Ethan Allen Q1 sales fall on lower traffic and tariffs; adjusted EPS drops year over year 

Overview

• U.S. home furnishings retailer's fiscal Q1 net sales fell to $129.6 mln yr/yr

• Adjusted diluted EPS for fiscal Q1 dropped sharply from prior year

• Company cites lower sales, tariffs and soft housing market as factors impacting results

Outlook

• Company expects higher marketing expenses during remainder of fiscal 2027

Result Drivers

• LOWER DESIGN CENTER TRAFFIC - Co said reduced traffic in retail design centers contributed to declines in written orders and sales

• TARIFF PRESSURE - Co said new tariffs increased costs and pressured gross margins

• COST CONTROLS - Co said lower SG&A expenses reflected cost controls, reduced headcount and lower marketing costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the home furnishings peer group is "hold"

• Wall Street's median 12-month price target for Ethan Allen Interiors Inc. is $22.00, about 9.6% above its November 6 closing price of $20.07

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)