Arhaus (NASDAQ:ARHS) Shares Gap Up on Earnings Beat

Arhaus, Inc. (NASDAQ:ARHS)’s share price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $8.38, but opened at $10.55. Arhaus shares last traded at $9.4310, with a volume of 569,232 shares trading hands.

The company reported $0.11 EPS for the quarter, beating the consensus estimate of $0.09 by $0.02. Arhaus had a net margin of 5.40% and a return on equity of 19.62%. The firm had revenue of $364.85 million during the quarter, compared to analyst estimates of $351.53 million. During the same quarter last year, the business posted $0.15 EPS. The company’s revenue for the quarter was up 5.1% on a year-over-year basis.

Key Arhaus News

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Arhaus declared a special cash dividend of $0.35 per share payable March 31, a direct return of capital that typically supports buyer interest in the stock. GlobeNewswire Release
• Positive Sentiment: Q4 results beat expectations: EPS $0.11 vs. consensus ~$0.09 and revenue $364.8M vs. ~$351.5M, showing demand resilience and supporting near‑term earnings credibility. Zacks: Q4 Beats
• Positive Sentiment: Full‑year 2025: record net revenue up 8.5% to ~$1.38B, adjusted EBITDA +8.9%, cash increased to ~$253M and the company remains debt‑free — fundamentals that support longer‑term valuation. Quiver/Globe Summary
• Positive Sentiment: Telsey Advisory raised its price target from $12 to $13 (market perform), signaling modest analyst support for upside vs. the recent price level.
• Neutral Sentiment: Management provided FY‑2026 revenue guidance of $1.43B–$1.47B (implying ~3.7%–6.6% growth), which is slightly above some street estimates and frames 2026 growth expectations. GlobeNewswire Release
• Neutral Sentiment: Showroom expansion continues (107 total showrooms, plans for 10–14 projects in 2026), supporting medium‑term revenue but requiring capex ($70M–$90M guidance). GlobeNewswire Release
• Negative Sentiment: First‑quarter 2026 revenue guidance of $300M–$320M is below consensus (~$327M), raising near‑term risk that top‑line momentum will disappoint and pressuring short‑term estimates. GlobeNewswire Release
• Negative Sentiment: Profitability mixed: GAAP net income declined ~1.9% y/y for 2025 and Q4 EPS is lower than the prior‑year quarter ($0.11 vs. $0.15), suggesting margins and timing issues that investors should monitor. Quiver/Globe Summary

Analyst Ratings Changes

A number of research analysts have issued reports on the company. Zacks Research downgraded Arhaus from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 7th. Morgan Stanley lifted their target price on Arhaus from $10.50 to $12.00 and gave the stock an “equal weight” rating in a research note on Thursday, January 15th. Telsey Advisory Group increased their price target on shares of Arhaus from $12.00 to $13.00 and gave the company a “market perform” rating in a research report on Thursday. Weiss Ratings restated a “hold (c)” rating on shares of Arhaus in a report on Monday, December 29th. Finally, Wall Street Zen lowered shares of Arhaus from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. Three investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $11.31.

Institutional Investors Weigh In On Arhaus

Several institutional investors have recently added to or reduced their stakes in the business. Larson Financial Group LLC increased its stake in shares of Arhaus by 89.8% in the third quarter. Larson Financial Group LLC now owns 2,780 shares of the company’s stock worth $30,000 after purchasing an additional 1,315 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Arhaus by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,478 shares of the company’s stock valued at $265,000 after buying an additional 1,326 shares in the last quarter. Deutsche Bank AG boosted its holdings in Arhaus by 4.6% in the 4th quarter. Deutsche Bank AG now owns 39,447 shares of the company’s stock worth $442,000 after buying an additional 1,725 shares during the period. AlphaQuest LLC boosted its holdings in Arhaus by 68.2% in the 3rd quarter. AlphaQuest LLC now owns 4,741 shares of the company’s stock worth $50,000 after buying an additional 1,922 shares during the period. Finally, B. Metzler seel. Sohn & Co. AG grew its stake in Arhaus by 1.9% in the 3rd quarter. B. Metzler seel. Sohn & Co. AG now owns 111,259 shares of the company’s stock valued at $1,183,000 after buying an additional 2,070 shares in the last quarter. 27.88% of the stock is owned by hedge funds and other institutional investors.

Arhaus Price Performance

The firm has a market cap of $1.32 billion, a P/E ratio of 18.00, a PEG ratio of 4.34 and a beta of 2.51. The business’s fifty day simple moving average is $10.51 and its 200-day simple moving average is $10.64. The company has a current ratio of 1.34, a quick ratio of 0.64 and a debt-to-equity ratio of 0.13.

Arhaus Company Profile

Arhaus (NASDAQ:ARHS) is a U.S.-based retailer specializing in high-end home furnishings and décor. Since its founding in 1986 in northeastern Ohio, the company has built a reputation for curating unique, design-forward products that blend contemporary aesthetics with artisanal craftsmanship. Headquartered in Boston Heights, Ohio, Arhaus operates a network of brick-and-mortar galleries across the United States alongside a robust e-commerce platform, serving customers from coastal metropolitan areas to interior regions.

The company’s product portfolio encompasses a wide range of furniture categories—including sofas, dining tables, bedroom pieces and storage solutions—complemented by lighting fixtures, rugs, pillows, wall art and decorative accessories.