Ethan Allen Interiors

Ethan Allen’s board has announced a special dividend of $3.00 per share, payable on September 17, 2026, to shareholders of record on September 3, representing a payout of about $76 million. The announcement supported the stock in after-hours trading and follows strong annual results with a high gross margin, positive operating cash flow and a debt-free balance sheet. The sharply increased distribution, versus the previously announced $0.25, is being interpreted as management’s signal in the ongoing governance dispute with investor Doug Bergeron to underscore its commitment to returning capital. » More on de.investing.com

Farooq Kathwari, CEO of Ethan Allen, defends the strategy of prioritizing brick-and-mortar retail and in-person design consultations over short-term online sales, noting that sales from consultations are three to five times higher. Activist Douglas Bergeron has launched a proxy fight and seeks to replace the entire board, saying the company is not sufficiently digital and its leadership is entrenched. Ethan Allen’s stock rose about 1.1% in Friday trading. » More on de.investing.com

Ethan Allen’s stock rose 1.2% after reports that activist Douglas Bergeron is seeking the removal of the entire board. Bergeron has built a stake and nominated himself and five other candidates, including former executives from eBay, Wayfair and Neiman Marcus, with expertise in retail technology, store operations and building digital marketplaces. He criticizes the outdated strategy and long-standing management for losing market share; the company most recently reported a 5.7% decline in net sales for the fiscal year ended June 30. » More on de.investing.com