Arhaus (ARHS) AI Stock Analysis

• Market Cap: $1.65B
• Dividend Yield: N/A
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.67
• Revenue Growth: 4.76%
• EPS Growth: -19.79%
• Country: US
• Employees: 2,390
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Home Improvement
• EPS (TTM): 0.25
• Shares Outstanding: 53,859,215
• 10 Day Avg. Volume: 1,837,962
• 30 Day Avg. Volume: 2,205,362
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 3.06
• Enterprise Value/Ebitda: 11.23
• 1Y Price Target: $12.20
• Price Target Upside: 4.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 75 Outperform
• Price Target: $12.50 ▲(6.56% Upside)

Arhaus' strong financial performance and positive earnings call sentiment are the primary drivers of its score. Technical indicators support a bullish outlook, though valuation concerns and reliance on debt are notable risks.

Positive Factors

Earnings

Arhaus reported an exceptionally strong second quarter, with sales some 7% above consensus.

Growth and Market Position

Arhaus continues to gain share with a differentiated and high quality product offering which could lead to continued share growth.

Strategic Management

Management is making the right strategic moves in product, price, and operations, which are expected to yield lower operational volatility.

Negative Factors

Leadership Changes

Arhaus lost its CFO, COO, and SVP of IR in 2.5 months, which adds execution risk and impacts communication with the Street.

Market Competition

ARHS 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.

Profitability

The margin guide came in below expectations, suggesting potential challenges for the company's profitability.

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 products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases and modular storage, etc.; and outdoor products include outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It also offers lighting products, such as various distinct and artistic lighting fixtures, including chandeliers, pendants, table and floor lamps, and sconces; textile products comprising handcrafted indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, including various wall art to mirrors, vases to candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, e-commerce platform, catalog, and in-home designer services. As of December 31, 2021, it operated through a network of 71 traditional showrooms, 5 Design Studios, and 3 Outlets, as well as 58 showrooms with in-home interior designers. The company was founded in 1986 and is headquartered in Boston Heights, Ohio.

How the Company Makes Money

Arhaus generates revenue primarily through the sale of its home furnishings and decor products. The company's key revenue streams include in-store sales from its network of retail locations and online sales through its website. Arhaus focuses on providing a differentiated shopping experience by offering exclusive, high-quality products that appeal to consumers seeking unique and sustainable home furnishings. Additionally, the company may engage in partnerships with global artisans, enhancing its product offerings and market appeal. Arhaus's focus on craftsmanship and sustainability helps differentiate its brand in the competitive retail market, driving customer loyalty and repeat business.

Arhaus Financial Statement Overview

Summary

Arhaus demonstrates solid financial performance with consistent revenue growth and strong cash flow generation. However, declining profit margins and high reliance on debt pose potential risks if not managed carefully.

Income Statement

Arhaus has demonstrated consistent revenue growth over the years, with a solid revenue increase from 2021 to TTM (Trailing-Twelve-Months). However, there has been a decline in EBIT margin and net profit margin in the TTM, which suggests rising operational costs or pricing pressures. The gross profit margin remains strong, indicating effective cost management in production.

Balance Sheet

The balance sheet shows a stable equity base with an improving debt-to-equity ratio, indicating balanced leverage. However, the equity ratio is relatively low, suggesting that the company relies significantly on debt for financing. Return on equity has seen a decline in recent periods, which could impact investor confidence if not addressed.

