ETD

Company Breaks With More Than Two Decades of Practice in the Midst of a Contested Election Questions What the Board is Hiding From Shareholders Before They Decide Who Will Oversee Ethan Allen's Future PARK CITY, Utah, October 19, 2026--(BUSINESS WIRE)--Doug Bergeron, a significant shareholder of Ethan Allen Interiors Inc. ("Ethan Allen" or the "Company") (NYSE: ETD) with beneficial ownership, collectively with his affiliates and associates, of approximately 5.2% of Ethan Allen's outstanding common stock, today issued the following statement in response to the Company's announcement that it will report its fiscal first quarter 2027 results on November 9, 2026, five days after its 2026 Annual Meeting of Stockholders (the "Annual Meeting") on November 4, 2026. "Yesterday, we called on Ethan Allen to release its first quarter results before shareholders vote on the future of the Company. Today, the Board responded by doing the exact opposite, scheduling its earnings release for after the Annual Meeting. "For more than 20 years, Ethan Allen has reported its first quarter results ahead of its annual meeting.1 The Board adhered to that schedule even during its 2015 proxy contest. Further, for the past five years, the Company has consistently released its first quarter results on the last Wednesday of October – a schedule that has been seemingly automatic. The Board's decision to abandon these practices now is all the more concerning and appears to be a deliberate attempt to manipulate the information available to shareholders as they cast their votes. The Company's attempt to distract from this obvious manipulation is transparent. The issue is not how many days there are between the announcement of the earnings release date and the earnings release, itself – it is that the Board has chosen, for the first time in decades, to withhold its results until after the shareholder vote. The move raises the obvious question: what does the Board not want shareholders to see? "This election is about two decades of deteriorating performance, failed execution despite promises of growth, and a Board that continues to exemplify poor governance and stewardship. Withholding the latest financial results until after the upcoming election of directors only deepens concerns about the Board's commitment to transparency and accountability. Shareholders deserve to make this consequential decision with all relevant information available to them." Additional materials related to Mr. Bergeron's campaign, including video interviews with his five director candidates, may be found at www.EthanAllenGrowth.com. Shareholders are encouraged to follow the campaign's LinkedIn and X pages to stay informed in real time. PROTECT YOUR INVESTMENT. RENEW AN AMERICAN ICON. VOTE THE WHITE UNIVERSAL PROXY CARD TODAY Shareholders with questions on how to vote their shares may visit www.EthanAllenGrowth.com/How-To-Vote. ADDITIONAL INFORMATION DGB Investment, Inc. and Douglas G. Bergeron, together with the other participants in their solicitation (collectively, "DGB"), have filed a definitive proxy statement and accompanying WHITE universal proxy card with the Securities and Exchange Commission ("SEC") to be used to solicit proxies with respect to the election of DGB's slate of highly qualified director candidates and the other proposals to be presented at the 2026 annual meeting of stockholders (the "Annual Meeting") of Ethan Allen Interiors Inc., a Delaware corporation (the "Company"). Stockholders are advised to read the proxy statement and any other documents related to the solicitation of stockholders of the Company in connection with the Annual Meeting because they contain important information, including information relating to the participants in DGB's proxy solicitation. These materials and other materials filed by DGB with the SEC in connection with the solicitation of proxies are available at no charge on the SEC's website at http://www.sec.gov. The definitive proxy statement and other relevant documents filed by DGB with the SEC are also available, without charge, by directing a request to DGB's proxy solicitor, Okapi Partners LLC, at its toll-free number (877) 285-5990 or via email at [email protected]. ____________________1 Company SEC filings and press releases announcing first quarter earnings results for fiscal years 2005 through 2026. View source version on businesswire.com: https://www.businesswire.com/news/home/20261019391518/en/ Contacts Media Contact: [email protected] Investor Contact: Bruce Goldfarb / Chuck Garske Okapi Partners (877) 285-5990 [email protected]

Company Has Yet to Announce an Earnings Release Date, Departing from a Decade of Consistent Disclosure Practice Raises Serious Questions About Board Credibility Following Inaccurate Financial Claims and Mischaracterizations of Mr. Bergeron's Nominees and Plan to Restore Growth Warns Shareholders Not to Be Fooled by Selective Financial Claims and Repeated Growth Promises That Obscure Two Decades of Decline PARK CITY, Utah, October 18, 2026--(BUSINESS WIRE)--Doug Bergeron, a significant shareholder of Ethan Allen Interiors Inc. ("Ethan Allen" or the "Company") (NYSE: ETD) with beneficial ownership, collectively with his affiliates and associates, of approximately 5.2% of Ethan Allen's outstanding common stock, today called on Ethan Allen to announce when it will release its fiscal first quarter 2027 financial results and to publish those results sufficiently ahead of its 2026 Annual Meeting of Stockholders (the "Annual Meeting") on November 4, 2026. "Where are the numbers? Shareholders are on the verge of deciding who will oversee Ethan Allen's next chapter, yet the Board of Directors (the "Board") has not told them if, or when, they will see the Company's latest financial results. For each of the past ten years, Ethan Allen announced the release date for its fiscal first quarter results no later than October 18.1 This year, with the Annual Meeting just over two weeks away, shareholders have heard nothing. However, this election is not about a single quarter. After 20 years of deteriorating performance, including four consecutive quarters of fixed-cost deleveraging from declining sales, shareholders should have no reason to trust the Chairman and CEO and the incumbent Board's promises of sustainable growth." Mr. Bergeron also set the record straight on several willfully misleading and inaccurate representations in the Company's recent investor presentation and proxy materials that further call into question the Board's record and credibility: - Another "positioned for growth" promise without results. In 2015, defending against a proxy contest, the Company told shareholders it was "well positioned to begin an accelerated growth phase."2 Eleven years later, the business is substantially smaller, less profitable and less valuable. Years of design-center "refreshes," expanded assortments, increased advertising and digital initiatives have failed to produce sustained growth, and the 12.8% five-year average operating margin the Company highlights obscures a 7.8% margin in FY2026, less than half the 17.3% reached in FY2023.3 Activity is not achievement, and historical averages cannot disguise the deterioration. - Returning cash from a shrinking business is not the same as compounding shareholder value. Over five years, Ethan Allen's share price has appreciated just 2.5%, with approximately 94% of its reported 45% total shareholder return attributable to dividends.4 Over 10 years, the share price has declined 31%, despite a reported total shareholder return of 27%5 – a 58 percentage point swing due to dividends. - The greatest risk to Ethan Allen's dividend is the continued erosion of the earnings base that supports it. The regular dividend consumed approximately 97% of adjusted EPS in FY2026, up from just 29% in FY2022. Cash dividends paid of $46 million exceeded the year's $41 million of free cash flow, itself down 41% from FY2024.6 Yet, after the proxy contest began, the Board declared another $76 million special dividend. The Board continues distributing capital while failing to rebuild the earnings required to sustain those distributions. - The Board that accepted two decades of decline should not be entrusted with selecting and overseeing the next CEO. After 38 years under the same Chairman and CEO, the Board repeatedly extended Mr. Kathwari's tenure and accepted performance standards that moved down with the business, without imposing meaningful consequences. A formal succession process was announced only after this proxy contest began – 11 days after