Arhaus (ARHS) Stock Forecast & Price Target

Arhaus Inc. has demonstrated a positive year-to-date demand increase of 2.2%, signifying a steady growth trajectory. The company has provided guidance for 3Q25 revenues to range between $320 million and $350 million, reflecting a potential growth of 0% to 10%. Furthermore, Arhaus benefits from a 30% increase in showroom count over the past three years, alongside notable retail and e-commerce sales growth of 15.5% and 16.5%, respectively, enhancing its brand awareness and market presence.

Arhaus Inc. is facing several challenges that contribute to a negative outlook on its stock, primarily indicated by a flattening EBITDA margin at 10.3%, which signifies a lack of growth compared to previous periods. Additionally, the company is experiencing gross margin contraction, projected at 38.5%, alongside a notable decline in demand, which dropped 3.6% in the second quarter of 2025 and demonstrated volatility month-to-month. The anticipated reduction of receipts from China, dropping from 13% to 5% by year-end, further exacerbates concerns about revenue stability and growth prospects.