ARHS Jumps 6.28% on Q3 Earnings Beat as Retail, E-Commerce Surge 8.1%, 7.5%

The share price rose to its highest level so far this month, with an intraday gain of 6.28%.

Arhaus (ARHS) reported Q3 2025 earnings with revenue of $344.57 million, exceeding the Zacks Consensus Estimate by 1%, driven by 8.1% growth in retail sales and 7.5% in e-commerce. Earnings per share increased 28.6% year-over-year to $0.09, surpassing estimates by 12.5%. Comparable sales surged 4.1%, outpacing analyst expectations, while operating margins improved to 4.8% and free cash flow margins reached 8.1%, reflecting enhanced efficiency.

The company is expanding its showroom network, opening its largest location in Pasadena and planning a Montana site, with 12–15 projects targeted for 2025. Digital initiatives, including a $30 million investment by 2030, aim to boost e-commerce, which accounts for 17% of sales. Arhaus raised full-year revenue guidance to $1.35–$1.38 billion and expects Q4 revenue of $336–$366 million. Despite $12 million in 2025 tariff impacts, cost controls and pricing adjustments are mitigating pressures. The Zacks Rank #2 (Buy) underscores confidence, though the stock has underperformed the S&P 500 recently.

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