Arhaus (NASDAQ:ARHS) Announces Earnings Results, Beats Expectations By $0.12 EPS

Posted by Brenda Bartman on Aug 7th, 2026

Arhaus (NASDAQ:ARHS – Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.28 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.12, FiscalAI reports. Arhaus had a return on equity of 17.42% and a net margin of 4.91%.The firm had revenue of $384.90 million during the quarter, compared to the consensus estimate of $365.66 million. During the same quarter in the prior year, the firm posted $0.25 EPS. The business’s revenue was up 7.5% on a year-over-year basis.

Here are the key takeaways from Arhaus’ conference call:

Positive Sentiment: Arhaus reported record second-quarter net revenue of approximately $385 million, up 7.4% year over year, while comparable written sales rose 12.5%. Management cited broad-based demand, resilient high-end consumers, larger home projects, and strength across upholstery, outdoor, customization, and design channels.
Positive Sentiment: The company maintained its full-year revenue outlook of $1.43 billion to $1.47 billion and raised profitability guidance to net income of $71 million to $80 million and adjusted EBITDA of $160 million to $171 million, reflecting tariff refunds and continued execution.
Negative Sentiment: Second-quarter profitability benefited from a one-time $23.8 million recovery of previously paid IEEPA tariffs; excluding the prior-period inventory benefit, gross margin declined to 40.7% and adjusted EBITDA fell 8.9% year over year. Higher fuel, shipping, showroom, and technology costs remain significant headwinds.
Positive Sentiment: Arhaus said inventory availability improved, aged inventory declined, and client deposits increased 11.8% year over year, supporting conversion of written orders into future revenue. The company is also investing tariff-refund proceeds in expanded catalogs, marketing, digital initiatives, and a new POS platform, while continuing its showroom expansion and trade-program rollout.

Arhaus Stock Performance

NASDAQ ARHS traded down $0.08 during trading on Friday, reaching $9.60. 2,021,862 shares of the company’s stock were exchanged, compared to its average volume of 1,418,520. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.25 and a quick ratio of 0.46. The business has a 50 day moving average price of $7.64 and a 200-day moving average price of $7.79. The stock has a market capitalization of $1.36 billion, a P/E ratio of 19.20, a PEG ratio of 3.90 and a beta of 2.29. Arhaus has a fifty-two week low of $5.57 and a fifty-two week high of $12.93.

More Arhaus News

Here are the key news stories impacting Arhaus this week:

Positive Sentiment: Q2 results exceeded expectations: Arhaus reported adjusted earnings of $0.28 per share versus the $0.16 consensus estimate, while revenue rose 7.4% year over year to $384.9 million, above the $365.7 million expected. Arhaus Q2 Earnings and Revenues Top Estimates
Positive Sentiment: Demand and profitability improved: Comparable written sales increased 12.5% and comparable delivered sales rose 4.0%. Net income grew 13.1% to approximately $40 million, while adjusted EBITDA increased 16.8% to $70 million, supported partly by tariff recoveries. Arhaus Reports Second Quarter 2026 Financial Results
Positive Sentiment: 2026 profit outlook was raised: Arhaus maintained its $1.43 billion–$1.47 billion revenue forecast but increased its net income outlook to $71 million–$80 million and adjusted EBITDA guidance to $160 million–$171 million, reflecting $37.8 million of received tariff refunds plus interest. Arhaus Updates 2026 Outlook After Tariff Refunds
Positive Sentiment: Analyst sentiment improved: Craig Hallum upgraded ARHS from Hold to Buy and set a $12 price target, implying substantial upside relative to the referenced share price. Analyst Rating Update
Neutral Sentiment: Piper Sandler raised its target to $9 but retained a Neutral rating, while Telsey Advisory Group raised its target to $10 and maintained Market Perform. The mixed ratings suggest analysts see improved fundamentals but limited near-term upside after the rally. Benzinga Analyst Update
Negative Sentiment: The profitability benefit is partly dependent on one-time tariff refunds. Inventory increased 4.3%, cash declined following a special dividend, and third-quarter revenue guidance of $355 million–$375 million is slightly below consensus at the midpoint.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in ARHS. Wasatch Advisors LP raised its stake in Arhaus by 6.8% in the 2nd quarter. Wasatch Advisors LP now owns 12,703,259 shares of the company’s stock valued at $110,137,000 after acquiring an additional 811,337 shares during the period. Bank of America Corp DE boosted its position in Arhaus by 9.4% during the second quarter. Bank of America Corp DE now owns 3,213,288 shares of the company’s stock worth $27,859,000 after purchasing an additional 275,835 shares during the period. Renaissance Technologies LLC increased its holdings in shares of Arhaus by 10.7% in the fourth quarter. Renaissance Technologies LLC now owns 1,754,000 shares of the company’s stock valued at $19,662,000 after purchasing an additional 169,200 shares during the last quarter. Punch & Associates Investment Management Inc. increased its holdings in shares of Arhaus by 1.1% in the third quarter. Punch & Associates Investment Management Inc. now owns 1,091,153 shares of the company’s stock valued at $11,599,000 after purchasing an additional 11,762 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Arhaus by 8.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 994,060 shares of the company’s stock valued at $11,144,000 after purchasing an additional 78,783 shares during the period. 27.88% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several brokerages recently commented on ARHS. Stifel Nicolaus reduced their price target on Arhaus from $12.00 to $11.00 and set a “buy” rating for the company in a research report on Monday, May 11th. Morgan Stanley upped their price objective on Arhaus from $9.00 to $10.00 and gave the stock an “equal weight” rating in a research note on Friday. Weiss Ratings reissued a “hold (c-)” rating on shares of Arhaus in a report on Wednesday, June 17th. TD Cowen decreased their target price on shares of Arhaus from $9.00 to $8.00 and set a “buy” rating for the company in a research note on Monday, May 11th. Finally, Telsey Advisory Group upped their price target on shares of Arhaus from $8.00 to $10.00 and gave the stock a “market perform” rating in a research report on Friday. Four equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $10.12.

Check Out Our Latest Stock Report on Arhaus

Arhaus Company Profile

(Get Free Report)

Arhaus (NASDAQ:ARHS) is a U.S.-based retailer specializing in high-end home furnishings and décor. Since its founding in 1986 in northeastern Ohio, the company has built a reputation for curating unique, design-forward products that blend contemporary aesthetics with artisanal craftsmanship. Headquartered in Boston Heights, Ohio, Arhaus operates a network of brick-and-mortar galleries across the United States alongside a robust e-commerce platform, serving customers from coastal metropolitan areas to interior regions.

The company’s product portfolio encompasses a wide range of furniture categories—including sofas, dining tables, bedroom pieces and storage solutions—complemented by lighting fixtures, rugs, pillows, wall art and decorative accessories.