Ethan Allen Interiors Inc (ETD) Q3 2025 Earnity call Highlights: Navigating challenges with …

• Consolidated net turnover: $ 142.7 million, which reflects a lower supplied volume of the units, but a higher average ticket price and improved contract sales.

• Gross marge: 61.2%, driven by lower raw material costs and reduced load.

• Adapted operating margin: 8% compared to 10% a year ago.

• Classified diluted EPS: $ 0.38 compared to USD 0.48 a year ago.

• Operating cash flow: 10.2 million US dollars in the third quarter.

• Total money and investments: 183 million US dollars without outstanding debts.

• Retail segment of written orders: Down 13.2%.

• Wholesale orders: Reduced by 11.2%.

• Wholesale behind: On March 31, 54.6 million US dollars.

• Burden: 3.294, a decline of 4.5% compared to the previous year.

• Investment expenses: 2.0 million US dollars, including new retail design centers and manufacturing equipment.

• Quarterly cash dividend: $ 0.39 per share with a current return of 5.4%.

Appearance date: May 05, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Ethan of all interior INC (NYSE: ETD) reported strong gross margins of 61.2%, which are due to lower raw material costs, reduced loads and higher average ticket prices.

• The company had a robust record with $ 183 million in cash and no outstanding debt.

• Ethan Allen Interiors Inc (NYSE: ETD) has a strong presence of North American production and produces 75% of its furniture in Germany, which minimizes the tariff effects.

• The company continues to pay regular quarterly cash dividends with a current return of 5.4%, one of the highest in the industry.

• Ethan All Interiors Inc (NYSE: ETD) has successfully used the technology to improve operational efficiency, since 2019 to lower 36% and to improve marketing range.

• The consolidating net turnover was $ 142.7 million, which, despite higher average ticket prices, reflects a lower -delivered volume of the units.

• The written orders of the retail section decreased by 13.2%, and wholesale regulations decreased by 11.2%, which indicates a challenging demand for demand.

• The adjusted operating margin dropped from 10% a year ago to 8%, which contradicts stricter cost management, but less profitability.

• The company experienced in January and February due to weather, tariff uncertainty and reduced traffic.

• Ethan of all interior Inc (NYSE: ETD) faces challenges with increased interest rates and a difficult housing market, which affects the overall demand.

Q: How do the tariffs affect the positioning of Ethan Allen in the industry and do you see the price increases of competitors? A: Farooq Kathwari, CEO, explained that Ethan Allen is less affected by the tariffs due to his North American production base and only a small part of the products affected by tariffs is affected. The company has not yet increased the prices, but will take it into account if necessary. Competitors with more offshore dependency may have to increase prices more.