Mr. Bergeron announced his own independent CEO search – with a successor to be announced by June 2027. Worse, the Board wants the next CEO to "build on and accelerate" the same strategy that has failed to restore growth. Why should the Board that did not hold the current CEO accountable be entrusted to choose, and then oversee, the next one? - Mr. Bergeron and his nominees bring the expertise a modern premium home furnishings company demands, and a clear plan to transition leadership responsibly and restore growth. The nominees bring relevant manufacturing, sourcing, merchandising, technology, operating and governance experience, as well as brand and digital capabilities that are noticeably absent from the current Board. An experienced interim CEO would lead the business, supported by existing operating management, while the Board validates strategy, stages investment and establishes accountability. The incumbents offer promise after promise of change yet never deliver. We are offering an actionable plan for change. "The Board's October 15 investor presentation only reinforces our concerns about its pattern of selective financial disclosures, misleading representations and lack of accountability. First, the Board selects the numbers it wants shareholders to see. Now, it has not even said when they will see the latest results. Shareholders deserve the full picture, not selective disclosures and more promises from a Board that has allowed the decline to continue under the same Chairman and CEO. On November 4, shareholders have an opportunity to demand a new standard of transparency, accountability and leadership by electing a Board with the experience and a credible plan to restore growth and drive long-term value creation." Additional materials related to Mr. Bergeron's campaign, including video interviews with his five director candidates, may be found at www.EthanAllenGrowth.com. Shareholders are encouraged to follow the campaign's LinkedIn and X pages to stay informed in real time. PROTECT YOUR INVESTMENT. RENEW AN AMERICAN ICON. VOTE THE WHITE UNIVERSAL PROXY CARD TODAY Shareholders with questions on how to vote their shares may visit www.EthanAllenGrowth.com/How-To-Vote. ADDITIONAL INFORMATION DGB Investment, Inc. and Douglas G. Bergeron, together with the other participants in their solicitation (collectively, "DGB"), have filed a definitive proxy statement and accompanying WHITE universal proxy card with the Securities and Exchange Commission ("SEC") to be used to solicit proxies with respect to the election of DGB's slate of highly qualified director candidates and the other proposals to be presented at the 2026 annual meeting of stockholders (the "Annual Meeting") of Ethan Allen Interiors Inc., a Delaware corporation (the "Company"). Stockholders are advised to read the proxy statement and any other documents related to the solicitation of stockholders of the Company in connection with the Annual Meeting because they contain important information, including information relating to the participants in DGB's proxy solicitation. These materials and other materials filed by DGB with the SEC in connection with the solicitation of proxies are available at no charge on the SEC's website at http://www.sec.gov. The definitive proxy statement and other relevant documents filed by DGB with the SEC are also available, without charge, by directing a request to DGB's proxy solicitor, Okapi Partners LLC, at its toll-free number (877) 285-5990 or via email at [email protected]. 1 Company SEC filings and press releases announcing the dates of its fiscal first quarter earnings releases for fiscal years 2017 through 2026. 2 Ethan Allen first quarter fiscal 2016 earnings press release dated October 27, 2015. 3 Ethan Allen SEC filings; S&P Capital IQ. 4 As of August 4, 2026, the last trading day before Mr. Bergeron publicly launched his campaign; Ethan Allen SEC filings; S&P Capital IQ. 5 As of August 4, 2026; Ethan Allen SEC filings; S&P Capital IQ. 6 Ethan Allen SEC filings; S&P Capital IQ. View source version on businesswire.com: https://www.businesswire.com/news/home/20261018472259/en/ Contacts Media Contact: [email protected] Investor Contact: Bruce Goldfarb / Chuck Garske Okapi Partners (877) 285-5990 [email protected]

Image source: The Motley Fool. Wednesday, July 29, 2026 at 5:00 p.m. ET Senior Vice President, Chief Financial Officer and Treasurer - Matthew J. McNulty Chairman, President and CEO - Farooq Kathwari Operator: Greetings, and welcome to the Ethan Allen Fiscal 26 Fourth Quarter Analyst Conference Call. This time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Matthew McNulty, senior vice president, chief financial officer, and treasurer. Matthew J. McNulty: Thank you. Operator: You may begin. Matthew J. McNulty: Thank you, operator. Good afternoon, and thank you for joining us today to discuss Ethan Allen's fiscal 26 full year and fourth 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 up the call for your questions. Before we begin, I would like to remind the audience that this call is being web live under the News and 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. Farooq Kathwari: Well, thank you, Matthew. As we reported despite challenging economic environment and strong prior year comparisons, we did well. And reported strong margins and a robust balance sheet. We have continued to strengthen various areas of our unique vertically integrated enterprise, which includes having strong talent, continued strengthening our offerings, our North American-based manufacturing our strong and repositioned retail network, our national and regional logistics, and implementing technology in various areas of our enterprise. We have also continued with a strong cash position and gave very good cash dividends. We are positioned well and after Matthew provides a brief financial overview, I will discuss our initiatives to continue to grow our business. Matthew? Matthew J. McNulty: Thank you, Mr. Kathwari. Fiscal 26 consolidated net sales were $579 million which included fourth quarter sales of $147 million Quarterly sales benefited from a higher average ticket price and recent product introductions offset by lower contract sales a decline in delivered unit volume and fewer incoming orders. Wholesale segment written orders declined 11.9% during the quarter while our retail segment written orders decreased 10.8% as a difficult prior year comparison combined with lower traffic and macroeconomic uncertainty created near term pressure. The pace of written orders remained mostly consistent throughout the quarter with May bringing in a slightly higher volume of orders due to the Memorial Day holiday. We were also pleased to see written order growth in our State Department business this past quarter. We ended the fiscal year with wholesale backlog of $44 million down 9% from last year. Lower order volume combined with improved lead times led to lower backlog. For the full year, our consolidated gross margin was 61.2%, comparable to 60.5% last year. Our adjusted gross margin of 59.7% in the fourth quarter benefited from a change in sales mix a higher average ticket, lower headcount and reduced financing costs. The impact of tariffs lower clearance margins, and higher manufacturing input costs contributed to our quarterly adjusted gross margin being lower than last year. Fiscal 26 operating income was $45 million with a margin of 7.8%. In the fourth quarter, our adjusted operating income was $11 million with a margin of 7.4%. Compared to 9.7% last year. Our current year operating margin was impacted by higher tariffs, and fixed cost deleveraging from lower sales. Headcount totaled 3.06 thousand at fiscal year end a decrease of 5% from a year ago with 5% decreases noted in both wholesale and retail. On a full year basis, adjusted diluted EPS was $1.61 Fourth quarter adjusted diluted EPS was $0.36 Our effective tax rate was 25% for the full year and 24.8% for the quarter, which vary from the 21% federal statutory rate primarily due to state taxes Now turning to our liquidity. We remain debt free with substantial liquidity and a robust balance sheet. During the fourth quarter, we generated $22 million in operating cash flow, which brought our full year total to $52 million. Included in our operating cash flow was $5 million in tariff refunds received. Strong operating cash flow combined with disciplined capital management helped grow our cash and investments to $187.5 million at fiscal year end. We also continued our practice of paying cash dividends, In May, we paid a regular quarterly