Arhaus, Inc. (ARHS) shares plummeted 9.09% in pre-market trading on Thursday, following the release of the company's first-quarter fiscal 2026 financial results. The premium home furnishings retailer reported a significant decline in profitability despite revenue slightly exceeding analyst expectations.
The company's net and comprehensive income fell 54.5% year-over-year to $2 million, while net revenue increased just 0.9% to $314 million. Adjusted EBITDA decreased 3.1% to $18 million, and comparable written sales—a key demand indicator—dropped 5.7% during the quarter. The company cited broader macroeconomic uncertainty as creating near-term pressure on sales.
While Arhaus beat consensus estimates for both revenue and adjusted EBITDA, investors focused on the sharp profit decline, margin compression, and weakening sales trends. The company reaffirmed its full-year 2026 net revenue guidance of $1.43 billion to $1.47 billion but faces challenging comparisons in the upcoming quarter.
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