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Investor releaseQuarter not tagged2026-05-21Home Depot Reports Strong Q1 Results: Buy, Hold, or Wait?
Zacks
Home Depot Reports Strong Q1 Results: Buy, Hold, or Wait?
The Home Depot, Inc. HD reported first-quarter fiscal 2026 earnings and revenues that surpassed the Zacks Consensus Estimate. The company posted adjusted earnings of $3.43 per share, reflecting a 3.7% decline from the prior-year quarter but exceeding analysts’ expectations of $3.40. Quarterly revenue increased 4.8% year over year to $41.77 billion, also beating the consensus estimate of $41.49 billion. Home Depot, which currently carries a Zacks Rank #3 (Hold), is part of the Zacks Retail - Home Furnishings industry. Its shares have gone down 9.7% year to date compared with a 11.8% decline for the industry. Ethan Allen Interiors Inc. ETD and Lowe's Companies, Inc. LOW, two of HD’s peers from the same industry, have lost 13.9% and 8.3% in the same period, respectively. While Lowe’s also carries a #3, Ethan Allen has a #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Image Source: Zacks Investment Research The industry has faced a challenging environment year to date, pressured by weak housing activity, elevated interest rates and cautious consumer spending on big-ticket items. Furniture and home furnishings sales have declined in several recent months, with the category underperforming broader retail trends. However, some large players, such as HD and Lowe’s, have shown resilience through stable professional demand and expansion efforts. Despite near-term softness, the industry has modestly outperformed the broader market on a year-to-date basis in stock performance terms. CEO Ted Decker stated that the company’s first-quarter results aligned with expectations, with underlying business demand remaining largely consistent with trends seen throughout fiscal 2025 despite rising consumer uncertainty and housing affordability pressures. He also highlighted the strong customer service delivered by associates during the quarter and acknowledged their continued dedication and hard work. HD operated 2,361 retail stores and more than 1,280 SRS locations across North America and employed over 470,000 associates at the end of the first quarter. For fiscal 2026, the company reaffirmed expectations for modest sales and earnings growth, stable comparable sales, about 15 new stores, operating margins near 13%, capital spending equal to roughly 2.5% of sales and net interest expense of approximately $2.3 billion. HD has a forw...
Investor releaseQuarter not tagged2026-05-01Earnings Beat: Ethan Allen Interiors Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Simply Wall St.
Earnings Beat: Ethan Allen Interiors Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Last week, you might have seen that Ethan Allen Interiors Inc. (NYSE:ETD) released its quarterly result to the market. The early response was not positive, with shares down 5.1% to US$21.34 in the past week. The result was positive overall - although revenues of US$136m were in line with what the analysts predicted, Ethan Allen Interiors surprised by delivering a statutory profit of US$0.23 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Following last week's earnings report, Ethan Allen Interiors' twin analysts are forecasting 2027 revenues to be US$593.2m, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 7.1% to US$1.70. Before this earnings report, the analysts had been forecasting revenues of US$605.8m and earnings per share (EPS) of US$1.75 in 2027. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates. Check out our latest analysis for Ethan Allen Interiors It'll come as no surprise then, to learn that the analysts have cut their price target 11% to US$24.00. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2027. Historically, Ethan Allen Interiors' top line has shrunk approximately 4.7% annually over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.9% per year. So it's pretty clear that, although revenues are improving, Ethan Allen Interiors is still expected to grow slower than the industry. The most importan...
