Shares of Arhaus, Inc. (ARHS), a leading lifestyle brand and omni-channel retailer of premium home furnishings, plunged 10.20% on Wednesday, February 26, 2025, following the company's mixed fourth-quarter results and modest guidance for 2025.
For the fourth quarter of 2024, Arhaus reported net revenue of $347 million, slightly below analysts' expectations of $351.3 million. However, the company's adjusted EBITDA of $41 million exceeded estimates of $38.3 million. Arhaus cited strong demand comparable growth of 5.7% in Q4, although overall comparable growth was negative at -6.4% due to lapping abnormal backlog fulfillment in the prior year.
Looking ahead, Arhaus provided Q1 2025 guidance for net revenue of $303 million to $323 million, roughly in line with consensus estimates of $316.78 million. For the full year 2025, the company expects net revenue of $1.36 billion to $1.40 billion, bracketing analysts' estimates of $1.38 billion. However, Arhaus guided for flat to modest comparable growth of 0% to 3% and flat to declining gross margins, disappointing investors.