Arhaus delivered third quarter results that met market expectations, with revenue growth attributed to a strong product lineup and disciplined execution. Management highlighted the success of the Fall 2025 Collection, which achieved record demand, particularly in upholstery and custom orders. CEO John Reed emphasized the impact of new product launches on client engagement and order values, noting that the in-home design program continued to boost customer loyalty and conversion rates. The company's ability to control design and production through domestic sourcing also played a role in maintaining lead times and margin discipline despite ongoing tariff challenges.

Is now the time to buy ARHS? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Arhaus’s Q3 Earnings Call

• Julio Marquez (Guggenheim Securities) asked about the initial feedback on the new Bath collection and its influence on future product expansions. CEO John Reed said early results were positive, with plans for further development based on customer insights.

• Andrew Carter (Stifel) questioned the drivers behind October's demand softness and the impact of promotional calendar shifts. CFO Michael Lee explained that timing changes and purchase pull-forward influenced results, and emphasized continued high engagement from core clients.

• Jeremy Hamblin (Craig-Hallum Capital) probed the reduction in capital expenditure guidance and its implications for showroom growth. Lee attributed the change to project timing and management changes, reaffirming plans for 5–7 new showrooms annually.

• Seth Sigman (Barclays) asked about the volatility in monthly demand and the sustainability of recent growth rates. Lee stated that macroeconomic uncertainty contributes to demand choppiness, while Porter emphasized demand is often deferred rather than lost.

• Mattie Chick (Bank of America) inquired about the allocation of systems investment and tariff costs across Q3 and Q4. Lee clarified that a portion of both technology spend and tariff impact fell in Q3, with the remainder expected in Q4.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the sales performance and client reception of new product collections and expanded categories, (2) the execution and benefits of the digital transformation initiative aimed at driving operational efficiencies, and (3) Arhaus' ability to manage tariff pressures through sourcing flexibility and pricing strategies. The pace of showroom expansion and evolving macroeconomic trends will also be important indicators of sustained growth.

Arhaus currently trades at $9.30, down from $9.73 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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