On this page of StockholderLetter.com we present the latest annual shareholder letter from ETHAN ALLEN INTERIORS INC — ticker symbol ETD. Reading current and past ETD letters to shareholders can bring important insights into the investment thesis.

 •  9/26/2025 Letter Continued (Full PDF)
 •  9/29/2023 ETD Stockholder Letter
 •  9/27/2024 ETD Stockholder Letter
 •  More "Home Furnishings & Furniture" Category Stockholder Letters
 •  ETD Benford's Law Stock Score = 84

ETD Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT

liquidity
key
metrics (b)
balance
sheet data (b)
income
statement data
FINANCIAL
HIGHLIGHTS
2024
$614,649
$646,221
$791,382
60.5%
60.8%
60.7%
Adjusted operating income (a)
$62,895
$77,914
$133,514
Adjusted operating margin (a)
10.2%
12.1%
16.9%
Adjusted net income (a)
$52,271
$63,758
$103,057
Adjusted diluted EPS (a)
$2.04
$2.49
$4.03
Cash and investments
$196,163
$195,801
$172,707
Total assets
$737,099
$744,917
$745,453



Total liabilities
$254,830
$262,001
$274,447
Shareholders' equity
$482,269
$482,916
$471,006
Working capital
$157,082
$178,987
$196,356
10.8%
13.4%
23.5%
2.03
2.16
2.20
3,211
3,404
3,748
25,431,625
25,411,923
25,356,462
Cash flows from operating activities
$61,696
$80,195
$100,664
Capital expenditures and acquisitions
$11,268
$9,606
$13,885
Cash dividends paid
$50,084
$50,269
$46,357
5.6%
5.6%
5.1%
Net sales
Gross margin
Long-term debt
Adjusted return on equity (a)
Current ratio
Headcount
Common shares outstanding
Dividend yield (b)
Amounts in thousands, except share and per share data.
(a) See reconciliation of U.S. GAAP to adjusted key financial measures in this annual report.
(b) As of June 30 th of each fiscal year presented.
2
2023
2025

DEAR FELLOW
SHAREHOLDERS
Our fiscal 2025 performance reflects
the strength of our vertically integrated
enterprise and our continued focus on
talent, service, marketing, technology,
and social responsibility. Strengthening
our team and investing in technology
has helped us operate more efficiently,
and though cognizant of the uncertain
economic environment, we remain
confident in the investments we are
making for the future.
Strong margins & capital
management
For the year ended June 30, 2025,
we achieved a strong operating margin
of 10.2% and consolidated net sales
of $615 million, with a gross margin of
60.5%. Adjusted diluted earnings per
share totaled $2.04. Our balance sheet
included total cash and investments
of $196 million and no debt. We
were pleased to pay cash dividends
of $50 million including a special
cash dividend of $0.40 per share.
Our prudent capital management
underscores our commitment to
delivering value to our shareholders.
Complimentary interior
design service
As the Interior Design Destination,
we capitalize on the talents of the
professional interior designers who
staff our Design Centers. Drawing
on a strong assortment of furniture
and accents, and powerful 3D
room planning tools, they offer
full-service, idea-to-delivery design
in multiple locations: at the Design
Center, at the client's home, or
via online communication. This
value-added service continues to
be offered at no additional cost
to the consumer.
North American
manufacturing
From manufacturing to logistics to
retail, our vertically integrated structure
is an ongoing competitive advantage. It
enables us to streamline inventory and
headcount, manage our production
and delivery timelines, and provide a
range of custom options to our clients.
We continue to craft about 75% of our
furniture in our own North American
facilities, delivering strong results
while maintaining flexibility in
a fluid trade environment. Our decision
to strengthen this manufacturing
base has never been more essential
to our success.
Classic design,
modern perspective
We are rooted in timeless values but
clear on the need for continuous
reinvention in our projection, our
product assortment, and every
aspect of our business. We continue
to invest in new and relevant
products, particularly those made in
our North American workshops, and
to make our marketing more impactful
while maximizing the value of every
advertising dollar spent.
Culture of social responsibility
We operate our business with an
entrepreneurial attitude, staying
focused on long-term growth and
prioritizing responsible governance
while treating our employees,
vendors, and clients with dignity and
respect. We also remain committed
to responsible stewardship of natural
resources and creating value for
all stakeholders.
I am pleased to note that Ethan
Allen, for the third consecutive year,
was named America   s #1 Premium
Furniture Retailer by Newsweek.
Our Silao manufacturing facilities
were once again recognized
as Envronmentally and Socially
Responsible, and we earned Most
Improved status on the Sustainable
Furnishings Council and National
Wildlife Federation's Wood Scorecard.
Thank you
I would like to thank all associates,
our Board of Directors, and all
shareholders for their support.
Our robust balance sheet and financial
stability position us well as we head
into fiscal 2026. We look forward to
continuing our progress and remain
cautiously optimistic.
Farooq Kathwari
Chairman, President and CEO
Ethan Allen Interiors Inc.

4

WELCOME TO THE
INTERIOR DESIGN
DESTINATION



 9/26/2025 Letter Continued (Full PDF)