Arhaus (NASDAQ:ARHS) Shares Gap Up After Better-Than-Expected Earnings

Arhaus, Inc. (NASDAQ:ARHS) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $8.38, but opened at $10.55. Arhaus shares last traded at $9.4310, with a volume of 569,232 shares.

The company reported $0.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.09 by $0.02. Arhaus had a return on equity of 19.62% and a net margin of 5.40%.The company had revenue of $364.85 million for the quarter, compared to analyst estimates of $351.53 million. During the same period in the previous year, the company posted $0.15 EPS. The firm’s revenue for the quarter was up 5.1% compared to the same quarter last year.

Trending Headlines about Arhaus

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Arhaus declared a special cash dividend of $0.35 per share payable March 31, a direct return of capital that typically supports buyer interest in the stock. GlobeNewswire Release
• Positive Sentiment: Q4 results beat expectations: EPS $0.11 vs. consensus ~$0.09 and revenue $364.8M vs. ~$351.5M, showing demand resilience and supporting near‑term earnings credibility. Zacks: Q4 Beats
• Positive Sentiment: Full‑year 2025: record net revenue up 8.5% to ~$1.38B, adjusted EBITDA +8.9%, cash increased to ~$253M and the company remains debt‑free — fundamentals that support longer‑term valuation. Quiver/Globe Summary
• Positive Sentiment: Telsey Advisory raised its price target from $12 to $13 (market perform), signaling modest analyst support for upside vs. the recent price level.
• Neutral Sentiment: Management provided FY‑2026 revenue guidance of $1.43B–$1.47B (implying ~3.7%–6.6% growth), which is slightly above some street estimates and frames 2026 growth expectations. GlobeNewswire Release
• Neutral Sentiment: Showroom expansion continues (107 total showrooms, plans for 10–14 projects in 2026), supporting medium‑term revenue but requiring capex ($70M–$90M guidance). GlobeNewswire Release
• Negative Sentiment: First‑quarter 2026 revenue guidance of $300M–$320M is below consensus (~$327M), raising near‑term risk that top‑line momentum will disappoint and pressuring short‑term estimates. GlobeNewswire Release
• Negative Sentiment: Profitability mixed: GAAP net income declined ~1.9% y/y for 2025 and Q4 EPS is lower than the prior‑year quarter ($0.11 vs. $0.15), suggesting margins and timing issues that investors should monitor. Quiver/Globe Summary

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Wall Street Zen lowered shares of Arhaus from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Morgan Stanley boosted their price target on shares of Arhaus from $10.50 to $12.00 and gave the company an “equal weight” rating in a research report on Thursday, January 15th. Zacks Research cut shares of Arhaus from a “strong-buy” rating to a “hold” rating in a report on Friday, November 7th. Weiss Ratings reiterated a “hold (c)” rating on shares of Arhaus in a research report on Monday, December 29th. Finally, Telsey Advisory Group lifted their price objective on Arhaus from $12.00 to $13.00 and gave the company a “market perform” rating in a research note on Thursday. Three equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $11.31.

Institutional Trading of Arhaus

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Voya Investment Management LLC grew its position in Arhaus by 10,207.1% in the third quarter. Voya Investment Management LLC now owns 1,512,367 shares of the company’s stock worth $16,076,000 after acquiring an additional 1,497,694 shares in the last quarter. Balyasny Asset Management L.P. purchased a new stake in Arhaus during the fourth quarter valued at about $10,962,000. Wasatch Advisors LP lifted its stake in Arhaus by 6.8% during the second quarter. Wasatch Advisors LP now owns 12,703,259 shares of the company’s stock worth $110,137,000 after purchasing an additional 811,337 shares during the last quarter. CenterBook Partners LP increased its position in shares of Arhaus by 207.9% during the 3rd quarter. CenterBook Partners LP now owns 1,056,367 shares of the company’s stock valued at $11,229,000 after purchasing an additional 713,324 shares during the last quarter. Finally, Nuveen LLC raised its holdings in shares of Arhaus by 616.6% during the 4th quarter. Nuveen LLC now owns 751,950 shares of the company’s stock valued at $8,429,000 after buying an additional 647,020 shares in the last quarter. Hedge funds and other institutional investors own 27.88% of the company’s stock.

Arhaus Stock Up 11.3%

The company has a market cap of $1.32 billion, a P/E ratio of 18.00, a P/E/G ratio of 4.34 and a beta of 2.51. The stock has a 50-day moving average of $10.51 and a two-hundred day moving average of $10.64. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.64 and a current ratio of 1.34.

About Arhaus

Arhaus (NASDAQ:ARHS) is a U.S.-based retailer specializing in high-end home furnishings and décor. Since its founding in 1986 in northeastern Ohio, the company has built a reputation for curating unique, design-forward products that blend contemporary aesthetics with artisanal craftsmanship. Headquartered in Boston Heights, Ohio, Arhaus operates a network of brick-and-mortar galleries across the United States alongside a robust e-commerce platform, serving customers from coastal metropolitan areas to interior regions.

The company’s product portfolio encompasses a wide range of furniture categories—including sofas, dining tables, bedroom pieces and storage solutions—complemented by lighting fixtures, rugs, pillows, wall art and decorative accessories.