Arhaus, Inc. Reports Fourth Quarter and Year End Financial Results

March 9, 2023  by HFBusiness Staff in Business Strategy, Industry   

Co-Founder and Chief Executive Officer of Arhaus, Inc., John Reed, commented, “I am so proud of the tremendous accomplishments of the Arhaus team in 2022. We achieved over $1.2 billion in net revenue, up 54% from 2021, with net income of $137 million and adjusted EBITDA of $223 million, an 81% increase over 2021.”

The net revenue increase of 54.2% to $1.229 million in 2022 was a comparable growth of 51.6% from 2021.

“Our remarkable fourth quarter performance was driven in large part by the investments in our supply chain and distribution infrastructure that enabled us to accelerate delivery of product in the backlog we had previously expected to deliver in 2023. This resulted in stronger than expected net revenue and earnings performance in the quarter, and most importantly, drove better delivery times and delighted our clients,” Reed continued.

Net revenue increased 49.6% to $356 million with comparable growth of 47%. Net and comprehensive income was $47 million, adjusted net income was $48 million, and adjusted
EBITDA increased 126.4% to $74 million.

“As we look to 2023, the year is off to a strong start, with demand comparable growth in the first two months of the quarter up high-single-digits. We are very pleased to be continuing to invest in the business for growth this year, and these investments along with the uncertain macroeconomic backdrop and the pull-forward of backlog delivery into late 2022, are expected to temporarily weigh on net revenue and profitability.”

Looking ahead to 2023, outlook highlights include a net revenue of net revenue of $1,240 million to $1,300 million. Comparable Growth of (4)% to 1% is anticipated. Net and comprehensive income of $95 million to $110 million is forecast and adjusted EBITDA of $180 million to $195 million.

Reed concluded, “Notably, we are most excited about our expected showroom enhancements in 2023 that include seventeen separate real estate projects, by far our most aggressive showroom opening, relocation and expansion schedule to date. We are planning to add a record number of new showrooms during the year, with twelve new showroom openings and five renovation, relocation and expansion projects, most in the second half of the year.”