Arhaus, Inc. Announces First Quarter Financial Results

May 9, 2024  by HFBusiness Staff in Business Strategy, Industry   

First Quarter 2024 Highlights
Net revenue of $295 million
Comparable growth⁽¹⁾ of (9.5)%
Net and comprehensive income of $15 million
Adjusted EBITDA of $29 million

2024 Outlook Reaffirmed
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 chief executive officer commented, “I want to thank our teams for delivering a solid start to 2024 and executing on our key priorities. We are pleased to have exceeded our top and bottom line outlook for the quarter as the Arhaus team executed well, and first quarter benefited from the shift in our new warehouse management system implementation to April from March.”

“We are building on our track record of industry-leading market share gains with demand comparable growth⁽²⁾ of 1.3% in the first quarter. January’s weather-impacted high-single-digit demand comparable decline was more than offset by demand comparable growth of mid-single-digit and high-single-digit in February and March, respectively. We also continued our strategic investments in systems, eCommerce capabilities and our in-home designer and trade programs during the quarter.”

“We are thrilled with client response to the new product introductions we have made this year and are excited to be opening several new Showrooms in the second quarter, including in new markets, as we capitalize on our tremendous brand awareness opportunity and remain keenly focused on strategic growth. We are on track to deliver on our goals for the year and are reaffirming our 2024 full year financial outlook.”

In 2024, the Company plans to open nine to eleven new Showrooms, as well as renovate, relocate and expand several locations.

(1) Comparable growth is a key performance indicator and is defined as the year-over-year percentage change of the dollar value of orders delivered (based on purchase price), net of the dollar value of returns (based on amount credited to client), from our comparable Showrooms and eCommerce, including through our catalogs and other mailings.

(2) Demand comparable growth is a key performance indicator and is defined as the year-over-year percentage change of demand from our comparable Showrooms and eCommerce, including through our catalogs and other mailings.

Conference Call

Arhaus conducted a conference call to discuss the first quarter 2024 financial results on May 9. A recorded replay of the conference call will be available within approximately three hours of the conclusion of the call and can be accessed online at http://ir.arhaus.com for approximately twelve months.