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Mar 31, 2025
Arhaus Q1 2025 Earnings Report
reported first quarter 2025 financial results
Key Takeaways
Arhaus reported a mixed first quarter for 2025, with net revenue increasing by 5.5% to $311 million, but net income and Adjusted EBITDA saw significant decreases of 67.6% and 36.2% respectively. Comparable growth was negative at (1.5)%, while demand comparable growth was positive at 4.1%. The company opened 1 new showroom and completed 4 strategic relocations during the quarter.
Net revenue increased 5.5% to $311 million.
Net and comprehensive income decreased 67.6% to $5 million.
Adjusted EBITDA decreased 36.2% to $19 million.
Comparable growth was (1.5)% and demand comparable growth was 4.1%.
Forward Guidance
Arhaus updated its full-year 2025 outlook to reflect increased tariff-related volatility and softening consumer sentiment, taking a more cautious stance. The midpoint of the prior full-year outlook now represents the high-end of the updated range. The company also introduced second-quarter 2025 outlook for select financial and operating metrics.
Positive Outlook
- Plan to have 12 to 15 Total Showroom Projects in 2025.
- Expect to reduce China sourcing to approximately 1% of Total Receipts in the fourth quarter of 2025.
- Confidence in the business supported by a strong balance sheet.
- Operational agility to navigate uncertainty.
- Momentum of the growth strategy.
Challenges Ahead
- Updated full-year 2025 outlook reflects increased tariff-related volatility.
- Updated full-year 2025 outlook reflects softening consumer sentiment.
- Revised full-year outlook to reflect broader uncertainty.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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