Arhaus (ARHS) Stock Forecast & Price Target

Arhaus Inc has demonstrated a positive growth trajectory, with year-to-date demand increasing by 2.8% through 3Q25, supported by a robust showroom experience and a notable 30% expansion in showroom count over the past three years. For the upcoming 4Q25, the company has forecasted revenues to range between $336 million and $366 million, reflecting a year-over-year growth estimate of 3.3% to 5.4%, alongside a projected EBITDA margin of 8.5%. Furthermore, sales growth has been strong across channels, with retail sales climbing 8.1% and e-commerce sales rising 7.5%, indicating a solid omnichannel strategy and brand traction in the premium home furniture market.

Arhaus Inc has experienced a notable decline in demand, with a 15% drop in October compared to a 7% increase in the preceding quarter, attributed to the timing of promotional activities. Additionally, the company is facing pressure on its gross margin, projected to contract by 10 basis points to 38.5%, while maintaining a flattish EBITDA margin at 10.6%. The overall business environment remains precarious, with several risks, including rising interest rates, weakening consumer confidence, and volatility in commodity costs, potentially hindering future financial performance.