Cash Flow

Arhaus displays robust operating cash flow, consistently covering its capital expenditures. The free cash flow has shown positive growth, although the free cash flow to net income ratio indicates some volatility in cash generation relative to profits. Overall, cash flow health remains strong, supporting ongoing operations and growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29B	1.27B	1.29B	1.23B	796.92M	507.43M
Gross Profit	501.76M	501.23M	540.42M	525.06M	329.93M	199.50M
EBITDA	136.79M	161.83M	227.06M	238.62M	57.74M	48.12M
Net Income	58.33M	68.55M	125.24M	136.63M	36.93M	17.84M
Balance Sheet
Total Assets	1.26B	1.21B	1.11B	931.79M	586.55M	315.94M
Cash, Cash Equivalents and Short-Term Investments	214.39M	197.51M	223.10M	145.18M	123.78M	50.74M
Total Debt	524.91M	499.50M	462.93M	381.98M	50.52M	47.60M
Total Liabilities	916.11M	862.57M	773.86M	722.10M	516.78M	352.04M
Stockholders Equity	348.83M	343.75M	340.24M	209.69M	69.77M	-36.09M
Cash Flow
Free Cash Flow	47.74M	39.74M	75.24M	21.80M	98.37M	137.42M
Operating Cash Flow	156.80M	147.11M	172.30M	74.45M	146.24M	150.44M
Investing Cash Flow	-101.22M	-99.53M	-96.72M	-52.66M	-47.87M	-13.01M
Financing Cash Flow	-74.10M	-72.95M	-1.80M	-177.00K	-31.47M	-98.33M

Arhaus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARHS, the sentiment is Positive. The current price of 11.73 is above the 20-day moving average (MA) of 11.67, above the 50-day MA of 10.04, and above the 200-day MA of 9.75, indicating a bullish trend. The MACD of 0.59 indicates Positive momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 18.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARHS.

Arhaus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARHS	75 Outperform	$1.65B	23.23	20.48%	―	4.76%	-19.79%
HVT.A	75 Outperform	$366.90M	19.23	6.40%	5.52%	-8.93%	-50.32%
HVT	66 Neutral	$366.90M	19.17	6.40%	5.68%	-8.93%	-50.32%
LZB	64 Neutral	$1.52B	16.93	9.09%	2.33%	2.18%	-22.35%
Sector *	61 Neutral	$17.64B	14.17	-5.23%	3.04%	1.43%	-15.11%
MLKN	58 Neutral	$1.43B	45.68	-2.77%	3.55%	1.14%	-149.26%
TTSH	48 Neutral	$277.97M	346.20	-0.02%	―	-5.41%	-100.49%

Arhaus Corporate Events

Arhaus Reports Record Q2 Revenue Amid Demand Rebound

Arhaus reported a record net revenue of $358 million for the second quarter of 2025, marking a 15.7% increase from the previous year. The company successfully transitioned operations of its Dallas Distribution Center in-house, enhancing revenue efficiency and volume. Despite macroeconomic challenges, the company saw a rebound in demand growth in July, reflecting strong client engagement. Arhaus also launched a new Bath Collection, expanding its product offerings. The company remains debt-free with a strong cash position, and it plans to complete 12 to 15 showroom projects in 2025.

The most recent analyst rating on (ARHS) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Arhaus stock, see the ARHS Stock Forecast page.

Arhaus Appoints Samir Desai to Board of Directors

Arhaus, Inc. announced the appointment of Samir Desai to its Board of Directors as an independent director on June 27, 2025. Desai, who brings significant digital and technology expertise from his roles at Abercrombie & Fitch Co. and Equinox Group, will serve on the Board’s Technology Committee. This appointment increases the Board’s size from ten to eleven members, reflecting Arhaus’s focus on strengthening its technological capabilities.

The most recent analyst rating on (ARHS) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Arhaus stock, see the ARHS Stock Forecast page.

Arhaus Announces Departure of Chief Merchandising Officer

On May 16, 2025, Arhaus, Inc. announced the separation of Lisa Chi, who previously served as the Chief Merchandising Officer. During the Annual Meeting of Stockholders held on May 15, 2025, Albert Adams, Stuart Burgdoerfer, John Kyees, and John Roth were elected as Directors, and the compensation for named executive officers and the selection of PricewaterhouseCoopers LLP as independent accountants were approved.

The most recent analyst rating on (ARHS) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Arhaus stock, see the ARHS Stock Forecast page.