Arhaus Q2 2025: Revenue Outlook Reaffirmed, New CFO Appointed, Showroom Growth Accelerated

Arhaus, Inc. reaffirms its revenue outlook of $1.29B-$1.38B for 2025. The company has launched a new bath collection and is accelerating showroom growth. Arhaus' CEO, John P. Reed, welcomes new CFO Michael Lee and emphasizes the company's strategic priorities, including increasing brand awareness and growing its showroom footprint.

Arhaus Inc. (NASDAQ: ARHS), a leading lifestyle brand and omni-channel retailer of premium artisan-crafted home furnishings, has reaffirmed its revenue outlook for 2025, projecting net revenue of $1.29 billion to $1.38 billion. The company's second-quarter 2025 financial results, released on August 7, 2025, highlighted strong performance with net revenue increasing by 15.7% to $358 million [1].

John P. Reed, Co-Founder and Chief Executive Officer of Arhaus, welcomed the new CFO, Michael Lee, and emphasized the company's strategic priorities. These include increasing brand awareness, expanding the showroom footprint, and growing the business through disciplined execution and intentional growth. Reed noted the successful conversion of strong first-quarter demand into net revenue, driven by the in-house transition of the Dallas Distribution Center [1].

Arhaus launched its Arhaus Bath Collection, a thoughtful expansion into a deeply personal space in the home, reflecting the company's commitment to timeless design, artisan craftsmanship, and functional beauty. This new collection is expected to enhance the company's product assortment and appeal to high-end clients [1].

The company's showroom growth strategy is evident in the completion of three showroom projects during the second quarter, including two relocations and one renovation. Notable updates include a relocated showroom in Wexford, Pennsylvania, and a fully renovated showroom in Scottsdale, Arizona. Year-to-date, Arhaus has completed eight showroom projects, with plans to complete approximately 12 to 15 showroom projects in 2025 [1].

Arhaus' balance sheet remains strong, with no long-term debt, cash and cash equivalents totaling $235 million, and net merchandise inventory of $311 million. The company's debt-free balance sheet and clear strategic plan position it well to navigate the current environment [1].

Arhaus' outlook for the third quarter of 2025 projects net revenue growth of 0.3% to 9.7%, with comparable growth (1) of (5)% to 5% and adjusted EBITDA (6) of $23 million to $33 million. The company continues to expect the completion of 4 to 6 new showrooms and 12 to 15 Total Showroom Projects (2) in 2025 [1].

References:
[1] https://ir.arhaus.com/news-releases/news-release-details/arhaus-reports-second-quarter-2025-financial-results