Arhaus (ARHS) Stock Forecast & Price Target

Arhaus Inc. has demonstrated a positive growth trajectory, with year-to-date demand increasing by 2.8% and retail sales rising by 8.1%, complemented by a 7.5% increase in e-commerce sales. The company benefits from an expanded showroom footprint, boasting a 30% increase in showroom count over the past three years, which enhances brand awareness and customer engagement. For 4Q25, Arhaus is projecting revenues between $336 million and $366 million, alongside an expected EBITDA margin of 8.5%, indicating solid operational efficiency and potential for profitability.

Arhaus Inc. has experienced a significant decline in demand, dropping approximately 15% in October compared to an increase of 7% in the previous quarter, raising concerns about consumer interest in the company's product offerings. The company's EBITDA margin remains flat at 10.6%, alongside an anticipated gross margin contraction of 10 basis points to 38.5%, indicating potential profitability pressures. Additionally, various risks, including volatility in commodity costs, rising interest rates, and weaker consumer confidence, further compound the negative outlook for Arhaus's financial performance.