Arhaus (NASDAQ:ARHS) Posts Earnings Results, Meets Expectations

Arhaus (NASDAQ:ARHS) announced its earnings results on Thursday. The company reported $0.02 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.02, FiscalAI reports. The firm had revenue of $314.28 million during the quarter, compared to analysts’ expectations of $313.97 million. Arhaus had a return on equity of 17.32% and a net margin of 4.88%.The business’s revenue was up .9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.03 EPS.

Here are the key takeaways from Arhaus’ conference call:

• Record Q1 net revenue of $314 million (up 0.9% YoY), achieved despite temporary headwinds; comparable written sales were down ~5.7% but management says traffic and conversion improved meaningfully in late March and through April/May.
• Management reiterated its full‑year 2026 guidance of $1.43B–$1.47B in net revenue, comparable delivered sales flat to +3%, and adjusted EBITDA of $150M–$161M, while keeping a wide Q2 range due to macro/geopolitical uncertainty.
• Strategic supply‑chain and tech investments are advancing — TMS phase 1 is live (expected to deliver $4M–$5M annual transportation savings, ~$1M–$2M in 2026) and OMS/ERP remain on track for a Q1 2027 launch, targeting ~50 bps of SG&A efficiency over two years.
• Showroom expansion and trade/designer channels remain growth pillars — Arhaus operates 108 showrooms and plans ~10–14 showroom projects in 2026 (including 4–6 new openings), and designer/trade channels continue to drive higher‑average orders and repeat engagement.
• Margin and balance‑sheet pressures include gross margin down to 36.4% (‑70 bps) with fuel and occupancy cost headwinds, cash of $177M after a $49M special dividend, inventory up 9% to $369M, and an estimated 2026 tariff impact of roughly $30M–$40M.

Arhaus Stock Performance

Shares of ARHS stock traded down $0.52 during trading hours on Thursday, reaching $7.07. 2,953,099 shares of the company’s stock were exchanged, compared to its average volume of 1,161,807. The company has a market cap of $997.72 million, a P/E ratio of 14.73, a price-to-earnings-growth ratio of 1.58 and a beta of 2.40. The company’s 50 day moving average is $7.25 and its two-hundred day moving average is $9.26. Arhaus has a 1 year low of $6.17 and a 1 year high of $12.98. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.37 and a quick ratio of 0.62.

Arhaus Dividend Announcement

The firm also recently announced a special dividend, which was paid on Tuesday, March 31st. Stockholders of record on Wednesday, March 18th were paid a dividend of $0.35 per share. The ex-dividend date of this dividend was Wednesday, March 18th.

Wall Street Analyst Weigh In

Several analysts have commented on ARHS shares. Jefferies Financial Group reduced their price objective on Arhaus from $9.50 to $7.25 and set a “hold” rating for the company in a research note on Tuesday, April 7th. TD Cowen reduced their price objective on Arhaus from $12.00 to $9.00 and set a “buy” rating for the company in a research note on Monday, March 30th. Telsey Advisory Group reduced their price objective on Arhaus from $11.00 to $9.00 and set a “market perform” rating for the company in a research note on Monday. Stifel Nicolaus set a $12.00 price objective on Arhaus in a research note on Monday, March 2nd. Finally, Morgan Stanley upped their price objective on Arhaus from $10.50 to $12.00 and gave the company an “equal weight” rating in a research note on Thursday, January 15th. Three equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $10.25.

More Arhaus News

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Company reported its highest first-quarter net revenue in Arhaus history — revenue rose 0.9% to ~$314M and slightly beat the Street forecast. Management framed the result as evidence of balance-sheet and demand resilience. Arhaus Reports First Quarter 2026 Financial Results
• Positive Sentiment: Full-year revenue guidance was set at $1.4B–$1.5B, with the top of the range above consensus — a sign management sees upside potential for FY26 if trends improve. Arhaus Reports First Quarter 2026 Financial Results
• Neutral Sentiment: Earnings per share of $0.02 matched consensus, so the quarter wasn’t a surprise on the headline EPS line. Arhaus (ARHS) Q1 Earnings Meet Estimates
• Neutral Sentiment: Management commentary and the full earnings call transcript provide detail on inventory, promotion cadence and cadence for store vs. digital sales — worth reviewing for catalysts that could change near-term guidance. Arhaus, Inc. (ARHS) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Profitability weakened: net income fell ~54.5% to $2M, adjusted EBITDA declined ~3.1%, gross margin contracted and SG&A rose — pressure on margins is the main negative takeaway that likely pressured the stock. Arhaus Reports First Quarter 2026 Financial Results
• Negative Sentiment: Comparable Delivered and Written Sales were down (Delivered -1.7%, Written -5.7%), and Q2 revenue guidance of $350M–$370M has a midpoint below consensus (~$368.1M), adding near‑term demand/growth uncertainty. Arhaus Reports First Quarter 2026 Financial Results

Hedge Funds Weigh In On Arhaus

Large investors have recently modified their holdings of the business. Larson Financial Group LLC raised its stake in shares of Arhaus by 89.8% during the 3rd quarter. Larson Financial Group LLC now owns 2,780 shares of the company’s stock worth $30,000 after buying an additional 1,315 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in shares of Arhaus during the 3rd quarter worth approximately $30,000. Global Retirement Partners LLC purchased a new position in shares of Arhaus during the 4th quarter worth approximately $39,000. Quarry LP increased its stake in Arhaus by 203.0% in the 3rd quarter. Quarry LP now owns 4,996 shares of the company’s stock valued at $53,000 after purchasing an additional 3,347 shares in the last quarter. Finally, Tower Research Capital LLC TRC increased its stake in Arhaus by 224.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,391 shares of the company’s stock valued at $64,000 after purchasing an additional 5,116 shares in the last quarter. 27.88% of the stock is owned by hedge funds and other institutional investors.

Arhaus Company Profile

Arhaus (NASDAQ:ARHS) is a U.S.-based retailer specializing in high-end home furnishings and décor. Since its founding in 1986 in northeastern Ohio, the company has built a reputation for curating unique, design-forward products that blend contemporary aesthetics with artisanal craftsmanship. Headquartered in Boston Heights, Ohio, Arhaus operates a network of brick-and-mortar galleries across the United States alongside a robust e-commerce platform, serving customers from coastal metropolitan areas to interior regions.

The company’s product portfolio encompasses a wide range of furniture categories—including sofas, dining tables, bedroom pieces and storage solutions—complemented by lighting fixtures, rugs, pillows, wall art and decorative accessories.