cash dividend of $10 million or $0.39 per share. Which brought our total dividends paid to $46 million for the year. We are also pleased that yesterday, our Board approved a special and a regular quarterly cash dividend, both payable in August. This marks the 6th consecutive year in which Ethan Allen has declared and paid a special cash dividend. Reflecting confidence in the business and our strong liquidity position, we also returned value to shareholders through the repurchase of 250 thousand shares of our stock for $5 million A total of 1.8 million shares remain authorized for future repurchase under existing program. Before concluding, I would like to provide an update on the current tariff environment which has impacted our business. Most recently, new tariffs under Section 301 of the Trade Act became effective on July 24 at a rate of either 10% or 12.5% depending on the country of origin. These new tariffs replace the previously issued Section 1 and 22 tariffs which expired on July 24, had imposed a 10% global rate. Our current exposure is concentrated on the 25% tariff that took effect last October under Section 32 which is on upholstered wood products produced and exported out of Mexico. Our remaining exposure is primarily from the newly issued Section 301 tariffs which apply a 10% tariff on products we manufacture in Honduras as well as our imports from Indonesia, India and other countries. Based on our operating levels, we estimate our total tariff exposure to be approximately $15 million In addition, as noted last quarter, the U. S. Supreme Court invalidated certain IEEPA tariffs introduced in 2025 and required monetary refunds to be issued. By following the refund claim process, we were refunded $5 million during the just completed fourth quarter which we presented as a reduction to cost of goods sold. This refund benefited our gross and operating margins by 340 basis points and represent nearly all of the previously paid IEEPA tariffs. As I finish my prepared remarks, we remain confident in our long term strategy as the interior design destination operating a vertically integrated enterprise supported by strong North American manufacturing and logistics. Our margins, net income and cash held up well despite lower sales. We remain disciplined in how we are managing expenses and are well positioned heading into the new fiscal year. With that, I will now turn the call back over to Mr. Kathwari. Farooq Kathwari: Thanks, Matthew. As we continue to implement strategies to further strengthen and grow our business. We have been able to improve our operating efficiency and run a strong and lean enterprise. The main areas of our focus to grow our business and manage our operations include continue to strengthen our talent in our vertically integrated enterprise in various areas including our retail network, merchandising, marketing manufacturing, logistics and technology. Continue to be the interior design destination. Today, we have approximately 500 interior designers that are able to provide complementary interior design services and help clients create custom furniture for their homes all free of charge. Combining good service and technology is critical to this in this area. Strengthening our products under design umbrella of Classics with a modern design. Combining technology with strong talent continues to be our strong focus. Expanding and enhancing our retail network including strengthening of our interior design centers, Today, we have 171 design centers in North America. And in the last few years, many have been relocated. Made smaller and combining strong talent with technology. Further implement initiatives to make our North American manufacturing more efficient Today, most of our furniture is made in our North American facilities in Vermont, North Carolina Mexico and Honduras. Almost all of our furniture made in our plants in North America is custom on receipt of orders. Delivering our products with personal service to our clients at 1 delivered price across North America, is unique and a great strength. And finally, we maintain a strong cash balance and provide good dividends. We just announced a regular cash dividend of $0.39 and a special cash dividend of $0.25 both payable on August 26, 2026. With this, I would like to open it up for any questions or comments. Thank you. Operator: Will now be conducting a question and answer session. Our first question comes from the line of Bradley Thomas with KeyBanc Capital Markets. Please proceed with your question. Farooq Kathwari: Yes. Hello, Bradley. How are you? Taylor Zick: Hey, Farooq. it is actually Taylor Zick on for Bradley today. Thanks for taking our questions. Farooq Kathwari: All right. Taylor. I just kind of wanted to ask about the retail written orders during the quarter. We are down 11%, which is deceleration from 3Q, but on a 2 year stack, it seemed to improve a bit. And Matt, I know said you had higher volumes in May as well. But can you kind of just give us a bit more color on what you saw during the quarter? Yes. Taylor, of course, in the quarter, we did see consumers somewhat being concerned and holding back. With that in mind, I mean, overall, our written orders during the quarter were down about close to 11%, 10.8%. And however, we still maintain relatively good orders coming in. And our designers remain motivated, but it does reflect somewhat of a softer economy. Taylor Zick: Got you. And then maybe if I can ask about the tariff refunds as well. Matthew, you had noted about $5 million in tariff refunds. The tariff refunds. It sounds like it is most of what you expect to receive and may have been aimed at those share repurchases. But I guess, 1, do you expect any incremental refunds here? And then how do you think the industry is using these refunds? Have you seen them get incrementally promotional? As they have these dollars now? Matthew J. McNulty: Yes. that is a great question, Taylor. This is Matthew. So that is the $5 million refund we got in this past quarter substantially all of what we were expecting. There may be a little bit more, but this is substantially all that we anticipate to collect and it all related to the IEFA tariff we previously paid earlier in the fiscal 26 year. As for part 2 of your question, what do other companies do? it is a mixed bag. You have seen some of the bigger headlines out there, Walmart to the world looking to potentially roll back prices as they say. Others, FedEx and UPS, are returning it because they can directly attribute to it surcharges. So it is too early to tell. What everyone's doing, but that is what I have seen in the market so far. The refunds did all come back relatively recently in June. So it is still pretty early in from a timing perspective. Farooq Kathwari: And also, would like to add that, in our case, we do make most of our products in our own facilities in North America. So we were less impacted. Some we are somewhat impacted with our operations in Mexico. But not as but less in the rest of the world because of the fact of our manufacturing right here in the United States as well. Taylor Zick: Yeah, of course. And then maybe if I can squeeze 1 last question in here. Maybe on the wholesale segment, that segment had been pressured over the last year or so with lower contract sales, State Department. And some independents. I think you have noted But I think, Farooq, you also said that, if I heard it correctly, the state department was positive in the quarter. So I guess how are you thinking about that segment's ability to kind of return to growth here in your next fiscal year as we lap some of these headwinds? Farooq Kathwari: Yes, Taylor. We did see in our 3 quarters in our fiscal year, that the state department was down quite a bit. it is reflected the initiatives that have been taken by the government relating to reducing State Department buying products, we saw that. But in the fourth quarter, we did see that and even this fiscal year, just starting now, we did we have seen some increases, which has been good. And of course, that has we that will have some impact in our deliveries in this fiscal first quarter, this new year. But we our contract is still there. The government is thinking of perhaps sending a new bid for contracts. We have not heard it yet. But good news is after really restraining their teams all over the world to reduce buying In the fourth quarter, we saw that they were starting to get back. And we saw that increase. that is great. All right. I will pass it along. Thanks so much. All right, Taylor. Take care. Thank you. Operator: