Arhaus, Inc.
- Open
- 8.95
- Day high
- 8.95
- Day low
- 8.54
- Prev close
- 8.98
- Volume
- 1.1M
- Mkt cap
- $1.2B
- P/E (TTM)
- 17.6
- EPS (TTM)
- $0.50
- P/B
- 3.0
- P/S
- 0.7
- Yield
- 4.02%
- Per share
- $0.35
Arhaus, Inc. (ARHS) is a Consumer Cyclical company listed on NASDAQ. The stock is down 23% over the past year. Drillr has 1 published research article covering ARHS.
Arhaus, Inc. (ARHS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ARHS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $0.16 | $0.28 | +72.5% | $385M | +5.3% |
| May 7, 2026 | $0.02 | $0.02 | +0.0% | $314M | +0.1% |
| Nov 6, 2025 | $0.08 | $0.09 | +13.9% | $345M | -1.7% |
| Aug 7, 2025 | $0.15 | $0.25 | +66.7% | $358M | +6.8% |
| May 8, 2025 | $0.06 | $0.03 | -50.0% | $311M | -5.8% |
| Feb 26, 2025 | $0.12 | $0.14 | +16.7% | $347M | +10.5% |
| Nov 7, 2024 | $0.08 | $0.07 | -12.5% | $319M | +1.3% |
| Aug 8, 2024 | $0.12 | $0.16 | +33.3% | $310M | -1.4% |
| May 9, 2024 | $0.02 | $0.11 | +533.6% | $295M | +11.7% |
| Mar 7, 2024 | $0.16 | $0.22 | +37.5% | $344M | +2.8% |
| Nov 2, 2023 | $0.12 | $0.14 | +16.7% | $326M | +3.2% |
| May 4, 2023 | $0.20 | $0.25 | +25.0% | $305M | -0.3% |
ARHS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 5, 2026 | Keyes Richard Patrickdirector | Grant | 17,089 | — |
| Jul 9, 2026 | Beargie Williamdirector | Option | 22,960 | — |
| May 18, 2026 | DePree Alexisdirector | Option | 16,110 | — |
| May 18, 2026 | DePree Alexisdirector | Option | 832 | — |
| May 18, 2026 | DePree Alexisdirector | Grant | 22,960 | — |
| May 18, 2026 | Beargie Williamdirector | Option | 16,110 | — |
| May 18, 2026 | Beargie Williamdirector | Option | 832 | — |
| May 18, 2026 | Beargie Williamdirector | Grant | 22,960 | — |
| May 18, 2026 | Doody Alton F IIIdirector | Option | 16,110 | — |
| May 18, 2026 | Doody Alton F IIIdirector | Option | 832 | — |
| May 18, 2026 | Doody Alton F IIIdirector | Grant | 22,960 | — |
| May 18, 2026 | Hyde Andreadirector | Option | 16,110 | — |
| May 18, 2026 | Hyde Andreadirector | Option | 832 | — |
| May 18, 2026 | Hyde Andreadirector | Grant | 22,960 | — |
| May 18, 2026 | KYEES JOHN Edirector | Option | 16,110 | — |
Source: ARHS SEC Form 4 filings, latest Aug 5, 2026. For informational purposes only — not investment advice.
See the full ARHS insider & 13F page →Arhaus, Inc. company profile
Overview
Arhaus, Inc. (NASDAQ:ARHS) is a premium lifestyle brand and retailer specializing in high-end home furnishings. Founded in 1986 and headquartered in Boston Heights, Ohio, the company went public in November 2021. Arhaus operates through an omnichannel model combining physical showrooms, e-commerce, catalogs, and in-home design services. The company has grown from its origins as a single furniture store to become a nationally recognized brand with over 100 showroom locations across 30 states, positioning itself as a design-forward alternative to mass-market furniture retailers.
