William Blair analyst Phillip Blee has maintained their bullish stance on ARHS stock, giving a Buy rating today.
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Phillip Blee’s rating is based on Arhaus’s impressive third-quarter performance, which showcased strong demand and healthy profit margins. The company’s sales results surpassed expectations, with comparable growth increasing by 4.1% and demand comps rising by 7.4%. This indicates Arhaus’s effective merchandising strategies and the resilience of its affluent customer base.
Additionally, September was a record month for demand, driven by the successful launch of the fall collection and expansion into the bath category. This innovation led to unprecedented levels of customization and a significant increase in upholstery sales, which rose by 15% in September. Consequently, management has raised its full-year guidance, projecting a 2% increase in sales and nearly a 9% rise in EPS at the midpoint, reinforcing the company’s long-term growth potential.
Blee covers the Consumer Cyclical sector, focusing on stocks such as Somnigroup International, Yeti Holdings, and SharkNinja, Inc.. According to TipRanks, Blee has an average return of 11.2% and a 45.16% success rate on recommended stocks.