Our next question comes from the line of Cristina Fernandez with Telsey Advisory Group. Please proceed with your question. Farooq Kathwari: Hello, Cristina. How are you? Cristina Fernandez: Hi, good afternoon, Farooq and Matthew. I wanted to follow-up on Taylor's question on the tariff refund. How are you planning on using it? Was that tied to the special dividend or not? And do you expect to reinvest it in the business? Or there any specific uses for that $5 million you received? Farooq Kathwari: Well, it is of course a relatively small amount relative to the total amount of cash that we have. So we just put it in our cash and I think that it really is It is going to remain as part of our cash and we want to maintain a healthy cash balance. The $5 million was, you know, is important, but not tremendously that much of a major factor. We want to continue to have strong cash and then we continue also to see that we continue to do our regular and special dividends. Cristina Fernandez: And as you start fiscal year 27, I wanted to see if you can provide a bit more detail into some of the initiatives to drive growth that you mentioned. I was particularly interested in products and marketing and real estate. Is there any specific programs that you are working on that you can talk about? Or I guess, what could be new or different for fiscal year 27? Thanks. Farooq Kathwari: Yes. that is a good question, Cristina. Our focus remains to make sure that we have strengthened the various areas of our enterprise. The good news is in the last 2 years, even last year, we spent a fair amount of time in making sure that our design centers project well. We have made them smaller. We made a great amount of investment But the good news is coming into this fiscal year, most of that has been done. The second is our interior design network. Our interior design network is critical to our business and we want to make sure they do well. So I think that going forward, to this fiscal year, we are positioned well. Now obviously, we need to get increased traffic. We need to get more people coming in. But we are very well positioned in the projection of our design centers our interior designers. And then finally and also, thirdly, we have also been introducing very strong new products to make sure that we have strong offerings. Combining strong offerings, our interior design network, and then finally, technology is critical. Our interior designers are using more and more technology in working with our clients. So when you combine all of those things, gives us an opportunity to continue the progress. And obviously, of course, we are looking at the economy, and consumer confidence and all those factors. We are keeping those in mind, but we are well positioned going into this fiscal year. Cristina Fernandez: And the last question, maybe for Matthew. On CapEx, should we think about fiscal year 2027, the spend being very similar to fiscal year 26, and are there any other I guess, investments, to keep in mind? Farooq Kathwari: I can answer that. I think that at this stage, our objective would be to continue very similar to what we have done in this last fiscal year. Thank you. All right, Cristina. Thanks very much. Any other comments or questions? Operator: And it looks like we have reached the end of the question and answer session. Therefore, I will turn it back over to Mr. Farooq Kathwari for closing remarks. Farooq Kathwari: All right. Thanks very much. Glad to have you all on. These are somewhat of a challenging times, but the good news is we are positioned well. I asked about close to 40 of our team members every week to write a report on 5 subjects. First is talent. We want to make sure we have strong talent. And the good news is we have strong talent across our vertically integrated network. Last week, I was in Vermont and North Carolina where we are manufacturing. And good to see how that those 2 operations. Then we want to make sure that we have strong marketing. And marketing, we are providing a lot of marketing. We are in extensively with marketing both internal marketing, external marketing, using technology in marketing is important. And then overall, use of technology, whether it is in manufacturing or in retail, is critical. And we are going to continue to do that. Our interior designers are more productive. We have fewer interior designers than we have had in the last year or in the last 5 or 10 years. It is because of the fact of having strong interior designers, and technology. And finally, social responsibility is critical. So we will continue to make sure that we are socially responsible. I want to thank you all for participating. And if there is any more questions, comments, please let us know. Thank you very much. Operator: Thank you. And this concludes today's conference and you may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Ethan Allen Interiors, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ethan Allen Interiors wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ethan Allen (ETD) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was impacted by a challenging economic environment and difficult prior-year comparisons, leading to a decline in delivered unit volume and fewer incoming orders. Management attributes margin resilience to a higher average ticket price, recent product introductions, and a strategic shift toward a leaner enterprise with lower headcount. Vertical integration remains a core competitive advantage, with most furniture custom-made in North American facilities upon receipt of orders to improve lead times and logistics efficiency. The retail network is being repositioned by relocating design centers to smaller footprints that combine high-talent interior designers with advanced technology tools. Operating margins faced pressure from fixed-cost deleveraging on lower sales and the impact of tariffs on upholstered wood products from Mexico. Strategic focus is shifting toward the 'interior design destination' model, utilizing approximately 500 designers to provide complimentary custom services that drive higher engagement. Management expects to maintain a disciplined capital expenditure profile in fiscal 2027, similar to fiscal 2026 levels, focusing on retail network enhancements. Growth initiatives for the new fiscal year center on increasing traffic through strengthened marketing and the continued rollout of 'Classics with a modern design' product offerings. The company anticipates continued benefits from its lean organizational structure, having reduced total headcount by 5% across both wholesale and retail segments. Future performance assumes a recovery in consumer confidence, with management noting that designers remain motivated despite current macroeconomic uncertainty. Total tariff exposure for the upcoming period is estimated at approximately $15 million, driven by new Section 301 duties and existing Section 32 duties on Mexican imports. A $5 million tariff refund related to invalidated IEEPA duties benefited gross and operating margins by 340 basis points in the fourth quarter. New Section 301 tariffs effective July 24, 2026, at rates of 10% to 12.5%, replace expired global duties and impact imports from Honduras, Indonesia, and India. The company remains debt-free with $187.5 million in cash and investments, supporting the sixth consecutive year of special cash dividends. Wholesale backlog decreased 9% to $44 million, reflecting a combination of lower order volume and improved manufacturing lead times. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted a 10.8% decline in retail written orders as consumers held back due to economic concerns, though May saw a slight uptick from holiday volume. Despite the decline, management characterized the order flow as 'relatively good' given the softer economy and motivated design staff. The refund represents substantially all expected IEEPA recoveries and will be retained to maintain a healthy cash balance rather than being earmarked for specific reinvestment. Management observed that while some large retailers are using refunds for price rollbacks, Ethan Allen's North American manufacturing base makes them less sensitive to global tariff fluctuations than competitors. The State Department business returned to growth in the fourth quarter after three quarters of significant declines caused by government spending restraints. Management expects this volume increase to positively impact deliveries in the first quarter of fiscal 2027, though they are still awaiting news on potential new government contract bids.

