Arhaus (NASDAQ:ARHS) Issues Quarterly Earnings Results

Key Points

• Arhaus reported a quarterly earnings per share (EPS) of $0.25, exceeding analysts' expectations of $0.15, with revenues of $358.44 million, a 15.6% increase compared to the previous year.
• Despite the positive earnings report, Arhaus stock fell 6.4% to $11.22 following the announcement, with a trading volume significantly higher than its average.
• Analysts have mixed opinions on Arhaus, with a consensus "Hold" rating and various price targets ranging from $8.00 to $12.00.

Arhaus (NASDAQ:ARHS - Get Free Report) announced its earnings results on Thursday, August 7th. The company reported $0.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.15 by $0.10, Zacks reports. Arhaus had a return on equity of 20.08% and a net margin of 5.33%. The company had revenue of $358.44 million for the quarter, compared to analyst estimates of $333.39 million. During the same period in the prior year, the company posted $0.16 EPS. Arhaus's quarterly revenue was up 15.6% on a year-over-year basis. Arhaus updated its Q3 2025 guidance to EPS and its FY 2025 guidance to EPS.

Arhaus Stock Performance

Shares of ARHS stock traded down $0.36 on Thursday, hitting $12.37. 2,534,778 shares of the stock traded hands, compared to its average volume of 2,289,668. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.33 and a quick ratio of 0.61. The company has a market capitalization of $1.74 billion, a PE ratio of 24.74, a PEG ratio of 7.32 and a beta of 2.56. Arhaus has a 1-year low of $6.61 and a 1-year high of $13.97. The company's fifty day moving average is $9.31 and its 200 day moving average is $9.35.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on ARHS. Piper Sandler reaffirmed a "neutral" rating and issued a $11.00 target price (up from $9.00) on shares of Arhaus in a research report on Friday, August 8th. Loop Capital cut their target price on Arhaus from $12.00 to $8.00 and set a "hold" rating on the stock in a research report on Friday, May 9th. Stifel Nicolaus cut their target price on Arhaus from $11.50 to $10.00 and set a "buy" rating on the stock in a research report on Monday, May 12th. Telsey Advisory Group reaffirmed a "market perform" rating and issued a $10.00 target price on shares of Arhaus in a research report on Monday, August 4th. Finally, Morgan Stanley upped their target price on Arhaus from $10.00 to $12.50 and gave the company an "equal weight" rating in a research report on Friday, August 8th. Twelve research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $10.50.

Institutional Investors Weigh In On Arhaus

Several institutional investors and hedge funds have recently made changes to their positions in ARHS. Raymond James Financial Inc. increased its position in Arhaus by 30.1% in the second quarter. Raymond James Financial Inc. now owns 86,411 shares of the company's stock worth $749,000 after buying an additional 20,000 shares during the period. Canada Pension Plan Investment Board increased its position in Arhaus by 28.9% in the second quarter. Canada Pension Plan Investment Board now owns 12,500 shares of the company's stock worth $108,000 after buying an additional 2,800 shares during the period. Sei Investments Co. increased its position in Arhaus by 23.0% in the second quarter. Sei Investments Co. now owns 721,617 shares of the company's stock worth $6,256,000 after buying an additional 134,725 shares during the period. Jump Financial LLC acquired a new stake in Arhaus in the second quarter worth $203,000. Finally, Quantbot Technologies LP acquired a new stake in Arhaus in the second quarter worth $424,000. 27.88% of the stock is owned by institutional investors and hedge funds.

Arhaus Company Profile

Arhaus, Inc operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits.