Arhaus (ARHS) Stock Forecast & Price Target

Arhaus Inc has demonstrated a robust year-to-date demand increase of 2.8% through 3Q25, supported by an expanding showroom presence, which has grown by 30% over the past three years, enhancing brand awareness and customer engagement. The company's guidance for 4Q25 indicates projected revenues between $336 million and $366 million, reflecting a slight potential growth in the range of (3.3%)-5.4%, alongside an anticipated EBITDA margin of 8.5%. Additionally, strong performance in retail and e-commerce sales, with increases of 8.1% and 7.5% respectively, underscores Arhaus's effective omnichannel strategy and diversified product offerings.

Arhaus Inc. experienced a significant decline in demand in October, decreasing approximately 15% compared to an increase of 7% in the previous quarter, which the company attributed to a shift in promotional timing. Additionally, the company reported a consistent EBITDA margin of 10.6%, while projected gross margin is expected to contract by 10 basis points to 38.5%. Lastly, the company faces a range of risks, including volatility in commodity costs, declining consumer confidence, rising interest rates, and fluctuations in consumer spending, all of which may adversely affect its financial performance.