Arhaus (ARHS) Stock Forecast & Price Target

Arhaus Inc has demonstrated a year-to-date demand increase of 2.8% through the third quarter of 2025, underpinned by a 30% expansion in showroom count which has elevated brand awareness. For the fourth quarter of 2025, the company is projecting revenues between $336 million and $366 million, reflecting a potential growth of 3.3% to 5.4%, while maintaining an EBITDA margin of 8.5%. Additionally, the growth trajectories in retail and e-commerce sales at 8.1% and 7.5%, respectively, suggest strong performance across multiple channels and support a robust business model.

Arhaus Inc. experienced a significant decline in demand in October, with a 15% drop compared to a 7% increase in the previous quarter, which raises concerns about the company's ability to sustain sales momentum. The company is also facing a projected contraction in gross margin of 10 basis points, anticipated to decrease to 38.5%, indicating potential pressure on profitability. Furthermore, a variety of external risks, including volatility in commodity costs, rising interest rates, and weakening consumer confidence, may adversely impact Arhaus's financial performance in the near future.