Shares of Arhaus, Inc. (ARHS) tumbled 6.15% in pre-market trading on Thursday, despite the company reporting better-than-expected third-quarter results. The sharp decline suggests investors may be focusing on the company's updated full-year outlook, which appears to have fallen short of expectations.
The premium home furnishings retailer reported third-quarter earnings per share of $0.09, surpassing analyst estimates of $0.08. Revenue for the quarter came in at $344.57 million, beating the consensus forecast of $338.23 million and representing a 7.97% increase year-over-year. Adjusted EBITDA for the quarter was $31 million, also exceeding expectations of $29.1 million.
However, Arhaus's updated full-year 2025 outlook seems to be the primary driver of the stock's pre-market plunge. The company now expects full-year net revenue growth of 6.2% to 8.6%, with net revenue projected between $1.35 billion and $1.38 billion. The company also forecasts full-year adjusted EBITDA in the range of $135 million to $145 million. These figures may have disappointed investors who were anticipating more robust growth projections, especially given the strong Q3 performance.
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