Arhaus (NASDAQ:ARHS) Announces Quarterly Earnings Results, Hits Estimates

Key Points

• $0.02 EPS matched estimates and Arhaus reported record Q1 net revenue of $314M (up 0.9% YoY) despite comparable written sales falling ~5.7%, with management citing improved traffic and conversion late in the quarter.
• Management reiterated full‑year 2026 guidance of $1.43B–$1.47B in revenue and adjusted EBITDA of $150M–$161M, while advancing supply‑chain and tech investments (TMS live; OMS/ERP on track) and planning showroom expansion.
• Profitability and the balance sheet face pressure — gross margin declined to 36.4%, net income dropped ~54.5% to $2M, inventory rose 9% to $369M, and management estimates a 2026 tariff headwind of roughly $30M–$40M.

Arhaus (NASDAQ:ARHS - Get Free Report) released its earnings results on Thursday. The company reported $0.02 EPS for the quarter, hitting the consensus estimate of $0.02, FiscalAI reports. Arhaus had a return on equity of 17.32% and a net margin of 4.88%.The firm had revenue of $314.28 million during the quarter, compared to analysts' expectations of $313.97 million. During the same period in the previous year, the firm posted $0.03 EPS. Arhaus's revenue for the quarter was up .9% on a year-over-year basis.

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 NASDAQ ARHS traded down $0.52 during trading hours on Thursday, reaching $7.07. The stock had a trading volume of 2,953,099 shares, compared to its average volume of 1,161,807. The firm has a market cap of $997.72 million, a price-to-earnings ratio of 14.73, a PEG ratio of 1.58 and a beta of 2.40. The company has a current ratio of 1.37, a quick ratio of 0.62 and a debt-to-equity ratio of 0.13. Arhaus has a fifty-two week low of $6.17 and a fifty-two week high of $12.98. The firm has a 50-day moving average of $7.25 and a 200-day moving average of $9.26.

Arhaus Announces Dividend

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

Institutional Trading of Arhaus

A number of large investors have recently made changes to their positions in ARHS. Balyasny Asset Management L.P. acquired a new stake in shares of Arhaus in the 4th quarter valued at about $10,962,000. Wasatch Advisors LP boosted its position in shares of Arhaus by 6.8% in the 2nd quarter. Wasatch Advisors LP now owns 12,703,259 shares of the company's stock valued at $110,137,000 after purchasing an additional 811,337 shares during the period. Nuveen LLC boosted its position in shares of Arhaus by 616.6% in the 4th quarter. Nuveen LLC now owns 751,950 shares of the company's stock valued at $8,429,000 after purchasing an additional 647,020 shares during the period. EFG International AG acquired a new stake in shares of Arhaus in the 4th quarter valued at about $4,334,000. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in shares of Arhaus in the 3rd quarter valued at about $3,731,000. 27.88% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

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

Key Headlines Impacting Arhaus

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

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.

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