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Here are 1-3 brief analogies for Arhaus (ARHS):

• Restoration Hardware, but with a stronger emphasis on sustainably sourced and artisan-crafted home goods.
• A more upscale Pottery Barn, focused on handcrafted and sustainably sourced furniture.

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• Furniture: High-quality indoor and outdoor furniture for living rooms, dining rooms, bedrooms, and other home spaces.
• Lighting: A wide selection of chandeliers, pendants, lamps, and sconces to illuminate and enhance home decor.
• Rugs: Handcrafted area rugs in various sizes, materials, and styles to define and warm any room.
• Home Decor & Accessories: Curated decorative items including mirrors, vases, pillows, throws, and wall art to complete interior designs.
• Bedding: Luxurious duvet covers, sheets, and blankets crafted from premium materials for bedrooms.

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Arhaus (ARHS) primarily sells its luxury home furnishings directly to individual consumers rather than to other companies.

Based on its brand positioning and product offerings, Arhaus serves the following categories of individual customers:

1. Affluent Homeowners and Renovators: This segment includes individuals and families with significant disposable income who own homes, are undertaking major home renovations, or are furnishing new residences. They prioritize high-quality, distinctive, and often sustainably sourced furniture and decor. These customers value unique design, craftsmanship, and a curated aesthetic for their living spaces.
2. Luxury Lifestyle Seekers: These consumers view their home furnishings as an integral part of their lifestyle and a reflection of their personal taste and status. They are willing to invest in premium products that offer superior comfort, durability, and sophisticated style, contributing to a high-end living experience.
3. Design-Conscious Consumers and Decor Enthusiasts: This category comprises individuals with a strong interest in interior design, aesthetics, and creating stylish home environments. They actively seek unique, statement-making pieces and meticulously curated collections to realize a specific design vision for their homes, appreciating Arhaus's artisanal quality and distinctive selection.

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John Reed, Founder, Chairman and Chief Executive Officer

John Reed co-founded Arhaus in 1986 with Jack Reed. He has served as Chief Executive Officer from January 1997 through December 2015 and resumed the role in February 2017 to the present. Mr. Reed was appointed Chairman of the Board in July 2021.

Michael Lee, Chief Financial Officer

Michael Lee was appointed Chief Financial Officer of Arhaus in May 2025. Prior to his role at Arhaus, he served as CFO and President of Operations and Supply Chain for Ste. Michelle Wine Estates from 2022 to 2025. He also held the position of Executive Vice President and Chief Financial Officer at Canopy Growth Corporation from 2019 to 2021. From 2013 to 2019, Mr. Lee held various leadership roles at Constellation Brands, Inc., including Senior Vice President, Business Transformation.

Jennifer Porter, Chief Marketing and eCommerce Officer

Jennifer Porter has served as Arhaus' Chief Marketing and eCommerce Officer since September 2019. In this role, she oversees the global marketing strategy, the Arhaus.com eCommerce business, and Corporate Social Responsibility initiatives. Before joining Arhaus, Ms. Porter was Head of Marketing at Anthropologie from 2018 to 2019 and held various marketing positions at Forever 21 from 2014 to 2018.

Kathy Veltri, Chief Retail Officer

Kathy Veltri has served as Arhaus' Chief Retail Officer since March 2019. She previously served as Senior Vice President of Retail Operations at Arhaus since 2017. Her prior experience includes serving as Executive Vice President of Sales at Gardner White from 2015 to 2016 and as President of Thomasville, a division of Furniture Brands, from 2013 to 2014. Ms. Veltri also worked at Arhaus as SVP of Retail Operations and Marketing from 2006 to 2013.

Allison Sutley, Chief Information Officer

Allison Sutley has served as Chief Information Officer of Arhaus since April 2025. Before joining Arhaus, she was the Chief Technology Officer of Express, Inc. from 2022 to 2025, and also served as Vice President eCommerce Technology from 2021 to 2022. Earlier in her career, Ms. Sutley was Enterprise Logistics and Transportation Engineering Leader at Cardinal Health, Inc. from 2020 to 2021 and held several leadership roles at Designer Brands Inc. from 2007 to 2020, including Vice President Application Development.

