Ethan Allen Interiors Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 29 April 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Key takeaways

Net sales fell 4.8%: Consolidated net sales were $135.8 million against $142.7 million a year earlier. Nine-month net sales were $432.7 million against $454.3 million. Source
Adjusted EPS $0.24 against $0.38: Adjusted diluted EPS was $0.24 against $0.38, and GAAP diluted EPS was $0.23 against $0.37. Nine-month adjusted diluted EPS was $1.10 against $1.55. Source
Wholesale sales down $14.1 million: Wholesale net sales were $84.9 million against $99.0 million. The company cited reduced business with the U.S. State Department and lower international sales. Source
Gross margin down 1.8 points: Consolidated gross margin was 59.4% against 61.2% a year earlier. Source
Tariffs partly offset by cost control: Management said the adjusted operating margin reflects the impact of tariffs, partly offset by cost control and operational efficiencies. Source
Challenging home furnishings demand: Management cited sluggish demand in a challenging home furnishings environment, including weather disruptions and macroeconomic uncertainty. Source
Quarterly operating cash flow up: Operating cash flow was $15.1 million in the quarter against $10.2 million. Nine-month operating cash flow was $30.1 million against $36.9 million. Source
Supreme Court invalidated IEEPA tariffs: On February 20, 2026, the Supreme Court invalidated certain tariffs imposed during 2025 under the International Emergency Economic Protection Act. Source

“Our third quarter results were impacted by a reduction in business with the U.S. State Department, lower international sales and sluggish demand from a challenging environment for home furnishings, which included weather disruptions and macroeconomic uncertainty.”
Farooq Kathwari, Ethan Allen’s Chairman, President and CEO

Guidance

Area	Period	Figure	Against last quarter
Quarterly cash dividend Source	Payable May 27, 2026 (record date May 13, 2026)	$0.39 per share	Kept

What changed from last quarter

New: A new 10% global import tariff under Section 122 of the Trade Act of 1974 became effective after the Supreme Court invalidated certain IEEPA tariffs on February 20, 2026. Source
New: U.S. Customs and Border Protection launched Phase 1 of the CAPE tool on April 20, 2026, to process IEEPA duty refund claims. Source
New: The company named two design centers to be opened in 2026, in Rancho Cucamonga, California and Aventura, Florida. Source
Guidance kept: The quarterly dividend stayed at $0.39 per share, as declared in the prior quarter. Source

Results and growth drivers

Net sales fell 4.8%: Consolidated net sales were $135.8 million against $142.7 million a year earlier. Nine-month net sales were $432.7 million against $454.3 million. Source
Adjusted EPS $0.24 against $0.38: Adjusted diluted EPS was $0.24 against $0.38, and GAAP diluted EPS was $0.23 against $0.37. Nine-month adjusted diluted EPS was $1.10 against $1.55. Source
Adjusted operating income down 39.8%: Adjusted operating income was $6.8 million against $11.3 million, giving an adjusted operating margin of 5.0% against 8.0%. Source
Nine-month adjusted margin 7.1%: The nine-month adjusted operating margin was 7.1% against 10.4% a year earlier. Source

Segments and written orders

Wholesale sales down $14.1 million: Wholesale net sales were $84.9 million against $99.0 million. The company cited reduced business with the U.S. State Department and lower international sales. Source
Retail sales close to prior year: Retail net sales were $116.2 million against $117.6 million. Retail written orders were flat compared with last year. Source
Wholesale written orders down 7.6%: Management attributed the 7.6% wholesale written order decline to reduced government activity, a slowdown in international business and macroeconomic challenges. Source

“Our adjusted operating margin of 5.0% reflects the impact of tariffs partially offset by our focus on cost control and operational efficiencies.”
Farooq Kathwari, Ethan Allen’s Chairman, President and CEO

Products and customers

Design service and marketing resonating: Management said its complimentary interior design service and marketing investments, combined with recent product introductions, are beginning to resonate with clients. Source
Spring 2026 collection described: Management described the Spring 2026 collection as innovative and expressive, emphasizing quality and North American craftsmanship. Source

