Arhaus (ARHS) Rallies 18% on Q4 Earnings, Beats Supply Chain Woes

Trade ARHS Stock Your Capital Is At Risk
Ollie Martin
Updated: 30 Mar 2022

Key points:

  • ARHS stock rallied around 18% as positive sentiment returns to the retail sector
  • Beating on both EPS and revenue, Arhaus have had a solid first year of public trading
  • Management seem upbeat regarding supply chains and inflation

It hasn’t been plain sailing for retailers lately; even industry giants have suffered under supply chain limitations and the ever-present theme of inflation. Earnings releases in the last few months illustrate the deafening economic atmosphere that has thrown retailers and manufacturers into unprecedented angst, obviously exacerbated by the shadow of geopolitical uncertainty.

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Arhaus (NASDAQ: ARHS) – the prominent retailer of premium artisanal home furnishings – reported earnings today that stood up to the current climate, defying the common hurdles that have been weighing on the wider industry. ARHS stock rallied nearly 18% as a result of the company’s positive outlook. 

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Arhaus recorded an EPS of $0.07, beating consensus by $0.21. Revenue also surprised analysts, coming in at $238.23M, $26.77M ahead of average expectations. Further positivity was to follow in the FY22 outlook; the company expects revenue between $232M to $236M against the consensus of $208.76M in Q1. For the full year, Arhaus has predicted a net revenue of between $1.13B and $1.17B against the consensus of $1.08B; which would translate to annual growth of between 35% and 45%. 

For the company’s first year of public trading, they’ve made resounding progress in the face of a difficult economic climate. In terms of operational expansion, the company has opened a new distribution center, an upholstery production facility, and started construction on a new distribution and corporate office.

The company sees supply chain issues easing both internally and externally, holding the belief that lead times will continue to improve. Looking forward, management claim that the Q1 and FY22 outlook have effectively incorporated inflationary changes, meaning Arhaus will likely deliver on its forthcoming financial goals.

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