Core Insights - Arhaus, Inc. reported first quarter 2025 results, showing resilience amid macroeconomic volatility, with a net revenue increase of 5.5% to $311 million compared to the same period in 2024 [6][27] - The company revised its full-year outlook due to broader uncertainties but remains confident in its business model and growth strategy [3][9] Operational Highlights - Comparable growth was (1.5)%, while demand comparable growth was 4.1%, indicating healthy client engagement and successful marketing initiatives [3][6] - The showroom footprint expanded to 103 showrooms across 30 states, with 5 showroom projects completed in the first quarter, including 1 new showroom and 4 relocations [4][6] Financial Performance - Gross margin increased by 0.4% to $116 million, while selling, general, and administrative expenses rose by 13.9% to $110 million [6][27] - Net and comprehensive income decreased by 67.6% to $5 million, and adjusted EBITDA fell by 36.2% to $19 million compared to the same period in 2024 [6][27] Future Outlook - The company plans to complete 12 to 15 total showroom projects in 2025, with expectations to reduce sourcing from China to approximately 1% of total receipts by the fourth quarter [2][4] - Updated guidance for full-year 2025 net revenue is projected between $1.29 billion and $1.38 billion, with comparable growth expected to range from (5)% to 1.5% [9][8] Balance Sheet and Liquidity - As of March 31, 2025, cash and cash equivalents totaled $214 million, with net merchandise inventory at $301 million, reflecting a 1.5% increase from the previous year [13][24] - Client deposits increased by 19.2% to $263 million, indicating strong customer engagement [13][24]

Company Overview - Arhaus, Inc. is a growing lifestyle brand and omni-channel retailer specializing in premium artisan-crafted home furnishings [3] - The company was founded in 1986 and operates over 100 showroom and design studio locations across the United States [3] - Arhaus offers a unique assortment of heirloom quality products that are sustainably sourced and built to last [3] Upcoming Financial Results - Arhaus will release its first quarter 2025 results on May 8, 2025, before the stock market opens [1] - A conference call to discuss the financial and operational results will take place at 8:30 a.m. Eastern Time on the same day [1] Investor Relations - Investors can participate in the live call by dialing the provided U.S. toll-free or international numbers [2] - A telephone replay of the call will be available for one week, and a webcast replay will be accessible for approximately 12 months [2][4]

Industry Overview - The Retail – Miscellaneous industry faces ongoing challenges such as evolving consumer preferences, fierce competition, and inflationary pressures impacting consumer spending habits [1][4] - Operational expenses, including wages and raw material costs, are expected to remain significant concerns [1] - Restoring consumer confidence and purchasing power is crucial for the industry's momentum, alongside strategic innovations and operational efficiencies [1] Key Industry Trends - Soft demand due to inflation and geopolitical concerns is affecting consumer spending, with a notable decline in U.S. consumer confidence, as indicated by a 7.2-point drop in the Conference Board index to 92.9 [4] - Companies are competing on price, product variety, and speed to market, leading to increased investments in digital ecosystems and shipping capabilities, which may pressure margins due to high costs [5] - There is a focus on expanding product assortments and enhancing online shopping experiences, with a noticeable increase in demand for personal care items and fitness-related products [6] Digital Transformation - Industry participants are balancing in-store and online roles, directing resources toward digital platforms and enhancing supply chains [7] - Initiatives such as curbside pickup, ship-to-home orders, and contactless payment solutions are being implemented to meet changing consumer shopping patterns [7] Industry Performance - The Zacks Retail – Miscellaneous industry currently ranks 156, placing it in the bottom 36% of approximately 250 Zacks industries, indicating bleak near-term prospects [8][9] - The industry's earnings estimate has declined by 11.5% since July 2024, reflecting a negative outlook for constituent companies [10] - Over the past year, the industry has underperformed the broader Retail – Wholesale sector and the S&P 500, declining by 9% compared to the S&P 500's rise of 8.5% [12] Current Valuation - The industry is trading at a forward 12-month price-to-earnings (P/E) ratio of 16.14X, lower than the S&P 500's 20.59X and the sector's 22.38X [15] Company Highlights - **Build-A-Bear Workshop**: Focuses on omnichannel expansion and digital innovation, with a Zacks Consensus Estimate suggesting revenue growth of 2.1% and EPS growth of 4% [18][19] - **DICK'S Sporting Goods**: Strengthening its position through strategic investments and digital transformation, with a Zacks Consensus Estimate indicating revenue growth of 3.1% and EPS growth of 1.9% [22][24] - **Arhaus**: Driving growth through showroom expansion and a focus on craftsmanship, with a Zacks Consensus Estimate suggesting revenue growth of 8.1% [27][28] - **Sally Beauty**: Emphasizing customer engagement and innovation, with a Zacks Consensus Estimate indicating EPS growth of 7.1% [31][32]

