Arhaus (ARHS) Q4 2024 earnings summary

Executive summary

• Achieved record showroom growth in 2024, expanding to 103 locations across 30 states, with 11 new openings and five relocations, marking the largest expansion in nearly 40 years.

• Maintained strong brand differentiation through artisan-crafted products, direct sourcing, and a vertically integrated model, driving customer loyalty and sustainable performance.

• Omnichannel strategy and marketing initiatives fueled higher engagement, with e-commerce as the fastest-growing revenue channel and in-home design services delivering 4x higher order values.

• Ended 2024 debt-free with $198 million in cash, positioning for continued strategic investments and financial flexibility.

• Net revenue reached $347 million in Q4 and $1.271 billion for full year 2024, with net income of $21 million in Q4 and $69 million for the year.

Financial highlights

• Q4 2024 net revenue was $347 million, up 0.9% year-over-year; full year net revenue was $1.271 billion, down 1.3% year-over-year.

• Q4 demand comparable growth was 5.7%, but full year demand comp declined 2.2% due to softness in Q2 and Q3.

• Q4 gross margin declined 1.8% to $139 million (40.0% of revenue); full year gross margin fell 7.3% to $501 million (39.4% of revenue), mainly due to higher showroom occupancy and delivery costs.

• Q4 net income decreased 31.8% to $21 million; full year net income dropped 45.3% to $69 million.

• Adjusted EBITDA for Q4 was $41 million (11.9% margin), down 19.6%; full year Adjusted EBITDA was $133 million (10.5% margin), down 34.5%.

Outlook and guidance

• 2025 full year net revenue expected between $1.36 billion and $1.40 billion, with comparable growth of 0%-3%.

• Q1 2025 net revenue guidance is $303–$323 million, with comparable growth of -6% to +1%.

• 2025 Adjusted EBITDA projected at $140–$150 million; Q1 2025 Adjusted EBITDA expected at $17–$27 million.

• 2025 net income projected at $63–$73 million.

• Guidance incorporates known tariff impacts and assumes a similar macro and housing environment as 2024.