Arhaus (NASDAQ:ARHS) Shares Gap Up on Strong Earnings

Key Points

• Arhaus shares jumped after the company reported quarterly EPS of $0.28, beating the $0.16 analyst consensus, while revenue of $384.9 million exceeded estimates of $365.66 million and rose 7.5% year over year.
• Despite the earnings beat, analysts maintain a consensus “Hold” rating on ARHS, with three Buy ratings and seven Holds and an average price target of $9.58.
• Institutional investors and hedge funds own 27.88% of Arhaus, while the stock’s key metrics include a $1.29 billion market capitalization, a 19.37 P/E ratio and a beta of 2.29.

Shares of Arhaus, Inc. (NASDAQ:ARHS - Get Free Report) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $8.23, but opened at $9.75. Arhaus shares last traded at $9.0910, with a volume of 242,505 shares traded.

The company reported $0.28 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.12. The firm had revenue of $384.90 million during the quarter, compared to analyst estimates of $365.66 million. Arhaus had a return on equity of 16.39% and a net margin of 4.67%.The business's quarterly revenue was up 7.5% compared to the same quarter last year. During the same period last year, the company posted $0.25 EPS.

Analyst Ratings Changes

ARHS has been the topic of a number of recent research reports. Wall Street Zen upgraded Arhaus from a "sell" rating to a "hold" rating in a research note on Monday, July 20th. Robert W. Baird set a $8.00 price target on Arhaus in a research note on Friday, May 8th. TD Cowen dropped their price objective on Arhaus from $9.00 to $8.00 and set a "buy" rating on the stock in a report on Monday, May 11th. Guggenheim reduced their target price 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. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Arhaus in a research note on Wednesday, June 17th. Three investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $9.58.

Institutional Investors Weigh In On Arhaus

Hedge funds and other institutional investors have recently made changes to their positions in the business. Larson Financial Group LLC boosted its stake in Arhaus by 89.8% during the 3rd quarter. Larson Financial Group LLC now owns 2,780 shares of the company's stock valued at $30,000 after purchasing an additional 1,315 shares during the period. Caitong International Asset Management Co. Ltd bought a new position in Arhaus in the 3rd quarter worth approximately $30,000. Global Retirement Partners LLC acquired a new position in shares of Arhaus during the fourth quarter worth approximately $39,000. New York State Teachers Retirement System acquired a new position in shares of Arhaus during the fourth quarter worth approximately $52,000. Finally, Quarry LP boosted its position in shares of Arhaus by 203.0% in the third quarter. Quarry LP now owns 4,996 shares of the company's stock valued at $53,000 after acquiring an additional 3,347 shares during the period. 27.88% of the stock is owned by institutional investors and hedge funds.

Arhaus Stock Performance

The firm's 50 day moving average price is $7.52 and its 200-day moving average price is $7.78. The firm has a market cap of $1.29 billion, a price-to-earnings ratio of 19.37, a P/E/G ratio of 3.33 and a beta of 2.29. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.25 and a quick ratio of 0.46.

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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