Arhaus (NASDAQ:ARHS) Releases Earnings Results

Arhaus (NASDAQ:ARHS) posted its quarterly earnings results on Thursday. The company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.08 by ($0.03), FiscalAI reports. The company had revenue of $368.12 million for the quarter, compared to analysts’ expectations of $370.56 million. Arhaus had a return on equity of 17.23% and a net margin of 4.91%. The firm’s revenue was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the firm 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%

ARHS stock traded down $0.21 during midday trading on Thursday, hitting $12.94. 4,352,843 shares of the company’s stock were exchanged, compared to its average volume of 1,804,093. The business has a 50-day simple moving average of $9.80 and a two-hundred day simple moving average of $8.39. The company has a current ratio of 1.33, a quick ratio of 0.60 and a debt-to-equity ratio of 0.13. The stock 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. Arhaus has a 1-year low of $5.57 and a 1-year high of $13.36.

Arhaus News Summary

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

Analysts Set New Price Targets

ARHS has been the subject of a number of analyst reports. Craig Hallum raised shares of Arhaus from a “hold” rating to a “buy” rating and set a $12.00 price objective for the company in a report on Thursday, August 6th. Zacks Research upgraded shares of Arhaus from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 6th. Weiss Ratings raised shares of Arhaus from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, August 17th. Robert W. Baird set a $10.00 target price on shares of Arhaus in a report on Friday, August 7th. Finally, Piper Sandler upgraded shares of Arhaus from a “neutral” rating to an “overweight” rating and boosted their target price for the company from $9.00 to $13.00 in a report on Tuesday, October 20th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $10.78.

Insider Buying and Selling at Arhaus

In other news, major shareholder 2018 Reed Dynasty Trust sold 77,695 shares of the company’s stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $13.03, for a total value of $1,012,365.85. Following the transaction, the insider owned 64,927 shares of the company’s stock, valued at $845,998.81. This represents a 54.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO John Reed sold 89,510 shares of the company’s stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $13.03, for a total value of $1,166,315.30. Following the completion of the transaction, the chief executive officer directly owned 115,799 shares in the company, valued at approximately $1,508,860.97. This trade represents a 43.60% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 278,896 shares of company stock worth $3,508,782 over the last quarter. 1.18% of the stock is currently owned by company insiders.

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.