This article first appeared on GuruFocus. Consolidated Net Sales (Fiscal 2026): $579 million. Fourth-Quarter Net Sales: $147 million. Wholesale Segment Written Orders (Q4): Declined 11.9%. Retail Segment Written Orders (Q4): Declined 10.8%. Wholesale Backlog (Fiscal Year-End): $44 million, down 9% from last year. Consolidated Gross Margin (Fiscal 2026): 61.2%, comparable to 60.5% last year. Adjusted Gross Margin (Q4): 59.7%. Operating Income (Fiscal 2026): $45 million with a margin of 7.8%. Adjusted Operating Income (Q4): $11 million with a margin of 7.4%. Adjusted Diluted EPS (Fiscal 2026): $1.61. Adjusted Diluted EPS (Q4): $0.36. Effective Tax Rate (Fiscal 2026): 25%. Operating Cash Flow (Q4): $22 million. Operating Cash Flow (Fiscal 2026): $52 million. Cash and Investments (Fiscal Year-End): $187.5 million. Dividends Paid (Fiscal 2026): $46 million. Share Repurchases (Q4): 250,000 shares for $5 million. Headcount (Fiscal Year-End): 3,062, a decrease of 5% from a year ago. Design Centers in North America: 171. Tariff Exposure Estimate: Approximately $15 million. Tariff Refunds Received (Q4): $5 million. Warning! GuruFocus has detected 4 Warning Sign with ETD. Is ETD fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ethan Allen Interiors Inc (NYSE:ETD) reported strong gross margins of 61.2% for fiscal 2026, driven by a favorable sales mix and higher average ticket prices. The company maintains a robust balance sheet with $187.5 million in cash and investments and remains debt-free, providing substantial liquidity. Ethan Allen Interiors Inc (NYSE:ETD) continues to reward shareholders with regular and special cash dividends, marking the sixth consecutive year of special dividends. The companys vertically integrated model, including North American manufacturing and a network of 171 design centers, supports operational efficiency and customization. Ethan Allen Interiors Inc (NYSE:ETD) received $5 million in tariff refunds during the quarter, which benefited gross and operating margins by 340 basis points. Consolidated net sales declined to $579 million for fiscal 2026, with fourth-quarter sales of $147 million impacted by lower contract sales and delivered unit volume. Wholesale segment written orders fell 11.9% and retail segment written orders dropped 10.8% due to macroeconomic uncertainty and lower consumer traffic. Adjusted operating margin decreased to 7.4% in the fourth quarter from 9.7% last year, pressured by higher tariffs and fixed cost de-leveraging from lower sales. The company faces ongoing tariff exposure estimated at $15 million, including new Section 301 tariffs and existing Section 232 tariffs on Mexican imports. Headcount was reduced by 5% to 3,062 employees, reflecting cost-cutting measures amid challenging economic conditions and lower order volumes. Q: Can you provide more color on the retail written order trends during the quarter, which decelerated from the third quarter?A: Farooq Kathwari (Chairman, President, and CEO): In the quarter, we did see consumers somewhat being concerned and holding back. Overall, our written orders during the quarter were down about close to 11%, 10.8%. However, we still maintain relatively good orders coming in, and our designers remain motivated, but it does reflect somewhat of a softer economy. Q: Do you expect any incremental tariff refunds, and how do you think the industry is using these refunds?A: Matthew McNulty (CFO): The $5 million refund we got in this past quarter was substantially all of what we were expecting. There may be a little bit more, but this is substantially all that we anticipate to collect. As for what other companies do, it's a mixed bag. You've seen some of the bigger companies looking to potentially roll back prices, while others are returning it because they can directly attribute it to surcharges. It's still pretty early on from a timing perspective. Q: How are you planning on using the $5 million tariff refund? Was it tied to the special dividend?A: Farooq Kathwari (Chairman, President, and CEO): It is a relatively small amount relative to the total amount of cash that we have, so we just put it in our cash. It is going to remain as part of our cash, and we want to maintain a healthy cash balance. The $5 million is important but not tremendously that much of a major factor. We want to continue to have strong cash and continue to do our regular and special dividends. Q: Can you provide more detail on the initiatives to drive growth in fiscal year 2027, particularly in products, marketing, and real estate?A: Farooq Kathwari (Chairman, President, and CEO): Our focus remains to strengthen the various areas of our enterprise. In the last two years, we spent a fair amount of time making sure our design centers project well, making them smaller. Coming into this fiscal year, most of that has been done. Our interior design network is critical, and we want to make sure they do well. We have also been introducing very strong new products. Combining strong offerings, our interior design network, and technology gives us an opportunity to continue the progress. We are well-positioned going into this fiscal year. Q: How should we think about CapEx for fiscal year 2027?A: Farooq Kathwari (Chairman, President, and CEO): At this stage, our objective would be to continue very similar to what we've done in this last fiscal year. Q: Can you provide more color on the Wholesale segment's ability to return to growth, especially regarding the State Department business?A: Farooq Kathwari (Chairman, President, and CEO): In our first three quarters of our fiscal year, the State Department was down quite a bit due to government initiatives to reduce buying. However, in the fourth quarter, we did see some increases, and even this fiscal year just starting, we have seen some increases, which will have some impact on deliveries in this first quarter. The government is thinking of perhaps sending out new bids for contracts, but we haven't heard it yet. The good news is after really restraining their teams, in the fourth quarter we saw that they were starting to get back. Q: What is the company's current tariff exposure?A: Matthew McNulty (CFO): Our current exposure is concentrated on the 25% tariff that took effect last October under Section 232 on upholstered wood products from Mexico. Our remaining exposure is primarily from the newly issued Section 301 tariffs, which apply a 10% tariff on products we manufacture in Honduras as well as our imports from Indonesia, India, and other countries. Based on our operating levels, we estimate our total tariff exposure to be approximately $15 million. Q: What are the main areas of focus to grow the business and manage operations?A: Farooq Kathwari (Chairman, President, and CEO): The main areas include: continue to strengthen our talent in our vertically integrated enterprise; continue to be the interior design destination with approximately 500 interior designers providing complimentary services; strengthening our products under the design umbrella of classics with a modern design; combining technology with strong talent; expanding and enhancing our retail network, including opening interior design centers; further implementing initiatives to make our North American manufacturing more efficient; delivering products with personal service at one delivered price across North America; and maintaining a strong cash balance and providing good dividends. