Ethan Allen Interiors Inc. (ETD) shares rose 4.3% in after-hours trading to $23.60 on Friday after the company announced a $3.00 per share special cash dividend, the largest in its history.
The board declared a total payout of approximately $76 million, payable on September 17, 2026, with the record date set for September 3, 2026. This compares with a $0.25 special dividend issued alongside fourth-quarter earnings on July 29.
The dividend announcement follows the release of Ethan Allen’s fiscal 2026 results, which showed gross margin of 61.2%, operating margin of 7.8%, and $52 million in cash from operating activities. The company also reported a debt-free balance sheet.
The special dividend comes amid a governance contest led by investor Doug Bergeron, who operates through DGB Investment Inc. and holds a 5.0% stake in Ethan Allen. Bergeron nominated six director candidates for the 2026 Annual Meeting in early August, citing the company as materially undervalued and calling for strategic renewal, improved digital execution, and CEO succession planning.
The broader market showed little movement, with the S&P 500 essentially flat, the Dow Jones barely changed, and the Nasdaq up marginally, indicating the stock’s surge was driven by company-specific developments rather than macroeconomic factors.
