Arhaus Reports Fourth Quarter and Full Year 2024 Financial Results
Arhaus (NASDAQ: ARHS) has reported its Q4 and full-year 2024 financial results. The company achieved net revenue of $347 million in Q4 and $1,271 million for the full year. However, gross margin decreased 1.8% to $139 million in Q4 and 7.3% to $501 million for the full year.
The company expanded its showroom presence to 103 locations across 30 states, adding 11 new showrooms and completing 5 strategic relocations in 2024. Notable openings included Greenwich, Oklahoma City, and multiple California locations.
Financial highlights include net income of $21 million in Q4 and $69 million for the full year. The company maintains a strong financial position with $198 million in cash and no long-term debt. Q4 saw demand comparable growth of 5.7%, though comparable growth was -6.4%. The company's inventory stood at $297 million, up 16.8% year-over-year.
Arhaus (NASDAQ: ARHS) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024. L'azienda ha raggiunto un fatturato netto di 347 milioni di dollari nel quarto trimestre e 1.271 milioni di dollari per l'intero anno. Tuttavia, il margine lordo 猫 diminuito dell'1,8% a 139 milioni di dollari nel quarto trimestre e del 7,3% a 501 milioni di dollari per l'intero anno.
L'azienda ha ampliato la sua presenza nei showroom a 103 sedi in 30 stati, aggiungendo 11 nuovi showroom e completando 5 trasferimenti strategici nel 2024. Tra le aperture pi霉 significative ci sono state Greenwich, Oklahoma City e diverse localit脿 in California.
I punti salienti finanziari includono un reddito netto di 21 milioni di dollari nel quarto trimestre e 69 milioni di dollari per l'intero anno. L'azienda mantiene una solida posizione finanziaria con 198 milioni di dollari in contante e nessun debito a lungo termine. Nel quarto trimestre si 猫 registrato una crescita della domanda comparabile del 5,7%, anche se la crescita comparabile 猫 stata del -6,4%. L'inventario dell'azienda ammontava a 297 milioni di dollari, in aumento del 16,8% rispetto all'anno precedente.
Arhaus (NASDAQ: ARHS) ha reportado sus resultados financieros del cuarto trimestre y del a帽o completo 2024. La compa帽铆a alcanz贸 ingresos netos de 347 millones de d贸lares en el cuarto trimestre y 1,271 millones de d贸lares para el a帽o completo. Sin embargo, el margen bruto disminuy贸 un 1.8% a 139 millones de d贸lares en el cuarto trimestre y un 7.3% a 501 millones de d贸lares para el a帽o completo.
La empresa ampli贸 su presencia en salas de exhibici贸n a 103 ubicaciones en 30 estados, a帽adiendo 11 nuevas salas de exhibici贸n y completando 5 reubicaciones estrat茅gicas en 2024. Las aperturas notables incluyeron Greenwich, Oklahoma City y m煤ltiples ubicaciones en California.
Los aspectos financieros destacados incluyen un ingreso neto de 21 millones de d贸lares en el cuarto trimestre y 69 millones de d贸lares para el a帽o completo. La compa帽铆a mantiene una s贸lida posici贸n financiera con 198 millones de d贸lares en efectivo y sin deuda a largo plazo. El cuarto trimestre vio un crecimiento de la demanda comparable del 5.7%, aunque el crecimiento comparable fue del -6.4%. El inventario de la compa帽铆a se situ贸 en 297 millones de d贸lares, un aumento del 16.8% interanual.
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Arhaus (NASDAQ: ARHS) a publi茅 ses r茅sultats financiers du quatri猫me trimestre et de l'ann茅e compl猫te 2024. L'entreprise a r茅alis茅 un chiffre d'affaires net de 347 millions de dollars au quatri猫me trimestre et 1,271 million de dollars pour l'ann茅e enti猫re. Cependant, la marge brute a diminu茅 de 1,8 % 脿 139 millions de dollars au quatri猫me trimestre et de 7,3 % 脿 501 millions de dollars pour l'ann茅e enti猫re.
L'entreprise a 茅largi sa pr茅sence en showroom 脿 103 emplacements dans 30 脡tats, ajoutant 11 nouveaux showrooms et compl茅tant 5 relocalisations strat茅giques en 2024. Parmi les ouvertures notables, on trouve Greenwich, Oklahoma City et plusieurs emplacements en Californie.
