Ethan Allen Interiors Inc. — Cyborg Score 5/10

Mixed
Home Furnishings & Interior Design Retail

Strategic Profile

The company targets affluent homeowners, enabling pricing power and stable retail net sales. A strong balance sheet with zero debt and high cash reserves supports sustainable dividends.

Cyborg Score Rationale

Q2 2026 revenue declined 4.7% to $149.9M and net income fell 22% to $11.7M. Operating margin compressed to 4.8% in Q3 2026 as higher tariffs, promotions and increased occupancy costs offset operational gains. The debt-free balance sheet and geographic diversification support resilience despite thin margins.

Top Insights

  • Vertically integrated with 75% in-house manufacturing provides cost control and supply chain advantage
  • Debt-free balance sheet with $180.9M in cash (March 2026) and 8.7% dividend yield, but dividend sustainability challenged by elevated cash payout ratios
  • Revenue down 4.7-4.8% YoY in recent quarters (Q2-Q3 2026) with operating margins compressing despite strong gross margins (59-60%)
  • Targets affluent homeowners for pricing power, but facing broader housing market headwinds and weak contract business

Named Competitors

  • RH — Luxury home furnishings and design
  • Williams-Sonoma Home — Premium home furnishings
  • Haverty Furniture — Residential furniture retailer

Recent Developments

  • (January 2026) Q2 fiscal 2026 reported despite U.S. government shutdown; announced acquisition of Ethan Allen HR Services by G&A Partners
  • (April 2026) Q3 fiscal 2026 net sales declined 4.8% YoY to $135.8M with net income falling to $5.9M
  • (May 2026) Dividend of $0.39 per share paid (same as prior year, 8.7% yield)

Open the full interactive Ethan Allen Interiors Inc. report

Strategic research, analyst-debate audio, full Cyborg Score breakdown across 11 dimensions, and saved-company audio playlists.

Open report →