Telsey Advisory analyst Cristina Fernandez downgraded Arhaus (ARHS) to Market Perform from Outperform with a price target of $11, down from $12. The company’s demand has remained negative and is still expected down low-double-digits in Q4 following very strong performance from Q2 of 2020 to Q1 of 2024, the analyst tells investors in a research note. The firm says Arhaus is needing to run greater or longer promotions to generate demand. The company’s ongoing investments in the business should drive efficiencies over time, but limit EBITDA growth near-term, contends Telsey.