Les faits saillants financiers incluent un revenu net de 21 millions de dollars au quatri猫me trimestre et 69 millions de dollars pour l'ann茅e enti猫re. L'entreprise maintient une solide position financi猫re avec 198 millions de dollars en liquidit茅s et aucune dette 脿 long terme. Le quatri猫me trimestre a vu une croissance de la demande comparable de 5,7 %, bien que la croissance comparable ait 茅t茅 de -6,4 %. Les stocks de l'entreprise s'茅levaient 脿 297 millions de dollars, en hausse de 16,8 % par rapport 脿 l'ann茅e pr茅c茅dente.
Arhaus (NASDAQ: ARHS) hat seine Finanzzahlen f眉r das vierte Quartal und das gesamte Jahr 2024 ver枚ffentlicht. Das Unternehmen erzielte netto Einnahmen von 347 Millionen Dollar im vierten Quartal und 1,271 Millionen Dollar f眉r das gesamte Jahr. Der Bruttogewinn sank jedoch um 1,8% auf 139 Millionen Dollar im vierten Quartal und um 7,3% auf 501 Millionen Dollar f眉r das gesamte Jahr.
Das Unternehmen hat seine Showroom-Pr盲senz auf 103 Standorte in 30 Bundesstaaten ausgeweitet, 11 neue Showrooms hinzugef眉gt und 5 strategische Verlagerungen im Jahr 2024 abgeschlossen. Zu den bemerkenswerten Er枚ffnungen geh枚ren Greenwich, Oklahoma City und mehrere Standorte in Kalifornien.
Finanzielle H枚hepunkte umfassen einen Nettogewinn von 21 Millionen Dollar im vierten Quartal und 69 Millionen Dollar f眉r das gesamte Jahr. Das Unternehmen hat eine starke finanzielle Position mit 198 Millionen Dollar in bar und keine langfristigen Schulden. Im vierten Quartal gab es ein vergleichbares Wachstum der Nachfrage von 5,7%, w盲hrend das vergleichbare Wachstum bei -6,4% lag. Der Lagerbestand des Unternehmens betrug 297 Millionen Dollar, was einem Anstieg von 16,8% im Jahresvergleich entspricht.
- Strong cash position of $198 million with no debt
- Q4 demand comparable growth of 5.7%
- Significant showroom expansion to 103 locations
- Net income of $69 million for full year 2024
- Gross margin decreased 7.3% for full year
- SG&A expenses increased 10.5% to $415 million
- Negative comparable growth of -8.0% for full year
- Full-year demand comparable growth declined -2.2%
Insights
Arhaus' Q4 and full-year 2024 results reveal a company executing an aggressive expansion strategy despite facing margin pressures in the premium home furnishings market. While headline comparable sales declined (-6.4% in Q4 and -8.0% for the full year), the 5.7% Q4 demand comparable growth signals improving consumer engagement and potential revenue acceleration in 2025.
The divergence between delivered sales and demand metrics reflects Arhaus' normalization after working through pandemic-era backlogs, with the two-year stacked demand growth of 5.5% demonstrating underlying brand strength in a challenging luxury goods environment. This resilience is particularly notable as competitors like RH and Williams-Sonoma have reported similar pressures.
Margin compression (gross margin down 7.3% for the year) warrants attention but appears largely attributable to the company's accelerated expansion rather than fundamental deterioration. The 27.1% increase in client deposits to $221 million serves as a leading indicator for future revenue conversion and validates management's confidence in their product assortment and marketing effectiveness.
Arhaus' balance sheet strength is exceptional, with $198 million in cash and zero debt, representing approximately 12% of its market cap and providing substantial flexibility to weather potential economic headwinds while continuing strategic investments. The 16.8% inventory increase appears aligned with their showroom expansion rather than indicating overstocking concerns.
The company's ambitious expansion to 103 showrooms (adding 16 locations through new openings and relocations) represents their largest growth year in nearly four decades. This positions Arhaus to capture market share in the fragmented premium home furnishings sector, with significant runway toward their 165 showroom target. Their capital allocation strategy balances growth investments with maintaining financial flexibility, a prudent approach given economic uncertainties in the housing and consumer discretionary sectors.
BOSTON HEIGHTS, Ohio, Feb. 26, 2025 (GLOBE NEWSWIRE) -- Arhaus, Inc. (鈥淎rhaus鈥� or the 鈥淐ompany鈥�) (NASDAQ: ARHS), a growing lifestyle brand and omni-channel retailer of premium artisan-crafted home furnishings, reported fourth quarter and full year 2024 results for the period ended December听31, 2024. Highlights include:
- Net revenue was
$347 million in the fourth quarter and$1,271 million for the full year of 2024. - Gross margin decreased
1.8% to$139 million in the fourth quarter and decreased7.3% to$501 million for the full year of 2024. - Selling, general and administrative expenses increased
11.1% to$111 million in the fourth quarter and increased10.5% to$415 million for the full year of 2024. - Net and comprehensive income of
$21 million in the fourth quarter and$69 million for the full year of 2024. - Adjusted EBITDA was
$41 million in the fourth quarter and$133 million for the full year of 2024. - Comparable growth(1) of (6.4)% in the fourth quarter and (8.0)% for the full year of 2024.