Costs, margins and pricing

Gross margin down 1.8 points: Consolidated gross margin was 59.4% against 61.2% a year earlier. Source
Tariffs partly offset by cost control: Management said the adjusted operating margin reflects the impact of tariffs, partly offset by cost control and operational efficiencies. Source
SG&A expenses down 3.1%: Selling, general and administrative expenses were $73.9 million, down 3.1% from last year. Source
Marketing spend at 3.6% of sales: Marketing spend was $4.8 million, or 3.6% of consolidated net sales, compared with 3.4% last year. Source
Pre-tax adjustments of $0.4 million: Adjustments to operating income were $0.4 million pre-tax for the quarter. They included severance and other charges of $0.7 million and a Beecher Falls, Vermont fire item. Source

“We remain debt-free with substantial liquidity to support long-term growth.”
Farooq Kathwari, Ethan Allen’s Chairman, President and CEO

Demand and order book

Challenging home furnishings demand: Management cited sluggish demand in a challenging home furnishings environment, including weather disruptions and macroeconomic uncertainty. Source
Wholesale backlog down 14.1%: Wholesale backlog was $42.0 million, down 14.1% in the first nine months, primarily due to a slowdown in contract orders. Source
Customer deposits declined: Customer deposits from undelivered written orders were $72.2 million, down from $75.1 million at June 30, 2025, as delivered sales outpaced incoming retail written orders. Source
Inventory up with new products: Inventories were $148.6 million, up 5.5% since June 30, 2025 and down 1.2% from a year earlier, as new introductions and price increases drove on-hand levels. Source

Capital, cash and returns

Cash and investments down $15.3 million: Cash and investments were $180.9 million, down from $196.2 million at June 30, 2025. The company reported no outstanding debt. Source
Quarterly operating cash flow up: Operating cash flow was $15.1 million in the quarter against $10.2 million. Nine-month operating cash flow was $30.1 million against $36.9 million. Source
Nine-month dividends total $36.3 million: Nine-month dividends paid were $36.3 million, including a $6.4 million special dividend of $0.25 per share. Quarterly dividends paid were $10.0 million. Source
Capital spending up to $3.0 million: Capital expenditures were $3.0 million in the quarter, against $2.0 million a year earlier. Nine-month capital expenditures were $8.3 million. Source

Strategy and network

Vertical integration described as advantage: Management said manufacturing about 75% of furniture in its own North American facilities is a major advantage. Source
172 design centers in North America: The network had 142 Company-operated and 30 independently owned and operated design centers at quarter end. Source
One brand and vertical integration: Management described vertical integration and a focus on one brand as the company's strengths. Source

Tariffs and trade policy

Supreme Court invalidated IEEPA tariffs: On February 20, 2026, the Supreme Court invalidated certain tariffs imposed during 2025 under the International Emergency Economic Protection Act. Source
New 10% Section 122 tariff: A new 10% global import tariff under Section 122 of the Trade Act of 1974 took effect shortly after the Supreme Court ruling. Source
Refund processing tool launched: The CAPE tool in the ACE system is designed to let CBP process IEEPA duty refund claims at scale. Source

People and recognition

Headcount down 5.7%: The company had 3,105 associates at quarter end, 5.7% fewer than a year earlier. Source
Silao plant recognized for seventh year: The Silao, Mexico upholstery operation was recognized as Environmentally and Socially Responsible for the seventh consecutive year. Source
Finance leadership named for investors: Matt McNulty is named as investor relations contact in his role as Senior Vice President, Chief Financial Officer and Treasurer. Source

Coming up, as management said on 29 April 2026

Dividend payable May 27: The $0.39 per share regular quarterly dividend is payable on May 27, 2026 to holders of record as of May 13, 2026. Source
Two new design centers in 2026: New design centers are to open during 2026 in Rancho Cucamonga, California and Aventura, Florida. Source

In management's words

“We look forward to continuing our progress and remain cautiously optimistic”
Farooq Kathwari, Ethan Allen’s Chairman, President and CEO

Figures management reported

Figure	Reported
Retail design centers operated in North America Source	172 (142 Company-operated, 30 independently owned and operated)
Retail segment written orders Source	Flat versus last year
Wholesale segment written orders Source	Decreased 7.6%
Wholesale backlog Source	$42.0 million at March 31, 2026
Customer deposits from undelivered written orders Source	$72.2 million
Associates at quarter end Source	3,105

