Arhaus, Inc. Class A (ARHS)

In the past six months, Arhaus, Inc.'s stock has been impacted by several events, including Q3 2025 earnings with an EPS beat and revenue increase, Q2 2025 earnings with the highest quarterly net revenue, and Q1 2025 earnings with a revenue increase but income decline. The company has been facing tariff headwinds, reducing China sourcing to mitigate risks. Arhaus, Inc. dropped from the Russell Small Cap Comp Value Index in June 2025. Demand volatility was observed, with a sharp decline in October 2025. Michael Lee was appointed as the new Chief Financial Officer in May 2025. ARHS underperformed the US Specialty Retail industry and the broader US Market over the past year, but its weekly volatility has been stable.

Arhaus, Inc.'s business experiences seasonality in demand, with net revenue increasing from Q2 to Q3 2025. Monthly demand can be volatile, as seen in the decline in October 2025, indicating that consumer sentiment and promotional timing can significantly influence short-term demand.

Arhaus, Inc. is an upscale American lifestyle brand and premium omnichannel retailer specializing in home furnishings, operating within the Consumer Discretionary sector. The company designs and sources its products directly from manufacturers and artisans globally, with approximately 95% of its products being exclusively available through the brand. Its product offerings include furniture for various rooms, outdoor products, lighting fixtures, textiles, and décor. Arhaus emphasizes sustainability and artisanship, distributing its products through showrooms, e-commerce, print and digital media, and in-home designer services.

Arhaus, Inc. has a significant physical presence across the United States, operating approximately 103 showrooms and design centers across 30 states as of late 2025. Its online store and print catalog serve customers nationally and worldwide. The company strategically locates its showrooms in affluent real estate markets and plans to complete 12 to 15 total showroom projects in 2025, including new openings, relocations, renovations, or expansions.

Arhaus, Inc. has cultivated a brand reputation centered on livable luxury, heirloom-quality merchandise, sustainability, ethical sourcing, and artisan craftsmanship. The company's direct-to-consumer approach and proprietary merchandise contribute to its unique brand proposition and foster a loyal customer base. Arhaus's commitment to not sourcing materials from endangered rainforests and incorporating recycled materials enhances its reputation. However, the company has faced challenges with customer reviews, quality issues, and low employee satisfaction, which could jeopardize future growth and brand perception.

Arhaus, Inc. has a diverse ownership structure, with significant control held by its founder and family trusts, alongside substantial institutional investment. John Reed, the founder and CEO, holds the largest individual stake. The Reed family collectively holds a majority of the company's stock. Institutional investors hold a significant portion of the company. As of Q4 2025, 424 institutions held shares of Arhaus Inc.