- Demand comparable growth(2) of
5.7% in the fourth quarter and (2.2)% for the full year of 2024. - Showroom growth to 103 locations, as of December听31, 2024, inclusive of 11 new showroom openings and 5 strategic relocations in key growth markets for the full year of 2024.
John Reed, Co-Founder and Chief Executive Officer, said, 鈥�2024 was a transformative year for Arhaus, driven by disciplined execution of our strategy, record showroom expansion, and continued brand momentum. We celebrated a historic milestone by opening our 100th showroom, expanding to a total of 103 locations across 30 states at year end鈥攐ur largest one-year expansion in nearly 40 years through new openings and relocations. With
Operational Highlights
Fourth quarter comparable growth(1) was (6.4)%, primarily due to lapping the impact of abnormal backlog fulfillment in the prior year, while demand comparable growth(2) was
Full-year comparable growth(1) was (8.0)%, primarily due to lapping the impact of abnormal backlog fulfillment in the prior year, and demand comparable growth(2) was (2.2)% due to softness in the second and third quarters. On a two-year stacked(3) basis, demand comparable growth(2) was
Showroom Highlights
In 2024, the Company expanded its showroom footprint to 103 showrooms across 30 states and all four geographic regions, with 11 new openings and 5 strategic relocations in key growth markets. Showroom highlights include:
- Greenwich, Connecticut 鈥� The Company鈥檚 third location in the state situated just above Greenwich Avenue in the downtown shopping district.
- Oklahoma City, Oklahoma 鈥� The Company鈥檚 first location in the state strategically positioned within a premier mixed-use luxury development.
- Palm Desert, California 鈥� An expanded showroom located in the heart of the Coachella Valley.
- Los Angeles, California 鈥� Located at The Grove, an iconic shopping center, further strengthening the Company鈥檚 presence in California.
- Corte Madera, California 鈥� The Company鈥檚 largest retail location in the state and the 14th in California.
The Company鈥檚 long-term strategy remains focused on opening an average of five to seven new Traditional Showrooms annually, along with additional Design Studios and showroom relocations. The Company has a robust pipeline in place toward its goal of 165 Traditional Showrooms.
Balance Sheet and Liquidity
As of December听31, 2024, the Company reported the following:
- No long-term debt.
- Cash and cash equivalents totaled
$198 million . - Net merchandise inventory of
$297 million , a16.8% increase year-over-year. - Client deposits of
$221 million , a27.1% increase year-over-year. - Net cash provided by operating activities totaled
$147 million for the full year. - Net cash used in investing activities was approximately
$100 million for the full year. Company-funded capital expenditures(4) were approximately$66 million and landlord contributions were approximately$34 million .
Outlook
The Company is providing the following outlook for selected full year and first quarter 2025 financial operating results.
| 听 | Full Year 2025 | Q1 2025 |
| Net revenue | ||
| Comparable growth(1) | (6)% to | |
| Net income(5) | ||
| Adjusted EBITDA(6) | ||
| 听 | 听 | 听 |
| Other Estimates | 听 | 听 |
| Company-funded capital expenditures(4) | 听 | |
| Fully diluted shares | ~141 million | 听 |
| Effective tax rate | ~ | 听 |
| Showroom openings | 3 to 5 new showrooms | 听 |
(1) Comparable growth is a key performance indicator and is defined as the year-over-year percentage change of the dollar value of orders delivered (based on purchase price), net of the dollar value of returns (based on amount credited to client), from our comparable Showrooms and eCommerce, including through our catalogs and other mailings. (2) Demand comparable growth is a key performance indicator and is defined as the year-over-year percentage change of demand from our comparable Showrooms and eCommerce, including through our catalogs and other mailings. (3) Two-year stack is calculated as current year demand comparable growth plus demand comparable growth for the prior year. (4) Company-funded capital expenditures is defined as total net cash used in investing activities less landlord contributions. (5) U.S. GAAP net income (loss). (6) We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. These items include, but are not limited to, future share-based compensation expense, income taxes, interest income, and transaction costs. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort. | ||
Conference Call
You are invited to listen to Arhaus鈥� conference call to discuss the fourth quarter and full year 2024 financial results scheduled for today, February听26, 2025, at 8:30 a.m. Eastern Time. The call will be available over the Internet on our website () or by dialing (877) 407-3982 within the U.S., or 1 (201) 493-6780, outside the U.S. The conference ID number is 13741051.
