Home furnishings retailer Arhaus Q3 revenue slightly misses estimates

By Reuters News


Overview

  • U.S. home furnishings retailer's Q3 revenue rose 6.8%, slightly missing analyst expectations

  • Adjusted EBITDA for Q3 declined 12.3% and missed analyst estimates

  • Company raised full-year revenue outlook but maintained net income and adjusted EBITDA guidance


Outlook

  • Arhaus raises full-year 2026 net revenue outlook to $1.465 bln-$1.485 bln

  • Company maintains full-year 2026 net income forecast at $71 mln-$80 mln

  • Arhaus expects Q4 2026 net revenue of $398 mln-$418 mln


Result Drivers

  • CLIENT DEMAND - Co said strong client demand contributed to Q3 performance

  • NEW COLLECTIONS - Co said investments in new collections and expanded customization resonated with clients, per CEO John Reed

  • SHOWROOM ACTIVITY - Co completed two showroom projects in Q3, including a relocation in Charlotte and renovation in Atlanta, expanding client experience


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Miss*

$368 mln

$370.60 mln (13 Analysts)

Q3 Adjusted EBITDA

Miss

$27 mln

$32.27 mln (9 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "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 $11.00, about 16.3% below its November 4 closing price of $13.15

  • The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Nov 4 - Wayfair beats Q3 revenue, profit estimates on more customers, orders

  • Nov 4 - MarineMax Q4 revenue misses estimates on lower boat sales

  • Nov 4 - Haverty Furniture Q3 revenue rises 4.5%


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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