Arhaus (ARHS) Q3 2026 Earnings Report

The call was predominantly positive, supported by record revenue, strong written demand, customer acquisition, premium transaction growth, raised revenue guidance, a strong balance sheet, and continued progress in digital and operational initiatives. Profitability declined because of higher SG&A, legal, fuel, transportation, showroom, and clearance-related costs, but management characterized several pressures as temporary or expected to moderate and maintained full-year profitability guidance.

For the full year, Arhaus expects net revenue between $1.465 billion to $1.485 billion, representing year-over-year growth of between 6.2% and 7.7%, Comparable Delivered Sales growth of 2.5%-4.0%, net income of $71 million-$81 million, and Adjusted EBITDA of $160 million-$171 million; for the fourth quarter, it expects net revenue between $398 million and $418 million, representing a year-over-year growth rate of between 9.1% and 14.6%, Comparable Delivered Sales of between 6% and 12%, net income of between $21 million and $30 million, and Adjusted EBITDA of $44 million-$55 million. Under the current tariff framework, it estimates annual tariff costs of approximately $30 million-$40 million, expects $45 million in annualized TMS savings at full scale, with benefits increasing in 2027, expects approximately 50 basis points of SG&A improvement by 2030, and has a long-term ambition to increase e-commerce penetration to 25% of revenue over the next five years, describing e-commerce as a $500 million opportunity for Arhaus by 2030; for fiscal 2027, it is hoping to target a gross margin with a four handle on it, not a three handle.