Investor releaseQuarter not tagged2026-04-30Ethan Allen Reports Fiscal 2026 Third Quarter Results; Strong Operating Cash Flow and Robust Balance Sheet Despite Impact from Macroeconomic Challenges; Declares Regular Dividend
GlobeNewswire
Ethan Allen Reports Fiscal 2026 Third Quarter Results; Strong Operating Cash Flow and Robust Balance Sheet Despite Impact from Macroeconomic Challenges; Declares Regular Dividend
DANBURY, CT, April 29, 2026 (GLOBE NEWSWIRE) -- Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE: ETD), a leading interior design destination, today reported its results for the fiscal 2026 third quarter ended March 31, 2026. Farooq Kathwari, Ethan Allen’s Chairman, President and CEO commented, “We were pleased to further strengthen many areas of our vertically integrated enterprise, including our talent, product offerings, marketing, technology, retail network, manufacturing, logistics and social responsibility during the just completed third quarter of fiscal 2026. Our ability to manufacture approximately 75% of furniture in our own North American facilities is a major advantage and we are well-positioned as a vertically integrated enterprise with 172 retail design centers in North America and more internationally. We plan to continue to open new design centers in North America.” “Our third quarter results were impacted by a reduction in business with the U.S. State Department, lower international sales and sluggish demand from a challenging environment for home furnishings, which included weather disruptions and macroeconomic uncertainty. We performed well despite these challenges. For the quarter ended March 31, 2026, we reported consolidated net sales of $135.8 million, gross margin of 59.4%, adjusted operating income of $6.8 million, adjusted operating margin of 5.0% and adjusted diluted EPS of $0.24. Retail segment written orders were flat compared to last year while our wholesale segment written orders declined 7.6% from reduced government activity, a slowdown in our international business and macroeconomic challenges. Our adjusted operating margin of 5.0% reflects the impact of tariffs partially offset by our focus on cost control and operational efficiencies.” “We remain debt-free with substantial liquidity to support long-term growth. During the just completed third quarter we generated $15.1 million in operating cash flow, up from $10.2 million a year ago. Our strong operating cash flow combined with disciplined capital management reflects our commitment to delivering long-term value while maintaining the financial strength needed in a challenging environment. We ended the quarter with total cash and investments of $180.9 million, which included the payment of $10.0 million in regular quarterly cash dividends and $3.0 million of...
Investor releaseQuarter not tagged2026-04-30Ethan Allen Interiors Inc (ETD) Q3 2026 Earnings Call Highlights: Navigating Challenges with ...
GuruFocus.com
Ethan Allen Interiors Inc (ETD) Q3 2026 Earnings Call Highlights: Navigating Challenges with ...
This article first appeared on GuruFocus. Consolidated Net Sales: $136 million. Wholesale Orders Decline: 7.6% decrease. Wholesale Backlog: $42 million, down 23% from a year ago. Gross Margin: 59.4%. Adjusted Operating Income: $6.8 million with an operating margin of 5%. SG&A Expenses: Decreased by 3%. Total Associates: 3,105, a decrease of 6% from a year ago. Adjusted Diluted EPS: $0.24. Effective Tax Rate: 24.2%. Total Cash and Investments: $181 million. Operating Cash Flow: $15 million for the quarter. Free Cash Flow: $22 million for the first nine months of fiscal 2026. Quarterly Dividend: $0.39 per share. Tariff Exposure: Estimated at $15 million to $20 million annually. Design Centers: 172 locations. Warning! GuruFocus has detected 3 Warning Sign with ETD. Is ETD fairly valued? Test your thesis with our free DCF calculator. Release Date: April 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ethan Allen Interiors Inc (NYSE:ETD) maintained strong operating cash flow and a robust balance sheet despite challenging macroeconomic conditions. The company reported consolidated net sales of $136 million, benefiting from a higher average ticket price, increased clearance sales, and fewer returns. Ethan Allen Interiors Inc (NYSE:ETD) remains debt-free with substantial liquidity, ending the quarter with $181 million in total cash and investments. The company generated $15 million in operating cash flow during the third quarter, up from $10 million a year ago, due to improved working capital. Ethan Allen Interiors Inc (NYSE:ETD) continues to focus on strengthening its vertically integrated structure, including introducing new product programs and enhancing its retail network. Wholesale orders declined by 7.6% due to reduced government sales, international business slowdown, and macroeconomic challenges. The company's earnings were negatively impacted by unexpected tariffs on products manufactured in Mexico, amounting to approximately $4 million. Ethan Allen Interiors Inc (NYSE:ETD) faced a 23% decrease in wholesale backlog, attributed to lower US State Department and international business. The company's consolidated gross margin of 59.4% was affected by incremental tariffs, increased promotional activity, and higher clearance sales. Operating margins were pressured by higher tariffs, incremental digital...
