Arhaus (NASDAQ:ARHS) Issues Earnings Results

Key Points

• Arhaus beat quarterly expectations: Adjusted EPS was $0.28 versus the $0.16 consensus, while revenue rose 7.4% year over year to $384.9 million, exceeding estimates of $365.7 million.
• Demand remained strong: Comparable written sales increased 12.5%, supported by high-end consumers, larger home projects, and strength in upholstery, outdoor, customization, and design channels.
• Profit guidance was raised, but tariff refunds were a factor: Arhaus maintained its $1.43 billion–$1.47 billion revenue outlook and lifted net income and adjusted EBITDA guidance, while noting that one-time tariff refunds significantly benefited profitability and that higher operating costs remain a headwind.

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

Shares of ARHS traded down $0.08 on Friday, reaching $9.60. 2,021,862 shares of the company's stock were exchanged, compared to its average volume of 1,418,520. The company has a current ratio of 1.25, a quick ratio of 0.46 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $1.36 billion, a P/E ratio of 19.20, a price-to-earnings-growth ratio of 3.90 and a beta of 2.29. The business has a 50 day moving average price of $7.64 and a two-hundred day moving average price of $7.79. Arhaus has a 12 month low of $5.57 and a 12 month high of $12.93.

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.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on ARHS. Piper Sandler increased their price objective on shares of Arhaus from $8.00 to $9.00 and gave the stock a "neutral" rating in a report on Friday. Telsey Advisory Group upped their target price on shares of Arhaus from $8.00 to $10.00 and gave the stock a "market perform" rating in a research report on Friday. Robert W. Baird set a $10.00 price target on shares of Arhaus in a research note on Friday. TD Cowen lowered their price target on shares of Arhaus from $9.00 to $8.00 and set a "buy" rating for the company in a report on Monday, May 11th. Finally, Wall Street Zen upgraded shares of Arhaus from a "sell" rating to a "hold" rating in a research report on Monday, July 20th. Four analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $10.12.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in ARHS. Balyasny Asset Management L.P. bought a new stake in shares of Arhaus in the fourth quarter worth about $10,962,000. Wasatch Advisors LP grew 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 increased its stake in Arhaus by 616.6% during the 4th quarter. Nuveen LLC now owns 751,950 shares of the company's stock worth $8,429,000 after purchasing an additional 647,020 shares in the last quarter. EFG International AG acquired a new stake in shares of Arhaus during the fourth quarter worth $4,334,000. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in shares of Arhaus during the third quarter worth $3,731,000. Institutional investors and hedge funds own 27.88% of the company's stock.

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.

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