Arhaus (NASDAQ:ARHS) Raised to Buy at Craig Hallum

Key Points

• Craig Hallum upgraded Arhaus to “buy” from “hold” and set a $12 price target, implying approximately 24% upside from the reported $9.68 share price.
• Arhaus exceeded quarterly expectations, reporting $0.28 in EPS versus $0.16 expected and revenue of $384.9 million versus $365.7 million estimated. Comparable written sales rose 12.5%, while net income and adjusted EBITDA also increased.
• Despite improved guidance and institutional buying, analysts remain divided, with the stock carrying an overall “hold” consensus and an average target of $9.82; some margin gains were supported by tariff recoveries, while comparable delivered-sales growth remained modest.

Arhaus (NASDAQ:ARHS - Get Free Report) was upgraded by equities research analysts at Craig Hallum from a "hold" rating to a "buy" rating in a research note issued to investors on Thursday, MarketBeat Ratings reports. The brokerage presently has a $12.00 price objective on the stock. Craig Hallum's target price would suggest a potential upside of 24.02% from the stock's current price.

Other research analysts also recently issued research reports about the stock. Stifel Nicolaus reduced their price target on shares of Arhaus from $12.00 to $11.00 and set a "buy" rating for the company in a research report on Monday, May 11th. TD Cowen reduced their target price on Arhaus from $9.00 to $8.00 and set a "buy" rating for the company in a report on Monday, May 11th. Wall Street Zen raised Arhaus from a "sell" rating to a "hold" rating in a research note on Monday, July 20th. Robert W. Baird set a $8.00 target price on shares of Arhaus in a report on Friday, May 8th. Finally, Guggenheim dropped their price objective on shares of Arhaus from $14.00 to $12.00 and set a "buy" rating for the company in a research note on Friday, May 8th. Four equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $9.82.

Arhaus Price Performance

Shares of Arhaus stock traded up $1.45 on Thursday, reaching $9.68. The company's stock had a trading volume of 2,831,500 shares, compared to its average volume of 1,342,426. The company has a quick ratio of 0.46, a current ratio of 1.25 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $1.37 billion, a P/E ratio of 20.59, a PEG ratio of 3.33 and a beta of 2.29. The stock has a 50-day moving average price of $7.52 and a 200-day moving average price of $7.78. Arhaus has a 52-week low of $5.57 and a 52-week high of $12.98.

Arhaus (NASDAQ:ARHS - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.28 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.16 by $0.12. The firm had revenue of $384.90 million for the quarter, compared to analysts' expectations of $365.66 million. Arhaus had a net margin of 4.67% and a return on equity of 16.39%. The firm's revenue for the quarter was up 7.5% compared to the same quarter last year. During the same quarter last year, the company earned $0.25 EPS. Analysts expect that Arhaus will post 0.47 EPS for the current year.

Institutional Trading of Arhaus

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Balyasny Asset Management L.P. purchased a new stake in Arhaus during the fourth quarter worth about $10,962,000. Wasatch Advisors LP lifted its holdings in Arhaus by 6.8% during the 2nd quarter. Wasatch Advisors LP now owns 12,703,259 shares of the company's stock worth $110,137,000 after buying an additional 811,337 shares in the last quarter. Nuveen LLC boosted its position in 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 buying an additional 647,020 shares during the period. Simcoe Capital LLC acquired a new position in shares of Arhaus in the fourth quarter worth $4,592,000. Finally, EFG International AG purchased a new stake in shares of Arhaus during the fourth quarter worth $4,334,000. Hedge funds and other institutional investors own 27.88% of the company's stock.

Key Headlines Impacting Arhaus

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Q2 results exceeded expectations: Earnings were $0.28 per diluted share versus the $0.16 analyst consensus, while revenue rose 7.4% year over year to $384.9 million, ahead of the $365.7 million estimate. Arhaus Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Sales momentum 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, and adjusted EBITDA increased 16.8% to $70 million. Arhaus Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Outlook supports earnings optimism: Arhaus maintained its 2026 revenue outlook of $1.43 billion to $1.47 billion and raised its net income outlook to $71 million-$80 million and adjusted EBITDA outlook to $160 million-$171 million, reflecting expected tariff refunds. Third-quarter revenue guidance is $355 million-$375 million.
• Positive Sentiment: Tariff recoveries boosted margins: The company recognized a $23.8 million benefit from recoveries of previously paid IEEPA tariffs and said it had received $37.8 million in refunds plus $1.3 million of interest by August 6. Arhaus also continues to expand, ending the quarter with 109 showrooms and maintaining plans for 10-14 showroom projects in 2026.
• Neutral Sentiment: Arhaus has no long-term debt and generated $60 million in operating cash flow during the first half, providing financial flexibility for showroom expansion and other investments.
• Negative Sentiment: Some quality-of-earnings and demand concerns remain: A substantial portion of the margin and EBITDA improvement came from tariff recoveries, which may not recur. Year-to-date comparable delivered sales were up only 1.4%, merchandise inventory increased 4.3%, and cash declined 10.6% after a $49 million special dividend.

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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