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Arhaus
(NASDAQ:ARHS)
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Rating:63Neutral
Price Target:
$10.00
▲(11.86% Upside)
Action:Reiterated
Date:10/01/26
The score is primarily constrained by financial performance: margin compression, higher leverage, and weaker cash conversion outweigh strong top-line momentum. Technicals are supportive with price above major moving averages and positive MACD, while valuation is reasonable at a mid-range P/E. The latest earnings call adds a modest positive tilt due to strong demand indicators and liquidity, but ongoing tariffs and cost pressures keep the outlook balanced.
Positive Factors
Revenue and demand momentum
Strong revenue and written-sales growth indicate continued customer demand for Arhaus’s premium, design-led assortment. This momentum supports showroom productivity, improves operating leverage as the business scales, and provides a durable base for expansion across direct sales channels.
Negative Factors
Margin compression
Underlying profitability is weaker than reported results suggest because one-time tariff benefits lifted the quarter. Lower margins reduce the earnings contribution from each sale and leave Arhaus more exposed to cost inflation, investment spending and execution challenges.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and demand momentum
Strong revenue and written-sales growth indicate continued customer demand for Arhaus’s premium, design-led assortment. This momentum supports showroom productivity, improves operating leverage as the business scales, and provides a durable base for expansion across direct sales channels.
Read all positive factors
Arhaus (ARHS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.45B
Dividend Yield4.92%
Average Volume (3M)1.46M
Price to Earnings (P/E)20.6
Beta (1Y)1.82
Revenue Growth5.44%
EPS Growth-3.28%
CountryUS
Employees2,750
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.50
Shares Outstanding54,636,130
10 Day Avg. Volume1,449,511
30 Day Avg. Volume1,460,053
Financial Highlights & Ratios
PEG Ratio-11.44
Price to Book (P/B)3.77
Price to Sales (P/S)1.14
P/FCF Ratio26.74
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit2.34
Enterprise Value/Ebitda7.98
Forecast
1Y Price Target
$11.20Price Target Upside25.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)0.54
Revenue Forecast (FY)$1.46B
Arhaus Business Overview & Revenue Model
Company Description
Arhaus, Inc. operates as a distinguished lifestyle brand and upscale purveyor within the home furnishings sector. The company presents a diverse array of merchandise spanning multiple categories, such as furniture, lighting, textiles, decorative a...
How the Company Makes Money
Arhaus primarily makes money by selling home furnishings and related décor products directly to consumers. Its core revenue stream is retail product sales across furniture categories (e.g., upholstery, dining, bedroom, outdoor) and complementary h...
Arhaus Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum and record revenue driven by broad‑based product demand, accelerating written sales, robust showroom expansion, improving inventory availability, a full tariff refund cash outcome, and continued execution on technology and channel initiatives. However, meaningful near‑term headwinds remain: tariffs (structural and ongoing), elevated fuel and shipping costs, and intentional SG&A/technology investments that depress near‑term margins. Management maintained prudent full‑year revenue guidance while updating profitability to reflect the one‑time tariff recovery and deliberate reinvestment of a portion of that benefit. On balance, the positive operational achievements, cash position, tariff refund realization, and beating guidance outweigh the cost pressures and near‑term profitability noise.Positive Updates
Record Net Revenue
Net revenue of $385.0M in Q2 2026, up 7.4% year‑over‑year and above the high end of guidance — the highest net revenue in company history.
Negative Updates
Tariff Headwind and Ongoing Policy Uncertainty
Company estimates 2026 tariff impact of approximately $30M–$40M. While a discrete IEEPA refund was recognized and received, the broader Section 301 tariff framework remains a significant and evolving headwind to margins and costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Net Revenue
Net revenue of $385.0M in Q2 2026, up 7.4% year‑over‑year and above the high end of guidance — the highest net revenue in company history.
