ETD Stock Forecast & Price Target

Ethan Allen Interiors reported an expansion in gross margin, which increased by approximately 55 basis points year-over-year to reach 61.4%, suggesting improved efficiency in operations. The company's fourth quarter showed resilience with earnings per share of $0.49, exceeding both TAG projections and the FactSet consensus by $0.04, highlighting a positive trend in order intake despite previous challenges in the third quarter. Additionally, forecasts indicate anticipated sales growth of 1.0% and an expected operating margin expansion of 110 basis points to 9.2%, reflecting a solid underlying operational performance and a favorable outlook for the company's financial health.

Ethan Allen Interiors has experienced a significant decline in its operating margin, which decreased approximately 434 basis points year-over-year to 7.2%, attributed to a substantial increase in selling, general, and administrative expenses. Additionally, the company's forecasted sales for the first quarter of fiscal year 2026 is anticipated to reflect a year-over-year decline due to an 11% drop in traffic to design galleries, leading to a mid-teen decrease in orders for April. Furthermore, while promotional efforts have temporarily boosted demand, overall trends remain inconsistent, with ongoing pressures from tariffs and reduced revenues expected to impact profitability negatively.