Arhaus (NASDAQ:ARHS) Issues Earnings Results, Beats Estimates By $0.01 EPS

Arhaus (NASDAQ:ARHS) issued its quarterly earnings data on Thursday. The company reported $0.11 EPS for the quarter, beating the consensus estimate of $0.10 by $0.01, FiscalAI reports. The business had revenue of $364.85 million during the quarter, compared to the consensus estimate of $351.53 million. Arhaus had a net margin of 5.40% and a return on equity of 19.62%. The firm’s revenue was up 5.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.15 EPS.

Here are the key takeaways from Arhaus’ conference call:

• Record FY‑2025 results: Net revenue reached $1.38 billion (+8.5% YoY) and adjusted EBITDA was $145 million (+8.9%), which management cites as proof the company’s premium, customization‑led model is working.
• Q4 margin and earnings pressure: Q4 gross margin and net income were hurt by an increase in inventory reserves for obsolete stock and higher showroom occupancy costs, causing Q4 adjusted EBITDA to decline versus last year.
• Tariff headwind for 2026: Management now estimates incremental tariff impacts of roughly $30–$40 million next year, and expects to mitigate some of that through sourcing shifts, vendor negotiations and selective pricing.
• Showroom and design channel growth: Arhaus ended 2025 with 107 showrooms (net growth 3.9%), plans ~10–14 showroom projects in 2026, and is prioritizing the trade/interior designer channel where designer‑led orders have much higher AOVs (≈4x) and drive repeat business.
• Strong liquidity and capital allocation: Cash was $253 million with free cash flow of $59 million, the board declared a $0.35/share special dividend, and the company remains debt‑free while funding a multiyear digital transformation (≈$12M cash in 2026) aimed at improving long‑term operating leverage.

Arhaus Trading Down 8.2%

Shares of ARHS traded down $0.76 during mid-day trading on Friday, reaching $8.51. 301,307 shares of the company were exchanged, compared to its average volume of 1,231,692. The business has a 50 day simple moving average of $10.47 and a two-hundred day simple moving average of $10.63. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.64 and a current ratio of 1.34. The stock has a market capitalization of $1.20 billion, a PE ratio of 16.29, a PEG ratio of 4.33 and a beta of 2.51. Arhaus has a 52 week low of $6.61 and a 52 week high of $12.98.

Arhaus Dividend Announcement

The business also recently disclosed a special dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Wednesday, March 18th will be given a dividend of $0.35 per share. The ex-dividend date is Wednesday, March 18th.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of ARHS. Caitong International Asset Management Co. Ltd bought a new stake in shares of Arhaus in the 3rd quarter valued at $30,000. Larson Financial Group LLC lifted its holdings in Arhaus by 89.8% in the third quarter. Larson Financial Group LLC now owns 2,780 shares of the company’s stock valued at $30,000 after buying an additional 1,315 shares during the period. Global Retirement Partners LLC acquired a new position in Arhaus in the fourth quarter valued at $39,000. Quarry LP boosted its position in Arhaus by 203.0% during the third quarter. Quarry LP now owns 4,996 shares of the company’s stock valued at $53,000 after acquiring an additional 3,347 shares during the last quarter. Finally, Tower Research Capital LLC TRC grew its holdings in Arhaus by 224.9% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,391 shares of the company’s stock worth $64,000 after acquiring an additional 5,116 shares during the period. Institutional investors and hedge funds own 27.88% of the company’s stock.

More Arhaus News

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Q4 results beat expectations: Q4 revenue of $364.8M and EPS of $0.11 topped consensus, supporting the upside move. Arhaus’s (NASDAQ:ARHS) Q4 CY2025 Sales Beat Estimates
• Positive Sentiment: Special cash dividend: Board declared a $0.35/share special dividend payable March 31, signaling strong cash generation and capital return to shareholders. Arhaus Reports Fourth Quarter and Full Year 2025 Financial Results; Announces Special Cash Dividend
• Positive Sentiment: 2026 revenue target & showroom growth: Company set full‑year 2026 revenue guidance of $1.43B–$1.47B and plans 10–14 showroom projects (4–6 new openings), supporting multi‑year growth thesis. Arhaus outlines $1.43B–$1.47B 2026 revenue target while advancing showroom expansion and navigating tariffs
• Positive Sentiment: Analyst support: Telsey Advisory raised its price target to $13 (market perform), providing additional analyst‑driven upside. Benzinga
• Neutral Sentiment: Balance‑sheet strength: Company is effectively debt‑free with ~$253M cash and improved free cash flow, enabling growth investment and shareholder returns. Press Release
• Neutral Sentiment: Investor outreach: Management will meet investors at Raymond James conference next week — helpful for IR but not an immediate fundamentals change. Arhaus to Participate in Upcoming Investor Conferences
• Negative Sentiment: Near‑term guidance and comps risk: Q1 2026 revenue guide of $300M–$320M is below consensus (~$327M) and comparable written/delivered sales growth is modest, which could pressure short‑term earnings momentum. Press Release
• Negative Sentiment: Profitability nuance: Full‑year net income was slightly down YoY despite revenue and adjusted EBITDA growth — watch margin trends and tariff/supply‑chain mentions for cost pressure. Earnings Call Transcript
• Neutral Sentiment: Short‑interest data reported is inconsistent (0 shares / NaN changes) and appears unreliable — not a meaningful driver.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Jefferies Financial Group reissued a “hold” rating and set a $9.50 price objective on shares of Arhaus in a report on Thursday. Wall Street Zen downgraded Arhaus from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. Weiss Ratings restated a “hold (c)” rating on shares of Arhaus in a report on Monday, December 29th. Telsey Advisory Group upped their price objective on Arhaus from $12.00 to $13.00 and gave the company a “market perform” rating in a research note on Thursday. Finally, Zacks Research lowered shares of Arhaus from a “strong-buy” rating to a “hold” rating in a report on Friday, November 7th. Three research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $11.11.

About Arhaus

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.