Risks management discussed

Demand: Management named sluggish home furnishings demand, weather disruptions and macroeconomic uncertainty as pressures on the quarter. Source
Demand: Wholesale written orders were affected by reduced government activity and a slowdown in international business. Source
Regulatory: Management continues to monitor tariff developments and assess their potential impact on the business, including recoverability of IEEPA refunds. Source
Operational: Tariffs were cited as a factor reducing the adjusted operating margin for the quarter. Source
Financial: Nine-month operating cash flow declined, which the company attributed to lower net income and working capital changes, including lower customer deposits. Source

Earlier plans management reported on

Not stated: The company reported that it paid total cash dividends of $10.0 million, or $0.39 per share, in February 2026. Source
Not stated: Management said it plans to continue opening new design centers in North America. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Ethan Allen Reports Fiscal 2026 Third Quarter Results; Strong Operating Cash Flow and Robust Balance Sheet Despite Impact from Macroeconomic Challenges; Declares Regular Dividend

DANBURY, CT - April 29, 2026 - Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE: ETD), a leading interior design destination, today reported its results for the fiscal 2026 third quarter ended March 31, 2026.

Farooq Kathwari, Ethan Allen’s Chairman, President and CEO commented, “We were pleased to further strengthen many areas of our vertically integrated enterprise, including our talent, product offerings, marketing, technology, retail network, manufacturing, logistics and social responsibility during the just completed third quarter of fiscal 2026. Our ability to manufacture approximately 75% of furniture in our own North American facilities is a major advantage and we are well-positioned as a vertically integrated enterprise with 172 retail design centers in North America and more internationally. We plan to continue to open new design centers in North America.”

“Our third quarter results were impacted by a reduction in business with the U.S. State Department, lower international sales and sluggish demand from a challenging environment for home furnishings, which included weather disruptions and macroeconomic uncertainty. We performed well despite these challenges. For the quarter ended March 31, 2026, we reported consolidated net sales of $135.8 million, gross margin of 59.4%, adjusted operating income of $6.8 million, adjusted operating margin of 5.0% and adjusted diluted EPS of $0.24. Retail segment written orders were flat compared to last year while our wholesale segment written orders declined 7.6% from reduced government activity, a slowdown in our international business and macroeconomic challenges. Our adjusted operating margin of 5.0% reflects the impact of tariffs partially offset by our focus on cost control and operational efficiencies.”

“We remain debt-free with substantial liquidity to support long-term growth. During the just completed third quarter we generated $15.1 million in operating cash flow, up from $10.2 million a year ago. Our strong operating cash flow combined with disciplined capital management reflects our commitment to delivering long-term value while maintaining the financial strength needed in a challenging environment. We ended the quarter with total cash and investments of $180.9 million, which included the payment of $10.0 million in regular quarterly cash dividends and $3.0 million of capital expenditures. We are also pleased to announce that yesterday our Board approved a regular quarterly cash dividend of $0.39 per share, payable on May 27, 2026.”

“Our vertical integration and focus on one brand are our strengths. We offer relevant quality products, provide complimentary interior design service and manufacture 75% of the custom furniture in our own North American facilities. Our complimentary interior design service and strategic marketing investments combined with recent product introductions are beginning to resonate with clients. Our Spring 2026 collection represents innovative and expressive assortments that represent the Ethan Allen brand while emphasizing quality, North American craftsmanship, and style that define us. We look forward to continuing our progress and remain cautiously optimistic,” concluded Mr. Kathwari.