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Ethan Allen Interiors Inc.? Here are five stocks we like better. Ethan Allen reported fiscal 2026 sales of $579 million, including fourth-quarter sales of $147 million, amid lower consumer demand, reduced contract sales and declining order volumes. Wholesale and retail written orders fell 11.9% and 10.8%, respectively. The company maintained financial strength, ending the year debt-free with $187.5 million in cash and investments and generating $52 million in operating cash flow. It paid $46 million in dividends, approved a regular $0.39-per-share dividend plus a $0.25 special dividend, and repurchased $5 million of stock. Margins remained relatively strong, with full-year gross margin improving to 61.2%, but fourth-quarter operating margin declined to 7.4% due partly to tariffs and lower sales leverage. Management estimates approximately $15 million of tariff exposure and is prioritizing technology, product development and retail design-center growth in fiscal 2027. Bassett Furniture: Buy Now, Sit Back, and Collect Dividends Ethan Allen Interiors (NYSE:ETD) reported fiscal 2026 net sales of $579 million and fourth-quarter sales of $147 million, as the furniture retailer and manufacturer navigated lower order volumes, reduced contract sales and continued macroeconomic uncertainty. The company said it maintained strong margins, generated operating cash flow and ended the year debt-free with $187.5 million in cash and investments. Chairman, President and Chief Executive Officer Farooq Kathwari said the company performed well despite a challenging economic environment and difficult comparisons with the prior year. He pointed to Ethan Allen’s vertically integrated structure, including its retail network, North American manufacturing operations, logistics capabilities and technology investments, as key strengths. → This Tiny AI Supplier Could Be More Important Than the Chipmakers 2 Stocks Hurt By Trump's Furniture Tariffs and 1 That Benefits Fourth-quarter consolidated sales benefited from a higher average ticket and recent product introductions, according to Senior Vice President, Chief Financial Officer and Treasurer Matt McNulty. Those gains were offset by lower contract sales, declining delivered unit volume and fewer incoming orders. Wholesale written orders declined 11.9% in the quarter, while retail written orders fell 10.8%. McNulty said the declines reflected a difficult prior-year comparison, lower customer traffic and macroeconomic uncertainty. Order activity remained generally consistent during the quarter, though May saw somewhat higher order volume tied to the Memorial Day holiday. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Analysts Love Lovesac, But Investors Should Be Cautious During the question-and-answer session, Kathwari said consumers appeared concerned and were holding back spending, characterizing the environment as indicative of a softer economy. Still, he said the company’s designers remained motivated and that incoming orders were relatively solid. Wholesale backlog ended the fiscal year at $44 million, down 9% from a year earlier. The company attributed the decline to lower orders and improved lead times. → Innovative ETF Strategies That Are Paying Off This Summer Ethan Allen also saw written-order growth in its State Department business during the fourth quarter after the business had declined sharply during the first three quarters of the fiscal year. Kathwari said the State Department had been reducing purchases, but activity began to improve late in the year and has continued to show some increases at the beginning of fiscal 2027. He added that the company’s government contract remains in place, though it has not yet heard whether the government will issue a new contract bid. For fiscal 2026, consolidated gross margin was 61.2%, compared with 60.5% in the prior year. Fourth-quarter adjusted gross margin was 59.7%. McNulty said the quarterly result benefited from sales mix, a higher average ticket, lower headcount and lower financing costs. Those factors were partly offset by tariffs, lower clearance margins and higher manufacturing input costs. Fourth-quarter adjusted operating income totaled $11 million, representing a 7.4% margin, down from a 9.7% margin a year earlier. Full-year operating income was $45 million, or 7.8% of sales. The company said operating margin was affected by higher tariffs and fixed-cost deleveraging resulting from lower sales. Ethan Allen’s year-end headcount was 3,062, down 5% from the previous year, with reductions of 5% in both the wholesale and retail segments. Adjusted diluted earnings per share were $1.61 for the full fiscal year and $0.36 in the fourth quarter. The effective tax rate was 25% for the year and 24.8% for the quarter, with state taxes contributing to rates above the 21% federal statutory rate. Ethan Allen generated $22 million in fourth-quarter operating cash flow and $52 million for the full year. The full-year result included $5 million in tariff refunds received during the fourth quarter. The company said the refund was presented as a reduction in cost of goods sold and increased gross and operating margins by 340 basis points. McNulty said the $5 million represented substantially all of the refunds Ethan Allen expects related to tariffs previously imposed under the International Emergency Economic Powers Act, though a small additional amount may be received. Kathwari said the funds would remain part of the company’s cash balance rather than being designated for a specific use. The company paid $46 million in dividends during fiscal 2026, including a regular quarterly dividend of $0.39 per share, or $10 million, paid in May. Its board also approved a regular quarterly dividend of $0.39 per share and a special dividend of $0.25 per share, both payable Aug. 26, 2026. The special dividend marks the sixth consecutive year in which Ethan Allen has declared and paid one. Ethan Allen also repurchased 250,000 shares for $5 million during the year. About 1.8 million shares remain available for repurchases under the existing authorization. On tariffs, McNulty said the company estimates total exposure of approximately $15 million at current operating levels. Its largest exposure stems from a 25% Section 232 tariff that took effect last October on upholstered wood products produced in Mexico and exported to the U.S. The company also faces a 10% Section 301 tariff on products manufactured in Honduras and on imports from Indonesia, India and other countries. Kathwari said Ethan Allen’s North American manufacturing footprint limits some of its tariff exposure. The company makes most of its furniture in facilities in Vermont, North Carolina, Mexico and Honduras, with nearly all furniture produced in North American plants made to order. Management said its priorities entering fiscal 2027 include strengthening talent, expanding the use of technology, improving product offerings and supporting its retail design-center network. Ethan Allen operates 171 design centers in North America and employs approximately 500 interior designers who provide complimentary design services. Kathwari said the company has spent the past several years relocating and reducing the size of many design centers, while investing in their presentation and combining technology with design talent. He said much of that work has now been completed. The company plans to continue introducing products under its “classics with a modern design” approach and aims to drive more traffic to its design centers. Kathwari said capital spending in fiscal 2027 is expected to be broadly similar to fiscal 2026 levels. Ethan Allen Interiors Inc (NYSE: ETD) is a vertically integrated manufacturer and retailer of home furnishings, offering a broad range of furniture, upholstery, case goods and decorative accessories. The company designs and produces the majority of its products in its own North American manufacturing facilities, maintaining close control over quality, craftsmanship and production schedules. Through its network of company-operated and franchised Design Centers and galleries, Ethan Allen delivers a full-service offering that includes on-site interior design consultations and project management. Founded in 1932 as a small Colonial-Revival furniture maker in northern Vermont, Ethan Allen has grown into a global brand known for its timeless styles and customization options. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ethan Allen Interiors Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

