NASDAQ$ARHS

Arhaus Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported net revenue of $310 million and net income of $22 million.

Arhaus reported second quarter net revenue of $310 million and net income of $22 million. The company opened five new showrooms and is adjusting expectations for the second half of the year, lowering the full year outlook due to consumer and demand comparable growth trends.

  • Net revenue was $310 million.
  • Comparable growth was (7.1)%.
  • Net and comprehensive income was $22 million.
  • Adjusted EBITDA was $40 million.

Headline financials

Total Revenue

$310M

Previous: $313M-1.0%
EPS

$0.16

Previous: $0.29-44.8%
Adjusted EBITDA

$39.9M

No prior period
Adj EBITDA Margin

12.9%

Previous: 20.4%-36.8%
Capital Expenditures

-$62.2M

Previous: -$32.8M-89.4%
Free Cash Flow

-$39.9M

Previous: $7.37M-641.9%
Net Income

$22.2M

Previous: $40.2M-44.7%
Operating Income

$29.4M

Previous: $54M-45.6%
Gross Profit

$124M

Previous: $140M-11.2%
Cash & Equivalents

$174M

Previous: $177M-1.5%
Total Assets

$1.18B

Previous: $1.05B+12.6%
Stock-Based Comp

$1.33M

Previous: -$695K+290.9%

Revenue & EPS history

Arhaus · Revenue · Quarterly

$310M

Q2 2024-1%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Arhaus is adjusting its expectations for the second half of the year and lowering its full year outlook. Net revenue is expected to be $1.25 billion to $1.29 billion, comparable growth of (11.0)% to (8.0)%, net income of $55 million to $75 million, and adjusted EBITDA of $125 million to $145 million.

Tailwinds

  • Company plans to open nine to eleven new Showrooms in 2024.
  • The company also plans to renovate, relocate and expand several locations.
  • Strong, debt-free balance sheet allows the company to continue to invest in industry-leading growth.
  • Company will continue to expand showroom footprint.
  • Company will continue to increase brand awareness and invest to drive operational efficiency.

Headwinds

  • Consumer and demand comparable growth trends have softened.
  • Full year outlook has been lowered.
  • Comparable growth is expected to be (11.0)% to (8.0)%.
  • Net income is expected to be $55 million to $75 million.
  • Adjusted EBITDA is expected to be $125 million to $145 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+7.6%

Avg return

Earnings day

+7.3%

Avg return

5 days after

+5.0%

Avg return

30 days after

61%

14 / 23 earnings

Positive

+30.4%

Q3 2020

Best reaction

-26.3%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.9%-22.3%-16.6%
Q4 2025+10.6%-4.5%-22.4%
Q3 2025-3.5%-2.4%+8.0%
Q1 2025-5.3%+4.3%+4.8%
Q4 2024-8.1%-24.7%-28.0%
Q3 2024+6.1%+7.5%+15.4%
Q2 2024-8.5%-15.4%-20.4%
Q1 2024+23.4%+28.3%+48.9%
Q4 2023+16.2%+18.1%+22.5%
Q3 2023+5.1%+10.5%+19.8%
Q2 2023+6.0%+3.3%-17.4%
Q1 2023+10.2%+15.3%-2.4%
Q4 2022-26.3%-31.0%-40.9%
Q3 2022-4.4%-1.8%+4.8%
Q2 2022+25.2%+44.7%+41.6%
Q2 2021+25.2%+44.7%+41.6%
Q1 2021-9.2%-10.9%-18.9%
Q1 2022-9.2%-10.9%-18.9%
Q4 2021+18.2%+24.7%-0.4%
Q4 2019+18.2%+24.7%-0.4%
Q3 2021+30.4%+21.8%+31.3%
Q4 2020+30.4%+21.8%+31.3%
Q3 2020+30.4%+21.8%+31.3%
Q2 2020
Q1 2020

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