NASDAQ$ARHS

Arhaus Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Arhaus reported a decrease in net revenue and net income for Q4 2023, but announced a special cash dividend and provided full year 2024 guidance.

Arhaus reported a decrease in net revenue by 3.5% to $344 million compared to the fourth quarter of 2022. Net income also decreased by 33.6% to $31 million. The company announced a special cash dividend of $0.50 per share and provided full year 2024 guidance.

  • Net revenue decreased by 3.5% to $344 million.
  • Comparable growth was (6.8)%.
  • Net and comprehensive income decreased to $31 million.
  • Adjusted EBITDA decreased to $51 million.

Headline financials

Total Revenue

$344M

Previous: $356M-3.5%
EPS (adj)

$0.22

Previous: $0.34-35.3%
Comparable Delivered Sales

-6.8%

Previous: 47.0%-114.5%
Capital Expenditures

-$54.7M

Previous: $15.7M-448.5%
Net Income

$31M

Previous: $47M-34.0%
Operating Income

$41M

Previous: $64.4M-36.4%
Gross Profit

$141M

Previous: $158M-10.6%
Stock-Based Comp

$2.16M

Previous: $1.68M+28.8%

Revenue & EPS history

Arhaus · Revenue · Quarterly

$344M

Q4 2023-3.5%vs Q4 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Arhaus provided its outlook for full year 2024, and expects net revenue between $1.33 billion and $1.37 billion. Comparable growth is expected to be between (4.0)% and (2.0)%. Net income is projected to be between $95 million and $105 million, and Adjusted EBITDA between $185 million and $200 million.

Tailwinds

  • Net revenue of $1.33 billion to $1.37 billion
  • Company plans to open nine to eleven new Showrooms
  • Strategic investments to support growth and client-first service capabilities
  • New product introductions building on success of recent collections
  • Board approved a special cash dividend of $0.50 per share

Headwinds

  • Comparable growth of (4.0)% to (2.0)%
  • Net income of $95 million to $105 million
  • Adjusted EBITDA of $185 million to $200 million
  • First quarter net revenue impacted by warehouse management system implementation
  • First quarter net revenue impacted by weather

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 Q4 2023

Historical avgQ4 2023

+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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