Overview

* Arhaus Inc Q2 2025 revenue rises 15.7%, beating analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 2025 beats consensus, rising 51.2%, per LSEG data

* Company launched Arhaus Bath Collection, expanding into home personal spaces

Outlook

* Arhaus sees Q3 2025 net revenue between $320 mln and $350 mln

* Company expects full-year 2025 net revenue of $1.29 bln to $1.38 bln

* Arhaus projects Q3 2025 net income of $7 mln to $17 mln

* Company reduces full-year capital expenditures outlook by $10 mln

Result Drivers

* DISTRIBUTION CENTER - In-house operations at Dallas Distribution Center enabled efficient conversion of Q1 demand into revenue, per CEO John Reed

* MACRO HEADWINDS - Q2 demand comparable growth impacted by macroeconomic volatility, but July rebounded sharply, per CEO John Reed

* PRODUCT EXPANSION - Launch of Arhaus Bath Collection marks strategic expansion into home personal spaces

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $358 mln $333.70

Revenue mln (12

Analysts

)

Q2 Beat $60 mln $42 mln

Adjusted (10

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the home furnishings retailers peer group is "buy"

* Wall Street's median 12-month price target for Arhaus Inc ( ARHS ) is $10.00, about 1.3% above its August 6 closing price of $9.87

* The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)