Ethan Allen CEO M. Farooq Kathwari sells $597,804 in stock

M. Farooq Kathwari, Chairman, President & CEO of Ethan Allen Interiors Inc. (NASDAQ:ETD), sold shares of common stock totaling $597,804 on September 2, 2026. The shares were sold at a price of $25.04 per share.

The transactions included a direct sale by Mr. Kathwari of 22,811 shares. Additionally, several trusts associated with Mr. Kathwari also sold shares: 266 shares from the 2020 Trust FBO Kolhai Gibran Kathwari, 266 shares from the 2020 Trust FBO Zavier Irfan Kathwari, 265 shares from the 2020 Trust FBO Samantha Maxime Van Puyenbroeck-Kathwari, and 266 shares from the 2020 Trust FBO Gabriel Alexander Van Puyenbroeck-Kathwari. All these sales were executed at $25.04 per share.

These sales were conducted pursuant to a Rule 10b5-1 stock selling plan adopted by M. Farooq Kathwari on June 10, 2025, with an effective date of September 15, 2025. This trading plan had been previously disclosed in the company’s Annual Report on Form 10-K filed on August 22, 2025. InvestingPro subscribers have access to over 10 additional ProTips for ETD, plus a comprehensive Pro Research Report that transforms complex financial data into actionable insights for this and 1,400+ other US equities.

Furthermore, on the same date, September 2, 2026, 16,726 shares of Ethan Allen common stock were sold by the Irfan Kathwari Foundation under the same Rule 10b5-1 plan. Mr. Kathwari is deemed to beneficially own all shares held by the foundation, but he has no reportable pecuniary interest in them.

Following these transactions, M. Farooq Kathwari directly holds 1,465,530 shares of common stock. Indirect holdings include 15,364 shares held by his spouse and 8,549 shares held in a 401(k) plan. Various trusts also hold shares indirectly for Mr. Kathwari, including 22,081 shares in the 2020 Trust FBO Kolhai Gibran Kathwari, 22,081 shares in the 2020 Trust FBO Zavier Irfan Kathwari, 22,077 shares in the 2020 Trust FBO Samantha Maxime Van Puyenbroeck-Kathwari, and 22,081 shares in the 2020 Trust FBO Gabriel Alexander Van Puyenbroeck-Kathwari.

In other recent news, Ethan Allen Interiors Inc. reported fiscal fourth-quarter results that did not meet Wall Street expectations. The company posted adjusted earnings of $0.36 per share on revenue of $146.75 million, missing analysts’ forecasts of $0.47 per share and $156.65 million in revenue. Additionally, the company declared a $3.00 per share special cash dividend, amounting to approximately $76 million, reaffirming its debt-free financial position. Meanwhile, Ethan Allen is facing a proxy challenge from activist investor Douglas Bergeron, who is seeking to replace the entire board of directors with nominees possessing expertise in retail technology and digital marketplaces.

CEO Farooq Kathwari defended the company’s strategy, emphasizing a focus on long-term retail sales and showroom experiences over digital sales. In response to weak order intake in the fourth quarter, Telsey lowered its price target for Ethan Allen from $24 to $22, maintaining a Market Perform rating. The firm also noted that higher fuel costs could impact operating margins in the upcoming fiscal year. These developments highlight the ongoing challenges and strategic decisions facing Ethan Allen as it navigates a competitive retail environment.