Arhaus Releases Financial Results for Fourth Quarter and Full Year

March 7, 2024  by HFBusiness Staff in Business Strategy, Industry   

Fourth Quarter 2023 Highlights

• Net revenue of $344 million
• Comparable growth⁽¹⁾ of (6.8)%
• Net and comprehensive income of $31 million
• Adjusted net income of $31 million
• Adjusted EBITDA of $51 million

Full Year 2023 Highlights

• Net revenue of $1.3 billion
• Comparable growth⁽¹⁾ of 1.4%
• Net and comprehensive income of $125 million
• Adjusted net income of $126 million
• Adjusted EBITDA of $203 million

Full Year 2024 Outlook Highlights

• Net revenue of $1.33 billion to $1.37 billion
• Comparable growth⁽¹⁾ of (4.0)% to (2.0)%
• Net and comprehensive income of $95 million to $105 million
• Adjusted EBITDA of $185 million to $200 million

CEO Comments

John Reed, co-founder and CEO, commented, “Our vision as the premium home furnishing destination in the U.S. is to stand for impeccable design, incomparable craftsmanship, inspirational presentation and responsibly sourced home furnishings that are artisan-made to last for generations.”

In our endeavor to provide high quality, livable luxury furnishings, we delivered another outstanding year in 2023, with record net revenue of approximately $1.3 billion, net income of $125 million, and adjusted EBITDA of $203 million. We ended the year with over $223 million in cash and cash equivalents and a debt-free balance sheet.”

Reed continued, “Our Showroom growth was tremendous in 2023, with eleven new Showroom openings and eight renovation, relocation and expansion project completions. We are excited to continue to expand our brand awareness as we introduce the Arhaus Showroom experience to many more new clients across the U.S.”

“Our growth momentum and strategic investments continue in 2024, when we expect to add approximately nine to eleven new Showrooms: four to six Traditional Showroom formats, two Design Studios, and three outlets, along with several renovation, relocation and expansion projects.”

“We have introduced incredible new product to start 2024, building on the significant success we have seen with new collections that we have introduced over the past few years. We are also continuing our strategic investments that will support our growth and client-first service capabilities while allowing us to more fully capture the benefits of scale over time.”

“Given our strong cash generation and balance sheet strength, I am pleased to announce our Board of Directors approved a special cash dividend of $0.50 per share payable on or about April 4, 2024, to shareholders of record at the close of business on March 21, 2024. We are very pleased to be able to return value to our shareholders while retaining the balance sheet strength that will allow us to continue investing in the growth of Arhaus.”

Reed concluded, “I want to thank the Arhaus team for their hard work and tremendous accomplishments in 2023 and for their unwavering dedication to our clients. We are excited about our future and are committed to delivering value to all our stakeholders.”