NASDAQ$ARHS

Arhaus Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Arhaus reported third quarter results, demonstrating commitment to operational excellence amidst a challenging environment.

Arhaus reported a decrease in net revenue to $319 million compared to $326 million in Q3 2023. Net income decreased to $10 million, and adjusted EBITDA was $23 million. The company is adjusting its full-year sales and earnings outlook to reflect a tempered consumer environment.

  • Net revenue for the third quarter was $319 million.
  • Comparable growth was (9.2)%.
  • Net and comprehensive income was $10 million.
  • Adjusted EBITDA was $23 million.

Headline financials

Total Revenue

$319M

Previous: $326M-2.2%
EPS

$0.07

Previous: $0.14-50.0%
Comparable Delivered Sales

-9.2%

Previous: -2.1%-338.1%
Comparable Written Sales

-11.3%

No prior period
Adj EBITDA Margin

7.2%

No prior period
Capital Expenditures

-$88.7M

Previous: -$42.3M-109.6%
Free Cash Flow

-$78.8M

Previous: -$22.6M-249.0%
Net Income

$9.92M

Previous: $19.7M-49.7%
Operating Income

$10.7M

Previous: $23.9M-55.3%
Gross Profit

$123M

Previous: $131M-5.9%
Cash & Equivalents

$178M

Previous: $237M-25.0%
Total Assets

$1.21B

Previous: $1.12B+8.4%
R&D Expense

$0.00

Previous: $0.00
Stock-Based Comp

$2M

Previous: $1.85M+8.3%

Revenue & EPS history

Arhaus · Revenue · Quarterly

$319M

Q3 2024-2.2%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Arhaus provided its updated expectations for the full year 2024 and Q4 2024.

Tailwinds

  • Net revenue is expected to be $1.23 billion to $1.25 billion for the full year and $306 million to $326 million for Q4.
  • Net income is projected to be $55 million to $60 million for the full year and $8 million to $13 million for Q4.
  • Adjusted EBITDA is anticipated to be $115 million to $125 million for the full year and $23 million to $33 million for Q4.
  • Company-funded capital expenditures are estimated at ~$80 million for the full year.
  • Depreciation & amortization is projected at ~$40 million for the full year.

Headwinds

  • Comparable growth is expected to be (12)% to (11)% for the full year and (22)% to (16)% for Q4.
  • Reflects a continued tempered consumer environment.
  • Legal costs impacted selling, general, and administrative expenses.
  • Net revenue decreased due to the non-recurrence of prior year abnormal backlog deliveries and lower total demand.
  • Gross margin decreased due to lower net revenue and higher showroom costs.

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 Q3 2024

Historical avgQ3 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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