Arhaus (ARHS)
NASDAQ:ARHS
Want to see ARHS full AI Analyst Report?
Top Page
Arhaus
(NASDAQ:ARHS)
Select Model
Select Model
Rating:47Neutral
Price Target:
$6.00
▼(-22.98% Downside)
Action:Reiterated
Date:05/20/26
The score is held down primarily by weakening cash flow and margin compression alongside elevated balance-sheet risk (per provided financial statement analysis), plus a clearly bearish technical setup with the price below key moving averages. A high P/E with no dividend yield adds valuation risk, partly offset by reiterated guidance and reported improvement in demand trends from the latest earnings call.
Positive Factors
Omnichannel Showroom Footprint
A large, expanding showroom network supports Arhaus's high‑AOV, consultative sales model and strengthens customer acquisition across physical and online channels. Showrooms drive design services and higher-ticket purchases, providing durable omnichannel advantages and revenue diversification over 2–6 months.
Negative Factors
Sharply Weakened Cash Generation
A steep decline in operating and free cash flow reduces internal funding for showrooms, inventory, and tech rollouts, increasing reliance on external liquidity or slower reinvestment. Lower cash conversion versus net income signals higher execution and working‑capital risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Omnichannel Showroom Footprint
A large, expanding showroom network supports Arhaus's high‑AOV, consultative sales model and strengthens customer acquisition across physical and online channels. Showrooms drive design services and higher-ticket purchases, providing durable omnichannel advantages and revenue diversification over 2–6 months.
Read all positive factors
Arhaus (ARHS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$847.82M
Dividend YieldN/A
Average Volume (3M)1.29M
Price to Earnings (P/E)107.5
Beta (1Y)1.69
Revenue Growth7.36%
EPS Growth10.24%
CountryUS
Employees2,390
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)0.47
Shares Outstanding54,424,465
10 Day Avg. Volume1,340,815
30 Day Avg. Volume1,285,825
Financial Highlights & Ratios
PEG Ratio-11.49
Price to Book (P/B)3.77
Price to Sales (P/S)1.14
P/FCF Ratio26.74
Enterprise Value/Market Cap1.50
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit2.38
Enterprise Value/Ebitda6.99
Forecast
1Y Price Target
$9.48Price Target Upside21.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)0.48
Revenue Forecast (FY)$1.45B
Arhaus Business Overview & Revenue Model
Company Description
Arhaus, Inc. operates as a lifestyle brand and premium retailer in the home furnishings market. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture pro...
How the Company Makes Money
Arhaus primarily makes money by selling home furnishings and décor directly to consumers. Its core revenue stream is product sales (e.g., upholstery, casegoods, dining, bedroom, outdoor, rugs, lighting, and accessories) transacted through its reta...
Arhaus Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but constructive picture: management delivered a record first-quarter revenue and highlighted strong product momentum, showroom productivity and progress on strategic technology investments while reiterating full-year guidance. However, near-term headwinds — including weather-related showroom closures, a delayed catalog, geopolitical uncertainty, tariff impacts, higher fuel and occupancy costs — weighed on comparable sales and margins in Q1. April/May momentum, a debt-free balance sheet, and operational initiatives provide reason for cautious optimism, but the company still faces material near-term margin and demand risks.Positive Updates
Record First Quarter Net Revenue
Net revenue of $314.0M in Q1 2026, up 0.9% year-over-year and the highest first quarter net revenue in company history; performance beat the midpoint of guidance.
Negative Updates
Pressure on Comparable Written and Delivered Sales
Comparable Written Sales decreased 5.7% in Q1 2026; Comparable Delivered Sales decreased 1.7%, reflecting weather disruptions, delayed catalog timing and broader macro/geopolitical caution (Iran conflict).
Read all updates
Q1-2026 Updates
Positive
Negative
Record First Quarter Net Revenue
Net revenue of $314.0M in Q1 2026, up 0.9% year-over-year and the highest first quarter net revenue in company history; performance beat the midpoint of guidance.
