XVARY Composite Score
55
/ 100
Below Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
Start here if you're new
What it is
It makes and sells furniture and accessories through showrooms, factories, and delivery centers.
How it gets paid
Last year Ethan Allen Int made $615M in revenue. Case goods was the main engine at $240M, or 39% of sales.
Why growth slowed
Revenue fell 4.9% last year. Design center traffic also declined vs. prior year.
What just happened
$0.46 EPS and $149.9M of revenue showed the quarter had life, not just furniture.
At a Glance
B+ balance sheet — decent shape, but not bulletproof
40/100 earnings predictability — expect surprises
11.1x trailing p/e — the market's not buying it — or you found a deal
7.1% dividend yield — cash in your pocket every quarter
13.5% return on capital — nothing to write home about
XVARY composite: 55/100 — below average
What They Do
It makes and sells furniture and accessories through showrooms, factories, and delivery centers.
142 design centers versus 6 manufacturing facilities is a weird little fortress. You buy the room set in a showroom, then the order runs back through its own plants. For you, leaving means losing the brand, the spec, and the delivery schedule at the same time.
How They Make Money
$615M
annual revenue · their business grew -4.9% last year
Case goods
$240M
Upholstered products
$185M
Home furnishing accessories
$95M
Design center retail services
$95M
The Products That Matter
Furniture and decor retail
Home Furnishings Retail
$615M revenue · 100% of sales
It is the entire $615M business, sold through the company's design centers. If retail demand weakens, there is nowhere else for growth to hide.
100% of revenue
In-store design consultations
Design Services
supports the full $615M sales base
Design help is not reported as a separate segment, but it matters because it supports the entire $615M revenue base and helps defend pricing on discretionary purchases.
sales support
In-house product manufacturing
Manufacturing
supports a 7.4% net margin
Making more of its own product gives Ethan Allen control over lead times and costs, and that helped the company keep a 7.4% net margin on $615M in revenue.
margin support
Key Numbers
$615M
annual revenue
That is a small revenue base, so one weak quarter moves the year.
11.1x
trailing p/e
You pay 11.1 times last year's profit. That is cheap if earnings hold.
7.1%
dividend yield
You get 7.1% while you wait. That is a lot of cash for a furniture stock.
17.0%
operating margin
Seventeen cents of every sales dollar survives operating costs. That keeps the business from looking fragile.
Financial Health
B+
Strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 65 / 100
- net profit margin 10.7% — keeps 11 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total Return vs. Market
You invested $10000 in ETD 3 years ago → it's now worth $9320.
The index would have given you $14540.
source: institutional data · total return
What Just Happened
beat estimates
$0.46 EPS and $149.9M of revenue showed the quarter had life, not just furniture.
Gross margin held at 61.1%. That matters more than a flashy sales headline because furniture runs on margin, not hype.
$149.9M
revenue
$0.46
eps
61.1%
gross margin
the number that mattered
61.1% gross margin means the company kept 61 cents of each sales dollar before operating costs.
-
Retail written and wholesale orders fell in the double digits from the year-ago tally.the u.s. government shutdown that ran from october through mid-november (2025) froze ethan allen’s longstanding government contract business entirely.
-
What’s more, consumer confidence has deteriorated.
-
Design center traffic also declined vs. prior year, a direct reflection of consumers retreating from big ticket discretionary purchases during a period of elevated macro uncertainty.
-
Higher operating costs have also weighed on margins and hurt the bottom line.
-
We expect tough conditions to persist for the remainder of the fiscal year.
source: company earnings report, 2026
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What Could Go Wrong
The #1 risk is furniture demand weakening as consumer confidence and showroom traffic soften.
Med
Discretionary demand gets cut first
Furniture is a delayable purchase. If households pull back, Ethan Allen feels it quickly because all $615M of revenue comes from that category.
This risk touches 100% of the revenue base and can keep the stock looking cheap for a long time.
Med
Order and traffic weakness becomes an earnings problem
Management already flagged double-digit order declines and weaker design center traffic from a year ago. That is how revenue softness turns into lower earnings later.
If the current $590M revenue estimate proves too high, the multiple is not as cheap as it looks.
Med
Margin compression from higher operating costs
A 7.4% net margin is healthy for retail, but it is not wide enough to absorb a long period of cost pressure and weak store productivity.
Even modest margin erosion would hit EPS hard because this is a sub-$1B revenue business.
All three risks point to the same thing: a $615M discretionary retail business with a 7.4% margin does not have much room for demand to get worse.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Earnings
Next earnings report
You want to see whether revenue holds near $615M and whether management stops talking about soft traffic.
Trend
Order trend
Double-digit order declines were the loudest warning sign in the latest update. That trend needs to improve before the stock deserves a higher multiple.
Metric
Margin durability
A 7.4% net margin is part of the appeal. If costs keep rising, the income case gets weaker fast.
Risk
Consumer confidence and traffic
This is still a furniture showroom story. When confidence and visits recover, sales usually follow. If they do not, the stock stays where it is.
Analyst Rankings
short-term outlook
average
Momentum score 3. In human-speak, analysts do not see a strong near-term edge either way.
risk profile
average
Stability score 3. This sits near the middle of the pack on risk — not especially safe, not especially wild.
chart momentum
below average
Technical score 4. The chart is not confirming a recovery story yet.
earnings predictability
40 / 100
A 40 / 100 predictability score means earnings can surprise you. That is not ideal when the business is already dealing with soft demand.
Source: institutional data
Institutional Activity
institutions have been net selling for 2 consecutive quarters — 57 buyers vs. 99 sellers in 4q2025. total institutional holdings: 20.1M shares. net selling for 2 quarters.
Source: institutional data
Price Targets
3-5 year target range
$18
$32
$23
Current price
$25
Target midpoint · +11% from current · 3-5yr high: $45 (+100% · 22% ann'l return)
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