Investor releaseQuarter not tagged2026-04-30Ethan Allen (ETD) Q3 Earnings and Revenues Top Estimates
Zacks
Ethan Allen (ETD) Q3 Earnings and Revenues Top Estimates
Ethan Allen (ETD) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +17.07%. A quarter ago, it was expected that this home furnishings company would post earnings of $0.38 per share when it actually produced earnings of $0.44, delivering a surprise of +15.79%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Ethan Allen, which belongs to the Zacks Retail - Home Furnishings industry, posted revenues of $135.84 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.73%. This compares to year-ago revenues of $142.7 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ethan Allen shares have lost about 1.8% since the beginning of the year versus the S&P 500's gain of 4.3%. While Ethan Allen has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ethan Allen was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1...
Investor releaseQuarter not tagged2026-04-30Ethan Allen Interiors Q3 Earnings Call Highlights
MarketBeat
Ethan Allen Interiors Q3 Earnings Call Highlights
Tariffs were a major headwind, costing about $4 million in the quarter and leaving Ethan Allen with an estimated annual exposure of roughly $15–$20 million (notably a 25% Section 232 tariff on Mexico-made upholstered wood); the company is pursuing refunds and mitigating through cost-sharing, sourcing diversification and price increases (about 5% taken in Nov. 2025). Demand softened as consolidated net sales were $136 million, wholesale orders fell 7.6% and wholesale backlog dropped 23% to $42 million, driven by reduced State Department business, weaker international sales and generally “choppy” retail trends. Ethan Allen exited the quarter in a strong liquidity position—debt-free with $181 million in cash and investments, generated $15 million in operating cash flow (up from $10 million a year ago) and $22 million of free cash flow year-to-date, while continuing to pay a $0.39 quarterly dividend. Interested in Ethan Allen Interiors Inc.? Here are five stocks we like better. Bassett Furniture: Buy Now, Sit Back, and Collect Dividends Ethan Allen Interiors (NYSE:ETD) executives told analysts the company navigated a difficult fiscal 2026 third quarter marked by softer contract and international activity, a choppy demand environment, and an earnings hit from tariffs—particularly on products made in its Mexico operations. Chairman, President and CEO Farooq Kathwari said results were “mainly impacted” by a reduction in business tied to the company’s U.S. State Department contract, “primarily due to government shutdown,” as well as lower international sales and what he described as “sluggish demand for home furnishings.” → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? 2 Stocks Hurt By Trump's Furniture Tariffs and 1 That Benefits Kathwari said North American retail written sales were flat year over year, while wholesale orders declined 7.6%, which he attributed to reduced U.S. government sales and a slowdown in international business. SVP, CFO and Treasurer Matthew J. McNulty said consolidated net sales were $136 million, benefiting from a higher average ticket price, increased clearance sales, and fewer returns. Those positives were offset by lower contract sales, a decline in delivered unit volume, and inclement weather. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss Analysts Love Lovesac, But Investors Should Be Cautious On demand trends, M...
Investor releaseQuarter not tagged2026-04-30Ethan Allen Interiors Inc. Q3 2026 Earnings Call Summary
Moby
Ethan Allen Interiors Inc. Q3 2026 Earnings Call Summary
Performance was primarily impacted by a reduction in U.S. State Department contract business due to government shutdowns and lower international sales. Retail segment written orders were flat for the quarter, though demand levels were choppy and the pace of written orders declined slightly throughout the period following a strong performance in July. Earnings were significantly pressured by approximately $4 million in unexpected tariffs, particularly those targeting Mexican manufacturing operations. Vertical integration remains a core differentiator, allowing the company to manufacture 75% of furniture in North America and maintain a 'one delivered price' model. The company is actively downsizing its retail footprint, reducing design center sizes by 25% to 30% as technology enables designers to work more efficiently in smaller spaces. Management attributed lower operating margins to the combination of higher tariffs, increased digital technology spend, and the delivery of orders with higher promotional activity. Management expects a decision on the renewal of the U.S. State Department contract within the next couple of months following a competitive bidding process. The company is currently working to recover previously paid IEEPA tariffs, with refunds expected to take up to 80 days to process via new government software. Strategic focus for the next six months includes introducing new relevant product programs and continuing the repositioning of the retail network. Management anticipates that several new product introductions this spring will complement current offerings and help drive future demand. The company is currently working on approximately five new locations in the United States and has opened locations in Canada, while continuing to relocate and reposition its existing design center network. Current annual tariff exposure is estimated between $15 million and $20 million, concentrated on upholstered wood products from Mexico and furniture from Honduras. A 10% global import tariff under Section 122 is currently effective but is scheduled to expire in mid-July 2026. The company has reduced its total associate headcount by 6% year-over-year to 3,105 as part of disciplined cost control and efficiency efforts. Inventory clearance of legacy products to make room for new introductions has temporarily impacted gross margins. Our analysts just identified a...
