Start here if you're new
what it is
Arhaus sells upscale furniture, decor, and outdoor pieces through stores and online.
how it gets paid
Last year Arhaus made $1.4B in revenue. Furniture was the main engine at $0.56B, or 40% of sales.
why it's growing
Revenue grew 8.5% last year. Revenue rose 194% vs. prior year, and gross margin was 39.2%.
what just happened
Arhaus posted $0.11 EPS on $1.0B of quarterly revenue.
At a glance
B+ balance sheet — decent shape, but not bulletproof
16.9x trailing p/e — the market's not buying it — or you found a deal
32.5% return on capital — every dollar works hard here
xvary composite: 53/100 — below average
$0.55 fy2027 eps est
What they do
Arhaus sells upscale furniture, decor, and outdoor pieces through stores and online.
Arhaus has 107 showrooms in 31 states. That is 107 chances to touch the sofa before you buy it, versus one webpage. It also controls more than 2 million square feet of distribution space, so delivery does not depend on someone else’s warehouse. Quiet part: insiders control 94.43% of the vote, so your say is mostly decorative.
How they make money
$1.4B
annual revenue · their business grew +8.5% last year
Furniture
$0.56B
Outdoor products
$0.24B
Lighting
$0.18B
Textiles
$0.16B
Decor
$0.26B
The products that matter
premium furniture retail and design
Furniture & Design
$1.4B revenue
it's effectively the whole company: a $1.4B business where 5.1% net margin means execution matters as much as demand.
entire business
Key numbers
$0.55
fy2027 eps est
$2B
fy2029 rev est
16.9x
trailing p/e
39.2%
gross margin
Gross profit kept about 39.2% of each revenue dollar.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- long-term debt $52M (5% of capital)
- net profit margin 10.0% — keeps 10 cents of every dollar in revenue
- return on equity 36% — $0.36 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for ARHS right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Arhaus posted $0.11 EPS on $1.0B of quarterly revenue.
Revenue rose 194% vs. prior year, and gross margin was 39.2%. Annual revenue also reached $1.4B.
$1.0B
revenue
$0.11
eps
39.2%
gross margin
gross margin
39.2% gross margin matters because it shows the company still keeps plenty after product costs, before the rest of the bills.
-
arhaus looks to keep sales on an upward track.
-
last year, the top line advanced 8.5%, to $1.38 billion.
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that achievement came despite a challenging consumer market.the company’s success may be attributed to careful attention to product quality and design, as well as a focus on the affluent customer category, which is weathering inflation better than most.
-
also, paced showroom and design center expansion has been a plus.
-
online services lent additional support.in 2025, five showrooms opened, seven were relocated to more-promising markets, and one was renovated to maintain its attractiveness. this year, the plan is to open four to six stores and complete six to eight relocations/renovations/expansions. a new chief merchandising officer, michael rengel, an industry veteran, will back efforts to build scale and sales.
source: company earnings report, 2026
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What could go wrong
arhaus is opening stores with only a 5.1% net margin. that's a narrow margin of safety for a physical retail expansion plan.
med
new stores add cost faster than profit
management plans 4–6 new stores and 6–8 relocations or renovations this year. if those projects lift occupancy, labor, and marketing costs faster than sales, the current 5.1% net margin gets thinner.
that would leave you owning a bigger footprint without a better earnings profile.
med
small cost shocks hit a thin profit pool hard
arhaus depends on international sourcing. shipping delays, tariffs, or other supply chain friction are annoying in any retail model. with a 4.9% quarterly margin, they become earnings events fast.
you do not need a crisis here. you just need costs to rise while pricing power stalls.
med
premium demand softens while square footage rises
the customer base may be more affluent, but this is still discretionary spending. if demand cools while the company keeps adding showroom capacity, fixed costs become the story.
with full-year EPS at $0.48, there is not much earnings cushion.
what would change our mind on the downside: another year where revenue grows, the store base expands, and EPS still sits around $0.48–$0.50. that would mean growth is buying activity, not value.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
watch whether revenue growth still outruns earnings growth. another quarter of better sales with weak profit keeps the same debate alive.
risk
store expansion progress
track the plan for 4–6 new stores and 6–8 relocations or renovations. unit growth only matters if productivity follows.
metric
margin recovery
quarterly margin was 4.9% and net margin was 5.1%. if those numbers do not improve, the expansion story gets harder to believe.
trend
merchandising execution
watch whether better product mix and cleaner sell-through show up in results. in retail, taste eventually reports through the margin line.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, there is no strong near-term signal either way.
risk profile
average
stability score 3. you're looking at a middle-of-the-pack risk profile, not a defensive compounder.
chart momentum
top 20%
technical score 2. the tape looks better than the business debate, which is why this name stays interesting.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 56 buyers vs. 55 sellers in 4q2025. total institutional holdings: 56.6M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$5
$16
$8
current price
$11
target midpoint · +36% from current · 3-5yr high: $20 (+145% · 25% ann'l return)
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