Arhaus (ARHS) Stock Forecast & Price Target

Arhaus is positioned favorably by strong demand momentum, with Q2 revenue rising 7.4% year over year to $385 million and total comparable sales up 4.0%, while written demand comps accelerated to 12.5% and gross margin expanded to 44.7%. Its appeal is reinforced by scale, vertical integration, and exclusive products in the $94 billion luxury furniture market, alongside revenue growth of 157% to $1.27 billion from 2020-2024 and management’s long-term outlook for high-single-digit revenue growth and mid-single-digit comps. The bullish case also rests on expanding EBITDA margins and improving flow-through from marketing, inventory normalization, and efficiencies, supported by stronger in-stock levels and raised 2026 EBITDA guidance to $160 million-$171 million.

Arhaus is facing a cautious fundamental setup because its new showrooms have historically struggled to meet the company’s revenue targets, with management now relying on a $10mm benchmark that may be difficult to achieve in a normalized demand environment. Expansion into the West Coast adds execution risk, as the company remains more established in the Midwest and East Coast, where it has stronger brand recognition and operating familiarity. Profitability also looks vulnerable if EBITDA margin expansion fails to materialize, since unexpected COGS or SG&A pressure and intensifying luxury furniture competition could keep returns below expectations.