A recorded replay of the conference call will be available within approximately three hours of the conclusion of the call and can be accessed online at 听for approximately twelve months.
About Arhaus
Founded in 1986, Arhaus is a growing lifestyle brand and omni-channel retailer of premium home furnishings. Through a differentiated proprietary model that directly designs and sources products from leading manufacturers and artisans around the world, Arhaus offers an exclusive assortment of heirloom quality products that are sustainably sourced, lovingly made, and built to last. With more than 100 showroom and design studio locations across the United States, a team of interior designers providing complimentary in-home design services, and robust online and eCommerce capabilities, Arhaus is known for innovative design, responsible sourcing, and client-first service. For more information, please visit .
Investor Contact:
Tara Louise Atwood
Vice President, Investor Relations
(440) 439-7700
Non-GAAP Financial Measures
In addition to the results provided in accordance with U.S. GAAP, this press release and related tables include adjusted EBITDA and adjusted EBITDA as a percentage of net revenue, which present operating results on an adjusted basis.
We use non-GAAP measures to help assess the performance of our business, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to our results determined in accordance with U.S. GAAP, we believe that providing these non-GAAP financial measures is useful to our investors as they present an informative supplemental view of our results from period to period by removing the effect of non-recurring items. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. These non-U.S. GAAP measures are not a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. These measures should only be read together with the corresponding U.S. GAAP measures. Please refer to the reconciliations of adjusted EBITDA to the most directly comparable financial measures prepared in accordance with U.S. GAAP below.
Forward-Looking Statements
Certain statements contained herein, including statements under the heading 鈥淥utlook鈥� are not based on historical fact and are 鈥渇orward-looking statements鈥� within the meaning of applicable securities laws.
Forward-looking statements can generally be identified by the use of forward-looking terminology, including, but not limited to, 鈥渕ay,鈥� 鈥渃ould,鈥� 鈥渟eek,鈥� 鈥済uidance,鈥� 鈥減redict,鈥� 鈥減otential,鈥� 鈥渓ikely,鈥� 鈥渂elieve,鈥� 鈥渨ill,鈥� 鈥渆xpect,鈥� 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥減lan,鈥� 鈥渋ntend,鈥� 鈥渇orecast,鈥� or variations of these terms and similar expressions, or the negative of these terms or similar expressions. Past performance is not a guarantee of future results or returns and no representation or warranty is made regarding future performance. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond our control that could cause our actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: our ability to manage and maintain the growth rate of our business; our ability to obtain quality merchandise in sufficient quantities; disruption in our receiving and distribution system, including delays in the integration of our distribution centers and the possibility that we may not realize the anticipated benefits of multiple distribution centers; effects of new or proposed tariffs and changes to international trade policies and agreements; the possibility of cyberattacks and our ability to maintain adequate cybersecurity systems and procedures; loss, corruption and misappropriation of data and information relating to clients and employees; changes in and compliance with applicable data privacy rules and regulations; risks as a result of constraints in our supply chain; a failure of our vendors to meet our quality standards; declines in general economic conditions that affect consumer confidence and consumer spending that could adversely affect our revenue; our ability to anticipate changes in consumer preferences; risks related to maintaining and increasing Showroom traffic and sales; our ability to compete in our market; our ability to adequately protect our intellectual property; compliance with applicable governmental regulations; effectively managing our eCommerce sales channel and digital marketing efforts; our reliance on third-party transportation carriers and risks associated with freight and transportation costs; and compliance with SEC rules and regulations as a public reporting company. These factors should not be construed as exhaustive. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in the Company鈥檚 filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.
