Arhaus initiated with a Market Perform at Raymond James

Raymond James analyst Bobby Griffin initiated coverage of Arhaus (ARHS) with a Market Perform rating. While Raymond James likes the Arhaus business, price points, product quality, showroom expansion plans, and long-term potential to gain market share within the fragmented U.S. furniture industry, the recovery trajectory for demand in the U.S. furniture industry remains highly uncertain, the analyst tells investors in a research note. Arhaus also has tougher multi-year demand comparisons versus some of its public peers, and profitability improvements will likely lag in the near-term due to cost pressures from additional showroom openings, the firm argues.