Why Did Arhaus Inc. Stock Soar 24.62%?

On August 7, 2025, Arhaus Inc. saw a significant surge in its stock price, rising 24.62% in pre-market trading. This substantial increase can be attributed to the company's strong second-quarter financial performance, which exceeded expectations and set new records.

Arhaus reported a record net revenue of $358 million for the second quarter of 2025, marking a 15.7% increase from the previous year. This growth was driven by strong demand and effective strategic initiatives. The company's gross margin increased by 19.1% to $148 million, and its net and comprehensive income rose by 57.7% to $35 million. These metrics highlight Arhaus's operational efficiency and financial health.

Arhaus's retail sales contributed $553.6 million for the six months ended June 30, 2025, while eCommerce sales contributed $116.2 million. The company's geographical performance also showed strength, with various regions contributing to its overall revenue growth. Additionally, Arhaus's adjusted EBITDA for the second quarter of 2025 beat consensus estimates, rising by 51.2%.