Arhaus (NASDAQ:ARHS) Trading Down 7.9% - Here's What Happened

Key Points

• Arhaus shares fell 7.9% on Monday to $7.04 (intraday low $6.97) on volume of ~343,830 shares, about 73% below its average daily trading volume.
• The company reported a quarterly beat with EPS $0.11 vs. $0.10 expected and revenue of $364.85M (vs. $351.53M consensus), a 5.1% year‑over‑year increase.
• Arhaus announced a $0.35 special dividend payable March 31 (record/ex‑dividend date March 18), while analysts remain mixed with an average rating of "Hold" and an average price target of $11.00 (three Buys, ten Holds).

Arhaus, Inc. (NASDAQ:ARHS - Get Free Report) was down 7.9% on Monday . The stock traded as low as $6.97 and last traded at $7.04. Approximately 343,830 shares traded hands during trading, a decline of 73% from the average daily volume of 1,288,804 shares. The stock had previously closed at $7.64.

Analysts Set New Price Targets

A number of equities analysts have recently commented on ARHS shares. Morgan Stanley boosted their price objective on Arhaus from $10.50 to $12.00 and gave the stock an "equal weight" rating in a research report on Thursday, January 15th. Telsey Advisory Group lifted their price target on shares of Arhaus from $12.00 to $13.00 and gave the stock a "market perform" rating in a research note on Thursday, February 26th. Jefferies Financial Group reiterated a "hold" rating and set a $9.50 price target on shares of Arhaus in a report on Thursday, February 26th. Weiss Ratings restated a "hold (c)" rating on shares of Arhaus in a report on Monday, December 29th. Finally, TD Cowen decreased their price objective on shares of Arhaus from $13.00 to $12.00 and set a "buy" rating for the company in a research report on Friday, February 27th. Three analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat, Arhaus presently has an average rating of "Hold" and an average price target of $11.00.

Arhaus Stock Down 6.7%

The stock has a market cap of $1.01 billion, a PE ratio of 14.85, a P/E/G ratio of 1.59 and a beta of 2.54. The business has a 50 day moving average of $10.02 and a 200-day moving average of $10.43. 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 (NASDAQ:ARHS - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.11 earnings per share for the quarter, beating the consensus estimate of $0.10 by $0.01. Arhaus had a return on equity of 17.32% and a net margin of 4.88%.The business had revenue of $364.85 million during the quarter, compared to the consensus estimate of $351.53 million. During the same period in the prior year, the company earned $0.15 earnings per share. The company's revenue was up 5.1% compared to the same quarter last year. Equities research analysts predict that Arhaus, Inc. will post 0.46 EPS for the current fiscal year.

Arhaus Dividend Announcement

The firm also recently announced a special dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Wednesday, March 18th will be issued a $0.35 dividend. The ex-dividend date of this dividend is Wednesday, March 18th.

Hedge Funds Weigh In On Arhaus

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Invesco Ltd. increased its position in Arhaus by 49.0% in the 4th quarter. Invesco Ltd. now owns 95,939 shares of the company's stock valued at $1,075,000 after acquiring an additional 31,550 shares during the period. Numerai GP LLC purchased a new position in shares of Arhaus in the 4th quarter valued at approximately $361,000. EVR Research LP grew its stake in shares of Arhaus by 50.0% in the 4th quarter. EVR Research LP now owns 150,000 shares of the company's stock valued at $1,682,000 after purchasing an additional 50,000 shares during the last quarter. Balyasny Asset Management L.P. acquired a new position in shares of Arhaus in the fourth quarter valued at approximately $10,962,000. Finally, AQR Capital Management LLC raised its stake in shares of Arhaus by 20.9% during the fourth quarter. AQR Capital Management LLC now owns 12,993 shares of the company's stock worth $146,000 after purchasing an additional 2,245 shares during the last quarter. Hedge funds and other institutional investors own 27.88% of the company's stock.

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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