Arhaus (NASDAQ:ARHS) Posts Earnings Results, Beats Expectations By $0.12 EPS

Arhaus (NASDAQ:ARHS) announced its quarterly earnings results on Thursday. The company reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.12, FiscalAI reports. The company had revenue of $384.90 million for the quarter, compared to analyst estimates of $365.66 million. Arhaus had a net margin of 4.91% and a return on equity of 17.42%. The firm’s revenue was up 7.5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.25 EPS.

Here are the key takeaways from Arhaus’ conference call:

• Positive Sentiment: Arhaus reported record second-quarter net revenue of approximately $385 million, up 7.4% year over year, while comparable written sales rose 12.5%. Management cited broad-based demand, resilient high-end consumers, larger home projects, and strength across upholstery, outdoor, customization, and design channels.
• Positive Sentiment: The company maintained its full-year revenue outlook of $1.43 billion to $1.47 billion and raised profitability guidance to net income of $71 million to $80 million and adjusted EBITDA of $160 million to $171 million, reflecting tariff refunds and continued execution.
• Negative Sentiment: Second-quarter profitability benefited from a one-time $23.8 million recovery of previously paid IEEPA tariffs; excluding the prior-period inventory benefit, gross margin declined to 40.7% and adjusted EBITDA fell 8.9% year over year. Higher fuel, shipping, showroom, and technology costs remain significant headwinds.
• Positive Sentiment: Arhaus said inventory availability improved, aged inventory declined, and client deposits increased 11.8% year over year, supporting conversion of written orders into future revenue. The company is also investing tariff-refund proceeds in expanded catalogs, marketing, digital initiatives, and a new POS platform, while continuing its showroom expansion and trade-program rollout.

Arhaus Trading Down 0.8%

NASDAQ ARHS traded down $0.08 during trading hours on Friday, reaching $9.60. The company’s stock had a trading volume of 2,021,862 shares, compared to its average volume of 1,418,520. The firm has a fifty day simple moving average of $7.64 and a 200-day simple moving average of $7.79. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.25 and a quick ratio of 0.46. Arhaus has a 52 week low of $5.57 and a 52 week high of $12.93. The stock has a market cap of $1.36 billion, a P/E ratio of 19.20, a P/E/G ratio of 3.90 and a beta of 2.29.

More Arhaus News

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Q2 results exceeded expectations: Arhaus reported adjusted earnings of $0.28 per share versus the $0.16 consensus estimate, while revenue rose 7.4% year over year to $384.9 million, above the $365.7 million expected. Arhaus Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Demand and profitability improved: Comparable written sales increased 12.5% and comparable delivered sales rose 4.0%. Net income grew 13.1% to approximately $40 million, while adjusted EBITDA increased 16.8% to $70 million, supported partly by tariff recoveries. Arhaus Reports Second Quarter 2026 Financial Results
• Positive Sentiment: 2026 profit outlook was raised: Arhaus maintained its $1.43 billion–$1.47 billion revenue forecast but increased its net income outlook to $71 million–$80 million and adjusted EBITDA guidance to $160 million–$171 million, reflecting $37.8 million of received tariff refunds plus interest. Arhaus Updates 2026 Outlook After Tariff Refunds
• Positive Sentiment: Analyst sentiment improved: Craig Hallum upgraded ARHS from Hold to Buy and set a $12 price target, implying substantial upside relative to the referenced share price. Analyst Rating Update
• Neutral Sentiment: Piper Sandler raised its target to $9 but retained a Neutral rating, while Telsey Advisory Group raised its target to $10 and maintained Market Perform. The mixed ratings suggest analysts see improved fundamentals but limited near-term upside after the rally. Benzinga Analyst Update
• Negative Sentiment: The profitability benefit is partly dependent on one-time tariff refunds. Inventory increased 4.3%, cash declined following a special dividend, and third-quarter revenue guidance of $355 million–$375 million is slightly below consensus at the midpoint.

Hedge Funds Weigh In On Arhaus

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Invesco Ltd. raised its stake in shares of Arhaus by 49.0% during the fourth quarter. Invesco Ltd. now owns 95,939 shares of the company’s stock valued at $1,075,000 after acquiring an additional 31,550 shares during the last quarter. Numerai GP LLC bought a new stake in shares of Arhaus in the fourth quarter worth $361,000. Balyasny Asset Management L.P. acquired a new stake in Arhaus in the fourth quarter valued at $10,962,000. AQR Capital Management LLC increased its holdings in Arhaus by 20.9% in the fourth quarter. AQR Capital Management LLC now owns 12,993 shares of the company’s stock valued at $146,000 after purchasing an additional 2,245 shares during the period. Finally, EFG International AG bought a new position in Arhaus during the 4th quarter worth $4,334,000. 27.88% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Wall Street Zen raised shares of Arhaus from a “sell” rating to a “hold” rating in a research note on Monday, July 20th. Telsey Advisory Group boosted their target price on shares of Arhaus from $8.00 to $10.00 and gave the stock a “market perform” rating in a research note on Friday. Craig Hallum upgraded shares of Arhaus from a “hold” rating to a “buy” rating and set a $12.00 price target for the company in a report on Thursday. Morgan Stanley increased their price target on Arhaus from $9.00 to $10.00 and gave the company an “equal weight” rating in a research note on Friday. Finally, TD Cowen cut their price objective on Arhaus from $9.00 to $8.00 and set a “buy” rating on the stock in a report on Monday, May 11th. Four research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $10.12.

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.