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1. Economic Sensitivity and Fluctuations in Consumer Demand: As a retailer of premium home furnishings, Arhaus's sales are highly susceptible to economic cycles and shifts in consumer discretionary spending. Economic downturns or "choppy consumer demand" can directly impact revenue and profitability, as spending on luxury goods tends to be volatile during such periods.
2. Supply Chain and International Trade Risks: Arhaus's reliance on global sourcing and third-party vendors exposes it to significant supply chain disruptions, potential quality control issues, and the impact of international trade policies, particularly escalating tariffs. For instance, the company anticipated a net impact of approximately $12 million from incremental tariffs for the full fiscal year 2025. Arhaus is actively mitigating these risks by reducing its reliance on certain sourcing regions.
3. Internal Control Weaknesses and Financial Reporting Errors: The company has identified material weaknesses in its internal control over financial reporting, specifically related to IT general controls. These weaknesses could compromise the accuracy and timeliness of financial reporting. Furthermore, Arhaus has acknowledged errors in previously issued unaudited condensed consolidated financial statements, leading to restatements and investigations into potential securities claims. These issues relate to incorrect inclusion of cash receipts from landlord reimbursements and inaccurate cash flows in prior reports.

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The increasing market penetration and sophistication of direct-to-consumer (DTC) online furniture brands. These brands leverage efficient e-commerce platforms and streamlined supply chains to offer design-forward, high-quality furniture often at more competitive price points than traditional omnichannel retailers like Arhaus. This directly challenges Arhaus's value proposition and showroom-centric model, appealing to consumers seeking both quality and value without the traditional retail markup. Examples include companies such as Article and Castlery, which are expanding their reach and demonstrating significant growth in the home furnishings market.

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Arhaus (ARHS) operates in the U.S. premium and luxury home furnishings market, offering products such as sofas, dining tables and chairs, bedroom furniture, bedding, media centers, tableware, rugs, and lighting. The addressable markets for Arhaus's main products and services are primarily within the United States.

U.S. Luxury Furniture Market

The U.S. luxury furniture market demonstrates significant size and growth potential. In 2024, its estimated value ranged from approximately USD 5.32 billion to USD 9.82 billion. More specifically:

• The market generated a revenue of USD 5,323.3 million in 2024 and is expected to reach USD 6,721.0 million by 2030, growing at a compound annual growth rate (CAGR) of 4% from 2025 to 2030.
• Another estimate placed the market size at approximately USD 9.82 billion in 2024, projected to grow to around USD 13.72 billion by 2034 with a CAGR of 3.40% from 2025-2034.
• Additional reports indicated a market size of USD 6.0 billion in 2024, anticipated to reach USD 7.3 billion by 2033, exhibiting a CAGR of 2.2% during 2025-2033.
• Another source valued the market at USD 9449.29 million in 2024, projected to reach USD 14657.64 million by 2033, growing at a CAGR of 5.03% during the forecast period (2025-2033).

U.S. Home Decor Market

The broader U.S. home decor market also represents a substantial addressable market for Arhaus:

• The U.S. home decor market generated a revenue of USD 237,874.2 million in 2024 and is expected to reach USD 392,556.1 million by 2030, growing at a CAGR of 8.9% from 2025 to 2030.
• Other estimations for the U.S. home decor market size include USD 185 billion in 2024, with a projection to reach USD 252 billion by 2033 (CAGR of 3.5% from 2025-2033).
• Another report states the U.S. home decor market size was approximately USD 180.62 billion in 2024 and is assessed to grow to around USD 283.19 billion by 2034 with a CAGR of 4.60% between 2025 and 2034.
• The home decor market size in the U.S. is forecast to increase by USD 75.9 billion at a CAGR of 8.2% between 2024 and 2029.

