Written orders dropped by 11.2 per cent year-over-year (YoY) in the wholesale segment and 13 per cent YoY in retail.
Ethan Allen has reported net sales of $142.7 million in Q3 FY25, with wholesale growth of 10.2 per cent offset by a retail decline.
Gross margin held at 61.2 per cent, while adjusted EPS fell to $0.38.
The company maintained strong cash reserves, zero debt, and paid higher dividends.
It opened new design centres in Wisconsin and Toronto and remains focused on vertical integration to navigate challenges.
The gross margin remained steady at 61.2 per cent, while operating margin stood at 7.7 per cent, with adjusted operating margin at 8 per cent compared to 10 per cent Q1 last year. Diluted earnings per share (EPS) was $0.37, with adjusted diluted EPS at $0.38, down from $0.48.
The company generated $10.2 million in operating cash flow, paid $10 million in dividends (up 8.3 per cent year-over-year), and ended the quarter with $183.0 million in cash and investments, maintaining zero debt. Inventory levels rose to $150.4 million, while headcount declined 4.5 per cent YoY to 3,294 employees.
Ethan Allen operated 174 retail design centres in North America as of March 31, 2025, including 143 company-operated locations. During the quarter, the company opened new centres in Middleton, Wisconsin, and Toronto, Canada, showcasing its home furnishings alongside complimentary interior design services and integrated technology.
“Our vertically integrated enterprise, including our interior design retail network, relevant product offerings and ability to manufacture about 75 per cent of our furniture in our own North American facilities, has provided us a strategic advantage,” said Farooq Kathwari, Ethan Allen’s chairman, president and chief executive officer (CEO).
“We are pleased with our third quarter results. These results reflect our ability to operate in an industry faced with reciprocal and retaliatory tariffs, uncertainty in the economy, elevated interest rates and a challenging housing market, that together, have impacted consumer confidence and interest in the home,” continued Kathwari.
Fibre2Fashion News Desk (SG)