Core Viewpoint - The comparison between Arhaus, Inc. (ARHS) and SharkNinja, Inc. (SN) indicates that ARHS presents a better value opportunity for investors at this time [1]. Valuation Metrics - ARHS has a forward P/E ratio of 17.53, while SN has a forward P/E of 21.08, suggesting that ARHS is more attractively priced [5]. - The PEG ratio for ARHS is 1.39, compared to SN's PEG ratio of 2.02, indicating that ARHS has a better balance between its price and expected earnings growth [5]. - ARHS's P/B ratio is 3.83, significantly lower than SN's P/B of 7.48, further supporting the argument that ARHS is undervalued [6]. Earnings Outlook - ARHS currently holds a Zacks Rank of 2 (Buy), reflecting positive revisions to its earnings estimates, while SN has a Zacks Rank of 3 (Hold) [3]. - The stronger estimate revision activity for ARHS suggests an improving earnings outlook compared to SN [7]. Value Grades - ARHS has received a Value grade of A, while SN has a Value grade of D, indicating that ARHS is viewed more favorably by value investors [6].

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to market conditions and a belief that only a small fraction of companies are suitable for buying at any given time [1] Group 2 - The articles aim to provide important information for future investors and introduce a healthy skepticism towards a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, highlighting the need for readers to conduct their own due diligence [2][3]

Financial Data and Key Metrics Changes - In Q4 2024, net revenue was $347 million, up 0.9% year-over-year, but comparable growth declined by 6.4% due to prior year backlog fulfillment [41][44] - Full year 2024 net revenue was $1.271 billion, down 1.3% year-over-year, with a comparable growth decline of 8% [44] - Q4 gross margin decreased by $2 million or 1.8% to $139 million, with a gross margin percentage of 40.0%, down 100 basis points [43] - Full year net income decreased by $57 million or 45.3% to $69 million, while adjusted EBITDA declined by $70 million or 34.5% to $133 million, resulting in an adjusted EBITDA margin of 10.5% [47][49] Business Line Data and Key Metrics Changes - Demand comparable growth in Q4 was 5.7%, driven by strong product assortment and marketing initiatives, while full year demand comparable growth declined by 2.2% [15][44] - The company opened 11 new showrooms and relocated 5 in 2024, marking the largest expansion in nearly 40 years [10][24] Market Data and Key Metrics Changes - The U.S. accounts for the largest share of net revenue, with a diversified global supply network [23] - The company anticipates full year 2025 net revenue between $1.36 billion and $1.40 billion, reflecting a comparable growth range of 0% to 3% [49] Company Strategy and Development Direction - The long-term strategy includes increasing brand awareness, expanding showroom footprint to 165 locations, enhancing omnichannel capabilities, and investing in growth [24][25] - The company aims to open an average of 5 to 7 new traditional showrooms annually, alongside design studios and relocations [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute long-term strategies despite macroeconomic uncertainties, emphasizing product innovation and customer engagement [50][51] - The company noted that while the macro environment remains dynamic, its debt-free balance sheet provides financial flexibility for strategic investments [51] Other Important Information - The company introduced a new product line in 2024, focusing on expanded wood furniture selections and customizable designs [21] - The promotional strategy remains aligned with previous years, focusing on quality and value for clients [59][63] Q&A Session Summary Question: Can you speak to the line of product newness in 2025? - Management indicated that the 2025 product lineup is solid, with expectations for new styles and designs [55][56] Question: How did demand trend across price points in Q4? - Management noted a solid performance in Q4, with a focus on quality and value in pricing strategies [59][62] Question: What are the plans for store openings in 2025? - Management confirmed plans for 3 to 5 new store openings in 2025, with flexibility for design studios [79][80] Question: How is the promotional cadence planned for Q1? - Management stated that the promotional strategy aligns with previous years, considering calendar shifts for key shopping periods [135][141] Question: What is the outlook for gross margin and SG&A in Q1 2025? - Management expects slight deleverage in gross margin due to showroom occupancy costs, with increased SG&A expenses related to strategic investments [91][92]

Arhaus, Inc. (ARHS) reported $347.01 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 0.9%. EPS of $0.14 for the same period compares to $0.22 a year ago.The reported revenue represents a surprise of -1.15% over the Zacks Consensus Estimate of $351.05 million. With the consensus EPS estimate being $0.12, the EPS surprise was +16.67%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

Arhaus, Inc. (ARHS) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.07, delivering a surprise of -12.50%.Over the last four quarters, the company ha ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ For the transition period from to Commission file number 001-41009 Arhaus, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organizati ...

ARHAUS REPORTS FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS BOSTON HEIGHTS, Ohio (February 26, 2025)—Arhaus, Inc. ("Arhaus" or the "Company") (NASDAQ: ARHS), a growing lifestyle brand and omni-channel retailer of premium artisan-crafted home furnishings, reported fourth quarter and full year 2024 results for the period ended December 31, 2024. Highlights include: John Reed, Co-Founder and Chief Executive Officer, said, "2024 was a transformative year for Arhaus, driven by disciplined execution of our ...