Luxury furniture retailer Arhaus (NASDAQ:ARHS) will be announcing earnings results tomorrow before market hours. Here’s what you need to know.

Arhaus missed analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $319.1 million, down 2.2% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations.

Is Arhaus a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Arhaus’s revenue to be flat year on year at $346.8 million, improving from the 3.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Arhaus has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Arhaus’s peers in the home furnishing and improvement retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Floor And Decor delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 1.9%, and Home Depot reported revenues up 14.1%, topping estimates by 1.5%. Floor And Decor traded up 1.6% following the results.

Read our full analysis of Floor And Decor’s results here and Home Depot’s results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the home furnishing and improvement retail stocks have shown solid performance, the group has generally underpeformed, with share prices down 8% on average over the last month. Arhaus is down 6.5% during the same time and is heading into earnings with an average analyst price target of $12.31 (compared to the current share price of $11.60).

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