Luxury furniture retailer Arhaus (NASDAQ: ARHS) will be reporting earnings tomorrow before the bell. Here’s what you need to know.
Arhaus met analysts’ revenue expectations last quarter, reporting revenues of $347 million, flat year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ gross margin estimates but full-year EBITDA guidance missing analysts’ expectations significantly.
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 grow 6.3% year on year to $313.8 million, a reversal from the 3.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.
Analysts covering the company have generally 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 four times over the last two years.
Looking at Arhaus’s peers in the home furnishing and improvement retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sleep Number’s revenues decreased 16.4% year on year, missing analysts’ expectations by 1.2%, and Floor And Decor reported revenues up 5.8%, in line with consensus estimates. Sleep Number traded up 3.3% following the results while Floor And Decor was also up 2.3%.
Read our full analysis of Sleep Number’s results here and Floor And Decor’s results here.
There has been positive sentiment among investors in the home furnishing and improvement retail segment, with share prices up 11% on average over the last month. Arhaus is up 4.5% during the same time and is heading into earnings with an average analyst price target of $11.38 (compared to the current share price of $7.72).
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