DANBURY, CT, July 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 full year and fourth quarter ended June 30, 2026 and announced a special and regular cash dividend. Farooq Kathwari, Ethan Allen’s Chairman, President and CEO commented, “We are pleased to report our fiscal 2026 financial and operating results, which include strong margins and a robust balance sheet despite a challenging operating environment. Fiscal 2026 marked a year where we further strengthened many areas of our vertically integrated enterprise, including our talent, product offerings, marketing, technology, retail network, manufacturing, logistics and social responsibility. Recent product introductions, which portray classics with a modern perspective, resonate with our clients. We remain confident in our long-term strategy as the interior design destination, operating a vertically integrated enterprise with 171 Ethan Allen Retail Design Centers in North America and more internationally, and supported by strong North American manufacturing and logistics.” “We remain focused on implementing meaningful strategies to further strengthen our business. We have been able to improve operating efficiency and run a leaner enterprise despite a reduction in business with the U.S. State Department and sluggish demand. For the quarter ended June 30, 2026, we reported consolidated net sales of $146.8 million, adjusted gross margin of 59.7%, adjusted operating income of $10.8 million, adjusted operating margin of 7.4% and adjusted diluted EPS of $0.36. Wholesale segment written orders declined 11.9% compared to last year while our Retail segment written orders declined 10.8% as a difficult prior year comparison combined with lower design center traffic and broader macroeconomic uncertainty, including global unrest, created near-term pressure on our written sales. Our adjusted operating margin of 7.4% reflects the impact of tariffs partially offset by our focus on cost control and operational efficiencies.” “We remain debt-free with substantial liquidity and a robust balance sheet to support long-term growth. During the just completed fourth quarter we generated $22.4 million in operating cash flow, including $5.0 million from tariff refunds. Our strong operating cash flow combined with disciplined capital management helped drive our ending total cash and investments to $187.5 million, which reflects our commitment to maintaining the financial strength needed in today’s challenging environment. We continued our history of returning capital to shareholders by paying a regular quarterly cash dividend of $10.0 million and are pleased to announce that yesterday our Board approved a special cash dividend of $0.25 per share and a regular quarterly cash dividend of $0.39 per share, both payable on August 26, 2026.” “Our vertical integration and focus on one brand are our strengths. Throughout our 94-year history, we’ve navigated many economic and housing cycles through constant reinvention. We are committed to offering relevant quality products, providing complimentary interior design service and manufacturing approximately 75% of the custom furniture in our own North American facilities. We acknowledge the ways technology is changing the furniture shopping experience and through investments in our people, our design centers, our marketing and our technology, we are creating a stronger client engagement experience while expanding into additional retail markets. We want to thank our teams across Ethan Allen for their continued dedication and execution, and our shareholders for their ongoing support as we remain focused on driving long-term shareholder value. We look forward to continuing our progress and remain cautiously optimistic,” concluded Mr. Kathwari. FISCAL 2026 FOURTH QUARTER HIGHLIGHTS* Consolidated net sales of $146.8 million; prior year $160.4 million Written orders Consolidated gross margin of 63.1%; adjusted gross margin of 59.7%; prior year 59.9%; included in the current year consolidated gross margin was the recovery of $5.0 million in previously paid tariffs imposed under the International Emergency Economic Protection Act (“IEEPA”); these refunds reflect claims made through the U.S. Customs and Border Protection refund system and increased both consolidated gross and operating margin by 340 basis points in the just completed fourth quarter Selling, general and administrative (“SG&A”) expenses decreased 4.4% from last year from reduced variable expenses, strong cost control, reduced headcount and lower marketing costs Marketing spend totaled $4.7 million or 3.2% of consolidated net sales; prior year 3.4% Consolidated operating margin of 9.8%; adjusted consolidated operating margin of 7.4%; adjusted prior year 9.7%; current year operating margin impacted by higher tariffs and fixed cost deleveraging from lower consolidated net sales Diluted EPS of $0.46; adjusted diluted EPS of $0.36; adjusted prior year $0.49 Generated $22.4 million in operating cash flow; prior year $24.8 million Paid cash dividends of $10.0 million or $0.39 per share, the same as a year ago Repurchased 250,000 shares of Company stock for $4.8 million under the existing share repurchase program; remaining authorization to repurchase 1,757,364 shares of stock pursuant to the program FISCAL 2026 FULL YEAR HIGHLIGHTS* Consolidated net sales of $579.5 million; prior year $614.6 million Written orders Consolidated gross margin of 61.2%; prior year 60.5% SG&A expenses, representing 53.3% of sales, decreased 0.4% Consolidated operating margin of 7.8%; adjusted operating margin of 8.1%; adjusted prior year 10.2% Diluted EPS of $1.56; adjusted diluted EPS of $1.61; adjusted prior year $2.04 Generated $52.5 million of cash from operating activities; $61.7 million a year ago Paid cash dividends totaling $46.3 million during fiscal 2026, including a special cash dividend of $0.25 per share in August 2025 Invested $11.0 million in capital expenditures; comparable to $11.3 million a year ago Ended the fiscal year with $187.5 million in total cash and investments; no outstanding debt Inventory levels rose to $148.5 million at June 30, 2026, up 5.4% Headcount totaled 3,062 associates at fiscal year-end, down 4.6% Four new Company-operated design centers located in Colorado Springs (CO), San Diego (CA), Vancouver (Canada) and Thornhill (Canada) were opened during fiscal 2026 that showcase Ethan Allen home furnishings while combining complimentary interior design services with technology Ended the fiscal year with 171 Ethan Allen retail design centers in North America, including 141 Company-operated and 30 independently owned and operated New Company-operated design centers to be opened during fiscal 2027 include locations in Victoria Gardens (CA), Aventura (FL), Burlington (VT), Brooklyn (NY) and Naples (FL) New tariffs under Section 301 of the Trade Act of 1974 became effective on July 24, 2026, and range between 10% and 12.5%; these tariffs replace the previously issued 10% global tariffs imposed under Section 122, which recently expired For the third year in a row Ethan Allen was named America’s #1 Premium Furniture Retailer The Sustainable Furnishings Council and the National Wildlife Federation awarded Ethan Allen a “High Score” on their Wood Furniture Scorecard for its commitment to the use of sustainable wood in furniture manufacturing Ethan Allen’s upholstery operation in Silao, Mexico was awarded the Great Place to Work® certification for the eighth consecutive year; in addition to this designation, the Silao operation was recognized as “Empresa Socialmente Responsible” (Environmentally and Socially Responsible) for the seventh consecutive year Celebrated Ethan Allen Day in June to honor the pioneering spirit of its namesake and celebrate the 94-year history of Ethan Allen as an iconic American brand Held the Company’s annual convention at its headquarters and livestreamed across the world; under the theme of Always Moving Forward, the program reviewed initiatives in manufacturing, logistics, technology, marketing and retail, and celebrated interior designers both for achievement in written sales and design excellence * See reconciliation of GAAP to adjusted key financial measures in the back of this release; comparisons are to the fourth quarter and full fiscal 2025 year KEY FINANCIAL MEASURES* * See reconciliation of GAAP to adjusted key financial measures in the back of this release BALANCE SHEET and CASH FLOW Cash and investments totaled $187.5 million at June 30, 2026 compared with $196.2 million a year ago. The decrease during fiscal 2026 was due to $46.3 million in cash dividends paid, capital expenditures of $11.0 million and share repurchases of $4.8 million partially offset by $52.5 million in cash generated by operating activities, including $5.0 million in tariff refunds. Cash from operating activities