Investor releaseQuarter not tagged2026-04-30Ethan Allen: Fiscal Q3 Earnings Snapshot
Associated Press
Ethan Allen: Fiscal Q3 Earnings Snapshot
DANBURY, Conn. (AP) — DANBURY, Conn. (AP) — Ethan Allen Interiors Inc. (ETD) on Wednesday reported net income of $5.9 million in its fiscal third quarter. On a per-share basis, the Danbury, Connecticut-based company said it had profit of 23 cents. Earnings, adjusted for non-recurring costs, were 24 cents per share. The home furnishings company posted revenue of $135.8 million in the period. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on ETD at https://www.zacks.com/ap/ETD
TranscriptFY2026 Q32026-04-29FY2026 Q3 earnings call transcript
Earnings source - 48 paragraphs
FY2026 Q3 earnings call transcript
Good afternoon, and welcome to the Ethan Allen fiscal 2026 third quarter analyst conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. It is now my pleasure to introduce your host, Matthew J. McNulty, Senior Vice President, Chief Financial Officer, and Treasurer. Thank you. You may begin.
Thank you, operator. Good afternoon. Thank you for joining us today to discuss Ethan Allen's fiscal 2026 third quarter results. With me today is Farooq Kathwari, our Chairman, President, and CEO. Mr. Kathwari will open and close our prepared remarks, while I will speak to our financial performance midway through. After our prepared remarks, we will open up the call for your questions. Before we begin, I'd like to remind the audience that this call is being webcast live under the News & Events tab within our investor relations website. A replay and transcript of today's call will also be made available on our investor relations website. There, you will find a copy of today's press release, which contains reconciliations of non-GAAP financial measures referred to on this call and in the press release.
Our comments today may include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. The most significant risk factors that could affect our future results are described in our most recent quarterly report on Form 10-Q. Please refer to our SEC filings for a complete review of those risks. The company assumes no obligation to update or revise any forward-looking matters discussed during this call. With that, I am pleased to now turn the call over to Mr. Kathwari.
Thanks, Matt, and thank you all for participating in our third quarter financial results call. As we reported, despite many challenges, we performed reasonably well. We were mainly impacted by a reduction of business from our State Department contract, primarily due to government shutdown, lower international sales, and to some extent, sluggish demand for home furnishings. Our written sales in North America were flat compared to last year, while our wholesale orders declined 7.6% from reduced, as I mentioned, governments, U.S. government sales and slowdown in our international business. Tariffs also impacted our earnings, especially the unexpected tariffs on our Mexico manufacturing products. The increased tariffs during the quarter of about $4 million were mainly the main reason of our reduced earnings. Matt will now provide more information, and after Matt, I will review our initiatives. Matt.
Thank you, Mr. Kathwari. Our third quarter financial performance was highlighted by strong operating cash flow and a robust balance sheet despite operating in a challenging macroeconomic environment. Our consolidated net sales of $136 million benefited from a higher average ticket price, increased clearance sales, and fewer returns. These increases were offset by lower contract sales, a decline in delivered unit volume, and inclement weather. Retail segment written orders were flat versus last year, while our wholesale segment declined 7.6% due to macroeconomic challenges, reduced government activity, and a slowdown in our international business. Demand levels were choppy and the pace of written orders declined slightly throughout the quarter. Our retail written trends were strongest in July despite adverse weather, which slowed traffic late in the month and continued into February.
There was a pullback in demand during March following the Iran conflict, but we are excited for the introduction of several new products this spring and believe they will complement the current home furnishings Ethan Allen has to offer. We ended the quarter with wholesale backlog of $42 million, down 23% from a year ago. Lower U.S. State Department and international business, combined with improved customer lead times, helped reduce our wholesale backlog. Our consolidated gross margin of 59.4% was impacted by incremental tariffs, delivering out orders with increased promotional activity and higher clearance sales, partially offset by a change in sales mix, lower inbound freight, reduced headcount, and a higher average ticket. Our adjusted operating income was $6.8 million with an operating margin of 5%.