| 听 | ||||||||
| Arhaus, Inc. and Subsidiaries | ||||||||
| Consolidated Balance Sheets | ||||||||
| (Unaudited, amounts in thousands, except share and per share data) | ||||||||
| 听 | ||||||||
| 听 | 听 | December 31, | ||||||
| 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2023 | 听 |
| Assets | 听 | 听 | 听 | 听 | ||||
| Current assets | 听 | 听 | 听 | 听 | ||||
| Cash and cash equivalents | 听 | $ | 197,511 | 听 | 听 | $ | 223,098 | 听 |
| Restricted cash | 听 | 听 | 3,418 | 听 | 听 | 听 | 3,207 | 听 |
| Accounts receivable, net | 听 | 听 | 1,252 | 听 | 听 | 听 | 2,394 | 听 |
| Merchandise inventory, net | 听 | 听 | 297,010 | 听 | 听 | 听 | 254,292 | 听 |
| Prepaid and other current assets | 听 | 听 | 31,852 | 听 | 听 | 听 | 26,304 | 听 |
| Total current assets | 听 | 听 | 531,043 | 听 | 听 | 听 | 509,295 | 听 |
| Operating right-of-use assets | 听 | 听 | 322,302 | 听 | 听 | 听 | 302,157 | 听 |
| Financing right-of-use assets | 听 | 听 | 36,105 | 听 | 听 | 听 | 38,835 | 听 |
| Property, furniture and equipment, net | 听 | 听 | 282,520 | 听 | 听 | 听 | 220,248 | 听 |
| Deferred tax assets | 听 | 听 | 21,091 | 听 | 听 | 听 | 19,127 | 听 |
| Goodwill | 听 | 听 | 10,961 | 听 | 听 | 听 | 10,961 | 听 |
| Other noncurrent assets | 听 | 听 | 2,294 | 听 | 听 | 听 | 4,525 | 听 |
| Total assets | 听 | $ | 1,206,316 | 听 | 听 | $ | 1,105,148 | 听 |
| 听 | 听 | 听 | 听 | 听 | ||||
| Liabilities and Stockholders鈥� Equity | 听 | 听 | 听 | 听 | ||||
| Current liabilities | 听 | 听 | 听 | 听 | ||||
| Accounts payable | 听 | $ | 68,621 | 听 | 听 | $ | 63,699 | 听 |
| Accrued taxes | 听 | 听 | 10,480 | 听 | 听 | 听 | 9,638 | 听 |
| Accrued wages | 听 | 听 | 11,538 | 听 | 听 | 听 | 15,185 | 听 |
| Accrued other expenses | 听 | 听 | 47,668 | 听 | 听 | 听 | 46,062 | 听 |
| Client deposits | 听 | 听 | 220,873 | 听 | 听 | 听 | 173,808 | 听 |
| Current portion of operating lease liabilities | 听 | 听 | 42,247 | 听 | 听 | 听 | 33,051 | 听 |
| Current portion of financing lease liabilities | 听 | 听 | 1,024 | 听 | 听 | 听 | 904 | 听 |
| Total current liabilities | 听 | 听 | 402,451 | 听 | 听 | 听 | 342,347 | 听 |
| Operating lease liabilities, long-term | 听 | 听 | 402,916 | 听 | 听 | 听 | 362,598 | 听 |
| Financing lease liabilities, long-term | 听 | 听 | 53,312 | 听 | 听 | 听 | 53,870 | 听 |
| Deferred rent and lease incentives | 听 | 听 | 鈥� | 听 | 听 | 听 | 1,952 | 听 |
| Other long-term liabilities | 听 | 听 | 3,892 | 听 | 听 | 听 | 4,143 | 听 |
| Total liabilities | 听 | $ | 862,571 | 听 | 听 | $ | 764,910 | 听 |
| 听 | 听 | 听 | 听 | 听 | ||||
| Commitments and contingencies | 听 | 听 | 听 | 听 | ||||
| 听 | 听 | 听 | 听 | 听 | ||||
| Stockholders鈥� equity | 听 | 听 | 听 | 听 | ||||
| Class A shares, par value | 听 | $ | 53 | 听 | 听 | $ | 52 | 听 |
| Class B shares, par value | 听 | 听 | 87 | 听 | 听 | 听 | 87 | 听 |
| Retained earnings | 听 | 听 | 142,898 | 听 | 听 | 听 | 145,292 | 听 |
| Additional paid-in capital | 听 | 听 | 200,707 | 听 | 听 | 听 | 194,807 | 听 |
| Total stockholders鈥� equity | 听 | 听 | 343,745 | 听 | 听 | 听 | 340,238 | 听 |
| Total liabilities and stockholders鈥� equity | 听 | $ | 1,206,316 | 听 | 听 | $ | 1,105,148 | 听 |
| Arhaus, Inc. and Subsidiaries | ||||||||
| Consolidated Statements of Comprehensive Income | ||||||||
| (Unaudited, amounts in thousands, except share and per share data) | ||||||||
| 听 | ||||||||
| 听 | 听 | Year ended | ||||||
| 听 | 听 | December 31, | ||||||
| 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2023 | 听 |
