Arhaus (NASDAQ:ARHS) Shares Gap Down – Here’s What Happened

Shares of Arhaus, Inc. (NASDAQ:ARHS) gapped down prior to trading on Thursday . The stock had previously closed at $7.59, but opened at $6.80. Arhaus shares last traded at $7.1170, with a volume of 448,039 shares changing hands.

Trending Headlines about Arhaus

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Arhaus kept full-year revenue guidance in a range that brackets Wall Street expectations, and Q2 revenue guidance also came in roughly aligned with consensus. The company also said Q1 net revenue rose 0.9% year over year to $314 million, the highest first-quarter revenue in its history. Arhaus Reports First Quarter 2026 Financial Results
• Positive Sentiment: The company met earnings expectations with Q1 EPS of $0.02, which may help limit downside sentiment around the report. Arhaus, Inc. (ARHS) Q1 Earnings Meet Estimates
• Neutral Sentiment: Guggenheim lowered its price target on Arhaus to $12 from $14, though it maintained a “buy” rating, signaling continued optimism but slightly more caution on near-term upside. Read More: Read More., Read More.
• Negative Sentiment: Revenue came in just below expectations at $314.28 million versus estimates of $313.97 million, while gross margin, net income, and adjusted EBITDA all declined year over year. Arhaus meets earnings view but revenue falls short of target
• Negative Sentiment: Comparable delivered sales fell 1.7% and comparable written sales dropped 5.7%, suggesting softer demand trends that could weigh on sentiment going forward. Arhaus Reports First Quarter 2026 Financial Results

Analyst Ratings Changes

A number of analysts have issued reports on the company. Stifel Nicolaus set a $12.00 target price on Arhaus in a research report on Monday, March 2nd. Robert W. Baird set a $8.00 target price on Arhaus in a research report on Friday. Morgan Stanley raised their target price on Arhaus from $10.50 to $12.00 and gave the stock an “equal weight” rating in a research report on Thursday, January 15th. Jefferies Financial Group decreased their target price on Arhaus from $9.50 to $7.25 and set a “hold” rating for the company in a research report on Tuesday, April 7th. Finally, Telsey Advisory Group set a $8.00 target price on Arhaus and gave the stock a “market perform” rating in a research report on Friday. Three investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, Arhaus currently has an average rating of “Hold” and an average price target of $10.14.

Arhaus Stock Down 7.9%

The stock has a market capitalization of $918.69 million, a P/E ratio of 13.85, a price-to-earnings-growth ratio of 1.48 and a beta of 2.40. The stock has a fifty day moving average price of $7.25 and a 200 day moving average price of $9.26. 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 (NASDAQ:ARHS) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.02 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.02. Arhaus had a net margin of 4.67% and a return on equity of 16.09%. The company had revenue of $314.28 million during the quarter, compared to analyst estimates of $313.97 million. During the same period in the previous year, the business earned $0.03 EPS. The firm’s revenue for the quarter was up .9% on a year-over-year basis. On average, research analysts forecast that Arhaus, Inc. will post 0.5 earnings per share for the current year.

Arhaus Dividend Announcement

The company also recently disclosed a special dividend, which was paid on Tuesday, March 31st. Investors of record on Wednesday, March 18th were issued a $0.35 dividend. The ex-dividend date was Wednesday, March 18th.

Hedge Funds Weigh In On Arhaus

Hedge funds have recently added to or reduced their stakes in the company. State of Alaska Department of Revenue purchased a new position in Arhaus in the 3rd quarter worth approximately $28,000. Larson Financial Group LLC raised its holdings in Arhaus by 89.8% in the 3rd quarter. Larson Financial Group LLC now owns 2,780 shares of the company’s stock worth $30,000 after acquiring an additional 1,315 shares during the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in Arhaus in the 3rd quarter worth approximately $30,000. Global Retirement Partners LLC purchased a new position in Arhaus in the 4th quarter worth approximately $39,000. Finally, Johnson Investment Counsel Inc. bought a new stake in Arhaus in the 3rd quarter worth approximately $49,000. 27.88% of the stock is currently owned by hedge funds and other institutional investors.

About Arhaus

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.