Arhaus (ARHS) Stock Forecast & Price Target

Arhaus Inc has demonstrated a year-to-date demand increase of 2.8% through 3Q25, reflecting the brand's growing appeal in the premium home furniture market. The company’s strategic expansion is underscored by a 30% increase in showroom locations over the past three years, boosting brand awareness and supporting a differentiated product assortment. Furthermore, for 4Q25, Arhaus has guided revenues to a range of $336 million to $366 million, with both retail and e-commerce sales showing robust growth at 8.1% and 7.5%, respectively, while maintaining a targeted EBITDA margin of 8.5%.

Arhaus Inc has experienced a significant decline in demand, with a 15% drop in October compared to a 7% increase in the previous quarter, which the company attributes to a promotional timing shift. Additionally, the forecasts indicate a gross margin contraction of 10 basis points to 38.5%, coinciding with a stable EBITDA margin of 10.6%, highlighting concerning profitability metrics. Furthermore, increasing volatility in commodity costs, coupled with rising interest rates and weakened consumer confidence, poses substantial risks that could adversely impact the company's financial performance.