Arhaus, Inc. Releases Third Quarter Results

November 10, 2022  by HFBusiness Staff in Business Strategy, Industry   

“We delivered another quarter of strong growth in revenue and earnings driven by outstanding execution by our team in implementing our growth strategies and managing our profitability, an improving supply chain and continued demand growth,” commented John Reed, co-founder and CEO.

The net revenue for Arhaus, Inc. increased 57.4% to $320 million. The increase was driven by strong demand in both showroom and eCommerce channels, as well as continued improvements across their supply chain. There was comparable growth, a key performance indicator, of 54.3%. The net and comprehensive income was $37 million with adjusted net income of 38 million.

Adjusted EBITDA increased 86.6% to $57 million. EBITDA, short for earnings before interest, taxes, depreciation, and amortization, is one of the most widely used measures of a company's financial health and ability to generate cash.

Reed continued, “As our industry faces a dynamic environment with inflationary pressure and macroeconomic challenges, our results in the quarter reflect the strength of our business.”

Their 2022 outlook had been a net revenue of $1,173 million to $1,193 million with comparable growth of 43% to 48%. The outlook also included a net and comprehensive Income of $109 million to $115 million with an adjusted EBITDA of $185 million to $192 million.

Reed concluded, “We are reaffirming our full year net revenue and comparable growth outlook for 2022 and raising our full year net income and adjusted EBITDA outlook. As we look to the future, we remain confident in our strategy and are focused on delivering long-term growth.”