Ethan Allen InteriorsETD +2.50%71 Gross Margin % is 59.40% as of Mar. 2026, which is 5% above its 10-year median of 56.53. GuruFocus rates ETD with a GF Score™ of 71/100 and a GF Value™ of $24.66 (Fairly Valued). The stock has 3 warning signs investors should review. Among 419 Furnishings, Fixtures & Appliances companies, Ethan Allen Interiors ranks better than 95.94% on this metric.
ETD's Gross Margin % is ranked better than 95.94% of 419
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 29.11
vs ETD: 60.40
Ethan Allen Interiors had a gross margin of 59.40% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ethan Allen Interiors was 2.00% per year.
Ethan Allen Interiors (NYSE:ETD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Ethan Allen Interiors had a gross margin of 59.40% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Ethan Allen Interiors Gross Margin % Related Terms
Ethan Allen Interiors Gross Margin % Historical Data
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The historical data trend for Ethan Allen Interiors's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Furnishings, Fixtures & Appliances subindustry, Ethan Allen Interiors's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ethan Allen Interiors Gross Margin % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Ethan Allen Interiors's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ethan Allen Interiors's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Ethan Allen Interiors (ETD) has a Gross Margin % of 59.40% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ethan Allen Interiors and its competitors. This is near median its historical median of 56.53. Over the past decade, Ethan Allen Interiors' Gross Margin % has ranged from 54.25 to 60.82. According to the industry distribution chart, Ethan Allen Interiors ranks #17 out of 419 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 4.1%.
Is Ethan Allen Interiors' Gross Margin % too high?
Ethan Allen Interiors' current Gross Margin % of 59.40% is near median its 10-year median of 56.53. Over the past 10 years, this metric has ranged from a low of 54.25 to a high of 60.82. The Furnishings, Fixtures & Appliances industry median Gross Margin % is 29.11. Ethan Allen Interiors' value of 59.40% is 104.1% above this industry median. Based on the distribution chart, Ethan Allen Interiors ranks #17 out of 419 companies in the Furnishings, Fixtures & Appliances industry, which is in the top quartile — a strong position relative to peers. Overall, Ethan Allen Interiors has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ethan Allen Interiors' Gross Margin % compare to XMAX and AMWD?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Ethan Allen Interiors ranks #17 out of 419 companies for Gross Margin %. This places Ethan Allen Interiors in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.11. Ethan Allen Interiors' value of 59.40% is 104.1% above this benchmark. Historically, Ethan Allen Interiors' own Gross Margin % has ranged from 54.25 to 60.82 over the past decade. While the company's 10-year median is 56.53 vs. the industry median of 29.11, Ethan Allen Interiors has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Furnishings, Fixtures & Appliances company?
The median Gross Margin % among Furnishings, Fixtures & Appliances companies is 29.11, based on 419 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ethan Allen Interiors's current Gross Margin % of 59.40% is 104.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Ethan Allen Interiors and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Gross Margin % is 29.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ethan Allen Interiors's current Gross Margin % is 59.40%, which is near median its own 10-year median of 56.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ethan Allen Interiors stock overvalued right now?
Based on GuruFocus' analysis, Ethan Allen Interiors (ETD) is currently considered Fairly Valued. The stock's GF Value™ is $24.66, compared to a current price of $22.53 — trading 8.6% below its estimated fair value. The current Gross Margin % is 59.40%, which is near median its 10-year median of 56.53 and 104.1% above the Furnishings, Fixtures & Appliances industry median of 29.11. Ethan Allen Interiors' overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Ethan Allen Interiors (ETD), the current Gross Margin % is 59.40% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ethan Allen Interiors (ETD) Overvalued in 2026?
Based on GuruFocus' analysis, Ethan Allen Interiors stock appears to be undervalued.
The current stock price of $22.53 is trading 8.6% below its estimated GF Value™ of $24.66.
GuruFocus considers Ethan Allen Interiors to be Fairly Valued.
Key valuation signals for ETD:
Gross Margin %: 59.40% (near median its 10-year median of 56.53)
GF Value™: $24.66 vs. price of $22.53 (8.6% below fair value)
Industry Position: 104.1% above the Furnishings, Fixtures & Appliances median (#17 of 419)
No single metric tells the full story. See the ETD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ethan Allen Interiors Inc through its subsidiaries, operates as an interior design company, and a manufacturer and retailer in the home furnishings marketplace. Its product offerings include fabric chairs, beds, wallpapers, desks, and dining tables among others. The company's reportable segments are; Wholesale and Retail. The Wholesale segment is principally involved in the development of the Ethan Allen brand and encompasses all aspects of design, manufacturing, sourcing, marketing, sale, and distribution of home furnishings and accents. The Retail segment which generates maximum revenue, sells home furnishings and accents to clients through company-operated design centers. Geographically, it derives key revenue from the United States and the rest from other regions.
71GF Score
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