Artisan home furnishings retailer Arhaus beats Q3 revenue estimates on new showrooms, higher demand

Overview

• Arhaus Q3 2025 revenue grows 8% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q3 beats analyst estimates, reflecting robust operational performance

• Company expands showroom footprint, opening largest showroom in Pasadena, California

Outlook

• Arhaus raises lower end of 2025 net revenue forecast to $1.35 bln to $1.38 bln

• Company expects Q4 2025 net revenue between $336 mln and $366 mln

• Arhaus plans 12 to 15 showroom projects in 2025

Result Drivers

• SHOWROOM EXPANSION - Revenue growth driven by new showroom openings and increased demand for Arhaus products

• PRODUCT DEMAND - Fall 2025 Collection and core product offerings supported 7.4% demand comparable growth

• DISTRIBUTION IMPROVEMENTS - Dallas Distribution Center and tech investments enhanced delivery performance

Key Details

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 is $12.00, about 18.7% above its November 5 closing price of $9.76

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nGNX7NTpc4

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(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.)