Luxury furniture retailer Arhaus (NASDAQ:ARHS) will be reporting results tomorrow before market hours. Here's what to expect.
Arhaus beat analysts' revenue expectations by 11.7% last quarter, reporting revenues of $295.2 million, down 3.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates and a solid beat of analysts' gross margin estimates.
Is Arhaus a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Arhaus's revenue to be flat year on year at $314.3 million, slowing from the 2.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Arhaus has missed Wall Street's revenue estimates twice over the last two years.
Looking at Arhaus's peers in the home furnishing and improvement retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Sleep Number's revenues decreased 11% year on year, missing analysts' expectations by 1.9%, and Floor And Decor reported flat revenue, falling short of estimates by 1.7%. Sleep Number traded up 19.4% following the results while Floor And Decor was also up 4.1%.
Read our full analysis of Sleep Number's results here and Floor And Decor's results here.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the home furnishing and improvement retail stocks have fared somewhat better, they have not been spared, with share prices down 2.4% on average over the last month. Arhaus is down 2.9% during the same time and is heading into earnings with an average analyst price target of $18.6 (compared to the current share price of $14.25).
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