Lower operating margin was driven by higher tariffs, incremental digital and technology spend, fewer U.S. government sales, and delivering out orders with higher promotions. Disciplined spending, cost control initiatives, and lower headcount helped to drive SG&A expenses down 3% and offset additional investments we are making in our business. At quarter end, we had 3,105 total associates, a decrease of 6% from a year ago, with decreases noted in both wholesale and retail. Adjusted diluted EPS was $0.24. Our effective tax rate was 24.2%, which varies from the 21% federal statutory rate, primarily due to state taxes. As noted earlier, our business has been impacted by the current tariff environment, which remains dynamic and uncertain. Since the beginning of 2025, the U.S. government has announced several different measures regarding tariffs.
More recently, in February, the U.S. Supreme Court invalidated certain IEEPA tariffs introduced last year. Shortly thereafter, a new 10% global import tariff under Section 122 was made effective and lasts until mid-July of this year. Our current exposure is concentrated on the 25% tariff that took effect in October 2025 under Section 232, which is on upholstered wood products produced and exported out of our Mexican manufacturing facilities. Our remaining exposure is under the aforementioned Section 122 tariff, which applies a 10% tariff on furniture manufactured and exported out of our Honduras facility, as well as on imported wood furniture from Indonesia, select fabrics from Asia and imported home accents. In total, we estimate our current tariff exposure to be in the range of $15-$20 million annually.
In the past month, the U.S. Customs and Border Protection released guidance regarding IEEPA tariff refunds, including last week's April 20th launch of software that will pro-process IEEPA refund claims at scale. We are currently working through recoverability of previously paid IEEPA tariffs and expect refunds to take up to 80 days to receive. Now turning to our liquidity. We remain debt-free with substantial liquidity to support long-term growth. We maintain a robust balance sheet and ended the quarter with $181 million in total cash and investments. During the just completed third quarter, we generated $15 million in operating cash flow, up from $10 million a year ago due to improved working capital. Through the first nine months of fiscal 2026, we have generated $22 million in free cash flow.
In February, we paid a regular quarterly dividend of $10 million or $0.39 per share. Also, as just announced in our earnings release, our board declared a regular quarterly cash dividend of $0.39, which will be paid this May. We continue to view our dividend as an attractive use of cash and a positive return to shareholders. As I conclude my prepared remarks, we are pleased that our business model helped deliver another quarter of profitable growth. Our efforts to identify ways to leverage operating expenses are constant. We seek to properly balance investing in future growth while managing ongoing costs. Ethan Allen's vertical integration and focus on one brand are core differentiators that will help us navigate through these current industry headwinds. With that, I will now turn the call back over to Mr. Kathwari.
Thanks, Matt. As I mentioned, we have continued to take steps to strengthen our unique vertically integrated structure, including strengthening our product offerings. During the last 6 months, focus has been to introduce new relevant product programs. Strengthening our retail network. We have continued to reposition our retail network in North America. Design centers numbering 172 locations with smaller footprint, with major introduction of technology to help our talented interior design associates. Continued strengthening our North American manufacturing, which produces about 75% of our furniture, almost all made custom on receipt of orders. Continued strengthening our North American national and retail logistics, which enables us to deliver our products with what we call white glove delivery at one delivered price to our clients in North America.
Importantly, combining personal service of our interior designers and our manufacturing associates with technology has been a game changer. This has helped us provide great services while reducing costs. With this brief overview, I am happy to open for any comments and questions.
Our first question comes from Taylor Zick with KeyBanc Capital Markets. Please state your question.
Yeah. Hi, Taylor. How are you?
Hey, Farooq. I'm doing well. How are you doing?
Thanks very much.
Good, good. Well, I just wanted to first ask kind of about the retail written orders. You know, you gave some good color here, you know, trends slowed a little bit in February, and then you saw a pullback in March, I assume, you know, related to the geopolitical situation. You know, any sense of how, you know, retail written orders are trending here so far in April? I assume there's some liberation day noise in there as well, but maybe if you can kinda touch on that.
