Arhaus 2025 Q3 Earnings Beats Expectations, 28.6% EPS Growth

Arhaus (ARHS) delivered a strong third-quarter performance, surpassing revenue and earnings estimates while raising its full-year guidance. , . CEO John Reed highlighted record demand for the Fall 2025 Collection and strategic showroom expansions, .

Revenue

Arhaus’s revenue growth was driven by robust demand across its retail and e-commerce channels. , outpacing the average analyst estimate of $61.1 million and rising 7.5% year-over-year. Retail sales totaled $286.16 million, . .

Earnings/Net Income

The company’s profitability strengthened significantly, with net income rising 23.1% to $12.22 million. , reflecting disciplined cost management and operational efficiencies. The 28.6% EPS growth underscores strong profitability, driven by disciplined execution and expanding showroom footprints.

Price Action

Post-earnings, Arhaus’s stock declined 8.74% month-to-date, reflecting broader market volatility and investor caution. Despite beating revenue and EPS estimates, . Analysts remain optimistic, , .

Post-Earnings Price Action Review

Arhaus’s stock faced downward pressure in the month following its Q3 earnings report, . While the company exceeded revenue and EPS estimates, the market reacted cautiously to macroeconomic uncertainties and a modest revenue guidance range for Q4. Analysts highlighted the Zacks Rank #2 rating and long-term growth potential from showroom expansions, but short-term volatility persisted due to broader retail sector headwinds.

CEO Commentary

John Reed emphasized Arhaus’s record $345 million net revenue, driven by new showroom openings in Pasadena and Bozeman and strong demand for the Fall 2025 Collection. He underscored the company’s debt-free liquidity and strategic focus on expanding its footprint while maintaining profitability.

Guidance

. , with 4–6 new showroom openings planned. The company maintains a cautious outlook amid but remains confident in its long-term growth trajectory.

Additional News

1. Showroom Expansion: Arhaus opened its largest Traditional Showroom in Pasadena and announced its first Montana Showroom in Bozeman, signaling aggressive retail footprint growth.

2. Product Launch Success: The Fall 2025 Collection drove record demand, with September marking the highest-demand month in company history.

3. Debt-Free Liquidity, supporting its expansion and operational flexibility.

The updated guidance and strategic initiatives position Arhaus to capitalize on sustained consumer demand for premium home furnishings, despite near-term market volatility. Investors should monitor showroom performance and macroeconomic trends for potential impact on future growth.