9M | 48.7M | 28.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -89K | -86K | -64K | -22K | -26K | -25K | -1K | 63K | 139K | 190K | 204K | 277K | 252K | 207K | 200K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.58 | 2.01 | 2.49 | 4.13 | 4.05 | 2.37 | 0.34 | 0.96 | 1.32 | 1.29 | 2.00 | 1.27 | 1.47 | 1.11 | 1.71 | 1.01 | -1.53 | -1.83 | 1.97 | 2.15 | 2.51 | 2.19 | 2.08 | 1.93 | 2.06 | 1.96 | 2.20 | 1.92 | 1.61 | 0.37 | 0.22 |
| EPS Growth % | -29.78% | -19.28% | -39.71% | 1.98% | 70.89% | 597.06% | -64.58% | -27.27% | 2.33% | -35.5% | 57.48% | -13.61% | 32.43% | -35.09% | 69.31% | 166.01% | 16.39% | -192.89% | -8.37% | -14.34% | 14.61% | 5.29% | 7.77% | -6.31% | 5.1% | -10.91% | 14.58% | 19.25% | 335.14% | 68.18% | 22.22% |
| EPS (Basic) | - | 2.03 | 2.50 | 4.15 | 4.06 | 2.38 | 0.34 | 0.96 | 1.33 | 1.31 | 2.02 | 1.29 | 1.48 | 1.13 | 1.72 | 1.02 | -1.53 | -1.83 | 1.98 | 2.19 | 2.58 | 2.24 | 2.14 | 1.98 | 2.12 | 2.01 | 2.25 | 1.97 | 1.65 | 0.38 | 0.22 |
| Diluted Shares Outstanding | 25.61M | 25.63M | 25.64M | 25.6M | 25.52M | 25.35M | 26.07M | 26.75M | 27.63M | 27.96M | 28.32M | 29.18M | 29.28M | 29.24M | 29.11M | 28.97M | 28.98M | 28.81M | 29.47M | 32.26M | 34.09M | 36.19M | 38.3M | 38.57M | 39.94M | 40.32M | 41.17M | 42.34M | 44.07M | 43.13M | 42.91M |
| Basic Shares Outstanding | 25.57M | 25.63M | 25.52M | 25.47M | 25.41M | 25.27M | 26.04M | 26.7M | 27.32M | 27.68M | 28.07M | 28.87M | 28.92M | 28.86M | 28.82M | 28.76M | 28.98M | 28.81M | 29.27M | 31.57M | 33.21M | 35.4M | 37.18M | 37.61M | 38.83M | 39.39M | 40.25M | 41.27M | 43M | 43.13M | 42.91M |
| Dividend Payout Ratio | - | 97.07% | 78.77% | 43.81% | 46.72% | 72.14% | 241.22% | 182.85% | 81.13% | 55.34% | 29.39% | 35.94% | 26.31% | 68.42% | 16.22% | 19.67% | - | - | 43.9% | 35.82% | 26.99% | 24.74% | 156.56% | 12.03% | 7.54% | 7.88% | 7.14% | 5.41% | 4.92% | 4.72% | - |
Cyclical Housing Market Sensitivity
As indicated by the most recent quarterly data, Ethan Allen has experienced a consistent revenue decline of approximately 4.8% year-over-year, reflecting a challenging macroeconomic environment where high mortgage rates continue to suppress the housing turnover necessary to drive demand for large-scale, project-based interior design furniture solutions.
The persistent negative growth trajectory suggests that the company is struggling to offset the broader industry slowdown in home furnishings. Investors should monitor whether the current revenue contraction represents a cyclical trough or a more structural shift in consumer preference away from traditional design-center models.
Based on reported financial statements, Ethan Allen maintains a robust gross margin profile averaging above 60%, which highlights the company's unique ability to capture both manufacturing and retail profit pools through its vertically integrated supply chain, a structural advantage that remains largely unmatched by its industry peers.
This high gross margin suggests significant pricing power and effective control over the factory-to-floor cost structure. However, the stability of these margins in the face of declining top-line volume warrants further investigation into whether the company can sustain such levels if input costs for raw materials increase.
According to the income statement analysis, operating margins have compressed from 13.4% in 2024Q4 to 4.8% in 2026Q3, demonstrating that the company's high fixed-cost structure is struggling to scale efficiently as revenue volumes continue to decline across its network of design centers.
The rapid deterioration in operating income suggests that the company's fixed costs, including retail occupancy and manufacturing overhead, are becoming a significant burden on profitability. This trend implies that management may need to consider further rationalization of its physical footprint if the current revenue contraction persists.
As reported in recent filings, the company's net income is increasingly sensitive to operating performance, with EPS falling to $0.23 in 2026Q3, a decline that appears to be exacerbated by the lack of significant non-operating items or tax anomalies to buffer the bottom-line impact of lower sales.
The absence of material stock-based compensation or unusual non-operating gains suggests that the reported earnings are a clean reflection of core operational health. However, the sharp decline in EPS growth warrants caution, as it indicates that the company's profitability is highly vulnerable to even modest fluctuations in top-line revenue.
While the company's vertical integration is often cited as a moat, the current income statement data suggests that this model may create significant downside risk, as the high fixed-cost base prevents the company from quickly adjusting its expense structure during periods of sustained consumer demand weakness.
Short-term observers may focus on the potential for further margin compression if the company is forced to increase promotional activity to drive volume. Investors should monitor whether the reliance on physical design centers becomes a liability in an increasingly digital-first retail landscape, potentially threatening long-term profitability.
Quick answers to the most common questions about buying ETD stock.
For fiscal year 2025, Ethan Allen Interiors Inc. (ETD) reported total revenue of $614.6M. This represents a 20.6% increase compared to $509.8M in 1996.
Ethan Allen Interiors Inc. (ETD) is profitable, generating $51.6M in net income for the fiscal year ending 2025 with a net profit margin of 8.4%.
Ethan Allen Interiors Inc. (ETD) reported an operating income of $62.0M, resulting in an operating profit margin of 10.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Ethan Allen Interiors Inc. (ETD) generated $372.1M in gross profit for the year, representing a gross profit margin of 60.5%. This demonstrates the company's core pricing power and production efficiency.