It's a good, it's an important question. The first is that in this quarter, despite all these challenges we have had in the economy, our retail, I mean, our written retail held up. Our retail division, basically written orders were about the same as last year, which is tremendously important. As Matt also mentioned, the decline was mostly due to the international issues and the State Department issues. Our business has held up. Now in April, it's actually, it's been positive. There has been positive news. We will continue the progress that we saw despite all these challenges last quarter. We maintained our retail, I think in April so far, it has been positive.
Great. Maybe if I can ask, maybe on the tariff side, and maybe I can wrap two questions into one here. You also gave some great color on the tariffs and where you're exposed. You called out, I think $15-$20 million of exposure on an annual basis. Can you kind of just talk a little bit about how you plan to, you know, mitigate some of those tariff expenses? Related to that, maybe if you can touch on the gross margin as well, because we also have, you know, rising diesel costs and increasing foam prices as well. If you don't mind touching on, you know, that side.
Yeah. I'll say, I'll say a few words, and Matt can also join. Our tariffs. The impact of tariffs are on our products coming, of course, from imported products, which is mostly Asia. Recently, last year, there were tariffs imposed in our North American operations, both in Mexico and in Honduras. Interestingly, Mexico has been close to what? 25%?
Correct.
25%, Honduras is 10%. That really is interestingly, especially in Mexico. The advantage we have, of course, in Mexico, to some degree, has mitigated because we operate and own the manufacturing operations. According to Mexican law, we can ship the products from Mexico to United States at a relatively small margin. I think what, about 5% or so, 5%. 5%, if that was not the case, we had to buy all those products, then, you know, nobody would be able to operate 5%. Even with the 5% margin that we have, we still were impacted substantially with the impact of Mexico, to some degree, Honduras, and then of course our products that come from Asia. There, I mean, the tariffs have gone very, very high.
Now in the last six months, tariffs have been reduced from Indonesia, from India and other places, even in China. I think that we do hope that there is some resolution to what has taken place with the U.S. and Mexico. It's nothing to do with business. You know, there's a lot of politics that has resulted in those high tariffs.
Yeah.
Yeah, yeah. That's a great answer, I'd just like to add a little bit more onto that for you, Taylor. Your first part of your question was what steps have we taken? I think in my prepared remarks, I said the tariff situation is dynamic and ongoing, meaning that the rules and the regulations continue to change. The Section 122, the 10% global tariff rate was a 150-day set tariff rate, which is set to expire in July. The rules may again change in July. We gotta play with what the rules are as of today. We took certain steps, and we continue to take certain steps to mitigate the tariff. Those include partner sharing or sharing of costs with vendors, sourcing diversification, identifying alternative sources for products if possible.
Third is absorb some of the costs. We know we can't pass along all of them or have our vendors absorb all of them, so we do absorb some ourselves. Last was price increase. We mentioned on the previous call last quarter that we took about an average 5% price increase in November 2025. Those have helped mitigate some of that incremental tariff exposure that I quantified at $15 million-$20 million.
You know, those tariffs really impacted our operating margins. I mean, when you take a look at our operating margins coming down, it's mostly because of those tariffs. Our retail business in the U.S. were held up. All right, next. Any other questions?
No, I think we covered it here. I'll pass it along. Thanks so much, guys.
Thanks very much.
Thank you. A reminder to the audience, to ask a question, press star one on your phone. Your next question comes from Cristina Fernández with Telsey Advisory Group. Please state your question.
Hello, Cristina.
Hi.
How are you?
I'm doing good. Good afternoon, Farooq and Matt. I had a couple of questions. The first one is on the United States Department of State contract and just the whole wholesale contract side of the business. It's been a pressure point now for at least a year. What is your outlook from here on that part of the business? Do you think it's near reaching stabilization, or we should expect weakness for the rest of 2026?
Cristina Fernández, a number of factors. First is that we have had a very long-term contract with the State Department, and just recently, just in the last few months, the contract has been up for renewal, so we had to bid, and I'm sure others have bid on it too. The bidding has taken place, and the State Department is right now reviewing all those bids. We do expect to hear from the State Department. Depending on what happens, we do have an opportunity, which we have done, to increase some of our prices based on these issues of tariffs. I think in the next few... I think, hopefully in the next couple of months, we will know about the new contract.
Right now, we do have the current contract where we are getting business, not at the level we did last year, but the business is coming in under the current contract.
