Why Did Arhaus Plunge 11.91%? Analysts Downgrade Amid Cash Flow Concerns

On April 9, 2025, Arhaus experienced a significant drop of 11.91% in pre-market trading, sparking concerns among investors about the company's recent performance and future prospects.

Baird analyst Peter Benedict downgraded Arhaus from Outperform to Neutral, setting a new price target of $8.50, down from $13. This move reflects a shift in sentiment towards the company, potentially influenced by recent financial performance and market conditions.

Stifel Nicolaus also adjusted its price objective for Arhaus, lowering it from $14.00 to $11.50 while maintaining a "buy" rating. This adjustment suggests a cautious optimism about the company's future, despite the recent downgrades.

Arhaus's financials for Q4 2024 showed a free cash flow of $0.40, with a decrease in operating cash flow to $0.08 for the fiscal year. These figures indicate potential challenges in the company's cash management and operational efficiency, which could be contributing factors to the recent stock price decline.