Read all positive updates
Company Guidance
Arhaus maintained full‑year net revenue guidance of $1.43–1.47 billion (up 3.7%–6.6%), comparable delivered sales flat to +3%, net income $71–80 million and adjusted EBITDA $160–171 million, while incorporating a discrete IEEPA tariff recovery (requested $37.8M; $32.7M receivable recognized; full cash refund received after recognizing $23.8M benefit in COGS in Q2, including $15.5M related to pre‑April inventory, plus a $14M reduction to inventory costs); management will reinvest $7–10M of the recovery into marketing and technology, expects roughly $10M to flow through to adjusted EBITDA, and anticipates additional ~$5–7M tariff flow‑through in Q3 and a similar amount in Q4. Q2 results were net revenue $385M (+7.4%), comparable written sales +12.5% (YTD +2.8%), comparable delivered sales +4% (YTD +1.4%), gross profit $172M (44.7% margin; 40.7% ex‑tariff), adjusted EBITDA $70M ($55M ex‑tariff), net income $40M, SG&A $118M (30.6% of sales), cash $226M, inventory $354M and client deposits ~$264M. Q3 guidance: net revenue $355–375M (+3%–8.8%), comp delivered -1% to +5%, net income $8–13M and adjusted EBITDA $26–34M; company also flags a 2026 tariff headwind of ~$30–40M, ~$10M each of elevated fuel and shipping costs for the year, a June delivery‑fee benefit of ~$5–6M annualized, and expected TMS/operational and technology savings to help margins over time.Arhaus Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
56
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.72B | 1.38B | 1.27B | 1.29B | 1.23B | 796.92M |
| Gross Profit | 673.54M | 536.41M | 501.23M | 540.42M | 525.06M | 329.93M |
| EBITDA | 197.35M | 181.56M | 161.83M | 236.89M | 239.92M | 57.74M |
| Net Income | 69.18M | 67.26M | 68.55M | 125.24M | 136.63M | 21.12M |
Balance Sheet | ||||||
| Total Assets | 1.45B | 1.39B | 1.21B | 1.11B | 937.08M | 586.55M |
| Cash, Cash Equivalents and Short-Term Investments | 226.40M | 253.36M | 197.51M | 223.10M | 145.18M | 123.78M |
| Total Debt | 609.24M | 580.58M | 499.50M | 450.42M | 387.27M | 50.52M |
| Total Liabilities | 1.04B | 976.52M | 862.57M | 764.91M | 727.39M | 516.78M |
| Stockholders Equity | 414.95M | 418.23M | 343.75M | 340.24M | 209.69M | 69.77M |
Cash Flow | ||||||
| Free Cash Flow | 40.86M | 58.98M | 39.74M | 75.24M | 21.80M | 98.37M |
| Operating Cash Flow | 115.20M | 136.85M | 147.11M | 172.30M | 77.46M | 139.83M |
| Investing Cash Flow | -73.09M | -77.82M | -99.53M | -96.72M | -55.67M | -41.46M |
| Financing Cash Flow | -52.84M | -3.48M | -72.95M | -1.80M | -177.00K | -31.47M |
Arhaus Technical Analysis
Positive
8.94
Price Trends
9.16
Positive
8.38
Positive
8.18
Positive
Market Momentum
0.30
Negative
61.32
Neutral
74.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARHS, the sentiment is Positive. The current price of 8.94 is below the 20-day moving average (MA) of 9.71, below the 50-day MA of 9.16, and above the 200-day MA of 8.18, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 61.32 is Neutral, neither overbought nor oversold. The STOCH value of 74.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARHS.
Arhaus Risk Analysis
Arhaus disclosed 60 risk factors in its most recent earnings report. Arhaus reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arhaus Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $29.38B | 25.27 | 57.79% | 1.18% | 2.24% | 7.35% | |
67 Neutral | $1.98B | 14.44 | 31.18% | ― | ― | ― | |
63 Neutral | $1.45B | 20.63 | 17.23% | 4.92% | 5.44% | -3.28% | |
62 Neutral | $15.34B | -43.65 | 11.48% | ― | 7.46% | -2.70% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $2.16B | 19.12 | 184.91% | ― | 3.35% | 3.38% | |
52 Neutral | $142.86M | -19.53 | -8.97% | ― | 2.26% | 61.28% |
* Consumer Cyclical Sector Average
ARHS
Arhaus
10.23
0.13
1.27%
WSM
Williams-Sonoma
249.43
61.08
32.43%
RH
RH
114.03
-71.67
-38.59%
W
Wayfair
111.98
31.07
38.40%
DIBS
1stdibs.com
4.25
1.34
46.05%
BOBS
Bob's Discount Furniture, Inc.
15.17
-1.85
-10.87%
Arhaus Corporate Events
Business Operations and StrategyExecutive/Board Changes
Arhaus Appoints First Chief Digital Officer to Drive Growth
Positive
Sep 30, 2026
On September 30, 2026, Arhaus announced the appointment of K.C. Moss as its first Chief Digital Officer, with Moss joining the executive leadership team and reporting directly to Founder and CEO John Reed. The new role underscores the company̵...
Business Operations and StrategyFinancial Disclosures
Arhaus Raises 2026 Profit Outlook on Tariff Refunds
Positive
Aug 6, 2026
Arhaus reported that for the second quarter ended June 30, 2026, net revenue rose 7.4% year over year to $385 million and net income climbed 13.1% to $40 million, with comparable delivered sales up 4.0% and comparable written sales up 12.5%. The c...
Business Operations and StrategyExecutive/Board Changes
Arhaus reshapes leadership to bolster eCommerce focus
Neutral
Jul 17, 2026
Arhaus has restructured its leadership to better support its strategic objective of enhancing its eCommerce platform, separating its Marketing and eCommerce functions into distinct areas under separate leaders. As part of these changes, Chief Mark...
Business Operations and StrategyExecutive/Board Changes
Arhaus Refreshes Board with New Independent Director
Positive
Jul 13, 2026
On July 7, 2026, Arhaus director Bill Beargie resigned from the company’s board, with the company stating his departure did not stem from any disagreement over its operations, policies or practices. The following day, July 8, 2026, the board...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.