Arhaus, Inc. Class A ( (ARHS) ) has released its Q4 earnings. Here is a breakdown of the information Arhaus, Inc. Class A presented to its investors.
Arhaus, Inc., a lifestyle brand and omni-channel retailer specializing in premium artisan-crafted home furnishings, has reported its financial results for the fourth quarter and full year of 2024, showcasing its strategic growth and financial performance.
The company reported net revenue of $347 million for the fourth quarter and $1,271 million for the full year of 2024. Despite a decrease in gross margin and an increase in selling, general, and administrative expenses, Arhaus achieved a net income of $21 million for the fourth quarter and $69 million for the full year. The company also expanded its showroom presence significantly, reaching 103 locations across the United States.
Key financial metrics include a decrease in gross margin by 1.8% in the fourth quarter and 7.3% for the full year, alongside an increase in selling, general, and administrative expenses by 11.1% in the fourth quarter and 10.5% for the year. The company also reported adjusted EBITDA of $41 million for the fourth quarter and $133 million for the full year. Arhaus’s strategic expansion included 11 new showroom openings and 5 relocations, contributing to its largest one-year expansion in nearly four decades.
The company maintains a strong balance sheet with $198 million in cash and no long-term debt, positioning it well for future growth. Looking ahead to 2025, Arhaus anticipates net revenue between $1.36 billion and $1.40 billion, with plans to open 3 to 5 new showrooms. The company’s management remains optimistic about continued brand momentum and strategic growth opportunities in the coming year.