Arhaus (NASDAQ:ARHS) Issues Quarterly Earnings Results

Key Points

• Arhaus reported quarterly revenue of $368.1 million, up 6.8% year over year, but below the $370.6 million consensus; EPS of $0.05 also missed estimates of $0.08.
• Demand indicators were positive: comparable written sales rose 13.9%, and the company raised its full-year revenue and delivered-sales outlook while maintaining profit guidance.
• Profitability weakened, with net income down 36% to $7.8 million and adjusted EBITDA down 12.3% to $27 million, as higher operating and delivery-related costs weighed on results.

Arhaus (NASDAQ:ARHS - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.05 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.08 by ($0.03), FiscalAI reports. The firm had revenue of $368.12 million during the quarter, compared to the consensus estimate of $370.56 million. Arhaus had a return on equity of 17.23% and a net margin of 4.91%. The firm's revenue for the quarter was up 6.8% on a year-over-year basis. During the same period in the previous year, the business earned $0.09 EPS.

Here are the key takeaways from Arhaus' conference call:

• Arhaus reported record third-quarter revenue of $368 million, up 6.8%, and comparable written sales rose 13.9%. The company raised its full-year revenue and delivered-sales outlook, while maintaining its profit guidance.
• Demand was broad-based, with new-customer acquisition up more than 20% in September and growth in larger orders, custom products, and design-assisted sales. Management said September’s new customers had average order values more than 30% above existing customers, though it noted the cohort is still being evaluated.
• Profitability declined: net income fell 36% to $7.8 million, while adjusted EBITDA decreased 12.3% to $27 million and its margin contracted 170 basis points. Higher marketing and technology spending, legal costs, variable compensation timing, fuel and transportation costs, and new-showroom expenses weighed on results.
• Arhaus is investing in catalogs, digital commerce, and technology, and targets raising e-commerce to 25% of revenue over five years. Management expects transportation efficiencies and other initiatives to support margin improvement, but cited ongoing fuel and freight pressures and said fourth-quarter results depend partly on delivery capacity.

Arhaus Trading Down 1.6%

Shares of NASDAQ:ARHS traded down $0.21 during trading on Thursday, reaching $12.94. 4,352,843 shares of the company were exchanged, compared to its average volume of 1,804,093. The firm has a market capitalization of $1.83 billion, a PE ratio of 26.30, a P/E/G ratio of 3.73 and a beta of 2.24. The business's fifty day simple moving average is $9.80 and its 200-day simple moving average is $8.39. Arhaus has a 12-month low of $5.57 and a 12-month high of $13.36. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.33 and a quick ratio of 0.60.

Insider Activity

In other Arhaus news, CEO John P. Reed sold 89,510 shares of the firm's stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $13.03, for a total transaction of $1,166,315.30. Following the transaction, the chief executive officer directly owned 115,799 shares in the company, valued at $1,508,860.97. This trade represents a 43.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Alton F. Doody III sold 3,500 shares of the firm's stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $8.47, for a total value of $29,645.00. Following the transaction, the director owned 87,113 shares in the company, valued at $737,847.11. The trade was a 3.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 278,896 shares of company stock valued at $3,508,782. Corporate insiders own 1.18% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on ARHS shares. Robert W. Baird set a $10.00 price target on Arhaus in a report on Friday, August 7th. Telsey Advisory Group boosted their price objective on Arhaus from $10.00 to $11.00 and gave the company a "market perform" rating in a report on Tuesday, October 20th. Zacks Research raised Arhaus from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, October 6th. Jefferies Financial Group upgraded Arhaus from a "hold" rating to a "buy" rating and increased their target price for the stock from $9.50 to $10.00 in a research note on Monday, September 21st. Finally, Morgan Stanley lifted their target price on Arhaus from $9.00 to $10.00 and gave the stock an "equal weight" rating in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $10.78.

Key Stories Impacting Arhaus

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Comparable Written Sales rose 13.9% year over year, while Comparable Delivered Sales increased 2.6%, offering evidence of continued demand. Arhaus Reports Third Quarter 2026 Financial Results
• Neutral Sentiment: Revenue rose 6.8% to about $368 million, but came in slightly below analysts’ $370.6 million estimate. Arhaus Q3 results
• Negative Sentiment: Adjusted earnings were $0.05 per share, below the $0.08 consensus and down from $0.09 a year earlier. Net income fell 36% to $8 million and adjusted EBITDA declined 12.3% to $27 million. SG&A expenses rose 14.8%, faster than gross margin’s 8.2% increase, adding to concern about profitability. Arhaus Reports Third Quarter 2026 Financial Results
• Negative Sentiment: CEO John Reed and the 2018 Reed Dynasty Trust disclosed sizable share sales across November 3–4. The transactions were made under pre-arranged Rule 10b5-1 plans, which may temper their significance, but the sales could still weigh on sentiment. SEC filing for CEO transactions SEC filing for trust transactions

About Arhaus

Arhaus, Inc is a lifestyle-focused retailer of luxury and artisan-inspired furniture and home furnishings. The company offers products for living rooms, bedrooms, dining areas, offices and outdoor spaces, along with lighting, rugs, textiles, wall art, mirrors, décor and other home accessories.

Arhaus combines retail showrooms with e-commerce and interior design services, providing products intended to support a coordinated approach to home furnishing. Its collections are developed through collaborations with designers and craftspeople and may incorporate materials such as reclaimed wood, natural stone, upholstery fabrics and other distinctive finishes.

Founded in 1986, Arhaus serves customers primarily in the United States through its stores, online platform and interior design professionals.

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