Arhaus Inc (NAS:ARHS)

Q1 2025 Arhaus Inc Earnings Call Transcript

May 8, 2025 / 12:30 PM GMT

Release Date Price: $7.93 (-5.14%)

Transcript 10-Q8-K

Key Points

Positve

Arhaus Inc (ARHS) reported a net revenue growth of 5.5% year-over-year, supported by increased demand across retail and e-commerce channels.
The company ended the quarter with $214 million in cash and cash equivalents and remained debt-free, providing financial flexibility.
Arhaus Inc (ARHS) is expanding its showroom footprint, with plans to complete 12 to 15 showroom projects in 2025, reflecting confidence in long-term growth.
The company has a diversified sourcing strategy across North America, Europe, and South Asia, reducing dependency on any single region.
Arhaus Inc (ARHS) is making strategic investments in technology and e-commerce to enhance client experience and drive long-term growth.

Negative

Gross margin decreased by 190 basis points to 37.1% of net revenue, primarily due to higher showroom occupancy and product costs.
Selling, general, and administrative expenses increased by 13.9% year-over-year, driven by higher warehouse, marketing, and strategic investment costs.
The company experienced a demand comparable growth decline in April, down 10%, impacted by tariff news and stock market volatility.
Arhaus Inc (ARHS) revised its full-year 2025 outlook to reflect increased volatility and a more cautious stance, with a wider guidance range.
The company faces a potential $10 million impact from tariffs, which it aims to mitigate through strategic sourcing shifts and vendor concessions.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ARHS.OQ - Arhaus Inc
Q1 2025 Arhaus Inc Earnings Call
May 08, 2025 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning and welcome to the first quarter 2025 earnings conference call. Please note that this call is being recorded and the reproduction of any part of this call is not permitted without written authorization from the company.

I will now turn the call over to your host Tara Atwood, Vice President of Investor Relations. Please go ahead.

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Unidentified_2 [2]
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Good morning and thank you for joining us for the our house 1st quarter 2025 earnings call. Joining me on today's call are John Reid, our founder, Chairman and Chief Executive Officer, Jennifer Porter, our

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