Business
Arhaus operates in the premium home furnishings market, which sits within the broader home improvement and consumer discretionary sector. The home furnishings industry encompasses furniture, lighting, textiles, décor, and outdoor living products that consumers purchase to outfit and decorate their homes. This market is highly fragmented, ranging from mass-market retailers like IKEA and Wayfair to high-end specialty stores and custom furniture makers. The company's core offering centers around artisan-crafted furniture and home décor that emphasizes unique design, quality materials, and handcrafted construction. Arhaus differentiates itself by partnering with global artisans and craftspeople to create exclusive products that cannot be found at traditional furniture retailers. Their product portfolio includes several key categories: 1. Furniture products represent the largest revenue segment, encompassing bedroom sets (beds, headboards, dressers), dining room furniture (tables, chairs), living room pieces (sofas, accent chairs, coffee tables, console tables), and home office furnishings (desks, bookcases, modular storage). These items typically feature solid wood construction, premium upholstery, and distinctive design elements. 2. Lighting products include artistic fixtures such as chandeliers, pendant lights, table and floor lamps, and sconces. These pieces often serve as statement items that complement the furniture collections and reflect current design trends. 3. Textile products comprise handcrafted indoor and outdoor rugs, bed linens, pillows, and throws. Many of these items are sourced from traditional weaving communities and feature unique patterns and high-quality materials. 4. Décor and outdoor products round out the offering with wall art, mirrors, vases, candles, decorative accessories, and a complete line of outdoor furniture including dining sets, lounge furniture, umbrellas, and fire pits. The company operates through an omnichannel distribution model that includes traditional showrooms (physical retail locations), design studios (smaller format stores), outlet locations, e-commerce platform, printed catalogs, and in-home interior design services. This approach allows customers to experience products in person while also providing the convenience of online shopping and professional design assistance.
Revenue model
Arhaus generates revenue primarily through direct product sales to consumers across its various channels. The company operates on a traditional retail model where it purchases inventory from suppliers (primarily artisan partners and manufacturers) and sells finished goods to end customers at a markup. The revenue streams break down across multiple channels: showroom sales represent the majority of revenue, typically accounting for roughly 75-80% of total sales, while e-commerce sales contribute approximately 20-25%. The company also generates smaller amounts from catalog sales and in-home design services. Customers pay full retail prices for products, with occasional promotional periods offering discounts. The company's target customers are affluent homeowners and design-conscious consumers willing to pay premium prices for unique, high-quality furniture. The average order value is significantly higher than mass-market competitors, with the company noting strong performance in orders exceeding $5,000 and $10,000. Arhaus also serves interior designers and trade professionals who purchase products for their clients. Several factors influence Arhaus's profit margins and financial performance. Positive margin drivers include the company's premium positioning allowing for higher gross margins (typically 37-40%), exclusive product designs that reduce direct price competition, and the showroom model that provides experiential selling opportunities. The company's focus on artisan partnerships and unique sourcing also creates differentiation that supports pricing power. Margin pressures come from several sources including freight and shipping costs (particularly impactful given the large, heavy nature of furniture), raw material price fluctuations affecting supplier costs, and potential tariff impacts on imported goods. The company has been actively diversifying its supply chain to reduce dependence on Chinese manufacturing, which helps mitigate tariff risks. Macroeconomic factors such as housing market conditions, consumer confidence, and discretionary spending levels significantly impact demand, as furniture purchases are typically deferrable. Competition from both traditional furniture retailers and online platforms can pressure pricing, though Arhaus's unique product positioning provides some insulation from direct competition.
Competitive moat
Arhaus possesses a moderate competitive moat built primarily around brand differentiation and unique sourcing relationships, though this moat faces ongoing challenges in the highly competitive home furnishings market. The company's strongest defensive position comes from its exclusive artisan partnerships and unique product design. Arhaus has cultivated relationships with craftspeople and manufacturers worldwide to create products that cannot be found elsewhere, from hand-carved furniture made by Indonesian artisans to custom rugs woven by traditional craftspeople. This exclusivity provides differentiation from mass-market competitors and creates switching costs for customers who value unique design aesthetics. The showroom experience represents another moat element, as the company's large-format retail spaces allow customers to see, touch, and experience furniture in room-like settings before purchasing. This experiential advantage is difficult for pure-play e-commerce competitors to replicate and helps justify premium pricing. The integration of in-home design services further strengthens customer relationships and increases order values. Brand positioning in the premium segment creates some pricing power, as Arhaus has established itself as a design-forward alternative to traditional furniture retailers. The company's marketing emphasizes craftsmanship, sustainability, and unique design stories that resonate with affluent consumers. However, the moat faces significant challenges. The furniture industry has relatively low barriers to entry for new competitors, and established players like Restoration Hardware, West Elm, and Pottery Barn compete directly for similar customer segments. Online platforms like Wayfair and direct-to-consumer brands can offer competitive products at lower prices due to reduced overhead costs. Additionally, design trends can be copied relatively quickly, limiting the duration of any competitive advantage from specific product innovations. The company's dependence on discretionary consumer spending makes it vulnerable to economic downturns, and the high average order values mean the customer base is necessarily limited to affluent consumers. While this creates some defensibility, it also constrains the total addressable market compared to mass-market competitors.