FISCAL 2026 THIRD QUARTER HIGHLIGHTS*

Consolidated net sales of $135.8 million; prior year $142.7 million
Retail net sales of $116.2 million; prior year $117.6 million
Wholesale net sales of $84.9 million; prior year $99.0 million
Written orders
Retail segment written orders flat versus last year
Wholesale segment written orders decreased 7.6%
Consolidated gross margin of 59.4%; prior year 61.2%
Selling, general and administrative expenses decreased 3.1% from last year
Marketing spend totaled $4.8 million or 3.6% of consolidated net sales; comparable to 3.4% last year
Operating margin of 4.8%; adjusted operating margin of 5.0%; adjusted prior year 8.0%
Diluted EPS of $0.23; adjusted diluted EPS of $0.24; adjusted prior year $0.38
Paid total cash dividends of $10.0 million or $0.39 per share in February 2026
Capital expenditures were $3.0 million; $2.0 million a year ago
Ended the quarter with $180.9 million in total cash and investments; no outstanding debt
Inventories, net totaled $148.6 million at March 31, 2026, down 1.2% from a year ago
Ended the quarter with 3,105 associates; 5.7% fewer than a year ago
Operated 172 Ethan Allen retail design centers in North America, including 142 Company-operated and 30 independently owned and operated; new design centers to be opened during 2026 include locations in Rancho Cucamonga, California and Aventura, Florida
Ethan Allen’s upholstery operation in Silao, Mexico was recognized as “Empresa Socialmente Responsible” (Environmentally and Socially Responsible) for the seventh consecutive year
On February 20, 2026, the U.S. Supreme Court invalidated certain tariffs imposed under the International Emergency Economic Protection Act (“IEEPA”) during 2025; shortly thereafter, a new 10% global import tariff under Section 122 of the Trade Act of 1974 was made effective
The U.S. Customs and Border Protection (“CBP”) released guidance regarding IEEPA duty refunds, including the April 20, 2026 launch of Phase 1 of the Consolidated Administration and Processing of Entries (“CAPE”) tool in the Automated Commercial Environment (“ACE”) system, which will enable CBP to process IEEPA duty refund claims at scale; Ethan Allen continues to monitor tariff developments and assess their potential impact on its business, including recoverability of IEEPA refunds

* See reconciliation of GAAP to adjusted key financial measures in the back of this release; comparisons are to the fiscal 2025 third quarter

KEY FINANCIAL MEASURES*

	Three months ended March 31,		Nine months ended March 31,
	2026	2025	2026	2025
(Unaudited)
(In thousands, except per share data)
Net sales	$135,835	$142,695	$432,735	$454,292
Gross profit	$80,686	$87,356	$262,155	$276,062
Gross margin	59.4%	61.2%	60.6%	60.8%
GAAP operating income	$6,474	$10,997	$30,669	$46,719
Adjusted operating income*	$6,834	$11,347	$30,873	$47,307
GAAP operating margin	4.8%	7.7%	7.1%	10.3%
Adjusted operating margin*	5.0%	8.0%	7.1%	10.4%
GAAP net income	$5,934	$9,605	$28,129	$39,328
Adjusted net income*	$6,203	$9,865	$28,281	$39,765
GAAP diluted EPS	$0.23	$0.37	$1.10	$1.53
Adjusted diluted EPS*	$0.24	$0.38	$1.10	$1.55
Cash flows from operating activities	$15,053	$10,180	$30,058	$36,879

* See reconciliation of GAAP to adjusted key financial measures in the back of this release

BALANCE SHEET and CASH FLOW

Cash and investments totaled $180.9 million at March 31, 2026 compared with $196.2 million at June 30, 2025. The decrease during the first nine months of fiscal 2026 was due to $36.3 million in cash dividends paid and capital expenditures of $8.3 million, partially offset by $30.1 million in cash generated from operating activities.

Cash from operating activities totaled $30.1 million during fiscal 2026, a decrease from $36.9 million in the prior year period due to lower net income and changes in working capital, including lower customer deposits.

Cash dividends paid during the first nine months of fiscal 2026 totaled $36.3 million, which included a special cash dividend of $6.4 million, or $0.25 per share, and regular quarterly cash dividends totaling $29.9 million.

Inventories, net totaled $148.6 million at March 31, 2026, an increase of 5.5% since June 30, 2025 as new product introductions and price increases drove higher levels of on-hand inventory.

Customer deposits from undelivered written orders totaled $72.2 million at March 31, 2026, down from $75.1 million at June 30, 2025 as delivered sales outpaced incoming retail written orders. Wholesale backlog was $42.0 million at March 31, 2026, a decrease of 14.1% during the first nine months of fiscal 2026 primarily due to a slowdown in contract orders.

No debt outstanding at March 31, 2026.

DIVIDENDS

On January 27, 2026, the Company’s Board of Directors declared a $0.39 per share regular quarterly cash dividend, which was paid on February 25, 2026. More recently, on April 28, 2026, the Board of Directors declared a regular quarterly cash dividend of $0.39 per share, payable on May 27, 2026 to shareholders of record as of May 13, 2026.

CONFERENCE CALL

Ethan Allen will host a conference call today, April 29, 2026, at 5:00 p.m. Eastern Time to discuss these results. The conference call will be webcast live from the Company’s Investor Relations website at https://ir.ethanallen.com.