| Net revenue | 听 | $ | 1,271,107 | 听 | 听 | $ | 1,287,704 | 听 |
| Cost of goods sold | 听 | 听 | 769,878 | 听 | 听 | 听 | 747,281 | 听 |
| Gross margin | 听 | 听 | 501,229 | 听 | 听 | 听 | 540,423 | 听 |
| Selling, general and administrative expenses | 听 | 听 | 415,426 | 听 | 听 | 听 | 376,112 | 听 |
| Gain on sale of assets | 听 | 听 | (1,202 | ) | 听 | 听 | 鈥� | 听 |
| Income from operations | 听 | 听 | 87,005 | 听 | 听 | 听 | 164,311 | 听 |
| Interest income, net | 听 | 听 | (3,163 | ) | 听 | 听 | (3,351 | ) |
| Other income | 听 | 听 | (754 | ) | 听 | 听 | (1,027 | ) |
| Income before taxes | 听 | 听 | 90,922 | 听 | 听 | 听 | 168,689 | 听 |
| Income tax expense | 听 | 听 | 22,372 | 听 | 听 | 听 | 43,450 | 听 |
| Net and comprehensive income | 听 | $ | 68,550 | 听 | 听 | $ | 125,239 | 听 |
| Net and comprehensive income per share, basic | 听 | 听 | 听 | 听 | ||||
| Weighted-average number of common shares outstanding, basic | 听 | 听 | 140,072,148 | 听 | 听 | 听 | 139,471,110 | 听 |
| Net and comprehensive income per share, basic | 听 | $ | 0.49 | 听 | 听 | $ | 0.90 | 听 |
| Net and comprehensive income per share, diluted | 听 | 听 | 听 | 听 | ||||
| Weighted-average number of common shares outstanding, diluted | 听 | 听 | 140,692,000 | 听 | 听 | 听 | 140,096,732 | 听 |
| Net and comprehensive income per share, diluted | 听 | $ | 0.49 | 听 | 听 | $ | 0.89 | 听 |
| Arhaus, Inc. and Subsidiaries | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (Unaudited, amounts in thousands) | ||||||||
| 听 | ||||||||
| 听 | 听 | Year ended | ||||||
| 听 | 听 | December 31, | ||||||
| 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2023 | 听 |
| Cash flows from operating activities | 听 | 听 | 听 | 听 | ||||
| Net income | 听 | $ | 68,550 | 听 | 听 | $ | 125,239 | 听 |
| Adjustments to reconcile net income to net cash provided by operating activities | 听 | 听 | 听 | 听 | ||||
| Depreciation and amortization | 听 | 听 | 39,086 | 听 | 听 | 听 | 29,442 | 听 |
| Amortization of operating lease right-of-use asset | 听 | 听 | 36,937 | 听 | 听 | 听 | 33,306 | 听 |
| Amortization of deferred financing fees, interest on finance lease in excess of principal paid and interest on operating leases | 听 | 听 | 26,728 | 听 | 听 | 听 | 22,075 | 听 |
| Equity based compensation | 听 | 听 | 7,640 | 听 | 听 | 听 | 7,909 | 听 |
| Deferred tax assets | 听 | 听 | (1,964 | ) | 听 | 听 | (2,286 | ) |
| Gain on sale of property, furniture and equipment | 听 | 听 | (1,202 | ) | 听 | 听 | 鈥� | 听 |
| Amortization of cloud computing arrangements | 听 | 听 | 1,625 | 听 | 听 | 听 | 698 | 听 |
| Amortization and write-off of lease incentives | 听 | 听 | (80 | ) | 听 | 听 | (321 | ) |
| Insurance proceeds | 听 | 听 | 鈥� | 听 | 听 | 听 | 60 | 听 |
| Changes in operating assets and liabilities | 听 | 听 | 听 | 听 | ||||
| Accounts receivable | 听 | 听 | 1,142 | 听 | 听 | 听 | (660 | ) |
| Merchandise inventory | 听 | 听 | (42,718 | ) | 听 | 听 | 32,067 | 听 |
| Prepaid and other assets | 听 | 听 | (2,479 | ) | 听 | 听 | (11,109 | ) |
| Other noncurrent liabilities | 听 | 听 | (10 | ) | 听 | 听 | 388 | 听 |
| Accounts payable | 听 | 听 | 5,618 | 听 | 听 | 听 | 1,216 | 听 |
| Accrued expenses | 听 | 听 | (921 | ) | 听 | 听 | (1,540 | ) |
| Operating lease liabilities | 听 | 听 | (37,908 | ) | 听 | 听 | (39,020 | ) |
| Client deposits | 听 | 听 | 47,065 | 听 | 听 | 听 | (28,779 | ) |