Risks & safety
Arhaus demonstrates a moderate margin of safety with solid financial fundamentals but some concerns around valuation and cyclical exposure. • Strong balance sheet position: The company maintains $214 million in cash and short-term investments as of Q1 2025, providing substantial liquidity. Current ratio of 1.26 indicates adequate short-term liquidity, though this is relatively tight for a retailer. • Manageable debt levels: Debt-to-equity ratio of 1.50 is elevated but not concerning for a growing retailer. The company has historically maintained minimal debt and generated positive free cash flow of $40 million in 2024. • Operational cash generation: Strong operating cash flow of $147 million in 2024 demonstrates the business model's cash-generating ability, though this can be volatile based on inventory timing and seasonal patterns. • Valuation concerns: Current P/E ratio of 62.5x (Q1 2025) appears expensive, though this reflects temporarily depressed earnings. EV/EBITDA of 14.2x is more reasonable but still reflects premium valuation expectations. • Cyclical risks: As a discretionary consumer goods company, Arhaus faces earnings volatility during economic downturns. Recent quarters have shown negative comparable store sales growth, indicating sensitivity to macroeconomic conditions. • Inventory management: The company carries significant inventory levels typical of furniture retailers, creating working capital requirements and potential write-down risks if demand shifts unexpectedly.
Recent development
Over the past several years, Arhaus has executed a comprehensive growth strategy focused on geographic expansion, operational infrastructure investment, and supply chain diversification. The company's most visible strategic initiative has been aggressive showroom expansion, growing from approximately 75 locations in 2021 to over 100 showrooms by 2024. Management has articulated a long-term target of 165 traditional showrooms, representing significant untapped market opportunity. In 2024 alone, the company opened 11 new showrooms and completed 5 strategic relocations, with plans for 12-15 showroom projects in 2025. This expansion strategy reflects management's belief that physical showrooms remain critical for selling high-ticket furniture items where customers want to experience products before purchasing. Technology and operational infrastructure investments have been another major focus, with the company spending $10 million in 2024 and planning $15-20 million in 2025 on strategic initiatives. Key projects include implementing new warehouse management systems, deploying enhanced inventory planning and allocation systems, and developing new ERP systems. These investments aim to improve operational efficiency, inventory management, and customer experience as the company scales. The company has also undertaken significant supply chain diversification efforts, particularly reducing dependence on Chinese manufacturing. Management reported reducing China-sourced receipts to approximately 1% by Q4 2025, down from previously higher levels. This strategic shift helps mitigate tariff risks and aligns with broader supply chain resilience trends, though it required substantial effort to identify and develop alternative supplier relationships. Product innovation and marketing evolution have remained consistent themes, with the company launching new collections like the "Uphold" artisan craftsmanship series and "Astor Collection." The company maintains a target of approximately 20% new product offerings annually and has increased marketing investments, including the "Rooted" campaign highlighting artisan partnerships. The integration of motion furniture and expansion of outdoor product lines reflect efforts to capture broader market segments. Recent quarters have also seen increased focus on promotional strategy and pricing flexibility as the company navigates softer demand conditions. While maintaining its premium positioning, management has demonstrated willingness to use targeted promotions and pricing adjustments to stimulate demand when necessary.
ARHS company profile · for informational purposes only — not investment advice.
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