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Johnson Fistel Begins Investigation into Arhaus Following a Significant Drop in the Company's Stock
ARHSArhaus(ARHS) GlobeNewswire News Room·2024-08-14 19:50

Core Points - Johnson Fistel, LLP is investigating Arhaus, Inc. for potential violations of securities laws related to misrepresentation or failure to disclose material adverse information to investors [1] - Arhaus went public on November 4, 2021, selling 12.9 million shares at 13.00pershareduringitsIPO[1]−OnApril29,2024,ArhausannouncedthatitspreviouslyissuedfinancialstatementsfortheperiodendedSeptember30,2023,shouldnolongerberelieduponduetoidentifiederrors,whichwillrequirerestatement[2]−TheerrorsidentifiedbyArhausarerelatedtocashreceiptsfromlandlordreimbursementsandresultedinanestimatedimpactof13.00 per share during its IPO [1] - On April 29, 2024, Arhaus announced that its previously issued financial statements for the period ended September 30, 2023, should no longer be relied upon due to identified errors, which will require restatement [2] - The errors identified by Arhaus are related to cash receipts from landlord reimbursements and resulted in an estimated impact of 1 million to 5milliononcashflowsfortheninemonthsendedSeptember30,2023[2]−FollowingtheApril29disclosure,Arhaus′sstockpricefellby5 million on cash flows for the nine months ended September 30, 2023 [2] - Following the April 29 disclosure, Arhaus's stock price fell by 0.80, or 5.94%, closing at 12.66pershare[2]−OnAugust8,2024,Arhausreportedsecond−quarterrevenueof12.66 per share [2] - On August 8, 2024, Arhaus reported second-quarter revenue of 310 million, a year-over-year decline of 0.9%, which was below consensus estimates by 4.28million[3]−Afterthesecond−quarterresultsannouncement,Arhaus′sstockpricedroppedby4.28 million [3] - After the second-quarter results announcement, Arhaus's stock price dropped by 1.74, or 12.57%, closing at $12.10 per share [3]