| Net cash provided by operating activities | 听 | 听 | 147,109 | 听 | 听 | 听 | 168,685 | 听 |
| Cash flows from investing activities | 听 | 听 | 听 | 听 | ||||
| Purchases of property, furniture and equipment | 听 | 听 | (107,370 | ) | 听 | 听 | (93,441 | ) |
| Proceeds from the sale of property, furniture and equipment | 听 | 听 | 7,836 | 听 | 听 | 听 | 鈥� | 听 |
| Insurance proceeds | 听 | 听 | 鈥� | 听 | 听 | 听 | 333 | 听 |
| Net cash used in investing activities | 听 | 听 | (99,534 | ) | 听 | 听 | (93,108 | ) |
| Cash flows from financing activities | 听 | 听 | 听 | 听 | ||||
| Principal payments under finance leases | 听 | 听 | (927 | ) | 听 | 听 | (763 | ) |
| Repurchase of shares for payment of withholding taxes for equity based compensation | 听 | 听 | (1,769 | ) | 听 | 听 | (1,036 | ) |
| Cash dividend payments | 听 | 听 | (70,255 | ) | 听 | 听 | 鈥� | 听 |
| Net cash used in financing activities | 听 | 听 | (72,951 | ) | 听 | 听 | (1,799 | ) |
| Net (decrease) increase in cash, cash equivalents and restricted cash | 听 | 听 | (25,376 | ) | 听 | 听 | 73,778 | 听 |
| Cash, cash equivalents and restricted cash | 听 | 听 | 听 | 听 | ||||
| Beginning of year | 听 | 听 | 226,305 | 听 | 听 | 听 | 152,527 | 听 |
| End of year | 听 | $ | 200,929 | 听 | 听 | $ | 226,305 | 听 |
| 听 | 听 | 听 | 听 | 听 | ||||
| Supplemental disclosure of cash flow information | 听 | 听 | 听 | 听 | ||||
| Interest paid in cash | 听 | $ | 4,670 | 听 | 听 | $ | 5,301 | 听 |
| Interest received in cash | 听 | 听 | 9,029 | 听 | 听 | 听 | 8,778 | 听 |
| Income taxes paid in cash | 听 | 听 | 23,770 | 听 | 听 | 听 | 47,132 | 听 |
| Noncash investing activities: | 听 | 听 | 听 | 听 | ||||
| Purchases of property, furniture and equipment in current liabilities | 听 | 听 | 8,383 | 听 | 听 | 听 | 10,286 | 听 |
| Noncash financing activities: | 听 | 听 | 听 | 听 | ||||
| Adjustment to deferred tax asset impact of Reorganization from partnership to a corporation | 听 | 听 | 鈥� | 听 | 听 | 听 | (1,625 | ) |
| Capital contributions | 听 | 听 | 30 | 听 | 听 | 听 | 56 | 听 |
| Arhaus, Inc. and Subsidiaries | ||||||||
| Reconciliation of Net Income to Adjusted EBITDA | ||||||||
| (Unaudited, amounts in thousands) | ||||||||
| 听 | ||||||||
| 听 | 听 | Year ended | ||||||
| 听 | 听 | December 31, | ||||||
| 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2023 | 听 |
| Net and comprehensive income | 听 | $ | 68,550 | 听 | 听 | $ | 125,239 | 听 |
| Interest income, net | 听 | 听 | (3,163 | ) | 听 | 听 | (3,351 | ) |
| Income tax expense | 听 | 听 | 22,372 | 听 | 听 | 听 | 43,450 | 听 |
| Depreciation and amortization | 听 | 听 | 39,086 | 听 | 听 | 听 | 29,442 | 听 |
| EBITDA | 听 | 听 | 126,845 | 听 | 听 | 听 | 194,780 | 听 |
| Equity based compensation | 听 | 听 | 7,640 | 听 | 听 | 听 | 7,909 | 听 |
| Other (income) expenses(1) | 听 | 听 | (1,202 | ) | 听 | 听 | 792 | 听 |
| Adjusted EBITDA | 听 | $ | 133,283 | 听 | 听 | $ | 203,481 | 听 |
| 听 | 听 | 听 | 听 | 听 | ||||
| Net revenue | 听 | $ | 1,271,107 | 听 | 听 | $ | 1,287,704 | 听 |
| Net and comprehensive income as a % of net revenue | 听 | 听 | 5.4 | % | 听 | 听 | 9.7 | % |
| Adjusted EBITDA as a % of net revenue | 听 | 听 | 10.5 | % | 听 | 听 | 15.8 | % |
(1) Other (income) expenses represent costs and investments not indicative of ongoing business performance, such as gain on disposal of assets, secondary offering costs, severance, signing bonuses and recruiting costs. For the year ended December听31, 2024, these other (income) expenses consisted largely of
