ETD Stock Forecast & Price Target

Ethan Allen Interiors Inc.'s 4QF25 performance showcased a rebound following a challenging 3QF25, evidenced by an improvement in order intake and an EPS of $0.49, surpassing consensus estimates by $0.04. Despite a 5% decline in sales compared to the previous year, the company's overall financials indicate resilience and potential for recovery in the home furnishings sector. The contraction in gross margin to 59.9% reflects broader industry challenges; however, the optimistic outlook is supported by expected sales growth of 1.0% moving forward.

Ethan Allen Interiors is facing a negative outlook primarily due to anticipated declines in operating margins, with a projected drop of 225 basis points year-over-year to 9.3%, alongside a contraction in gross margin of 75 basis points to 60.1%. Additionally, the company's design galleries have experienced an 11% year-over-year decrease in traffic, contributing to expected sales declines for the first quarter of fiscal 2026. Despite some recovery in order volume due to promotional strategies, overall financial metrics suggest ongoing pressures from tariffs and lower revenues, which continue to impact profitability.