Arhaus (NASDAQ:ARHS) Announces Earnings Results, Misses Estimates By $0.03 EPS

Arhaus (NASDAQ:ARHS) issued its quarterly earnings data on Thursday. The company reported $0.05 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.08 by ($0.03), FiscalAI reports. The firm had revenue of $368.12 million for the quarter, compared to the consensus estimate of $370.56 million. Arhaus had a return on equity of 17.23% and a net margin of 4.91%. The company’s revenue was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.09 EPS.

Here are the key takeaways from Arhaus’ conference call:

• Arhaus reported record third-quarter revenue of $368 million, up 6.8%, and comparable written sales rose 13.9%. The company raised its full-year revenue and delivered-sales outlook, while maintaining its profit guidance.
• Demand was broad-based, with new-customer acquisition up more than 20% in September and growth in larger orders, custom products, and design-assisted sales. Management said September’s new customers had average order values more than 30% above existing customers, though it noted the cohort is still being evaluated.
• Profitability declined: net income fell 36% to $7.8 million, while adjusted EBITDA decreased 12.3% to $27 million and its margin contracted 170 basis points. Higher marketing and technology spending, legal costs, variable compensation timing, fuel and transportation costs, and new-showroom expenses weighed on results.
• Arhaus is investing in catalogs, digital commerce, and technology, and targets raising e-commerce to 25% of revenue over five years. Management expects transportation efficiencies and other initiatives to support margin improvement, but cited ongoing fuel and freight pressures and said fourth-quarter results depend partly on delivery capacity.

Arhaus Trading Up 9.7%

ARHS stock traded up $1.25 during midday trading on Friday, hitting $14.19. The stock had a trading volume of 4,932,397 shares, compared to its average volume of 1,740,626. The firm has a market cap of $2.01 billion, a P/E ratio of 30.85, a price-to-earnings-growth ratio of 3.56 and a beta of 2.24. The company has a current ratio of 1.33, a quick ratio of 0.60 and a debt-to-equity ratio of 0.13. Arhaus has a 1-year low of $5.57 and a 1-year high of $14.27. The business has a fifty day moving average price of $9.90 and a two-hundred day moving average price of $8.41.

More Arhaus News

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Comparable written sales rose 13.9% year over year, signaling stronger customer demand. Arhaus forecast fiscal 2026 revenue of $1.465 billion to $1.485 billion, and said it aims for e-commerce to reach 25% of sales over five years. Arhaus revenue outlook and e-commerce target
• Neutral Sentiment: Third-quarter revenue grew 6.8% to $368 million, while comparable delivered sales increased 2.6%. Revenue growth shows continued expansion, but the reported total was slightly below analyst expectations. Arhaus third-quarter results
• Negative Sentiment: Quarterly EPS of $0.05 missed the $0.08 consensus and was down from $0.09 a year ago. Net income fell 36% to $8 million and adjusted EBITDA declined 12.3% to $27 million, as selling, general and administrative expenses rose faster than gross margin. Arhaus Q3 earnings miss
• Negative Sentiment: CEO John Reed and the 2018 Reed Dynasty Trust reported sizable share sales. The transactions were made under pre-arranged Rule 10b5-1 plans, which may lessen their significance, but insider selling can still weigh on investor sentiment. Arhaus insider share sale

Wall Street Analyst Weigh In

Several brokerages have recently commented on ARHS. Wall Street Zen raised shares of Arhaus from a “sell” rating to a “hold” rating in a report on Monday, July 20th. Piper Sandler raised shares of Arhaus from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $9.00 to $13.00 in a report on Tuesday, October 20th. Zacks Research raised Arhaus from a “hold” rating to a “strong-buy” rating in a report on Tuesday, October 6th. Craig Hallum upgraded Arhaus from a “hold” rating to a “buy” rating and set a $12.00 price objective for the company in a research report on Thursday, August 6th. Finally, Jefferies Financial Group raised shares of Arhaus from a “hold” rating to a “buy” rating and boosted their target price for the stock from $9.50 to $10.00 in a research note on Monday, September 21st. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $10.78.

Insider Buying and Selling

In other Arhaus news, Director Alton F. Doody III sold 3,500 shares of Arhaus stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $8.47, for a total value of $29,645.00. Following the completion of the sale, the director directly owned 87,113 shares in the company, valued at approximately $737,847.11. The trade was a 3.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder 2018 Reed Dynasty Trust sold 77,695 shares of the business’s stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $13.03, for a total value of $1,012,365.85. Following the completion of the transaction, the insider directly owned 64,927 shares in the company, valued at approximately $845,998.81. This trade represents a 54.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 278,896 shares of company stock valued at $3,508,782 over the last 90 days. Company insiders own 1.18% of the company’s stock.

About Arhaus

Arhaus, Inc is a lifestyle-focused retailer of luxury and artisan-inspired furniture and home furnishings. The company offers products for living rooms, bedrooms, dining areas, offices and outdoor spaces, along with lighting, rugs, textiles, wall art, mirrors, décor and other home accessories.

Arhaus combines retail showrooms with e-commerce and interior design services, providing products intended to support a coordinated approach to home furnishing. Its collections are developed through collaborations with designers and craftspeople and may incorporate materials such as reclaimed wood, natural stone, upholstery fabrics and other distinctive finishes.

Founded in 1986, Arhaus serves customers primarily in the United States through its stores, online platform and interior design professionals.