Arhaus (ARHS) Investor Presentation summary

Mission and brand positioning

• Founded on the principle of responsibly sourced, artisan-crafted, and durable furniture, partnering with global artisans to create premium, heirloom-quality home furnishings.

• Operates 100 showrooms across 29 states, emphasizing a 'retail is theater' philosophy to inspire a livable luxury lifestyle.

• Focuses on livable luxury, offering comfort, sustainability, and eclectic style in its product lines.

Financial performance and profile

• Achieved $1.3B net revenue and $203M adjusted EBITDA in 2023, maintaining a debt-free balance sheet.

• Net revenue grew at a 27% CAGR from 2019 to 2023, with eCommerce revenue penetration reaching 19% in 2023.

• Gross margin and adjusted EBITDA margin have remained strong, with eCommerce as the fastest-growing channel.

• Expects approximately $1.27B net revenue for full year 2024.

Market landscape and growth drivers

• Competes in a highly fragmented $100B U.S. premium home furniture market, holding less than 2% market share.

• Market growth driven by in-home refresh, remodeling, and home turnover, with affluent households increasing their share of furniture expenditures.

• Digital and omni-channel trends favor larger players, with eCommerce penetration expected to accelerate.