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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.