| Arhaus, Inc. and Subsidiaries | ||||||||
| Consolidated Statements of Comprehensive Income | ||||||||
| (Unaudited, amounts in thousands, except share and per share data) | ||||||||
| 听 | ||||||||
| 听 | 听 | Three months ended | ||||||
| 听 | 听 | December 31, | ||||||
| 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2023 | 听 |
| Net revenue | 听 | $ | 347,011 | 听 | 听 | $ | 344,008 | 听 |
| Cost of goods sold | 听 | 听 | 208,280 | 听 | 听 | 听 | 202,800 | 听 |
| Gross margin | 听 | 听 | 138,731 | 听 | 听 | 听 | 141,208 | 听 |
| Selling, general and administrative expenses | 听 | 听 | 111,341 | 听 | 听 | 听 | 100,222 | 听 |
| Gain on sale of assets | 听 | 听 | (1,202 | ) | 听 | 听 | 鈥� | 听 |
| Income from operations | 听 | 听 | 28,592 | 听 | 听 | 听 | 40,986 | 听 |
| Interest income, net | 听 | 听 | (581 | ) | 听 | 听 | (1,620 | ) |
| Other income | 听 | 听 | (307 | ) | 听 | 听 | (289 | ) |
| Income before taxes | 听 | 听 | 29,480 | 听 | 听 | 听 | 42,895 | 听 |
| Income tax expense | 听 | 听 | 8,186 | 听 | 听 | 听 | 11,679 | 听 |
| Net and comprehensive income | 听 | $ | 21,294 | 听 | 听 | $ | 31,216 | 听 |
| Net and comprehensive income per share, basic | 听 | 听 | 听 | 听 | ||||
| Weighted-average number of common shares outstanding, basic | 听 | 听 | 140,315,252 | 听 | 听 | 听 | 139,783,398 | 听 |
| Net and comprehensive income per share, basic | 听 | $ | 0.15 | 听 | 听 | $ | 0.22 | 听 |
| Net and comprehensive income per share, diluted | 听 | 听 | 听 | 听 | ||||
| Weighted-average number of common shares outstanding, diluted | 听 | 听 | 140,569,488 | 听 | 听 | 听 | 140,319,792 | 听 |
| Net and comprehensive income per share, diluted | 听 | $ | 0.15 | 听 | 听 | $ | 0.22 | 听 |
| Arhaus, Inc. and Subsidiaries | ||||||||
| Reconciliation of Net Income to Adjusted EBITDA | ||||||||
| (Unaudited, amounts in thousands) | ||||||||
| 听 | ||||||||
| 听 | 听 | Three months ended | ||||||
| 听 | 听 | December 31, | ||||||
| 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2023 | 听 |
| Net and comprehensive income | 听 | $ | 21,294 | 听 | 听 | $ | 31,216 | 听 |
| Interest income, net | 听 | 听 | (581 | ) | 听 | 听 | (1,620 | ) |
| Income tax expense | 听 | 听 | 8,186 | 听 | 听 | 听 | 11,679 | 听 |
| Depreciation and amortization | 听 | 听 | 11,191 | 听 | 听 | 听 | 8,003 | 听 |
| EBITDA | 听 | 听 | 40,090 | 听 | 听 | 听 | 49,278 | 听 |
| Equity based compensation | 听 | 听 | 2,288 | 听 | 听 | 听 | 2,157 | 听 |
| Other income(1) | 听 | 听 | (1,202 | ) | 听 | 听 | (200 | ) |
| Adjusted EBITDA | 听 | $ | 41,176 | 听 | 听 | $ | 51,235 | 听 |
| 听 | 听 | 听 | 听 | 听 | ||||
| Net revenue | 听 | $ | 347,011 | 听 | 听 | $ | 344,008 | 听 |
| Net and comprehensive income as a % of net revenue | 听 | 听 | 6.1 | % | 听 | 听 | 9.1 | % |
| Adjusted EBITDA as a % of net revenue | 听 | 听 | 11.9 | % | 听 | 听 | 14.9 | % |
(1) Other income represents costs and investments not indicative of ongoing business performance, such as gain on disposal of assets and secondary offering costs. For the three months ended December听31, 2024, other income consisted largely of
FAQ
What was Arhaus (ARHS) revenue and net income for Q4 2024?
How many showrooms did Arhaus (ARHS) open in 2024?
What was Arhaus (ARHS) demand comparable growth in Q4 2024?
How much cash does Arhaus (ARHS) have on its balance sheet as of December 2024?
