Ethan Allen Hit By Traffic Slowdown, Cuts 2025 Outlook

Ethan Allen Interiors Inc ETD reported a 2.5% decline in its fiscal third-quarter sales due to double-digit declines in order intake in January and February.

The Ethan Allen Analyst: Telsey Advisory Group’s Cristina Fernández maintained a Market Perform rating, while reducing the price target from $32 to $30.

The Ethan Allen Interiors Thesis: The 11% decline in the company's order intake in the latest quarter followed a 14% increase in the fiscal second quarter, Fernández said in the note.

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The retailer reported earnings of 38 cents per share, short of consensus of 46 cents per share, she added.

The analyst reduced the fiscal 2025 earnings estimates from $2.32 per share to $2.00 per share, lower than the current consensus of $2.36 per share. She expects the company's sales to decline by 6.6%, versus 3.5% previously, and the operating margin to contract by 212 basis points to 9.9%.

"Looking to FY26, we have confidence in Ethan Allen’s ability to manage the incremental costs from tariffs, but are concerned about the deteriorating traffic and sales trend," Fernández further wrote.

Price Action: Shares of Ethan Allen tanked by 9.82% to $26.27 at the time of publication on Tuesday.

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