The second question I had was on the impact of promotions you mentioned during the quarter. Is that mostly related to the increased promotional activity back in the second quarter and those deliveries, you know, being made now, or did you Offer incremental promotions to consumers during this current quarter versus a year ago?
Well, there are two factors. First is, you know, we decided to increase our marketing spend, both in our, especially in our digital mediums. We increased that. When you look at our advertising, a lot of it was done because the fact we increased it now, which is the right thing to do because our digital mediums are tremendously important. That is what you look at it as not because of the, not only because of the existing promotions, but we expanded in a very strong manner in our digital mediums. That has helped us and will continue to help us. We'll, you know, we do have the flexibility as we go forward in determining how much we spend. Last quarter, we spent more relative to the sales.
That's why our percentage of marketing was higher.
The last question I had was on the real estate plans. On the press release, you noted a couple of new locations planned for this year. Do you still see opportunity and, you know, I guess mostly in the U.S., to enter newer markets that you're not in, or are most of these store openings relocations or updates to existing stores?
It's both. In the last couple of years, or three years, we have spent a great deal of effort, resources to reposition our existing network. That existing network, the repositioning has involved, first, investing in our existing design centers to make sure they project well and also reducing the size. We have been able to overall reduce the size of our design centers by at least 25%-30% because of the technology that we are able today to utilize in helping our designers work with clients. That's tremendously important. The second is we do have a number of locations that we actually currently are working on, about five new locations in the United States. We also have opened up one or two locations in Canada.
We'll continue to open up new locations, but the, but also relocate the current ones. As I said, we have had a major impact of taking our current locations, of repositioning them in both in size and also in the new products. One of the one of the factors we've got to keep in mind is that our. And that affected, to some degree, our margins, is the fact that bringing in lots of new products meant we had to sell what we have. That had a somewhat of an impact on our margins because those products we had to sell, and we're still selling them.
Thank you.
All right, Cristina. Any other questions or comments?
sir, there appears to be no additional questions at this time. I'll hand the floor back over to Mr. Kathwari for closing remarks.
Well, thank you very much. You know, as I said, on one hand, we are going through challenging times, but the good news is we have continued to position ourselves well. We have. Every week, I focus on five important things. First is talent. We are blessed with very strong talent in our vertically integrated enterprise, from our manufacturing to our logistics, to our merchandising, to marketing, logistics. The second thing is, as we look at after talent, is technology. Technology has played a tremendously important role in everything we do today. third is marketing. Marketing is important at national level, at the retail level. fourth is our whole focus on making sure that we provide great service. fifth, tremendously important, is social responsibility.
Those five things are critical, and I think has helped us maintain a strong presence in all our operations. Thank you very much for participating and look forward to our continued, making sure we continue to focus on our business and to grow our business.
Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you all for your participation.
Investor releaseQuarter not tagged2026-04-09Ethan Allen Announces Release Date for its Fiscal 2026 Third Quarter Results
GlobeNewswire
Ethan Allen Announces Release Date for its Fiscal 2026 Third Quarter Results
DANBURY, CT, April 08, 2026 (GLOBE NEWSWIRE) -- Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE: ETD) will release its financial and operational results for the fiscal 2026 third quarter ended March 31, 2026, after the stock market closes on Wednesday, April 29, 2026. Following the release, the Company will host a conference call at 5:00 p.m. Eastern Time to discuss these results. The conference call will be webcast live from the Company’s Investor Relations website at https://ir.ethanallen.com. The following information is provided for those who would like to participate in the live conference call: U.S. Toll-Free: 877-705-2976 International: 201-689-8798 Conference ID: 13759156 An archived recording of the conference call will be available on the Company’s Investor Relations website referenced above for six months. A telephone replay will also be available for one month following the call. ABOUT ETHAN ALLEN Ethan Allen (NYSE: ETD), named America’s #1 Premium Furniture Retailer by Newsweek for three consecutive years, is a leading interior design destination combining state-of-the-art technology with personal service. Ethan Allen design centers, which represent a mix of Company-operated and independent licensee locations, offer complimentary interior design service and sell a full range of home furnishings, including custom furniture and artisan-crafted accents for every room in the home. Vertically integrated from product design through logistics, the Company manufactures about 75% of its custom-crafted furniture in its own North American manufacturing facilities and has been recognized for product quality and craftsmanship since 1932. Learn more at www.ethanallen.com and follow Ethan Allen on Facebook, Instagram, and LinkedIn. Investor Relations Contact: Matt McNulty Senior Vice President, Chief Financial Officer and Treasurer [email protected]
Investor releaseQuarter not tagged2026-02-19Home Depot Pre-Q4 Earnings: Is it Wise to Buy Before the Release?
