ARHS Earnings Prediction
The chart below shows how ARHS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ARHS sees a +3.60% change in stock price 10 days leading up to the earnings, and a -2.30% change 10 days following the report. On the earnings day itself, the stock moves by +1.94%. This data can give you a slight idea of what to expect for the next quarter's release.
ARHS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
347.01M
0.87%
8.74%
Gross Margin
39.98%
-2.61%
3.68%
Operating Margin
7.89%
-33.75%
136.23%
Net Margin
6.14%
-32.30%
97.43%
EPS
0.15
-31.82%
114.29%
No Data Available
ARHS Earnings Analysis
Arhaus Inc Corporation (ARHS.O) Earnings Conference Call
Positive
Showroom Expansion Milestone: Strong showroom growth with the opening of the 100th showroom and a total of 103 locations across 30 states, marking the largest expansion in nearly 40 years.
Q4 2024 Demand Growth: Demand comparable growth of 5.7% in Q4 2024, driven by strong product assortments and marketing initiatives.
Innovative Product Offerings: Introduction of innovative product offerings, including expanded wood furniture selections and customizable designs, showcasing Arhaus's commitment to design and craftsmanship.
Global Supply Network Overview: A diversified global supply network that supports innovation and quality, with the U.S. being the largest share of net revenue.
Showroom Expansion Strategy: Plans to double showroom footprint to 165 traditional showrooms, indicating a robust growth pipeline.
Financial Strength and Flexibility: Strong financial position with $198 million in cash and cash equivalents and a debt-free status, allowing for strategic investments.
2025 Revenue Projections: Positive outlook for 2025 with anticipated net revenue between $1.36 billion and $1.40 billion, reflecting a commitment to disciplined growth.
Negative
Comparable Growth Decline: Decline in comparable growth of 6.4% in Q4 2024, primarily due to lapping the impact of abnormal backlog fulfillment in the prior year.
Revenue Decline Analysis: Full year 2024 net revenue decreased by 1.3% year-over-year, indicating a decline in overall sales performance.
Demand Growth Decline: Full year demand comparable growth declined by 2.2%, largely driven by softness in the second and third quarters.
Gross Margin Decline: Gross margin decreased by $39 million or 7.3% for the full year, primarily due to lower net revenue and increased showroom occupancy costs.
SG&A Expense Increase: SG&A expenses increased by $39 million or 10.5% for the full year, driven by higher costs related to new showroom openings and strategic investments, impacting profitability.
Net Income Decline: Net income for the full year decreased by 45.3% to $69 million, reflecting significant declines in profitability.
Decline in Adjusted EBITDA: Adjusted EBITDA declined by 34.5% for the full year, resulting in an adjusted EBITDA margin of 10.5%, indicating reduced operational efficiency.
2025 Growth Outlook Challenges: The outlook for 2025 anticipates a comparable growth range of 0% to 3%, suggesting continued challenges in achieving growth targets.
ARHS FAQs
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ARHS Earning Call Sentiment
Arhaus, Inc. (ARHS) Q4 2024 Earnings Call Transcript
ARHS.O
-1.59%Positive
The earnings call reveals weak financial performance with declining net income and EBITDA, despite a small revenue increase. Management's cautious guidance and lack of clear answers on demand and tariffs add uncertainty. The market is likely to react negatively to the 4% revenue decline outlook for 2024, increased costs, and strategic investments without immediate returns. While the company remains debt-free, the overall sentiment leans negative due to financial underperformance and unclear future prospects.
