Stock to Watch: Ethan Allen Interiors Inc. (ETD) Declared Bear of the Day
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 12 2025
0mins
Source: NASDAQ.COM
Industry Challenges: The home furnishings industry, particularly Ethan Allen Interiors Inc. (ETD), is facing significant challenges due to trade tensions, a sluggish housing market, and changing consumer spending, leading to stagnant sales and earnings growth.
Stock Performance: ETD stock has underperformed compared to peers and the broader market over various timeframes, with recent quarterly results showing no signs of improvement and a technical breakdown in stock price.
Earnings Revisions: Analysts have sharply cut earnings estimates for ETD, with current quarter projections down nearly 27% and full-year estimates down 13.2%, resulting in a Zacks Rank #5 (Strong Sell) rating.
Valuation Concerns: Despite trading at a discount to the industry average, ETD's current valuation remains above its five-year median, raising concerns about its sustainability given the company's weakening outlook and unfavorable market conditions.
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Analyst Views on ETD
Wall Street analysts forecast ETD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ETD is 28.00 USD with a low forecast of 28.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 22.540
Low
28.00
Averages
28.00
High
28.00
Current: 22.540
Low
28.00
Averages
28.00
High
28.00
About ETD
Ethan Allen Interiors Inc. is a furniture retailer, specializing in interior design destination combining technology with personal service. It offers a global luxury home fashion brand that is vertically integrated from product design through home delivery. Its segments include Wholesale and Retail. Wholesale segment is involved in the development of the Ethan Allen brand and encompasses all aspects of design, manufacturing, sourcing, marketing, sale and distribution of its broad range of home furnishings and accents. Retail segment sells home furnishings and accents to clients through approximately 142 Company-operated design centers. It provides complimentary interior design service to its clients and sells a range of home furnishings through a retail network of design centers located throughout the United States and internationally as well as online at ethanallen.com. Its design centers represent a mix of locations operated by independent licensees and Company-operated locations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ethan Allen Q2 2026 Earnings Call Insights
- Sales Decline: Ethan Allen reported consolidated net sales of $149.9 million in Q2, reflecting a decline primarily due to the government shutdown, which lowered consumer confidence and retail orders, particularly from U.S. government contracts.
- Increased Advertising Spend: The company raised its advertising expenditure by 25%, focusing mainly on digital media; although the full benefits were not realized in Q2 due to economic slowdowns, future positive impacts are anticipated.
- Order Trends: Retail written orders fell by 17.9% year-over-year, while wholesale orders decreased by 19.3%, indicating weak demand; however, management noted positive written order growth in January, suggesting an improved demand environment.
- Gross Margin Stability: Despite challenges, Ethan Allen maintained a gross margin of 60.9%, up 60 basis points from last year, attributed to changes in sales mix and higher average ticket prices, demonstrating the company's resilience in maintaining profitability amid adversity.
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Ethan Allen Interiors Declares Quarterly Dividend
- Quarterly Dividend Announcement: Ethan Allen Interiors declares a quarterly dividend of $0.39 per share, with an annualized yield of 6.46%, reflecting the company's stability and commitment to shareholder returns in the current economic climate.
- Dividend Payment Schedule: The dividend will be payable on February 25, with a record date of February 11 and an ex-dividend date also on February 11, ensuring shareholders receive their earnings promptly.
- Financial Performance Overview: In the latest earnings report, Ethan Allen's non-GAAP EPS of $0.44 exceeded expectations by $0.06, while revenue of $149.9 million fell short of estimates by $2.35 million, indicating market challenges.
- Digital Marketing Growth: Ethan Allen plans to increase its digital marketing budget by 25% amid tariff pressures, aiming to enhance brand visibility and market share in a competitive environment.
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