Arhaus, Inc. Class A (ARHS)

Over the past six months, Arhaus shares have returned 23.1%, while the S&P 500 gained 24.4%, but the stock declined approximately 36% year-to-date as of March 29, 2025. In Q4 2024, Arhaus met revenue expectations with sales of $347 million, flat year-on-year, and GAAP profit was $0.15 per share, exceeding analyst estimates by 16.2%, while same-store sales fell 6.4% year-on-year. In Q1 2025, the company experienced declining earnings, aligning with industry peers due to a weak housing market and consumer uncertainty. In Q2 2025, Arhaus reported revenues of $358.4 million, a 15.7% increase year-on-year, outperforming analysts' expectations by 7.4%, with net income growing 57.7% to $35 million, and adjusted EBITDA increasing 51.2% to $60 million, partly attributed to the accelerated ramp-up of its Dallas Distribution Center. Demand comparable growth increased 6.9% in June 2025 but softened to a 9.4% decline amid renewed volatility, while July 2025 saw a rebound with demand comparable growth up 15.7%, and year-to-date demand comparable growth stood at +2.2%. As of October 26, 2025, 10 analysts have a "Buy" consensus rating for ARHS, with nine analysts revising their earnings estimates upward for the upcoming period as of September 2025. Arhaus lowered its 2025 guidance due to an uncertain housing market and consumer outlook, projecting EPS of $0.47 and adjusted EBITDA between $123 million and $145 million for fiscal year 2025. Director William Beargie sold 6,500 shares on May 15, 2024, and several institutional investors sold shares in the last 24 months, while CenterBook Partners LP, Long Focus Capital Management LLC, Millennium Management LLC, Trexquant Investment LP, and EFG Asset Management North America Corp. increased their stakes in Q1 2025.

The demand for Arhaus, Inc. products and services is sensitive to economic fluctuations, a characteristic of the broader furnishing industry. The company has experienced periods of shrinking demand, with same-store sales averaging 4% annual declines over two years. However, there have been signs of improving demand, such as a 5.7% growth in Q4 demand comps (as of March 29, 2025). In Q2 2025, demand improved during May and June, with a strong exit rate in July. July 2025 saw a significant rebound with demand comparable growth up 15.7%. Despite these fluctuations, year-to-date demand comparable growth (including July 2025) stood at +2.2%. Arhaus anticipates that month-to-month demand trends will remain "choppy" in the short term due to external volatility. The company has also lowered its 2025 guidance, partly due to a weak housing market and consumer uncertainty, indicating that these external factors influence demand.

Arhaus, Inc. is a high-end furniture retailer specializing in unique, artisan-crafted home and outdoor furnishings, operating within the home furnishings retail sector and known for its aesthetic that features natural materials like reclaimed wood. The company offers a wide range of products, including sofas, rugs, bookcases, dining furniture, bedroom furniture, bath furniture, lighting, decor, and office furniture.

Arhaus, Inc. primarily operates within the United States and as of early 2025, the company had approximately 100 stores, including 87 showrooms. Arhaus aims to increase its footprint to 165 traditional stores and 50 design studios across the country. In 2024, Arhaus opened its 100th showroom, expanding to a total of 103 locations across 30 states by year-end, marking its largest one-year expansion in nearly 40 years.

Arhaus has cultivated a reputation as an affluent brand in the home furnishings market, targeting customers with an average income of $100,000 or more. Its brand strength is reinforced by a premium retail experience, high-touch showrooms, and a focus on craftsmanship. The company is committed to bringing exceptional products to market and deepening client relationships, which contributes to brand loyalty. Arhaus's unique product offerings and in-home design services are central to its growth strategy. The company's resilience and growth, even amidst challenging industry conditions, have been noted, along with its effective omni-channel strategy and high-end product offerings. The brand is consistently described as offering "quality home and outdoor furniture," and the company has enhanced its market presence with a 30% increase in showroom count over the past three years, supporting higher brand awareness. There were no specific negative events significantly impacting Arhaus's overall brand reputation reported in the past year, beyond general market challenges affecting the broader home furnishings industry.

Arhaus, Inc. has a significant portion of its stock owned by institutional investors, with 323 institutional owners holding a total of 68,533,921 shares as of October 10, 2025. Major institutional shareholders include Wasatch Advisors Inc., Vanguard Group Inc., BlackRock, Inc., Bank Of America Corp /de/, JPMorgan Chase & Co, Millennium Management Llc, Emerald Advisers, Llc, and Long Focus Capital Management, Llc. Co-founder and CEO John P. Reed, along with trusts for the benefit of certain family members, held approximately 94.27% of the voting power of the company's outstanding capital stock as of December 20, 2021. As of March 17, 2025, FS Capital Partners VI LLC was the largest individual Arhaus shareholder, owning 30.77 million shares, representing 21.84% of the company. Institutional shareholders own 41.45% of the stock, insiders own 23.78%, and retail investors own 34.77%.