Loading...
•
Sep 30, 2023
Arhaus Q3 2023 Earnings Report
Reported strong third-quarter results, driven by exceptional demand and strategic showroom expansions.
Key Takeaways
Arhaus reported a 1.9% increase in net revenue to $326 million for Q3 2023, with net income at $20 million. The company is raising the midpoint of its full-year outlook for net revenue, net income, and adjusted EBITDA, driven by strong demand across all regions, products, and channels.
Net revenue increased by 1.9% to $326 million.
Net and Comprehensive Income reached $20 million.
Demand comparable growth was up 11.7%.
The company ended the quarter with 86 showrooms across 29 states.
Arhaus
Arhaus
Forward Guidance
Arhaus anticipates net revenue between $1.265 billion and $1.285 billion, and net income between $112.5 million and $117.5 million for the full year 2023.
Positive Outlook
- Net revenue of $1,265 million to $1,285 million
- Comparable Growth of (1)% to 1%
- Net income of $112.5 million to $117.5 million
- Adjusted EBITDA of $192.5 million to $197.5 million
- Company-funded capital expenditures of $60 to $70
Challenges Ahead
- Implied 4Q 2023 Comparable growth(1) (15)% to (9)%
- Implied 4Q 2023 Net income(4) $18.5 to $23.5
- Implied 4Q 2023 Adjusted EBITDA(5) $40.3 to $45.3
- Gross margin decrease primarily driven by the sale of price-actioned products that were receipted with higher container costs
- Adjusted EBITDA as a percent of net revenue declined 740 basis points to 10.3%