Read all positive updates
Company Guidance
Arhaus reiterated full‑year 2026 guidance of net revenue $1.43–$1.47 billion (up 3.7%–6.6% YoY), comparable delivered sales flat to +3%, net income $66–$75 million and adjusted EBITDA $150–$161 million; Q2 2026 guidance is net revenue $350–$370 million (down 2.4% to up 3.2% YoY), comparable delivered sales -5% to flat, net income $19–$24 million and adjusted EBITDA $40–$49 million. For context, Q1 results included net revenue $314 million (up 0.9%), gross profit $114 million (gross margin 36.4%, -70 bps), SG&A $112 million (+1.9%, SG&A load 35.7%, +40 bps), net income $2.2 million and adjusted EBITDA $18 million (adj. EBITDA margin -30 bps), with comparable delivered sales -1.7% and comparable written sales -5.7% (trends improved meaningfully in late March and turned positive in April). Key financial assumptions and drivers tied to the guidance: estimated 2026 tariff impact $30–$40 million; cash $177 million at quarter end (down 30% QoQ after a $49 million special dividend); inventory $369 million (+9% QoQ; ~+6% excl. tariffs); planned 10–14 showroom projects in 2026 (4–6 new, 6–8 relocations/renovations); TMS expected to deliver $4–$5 million annual savings (with $1–$2 million in FY26); OMS/ERP on schedule for a Q1 launch and expected to drive ~50 bps of SG&A efficiency over two years. Management said achieving the full‑year guide requires roughly 1–4% delivered comp improvement from remaining periods and noted upside from client deposit conversion, improved in‑stock positions, elevated promotions and strength in interior design and trade channels; the guide excludes any potential IEEPA tariff refund benefit.Arhaus Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
52
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.38B | 1.38B | 1.27B | 1.29B | 1.23B | 796.92M |
| Gross Profit | 534.72M | 536.41M | 501.23M | 540.42M | 525.06M | 329.93M |
| EBITDA | 181.81M | 181.56M | 161.83M | 227.06M | 238.62M | 57.74M |
| Net Income | 64.60M | 67.26M | 68.55M | 125.24M | 136.63M | 21.12M |
Balance Sheet | ||||||
| Total Assets | 1.38B | 1.39B | 1.21B | 1.11B | 937.08M | 586.55M |
| Cash, Cash Equivalents and Short-Term Investments | 177.11M | 253.36M | 197.51M | 223.10M | 145.18M | 123.78M |
| Total Debt | 599.71M | 580.58M | 499.50M | 450.42M | 387.27M | 50.52M |
| Total Liabilities | 1.00B | 976.52M | 862.57M | 764.91M | 727.39M | 516.78M |
| Stockholders Equity | 372.69M | 418.23M | 343.75M | 340.24M | 209.69M | 69.77M |
Cash Flow | ||||||
| Free Cash Flow | 13.50M | 58.98M | 39.74M | 75.24M | 21.80M | 98.37M |
| Operating Cash Flow | 80.63M | 136.85M | 147.11M | 172.30M | 77.46M | 139.83M |
| Investing Cash Flow | -66.08M | -77.82M | -99.53M | -96.72M | -55.67M | -41.46M |
| Financing Cash Flow | -52.13M | -3.48M | -72.95M | -1.80M | -177.00K | -31.47M |
Arhaus Technical Analysis
Negative
7.79
Price Trends
6.86
Negative
8.16
Negative
9.20
Negative
Market Momentum
-0.39
Positive
37.48
Neutral
16.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARHS, the sentiment is Negative. The current price of 7.79 is above the 20-day moving average (MA) of 6.76, above the 50-day MA of 6.86, and below the 200-day MA of 9.20, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 37.48 is Neutral, neither overbought nor oversold. The STOCH value of 16.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARHS.
Arhaus Risk Analysis
Arhaus disclosed 60 risk factors in its most recent earnings report. Arhaus reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arhaus Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $1.41B | 18.08 | 8.12% | 2.39% | 1.69% | -31.16% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $309.35B | 23.60 | 113.30% | 2.67% | 2.23% | -4.48% | |
53 Neutral | $5.08B | 35.69 | 8.38% | ― | 3.46% | -3.01% | |
51 Neutral | $352.87M | 19.56 | 1.56% | 5.44% | 6.39% | -1.48% | |
49 Neutral | $28.17M | -0.06 | 65.64% | ― | -7.46% | -511.09% | |
47 Neutral | $847.82M | 107.48 | 16.39% | ― | 7.36% | 10.24% |
* Consumer Cyclical Sector Average
ARHS
Arhaus
5.99
-1.75
-22.59%
HVT
Haverty
21.80
2.29
11.71%
HD
Home Depot
310.58
-51.12
-14.13%
LZB
La-Z-Boy Incorporated
35.55
-5.67
-13.75%
FND
Floor & Decor Holdings
47.04
-27.38
-36.79%
LESL
Leslie's
3.01
-12.71
-80.85%
Arhaus Corporate Events
Executive/Board ChangesShareholder Meetings
Arhaus Shareholders Reaffirm Board, Pay and Auditor Choices
Positive
May 19, 2026
At its May 14, 2026 annual meeting, Arhaus stockholders elected Alexis DePree, Rick Doody, and Andrea Hyde to the board of directors, while the terms of existing directors including Albert Adams and John Reed continued. The results reinforce the c...
Business Operations and StrategyDividendsFinancial Disclosures
Arhaus Posts Record Q1 Revenue Amid Softer Profitability
Negative
May 7, 2026
For the first quarter ended March 31, 2026, Arhaus reported record first-quarter net revenue of $314 million, up 0.9% year over year, but saw profitability and demand soften, with net income falling 54.5% to $2 million and adjusted EBITDA slipping...
Business Operations and StrategyDividendsFinancial Disclosures
Arhaus Declares Special Dividend Amid Strong 2025 Results
Positive
Feb 26, 2026
For 2025, Arhaus reported record net revenue of $1.379 billion, up 8.5% year over year, with gross margin rising to $536 million and adjusted EBITDA increasing 8.9% to $145 million, although net income dipped 1.9% to $67 million. Operational momen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.