Leadership ChangesArhaus lost its CFO, COO, and SVP of IR in 2.5 months, which adds execution risk and impacts communication with the Street.
Market CompetitionARHS needs to quickly execute on its strategy to strengthen its value perception as recent analysis showed RH's prices on a select basket of like-for-like SKUs was meaningfully cheaper.
ProfitabilityThe margin guide came in below expectations, suggesting potential challenges for the company's profitability.