totaled $52.5 million during fiscal 2026, a decrease from $61.7 million in the prior year primarily due to lower net income, incremental restructuring payments and changes in working capital, including an increase in inventory carrying levels and lower customer deposits. Cash dividends paid during fiscal 2026 totaled $46.3 million, which included a special cash dividend of $6.4 million, or $0.25 per share, and regular quarterly cash dividends totaling $39.9 million. Inventories, net totaled $148.5 million at June 30, 2026, an increase of 5.4% since last year as new product introductions combined with price increases drove higher levels of on-hand inventory but improved in-stock inventory positions. Customer deposits from undelivered written orders totaled $62.7 million at June 30, 2026, down from $75.1 million a year ago as delivered sales outpaced incoming retail written orders. Wholesale backlog was $44.3 million at June 30, 2026, a decrease of 9.3% due to a slowdown in orders and improved customer lead times. No debt outstanding at June 30, 2026. DIVIDENDS On April 28, 2026, the Company’s Board of Directors declared a $0.39 per share regular quarterly cash dividend, which was paid on May 27, 2026. More recently, on July 28, 2026, the Board of Directors declared a $0.25 per share special cash dividend in addition to a $0.39 per share regular quarterly cash dividend, both payable on August 26, 2026 to shareholders of record as of August 12, 2026. Ethan Allen has a strong history of returning capital to shareholders and this year marks the sixth consecutive year in which the Company has declared and paid a special cash dividend. CONFERENCE CALL Ethan Allen will host a conference call today, July 29, 2026, 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:        13760759 An archived recording of the conference call will remain 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 McNultySenior Vice President, Chief Financial Officer and [email protected] ABOUT NON-GAAP FINANCIAL MEASURES This release is intended to supplement, rather than to supersede, the Company's consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). In this release the Company has included financial measures that are derived from the consolidated financial statements but are not presented in accordance with GAAP. The Company uses non-GAAP financial measures, including adjusted gross profit and margin, adjusted operating income and margin, adjusted net income and adjusted diluted EPS (collectively “non-GAAP financial measures”). The Company computes these non-GAAP financial measures by adjusting the comparable GAAP measure to remove the impact of certain charges and gains and the related tax effect of these adjustments. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, or superior to, the financial performance measures prepared in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measure reported in accordance with GAAP is provided at the end of this release. FORWARD-LOOKING STATEMENTS This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Generally, forward-looking statements represent management’s beliefs and assumptions concerning current expectations, projections or trends relating to results of operations, financial results, financial condition, strategic initiatives, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, investments, future economic indicators, business conditions and industry performance. Such forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These forward-looking statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “continue,” “may,” “will,” “short-term,” “target,” “outlook,” “forecast,” “future,” “strategy,” “opportunity,” “would,” “guidance,” “non-recurring,” “one-time,” “unusual,” “should,” “likely,” “pandemic,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. The Company derives many of its forward-looking statements from operating budgets and forecasts, which are based upon detailed assumptions. While the Company believes that its assumptions are reasonable, it cautions that it is difficult to predict the impact of known factors and it is impossible for the Company to anticipate all factors that could affect actual results and matters that are identified as “short-term,” “non-recurring,” “unusual,” “one-time,” or other words and terms of similar meaning may in fact recur in one or more future financial reporting periods. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that are expected. Actual results could differ materially from those anticipated in the forward-looking statements due to a number of risks and uncertainties including, but not limited to, the risks and uncertainties disclosed in Part I, Item 1A. Risk Factors, in the Company’s 2025 Annual Report on Form 10-K and other factors identified in its reports filed with the Securities and Exchange Commission (the “SEC”), available on the SEC's website at www.sec.gov. All forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements, as well as other cautionary statements. A reader should evaluate all forward-looking statements made in this release in the context of these risks and uncertainties. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. Many of these factors are beyond the Company’s ability to control or predict. The Company is including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. The forward-looking statements included in this release are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law. Reconciliation of Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with GAAP, the Company uses non-GAAP financial measures, including adjusted gross profit and margin, adjusted operating income and margin, adjusted net income and adjusted diluted EPS. The reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in tables below. These non-GAAP measures are derived from the consolidated financial statements but are not presented in accordance with GAAP. The Company believes these non-GAAP measures provide a meaningful comparison of its results to others in its industry and prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, its financial performance measures prepared in accordance with GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than the Company does, limiting the usefulness of those measures for comparative purposes. Despite the limitations of these non-GAAP financial measures, the Company believes these adjusted financial measures and the information they provide are useful in viewing its performance using the same tools that management uses to assess progress in achieving its goals. Adjusted measures may also facilitate comparisons to historical performance. The following tables provide a reconciliation of non-GAAP financial measures used in this release to the most directly comparable GAAP financial measures: (1)   Calculated using the marginal tax rate for each period presented.

Ethan Allen (ETD) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.88%. A quarter ago, it was expected that this home furnishings company would post earnings of $0.21 per share when it actually produced earnings of $0.24, delivering a surprise of +14.29%. 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 $146.75 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.04%. This compares to year-ago revenues of $160.36 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 added about 4.2% since the beginning of the year versus the S&P 500's gain of 8.5%. 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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.35 on $144.8 million in revenues for the coming quarter and $1.50 on $582.8 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Home Furnishings is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Lowe's (LOW), is yet to report results for the quarter ended July 2026. The results are expected to be released on August 19. This home improvement retailer is expected to post quarterly earnings of $4.26 per share in its upcoming report, which represents a year-over-year change of -1.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Lowe's' revenues are expected to be $26.25 billion, up 9.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ethan Allen Interiors Inc. (ETD) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research