BOSTON HEIGHTS, Ohio — For the third quarter of fiscal year 2024, Top 100 retailer Arhaus posted net revenues near levels it hit a year ago. Net income continued to lag, reflecting the challenged environment faced at retail.
For the three months ended Sept. 30, the Boston Heights, Ohio-based retailer recorded $319.13 million in net revenue, a 2.18% slip compared with $326.23 million during the same quarter in 2023. Net income totaled $9.92 million, or 7 cents per diluted share, down 49.73% against $19.74 million, or 14 cents per diluted share in 2023.
In the quarter, Arhaus recorded adjusted EBITDA of $23.11 million, giving it an EBITDA margin of 7.2%.
“Our third-quarter results demonstrate our team’s commitment to operational excellence in a challenging environment. We remain focused on our long-term growth strategy grounded in our premium, livable luxury offerings and exceptional client experience,” said John Reed, co-founder and CEO. “With 10 new showrooms opened already this year and an 11th opening tomorrow in Corte Madera, Calif., we remain committed to expanding our presence in key markets.”
Through the first three quarters of the fiscal year, Arhaus totaled $924.1 million in net revenues, which is 2.08% off 2023’s nine-month pace of $943.7 million. Its net income totaled $47.26 million, or 34 cents per diluted share, a decline of 49.74% vs. net income of $94.02 million, or 67 cents per diluted share.
With $92.11 million in adjusted EBITDA through the first three quarters, Arhaus’ year-to-date EBITDA margin is 9.97%.
Based on ongoing consumer trends, Arhaus adjusted its full year guidance to net revenues of $1.23 billion to $1.25 billion, down from $1.25 billion to $1.29 billion previously, with net income totaling $55 million to $125 million, compared with its earlier guidance of $125 million to $145 million.
“While demand trends improved throughout the third quarter, we’re adjusting our full-year sales and earnings outlook to reflect a continued tempered consumer environment, which we believe is temporary given our innovative product offerings and compelling marketing campaigns,” Reed said. “Despite near term headwinds, our strong, debt-free balance sheet enables us to continue prudent investment in strategic priorities.”
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