Arhaus (ARHS) Stock Forecast & Price Target

Arhaus Inc has experienced a year-to-date demand increase of 2.8% through 3Q25, alongside strong performance in its retail and e-commerce sales channels, which rose 8.1% and 7.5%, respectively. Additionally, the company has seen a 30% growth in its showroom count over the past three years, contributing to heightened brand awareness and driving its sales growth. For 4Q25, Arhaus has projected revenues to range between $336 million and $366 million, with anticipated EBITDA margins of 8.5%, indicating a solid operational performance outlook.

Arhaus Inc is experiencing a significant decline in demand, with a reported drop of approximately 15% in October, contrasting sharply with a 7% increase in the previous quarter, attributed to the timing of promotional activities. The company is also facing challenges with EBITDA margins remaining flat at 10.6% while projected gross margin is expected to contract by 10 basis points to 38.5%. Additionally, ongoing risks such as volatility in commodity costs, rising interest rates, and declining consumer confidence may further jeopardize the company's financial stability.