The following information is provided for those who would like to participate in the live conference call:

An archived recording of the conference call will be available on the Company’s Investor Relations website referenced above for six months. A telephone replay will also be available for one month following the call.

ABOUT ETHAN ALLEN

Ethan Allen (NYSE:ETD), named America’s #1 Premium Furniture Retailer by Newsweek for three consecutive years, is a leading interior design destination combining state-of-the-art technology with personal service. Ethan Allen design centers, which represent a mix of Company-operated and independent licensee locations, offer complimentary interior design service and sell a full range of home furnishings, including custom furniture and artisan-crafted accents for every room in the home. Vertically integrated from product design through logistics, the Company manufactures about 75% of its custom-crafted furniture in its own North American manufacturing facilities and has been recognized for product quality and craftsmanship since 1932. Learn more at www.ethanallen.com and follow Ethan Allen on Facebook, Instagram, and LinkedIn.

Matt McNulty Senior Vice President, Chief Financial Officer and Treasurer IR@ethanallen.com

ABOUT NON-GAAP FINANCIAL MEASURES

This release is intended to supplement, rather than to supersede, the Company's consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). In this release the Company has included financial measures that are derived from the consolidated financial statements but are not presented in accordance with GAAP. The Company uses non-GAAP financial measures, including adjusted operating income and margin, adjusted net income and adjusted diluted EPS (collectively “non-GAAP financial measures”). The Company computes these non-GAAP financial measures by adjusting the comparable GAAP measure to remove the impact of certain charges and gains and the related tax effect of these adjustments. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, or superior to, the financial performance measures prepared in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measure reported in accordance with GAAP is provided at the end of this release.

FORWARD-LOOKING STATEMENTS

Forward-looking statements notice

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Generally, forward-looking statements represent management’s beliefs and assumptions concerning current expectations, projections or trends relating to results of operations, financial results, financial condition, strategic initiatives, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, investments, future economic indicators, business conditions and industry performance. Such forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These forward-looking statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “continue,” “may,” “will,” “short-term,” “target,” “outlook,” “forecast,” “future,” “strategy,” “opportunity,” “would,” “guidance,” “non-recurring,” “one-time,” “unusual,” “should,” “likely,” “pandemic,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. The Company derives many of its forward-looking statements from operating budgets and forecasts, which are based upon detailed assumptions. While the Company believes that its assumptions are reasonable, it cautions that it is difficult to predict the impact of known factors and it is impossible for the Company to anticipate all factors that could affect actual results and matters that are identified as “short-term,” “non-recurring,” “unusual,” “one-time,” or other words and terms of similar meaning may in fact recur in one or more future financial reporting periods.

Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that are expected. Actual results could differ materially from those anticipated in the forward-looking statements due to a number of risks and uncertainties including, but not limited to, the risks and uncertainties disclosed in Part I, Item 1A. Risk Factors, in the Company’s 2025 Annual Report on Form 10-K and other factors identified in its reports filed with the Securities and Exchange Commission (the “SEC”), available on the SEC's website at www.sec.gov.

All forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements, as well as other cautionary statements. A reader should evaluate all forward-looking statements made in this release in the context of these risks and uncertainties. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. Many of these factors are beyond the Company’s ability to control or predict. The Company is including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. The forward-looking statements included in this release are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law.

	Three months ended March 31,		Nine months ended March 31,
	2026	2025	2026	2025
Ethan Allen Interiors Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
(In thousands, except per share data)
Net sales	$135,835	$142,695	$432,735	$454,292
Cost of sales	55,149	55,339	170,580	178,230
Gross profit	80,686	87,356	262,155	276,062
Selling, general and administrative expenses	73,883	76,253	231,438	228,999
Restructuring and other charges, net of gains	329	106	48	344
Operating income	6,474	10,997	30,669	46,719
Interest and other income, net	1,413	1,599	7,060	5,826
Interest and other financing costs	55	60	174	183
Income before income taxes	7,832	12,536	37,555	52,362
Income tax expense	1,898	2,931	9,426	13,034
Net income	$5,934	$9,605	$28,129	$39,328
Net income per diluted share	$0.23	$0.37	$1.10	$1.53
Diluted weighted average common shares	25,610	25,629	25,616	25,624

