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

Arhaus, Inc. (NASDAQ:ARHS) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. 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 traded.

The company reported $0.11 EPS for the quarter, beating analysts’ consensus estimates of $0.10 by $0.01. Arhaus had a return on equity of 19.62% and a net margin of 5.40%.The firm had revenue of $364.85 million for the quarter, compared to analyst estimates of $351.53 million. During the same quarter in the prior year, the firm earned $0.15 earnings per share. Arhaus’s revenue for the quarter was up 5.1% on a year-over-year basis.

Arhaus Announces Dividend

The firm also recently disclosed a special dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Wednesday, March 18th will be paid a $0.35 dividend. The ex-dividend date is Wednesday, March 18th.

Key Headlines Impacting Arhaus

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Q4 results beat consensus: Arhaus reported $0.11 EPS vs. $0.10 expected and revenue of $364.85M vs. $351.5M expected — a near‑term earnings catalyst supporting the rally. Zacks: ARHS Tops Q4 Estimates
• Positive Sentiment: Board declared a special cash dividend of $0.35/share payable March 31 — a shareholder‑friendly move that can attract income‑oriented investors. Company Press Release
• Positive Sentiment: Full‑year 2025: record net revenue up 8.5% to $1.379B, improved gross margin and stronger cash (ending cash ~$253M) with no long‑term debt — supports financial stability and capital returns. Company Press Release
• Positive Sentiment: Telsey Advisory Group raised its price target from $12 to $13 (market perform), signaling incremental analyst support for upside versus today’s levels. Benzinga note
• Neutral Sentiment: Management engagement: CFO and IR will meet investors at the Raymond James conference March 3 — useful for follow‑up color but not an immediate earnings surprise. Conference Notice
• Neutral Sentiment: Earnings call transcript and slide deck are available for deeper read — helpful for confirming margin drivers and showroom economics. Earnings Call Transcript
• Neutral Sentiment: Short‑interest data flagged a “large increase” but shows zeros/NaN in the feed — likely a data glitch; monitor accurate short‑interest filings if concerned.
• Negative Sentiment: Profitability and demand signals: Q4 EPS ($0.11) is down from $0.15 a year ago and annual net income declined ~1.9%; Comparable Written Sales were only +1.3% — suggests some demand moderation that could cap valuation multiple. Company Press Release
• Negative Sentiment: Near‑term guidance: Q1 2026 revenue guidance ($300M–$320M) implies a range that includes negative year‑over‑year growth; FY‑2026 revenue growth outlook is modest (3.7%–6.6%) — investors may view growth deceleration as a headwind. Outlook Details

Analysts Set New Price Targets

Several research firms have commented on ARHS. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Arhaus in a report on Monday, December 29th. Wall Street Zen cut Arhaus from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Jefferies Financial Group restated a “hold” rating and issued a $9.50 target price on shares of Arhaus in a research note on Thursday. Telsey Advisory Group lifted their price target on Arhaus from $12.00 to $13.00 and gave the company a “market perform” rating in a research report on Thursday. Finally, Zacks Research downgraded Arhaus from a “strong-buy” rating to a “hold” rating in a report on Friday, November 7th. Three analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat, Arhaus presently has a consensus rating of “Hold” and an average target price of $11.11.

Institutional Trading of Arhaus

A number of institutional investors and hedge funds have recently made changes to their positions in ARHS. Invesco Ltd. raised its stake in shares of Arhaus by 49.0% during the 4th quarter. Invesco Ltd. now owns 95,939 shares of the company’s stock worth $1,075,000 after buying an additional 31,550 shares during the period. Numerai GP LLC purchased a new stake in Arhaus in the 4th quarter worth $361,000. EVR Research LP raised its position in Arhaus by 50.0% during the fourth quarter. EVR Research LP now owns 150,000 shares of the company’s stock worth $1,682,000 after acquiring an additional 50,000 shares during the period. Balyasny Asset Management L.P. purchased a new position in Arhaus during the fourth quarter valued at $10,962,000. Finally, AQR Capital Management LLC lifted its holdings in Arhaus by 20.9% during the fourth quarter. AQR Capital Management LLC now owns 12,993 shares of the company’s stock valued at $146,000 after purchasing an additional 2,245 shares in the last quarter. 27.88% of the stock is currently owned by hedge funds and other institutional investors.

Arhaus Trading Up 10.5%

The firm has a market cap of $1.31 billion, a price-to-earnings ratio of 17.81, a price-to-earnings-growth ratio of 4.33 and a beta of 2.51. The company’s 50-day moving average price is $10.47 and its 200-day moving average price is $10.63. The company has a quick ratio of 0.64, a current ratio of 1.34 and a debt-to-equity ratio of 0.13.

Arhaus Company Profile

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.