ETD

In September 2026, Ethan Allen declared a special cash dividend of $3.00 per share, which was perceived as a response to an activist campaign. Activist investor Doug Bergeron, through DGB Investments, initiated a proxy contest in August 2026, nominating alternative director candidates and advocating for improved digital execution and leadership succession, claiming the company is undervalued. Ethan Allen filed its definitive proxy statement in September 2026, rejecting DGB's claims. On September 21, 2026, the company announced an ongoing CEO succession process, aiming to name a new CEO by June 30, 2027, a move criticized by DGB as late and lacking specificity. CEO M. Farooq Kathwari sold over $597,000 worth of shares in early September 2026. Analyst sentiment has been negative, with lower earnings estimates and a 'Sell' consensus due to weak demand and potential margin pressure. The stock price on September 25, 2026, was $21.29, down from $29.23 a year prior, and as of October 4, 2026, it was down 7.79% year-to-date.