	March 31,	June 30,
	2026	2025
Ethan Allen Interiors Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$66,567	$76,178
Investments, short-term	39,921	59,955
Accounts receivable, net	5,166	6,066
Inventories, net	148,577	140,893
Prepaid expenses and other current assets	27,920	26,841
Total current assets	288,151	309,933
Property, plant and equipment, net	206,252	210,238
Goodwill	25,388	25,388
Intangible assets	19,740	19,740
Operating lease right-of-use assets	107,560	109,173
Deferred income taxes	297	369
Investments, long-term	74,378	60,030
Other assets	1,493	2,228
Total ASSETS	$723,259	$737,099
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses	$25,482	$22,137
Customer deposits	72,213	75,068
Accrued compensation and benefits	19,476	23,625
Current operating lease liabilities	26,506	27,403
Other current liabilities	4,968	4,618
Total current liabilities	148,645	152,851
Operating lease liabilities, long-term	94,069	96,263
Deferred income taxes	2,173	2,054
Other long-term liabilities	4,633	3,662
Total LIABILITIES	249,520	254,830
Shareholders’ equity
Ethan Allen Interiors Inc. shareholders’ equity	473,828	482,355
Noncontrolling interests	(89)	(86)
Total SHAREHOLDERS’ EQUITY	473,739	482,269
Total LIABILITIES AND SHAREHOLDERS’ EQUITY	$723,259	$737,099

Reconciliation of Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with GAAP, the Company uses non-GAAP financial measures, including adjusted operating income and margin, adjusted net income and adjusted diluted EPS. The reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in tables below.

These non-GAAP measures are derived from the consolidated financial statements but are not presented in accordance with GAAP. The Company believes these non-GAAP measures provide a meaningful comparison of its results to others in its industry and prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, its financial performance measures prepared in accordance with GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than the Company does, limiting the usefulness of those measures for comparative purposes. Despite the limitations of these non-GAAP financial measures, the Company believes these adjusted financial measures and the information they provide are useful in viewing its performance using the same tools that management uses to assess progress in achieving its goals. Adjusted measures may also facilitate comparisons to historical performance.

The following tables provide a reconciliation of non-GAAP financial measures used in this release to the most directly comparable GAAP financial measures:

	March 31,			March 31,
	2026	2025	% Change	2026	2025	% Change
(Unaudited)
(In thousands, except per share data)	Three months ended			Nine months ended
Consolidated Adjusted Operating Income / Operating Margin
GAAP Operating income	$6,474	$10,997	(41.1%)	$30,669	$46,719	(34.4%)
Adjustments (pre-tax)*	360	350		204	588
Adjusted operating income*	$6,834	$11,347	(39.8%)	$30,873	$47,307	(34.7%)
Consolidated Net sales	$135,835	$142,695	(4.8%)	$432,735	$454,292	(4.7%)
GAAP Operating margin	4.8%	7.7%		7.1%	10.3%
Adjusted operating margin*	5.0%	8.0%		7.1%	10.4%
Consolidated Adjusted Net Income / Adjusted Diluted EPS
GAAP Net income	$5,934	$9,605	(38.2%)	$28,129	$39,328	(28.5%)
Adjustments, net of tax*	269	260		152	437
Adjusted net income	$6,203	$9,865	(37.1%)	$28,281	$39,765	(28.9%)
Diluted weighted average common shares	25,610	25,629		25,616	25,624
GAAP Diluted EPS	$0.23	$0.37	(37.8%)	$1.10	$1.53	(28.1%)
Adjusted diluted EPS*	$0.24	$0.38	(36.8%)	$1.10	$1.55	(29.0%)

* Adjustments to reported GAAP financial measures including operating income and margin, net income and diluted EPS have been adjusted by the following:

(Unaudited)	Three months ended		Nine months ended
(In thousands)	March 31,		March 31,
	2026	2025	2026	2025
Beecher Falls, Vermont fire, net of insurance recoveries	$69	$-	$(909)	$-
Retail design center charges, net of insurance recoveries	(398)	-	152	-
Severance and other charges	658	106	805	344
Other non-restructuring charges	31	244	156	244
Adjustments to operating income	$360	$350	$204	$588
Related income tax effects on non-recurring items	(91)	(90)	(52)	(151)
Adjustments to net income	$269	$260	$152	$437

Calculated using the marginal tax rate for each period presented.

Contacts
● · ● · ●
U.S. Toll-Free: International: Conference ID:
877-705-2976 · 201-689-8798 · 13759156