Zacks
Home Depot Pre-Q4 Earnings: Is it Wise to Buy Before the Release?
The Home Depot, Inc. HD is set to report fourth-quarter fiscal 2025 results on Feb. 24, before market open. The company’s top and bottom lines are expected to have declined year over year in the to-be-reported quarter. The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $38.25 billion, indicating a decline of 3.7% from that reported in the year-ago quarter. The Zacks Consensus Estimate for quarterly earnings per share (EPS) of $2.51 suggests a decline of 19.8% from the year-ago period’s reported figure. The consensus estimate for EPS has been unchanged in the past 30 days. For fiscal 2025, the Zacks Consensus Estimate for revenues is pegged at $164.7 billion, indicating growth of 3.3% from that reported in the year-ago quarter. The Zacks Consensus Estimate for fiscal 2025 EPS of $14.50 suggests a decline of 4.9% from the year-ago period’s reported figure. The consensus estimate for EPS has been unchanged in the past 30 days. The Atlanta, GA-based leading home improvement retailer delivered a trailing four-quarter average negative earnings surprise of 0.09%. In the last reported quarter, the company delivered a negative earnings surprise of 1.8%. Our proven model conclusively predicts an earnings beat for Home Depot this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Home Depot has an Earnings ESP of +5.61% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Home Depot’s fourth-quarter fiscal 2025 results are expected to reflect top-line and comparable sales (comps) growth, driven by the contributions from the recent acquisition of GMS Inc. and steady underlying customer engagement across Pro and DIY. On the last reported quarter’s earnings call, management highlighted that consistent customer engagement in smaller repair and maintenance projects continues to provide stability, even as larger discretionary spending remains soft. Home Depot remains committed to advancing its strategic initiatives, even amid economic uncertainty and a challenging high-interest-rate environment that has affected home improvement demand. The company’s key priorities include enhancing the interconnected shop...
Investor releaseQuarter not tagged2026-01-29Ethan Allen (ETD) Q2 2026 Earnings Call Transcript
Motley Fool
Ethan Allen (ETD) Q2 2026 Earnings Call Transcript
Image source: The Motley Fool. Jan. 28, 2026 at 5 p.m. ET Chairman, President, and Chief Executive Officer — Farooq Kathwari Senior Vice President, Chief Financial Officer, and Treasurer — Matthew J. McNulty Operator: Good afternoon, and welcome to the Ethan Allen Interiors Inc. Fiscal 2026 Second Quarter Analyst Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. It's now my pleasure to introduce you to our host, Matthew J. McNulty, Senior Vice President, Chief Financial Officer, and Treasurer. Thank you. You may begin. Matthew J. McNulty: Thank you, operator. Good afternoon, and thank you all for joining us today to discuss Ethan Allen Interiors Inc.'s fiscal 2026 second quarter results. With me today is Farooq Kathwari, our Chairman, President, and CEO. Mr. Kathwari will open and close our prepared remarks, while I will speak to our financial performance midway through. After our prepared remarks, we will then open the call up for your questions. Before I begin, I'd like to remind the audience that this call is being webcast live under the news and events tab within our Investor Relations website. A replay of the transcript of today's call will also be made available on our Investor Relations website. There you will find a copy of today's press release which contains reconciliations of the non-GAAP financial measures referred to on this call and in the press release. Our comments today may include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. The most significant risk factors that could affect our future results are described in our most recent quarterly report on Form 10-Q. Please refer to our SEC filings for a complete review of those risks. The company assumes no obligation to update or revise any forward-looking matters discussed during this call. With that, I'm pleased to now turn the call over to Mr. Kathwari. Farooq Kathwari: Well, thank you, Matt. And thank you for joining our second quarter ending December 31, 2025, earnings call. The second quarter results were strongly impacted by the government shutdown resulting in lower consumer confidence, lower traffic to our design centers, and lower orders at retail, especially from the U.S....

