$ARHS reports strong financial results, plans expansion
Mar 9th 2023, 11:38 am
Analyst Summary: Arhaus, a premium artisan-crafted home furnishings retailer, reported strong financial results for Q4 and full year 2022. Net revenue increased 49% for Q4 and 54% for the full year with comparable growth of 47% and 51% respectively. Adjusted EBITDA increased 126% for Q4 and 81% for the full year. Gross margin and net income also saw significant improvement. The strong Q4 performance was due to investments made in supply chain and distribution infrastructure, resulting in improved delivery times and client satisfaction. The company plans to continue investing in the business for growth in 2023, including a record number of new showroom openings and expansions. While the year has started off to a strong start, with high-single digit demand comparable growth for the first two months of the quarter, the uncertain macroeconomic conditions and investments for growth are expected to temporarily weigh on net revenue and profitability. The company plans to open twelve showrooms, as well as renovate, relocate and expand five locations in 2023. Overall, Arhaus remains optimistic about its future, with the CEO stating: "We are most excited about our expected showroom enhancements in 2023," and that the company plans to continue delivering exceptional client experiences.