Core Insights - Arhaus reported Q3 CY2025 results that exceeded Wall Street's revenue expectations, with sales increasing by 8% year-on-year to $344.6 million, surpassing analyst estimates of $337.7 million by 2% [1][6] - The company's GAAP profit was $0.09 per share, aligning with analysts' consensus estimates [1][6] - Revenue guidance for Q4 CY2025 is optimistic at $351 million at the midpoint, which is above analyst estimates of $344.1 million [1][6] Financial Performance - Adjusted EBITDA for Q3 was $31.24 million, exceeding analyst estimates of $29.46 million, resulting in a margin of 9.1% [6] - Operating margin improved to 4.8%, up from 3.3% in the same quarter last year [6] - Same-store sales rose by 4.1% year-on-year, a significant improvement compared to a decline of 9.2% in the same quarter last year [6] - Market capitalization stands at $1.33 billion [6] Management Commentary - Management attributed the strong performance to a successful product lineup, particularly the Fall 2025 Collection, which saw record demand [3][5] - The in-home design program has been effective in enhancing customer loyalty and conversion rates [3] - The company is focused on new product introductions and showroom expansion to maintain growth momentum [4] - CFO acknowledged macroeconomic uncertainties and tariff challenges but expressed confidence in strategic pricing and sourcing diversification to protect margins [4] Future Outlook - Arhaus plans to continue innovating its product assortment to differentiate itself in the premium market [4] - The company is investing in digital transformation initiatives aimed at improving operational efficiencies and supporting long-term growth [4]

Core Insights - Arhaus, Inc. reported a record net revenue of $345 million for Q3 2025, reflecting an 8.0% year-over-year increase, driven by strong brand performance and successful showroom expansions [3][6][10] - Demand comparable growth reached 7.4% in Q3 2025, supported by the success of the Fall 2025 Collection and high client engagement [4][8] - The company remains debt-free with significant liquidity, positioning itself strongly in the current market environment [6][17] Financial Performance - Net revenue increased to $345 million, up 8.0% from Q3 2024 [10] - Gross margin rose by 8.4% to $133 million compared to the same quarter last year [10] - Net income increased by 23.1% to $12 million, while adjusted EBITDA grew by 35.2% to $31 million [10][36] Showroom Expansion - Arhaus operated 103 showrooms across 30 states by the end of Q3 2025, completing 8 total showroom projects, including 1 new opening and 6 relocations [9][12] - The company opened its largest Traditional Showroom in Pasadena, California, and plans to open its first Montana showroom in Bozeman [11][12] Balance Sheet and Liquidity - As of September 30, 2025, cash and cash equivalents totaled $262 million, with no long-term debt [17][28] - Net merchandise inventory increased by 10.7% to $329 million compared to December 31, 2024 [17] Outlook - The company updated its full-year 2025 outlook, raising the lower end of its revenue guidance to $1.35 billion to $1.38 billion, while maintaining the high end [13][15] - Fourth-quarter guidance includes expected net revenue of $336 million to $366 million, with a projected net income of $6 million to $16 million [15]

Core Insights - Arhaus has launched its annual style issue, 'Home & Style,' along with the Fall 2025 Collection, emphasizing the theme "Home is a Feeling" which reflects comfort and belonging [3][4] - The collection features a blend of modern and traditional designs, showcasing rich materials and craftsmanship that create personalized and inviting spaces [4][5] Product Highlights - The Fall 2025 Collection introduces new designs and expands on existing favorites across various categories, including dining and living, with a focus on graceful silhouettes and rich wood tones [5][6] - Notable new pieces include the Milana Collection with midcentury Italian design influences, the Finnley Collection now offering seating options, and the Blaire Round Chandelier with architectural elegance [5][6] - The collection also highlights deep wood tones, particularly American walnut, which adds warmth and refinement to designs like the James Bookcase and Frances Sideboard [6] Dining and Gathering Focus - The collection emphasizes designs that foster connection, such as the Caden Dining Table featuring black Marquina marble and the Jolson Extension Dining Table made from solid oak [7][8] - Seating options like the woven Myers Dining Chair are designed to create inviting spaces for gatherings [8] Artisan Craftsmanship - Arhaus celebrates its partnerships with artisans, particularly a fifth-generation family-run workshop in Northern Romania, known for heirloom-quality furniture [9] - The Cortina collection, inspired by the movement of curtains, is expanding with new pieces this season [9] New Category Expansion - Arhaus has entered the bath category with the debut of Arhaus Bath, featuring a comprehensive range of products including vanities and bath linens, maintaining the brand's focus on quality and detail [9] Design Services - Arhaus offers complimentary Interior Design services to assist customers in creating tailored environments, with options for upholstery customization available [10] Availability - The Fall 2025 Collection is now available on Arhaus.com and in showrooms nationwide, encouraging customers to explore the full assortment [11]