Here is a number that should not exist in the furniture business.
61.2%.
That is Ethan Allen’s gross margin for its fiscal 2026 year. Sixty one cents of gross profit on every dollar of furniture sold.
For comparison, using each company’s own reported figures: La-Z-Boy around 43.9%. Williams-Sonoma 46.5%. Arhaus 38.9%.
Ethan Allen is running fifteen to twenty two points ahead of the entire industry.
Now the second number. Net sales for that same year were $579.5 million, down 5.7%. And an activist investor has just demanded that the entire board be replaced.
So which is it? The best margin structure in furniture, or a company quietly dying at an impressive profit?