Arhaus Stock Drops to 52-Week Low After Q1 Earnings

Summary

Arhaus NASDAQ: ARHS shares have been under heavy pressure since the high-end home furnishings company reported first-quarter earnings on May 7. Although the company posted record net revenue for a first quarter, investors seemed to focus on weakening comparable sales and margin pressure, largely stemming from severe weather and softer demand amid broader macroeconomic uncertainty. The decline extended what has already been a difficult stretch for the stock, which has fallen nearly 70% since hitting an all-time high above $19 about two years ago.Get Arhaus alerts:Sign Up Record Q1 Revenue Overshadowed by Comp Sales, Margin ConcernsArhaus reported revenue of $314 million for the quarter, up 0.9% year over year. The number topped Wall Street estimates by just over $300,000 and came in above the midpoint of the company’s guidance. Arhaus Today$5.88 +0.10 (+1.64%) As of 11:41 AM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$5.57▼$12.98P/E Ratio12.46Price Target$9.58 During the earnings call, Chief Financial Officer Michael Lee said, “This performance is particularly notable as we lapped a prior year period that did not face the same tariff uncertainty, macro volatility, or geopolitical disruption. Despite these ongoing headwinds, including the recent escalation in global conflict, we continue to deliver net revenue growth through a volatile environment.” While showroom growth pushed revenue higher, weather disruptions and weakened consumer sentiment tied to macroeconomic uncertainty weighed on comparable sales. Comparable delivered sales, which measure delivered orders net of returns, fell 1.7% year over year, while comparable written sales, which measure orders placed, declined 5.7% from the prior year. The latter was further pressured by the delayed release of the company’s Spring catalog. Profitability also weakened during the quarter. Gross margin declined 70 basis points to 36.4%, and net income dropped 54.5% to $2 million. ...