U.S. Home Furnishings Market (Overall)

For the overall U.S. home furnishings market, which encompasses furniture and decor, Arhaus targets a significant segment:

• Arhaus identifies its total addressable market within home furnishings as USD 100 billion.
• The market size of Home Furnishings Stores in the U.S. was USD 90.5 billion in 2024 and USD 90.9 billion in 2025.
• The U.S. home furniture market size stands at USD 125.81 billion in 2025 and is forecast to reach USD 151.73 billion by 2030, with a CAGR of 3.82%.
• The U.S. furniture market size was estimated at USD 172.33 billion in 2024 and is expected to grow at a CAGR of 6.2% from 2025 to 2033, reaching USD 292.26 billion by 2033.

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Here are 3-5 expected drivers of future revenue growth for Arhaus (ARHS) over the next 2-3 years:

1. Showroom Expansion: Arhaus is strategically expanding its physical footprint by opening new showrooms and relocating/renovating existing ones in key markets. The company plans to complete approximately 12 to 15 showroom projects in 2025, including 4 to 6 new openings. The long-term strategy involves opening an average of 5 to 7 new showrooms annually, aiming for a total of 165 traditional showrooms. This expansion increases market presence, brand visibility, and customer access to Arhaus products, further supported by in-home interior designers in most showrooms to enhance the customer experience.
2. Digital Transformation and E-commerce Growth: Arhaus is making strategic investments in its digital transformation to drive future growth. The company is enhancing its online platform to reach a broader audience and provide a seamless omnichannel shopping experience, complementing its physical showrooms. An incremental investment of approximately $30 million is planned through 2030 for these digital initiatives.
3. New Product Launches and Enhanced Product Assortment: The successful introduction of new product collections, such as the Fall 2025 Collection, has significantly contributed to demand growth. Arhaus's commitment to product innovation, featuring globally sourced materials and sophisticated designs, is a continuous driver for attracting customers and increasing sales.
4. Brand Recognition, Customer Loyalty, and Premiumization: Arhaus benefits from a strong brand recognized for quality and luxury, allowing it to maintain premium pricing. The company's established brand strength, customer loyalty, and focus on craftsmanship, sustainability, and exceptional customer experience position it to capture demand from consumers seeking higher-quality purchases. Strategic marketing efforts further build brand awareness and drive customer traffic.
5. Strategic Pricing Actions: Management has indicated that it can mitigate external challenges like tariffs and macroeconomic headwinds through a diversified sourcing model, operational efficiencies, and strategic pricing actions. These pricing adjustments on its high-end, artisan-crafted home furnishings are expected to contribute to revenue growth.

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Share Repurchases

• Arhaus has engaged in share repurchases primarily for the payment of withholding taxes related to equity-based compensation.
• For the nine months ended September 30, 2025, approximately $2.045 million was used for such repurchases.
• In the nine months ended September 30, 2024, the amount used for these repurchases was approximately $1.277 million.

Share Issuance

• Arhaus completed its Initial Public Offering (IPO) on November 4, 2021, listing on the Nasdaq Global Select Market under the symbol “ARHS”.
• The company issued 12,903,226 shares of its Class A common stock at a price of $13.00 per share, raising $168 million for the company.
• Additionally, selling shareholders offered an extra 10 million Class A shares as part of the IPO.

Inbound Investments

• Prior to its IPO, Arhaus raised $30 million in a conventional debt round on July 21, 2020.
• Investors participating in this debt round included Freeman Spogli.

Capital Expenditures

• Capital expenditures have consistently increased, with $41 million in 2021, $56 million in 2022, $93 million in 2023, and $100 million in 2024.
• For the full year 2025, company-funded capital expenditures are expected to be between $65 million and $75 million, with approximately $43 million incurred in the first nine months.
• The primary focus of capital expenditures is on expanding the showroom footprint, with plans to complete 12 to 15 total showroom projects in 2025, including 4 to 6 new openings and 8 to 9 relocations, renovations, or expansions. Additionally, Arhaus is investing in its distribution network and technology infrastructure.