Arhaus (ARHS) Stock Forecast & Price Target

Arhaus Inc has demonstrated positive demand growth, with a year-to-date increase of 2.2%, suggesting a stable consumer interest in its premium home furniture offerings. The company forecasts a revenue range of $320 million to $350 million for 3Q25, indicating potential revenue growth of up to 10% compared to the previous year. Furthermore, the expansion of its showroom count by 30% over the past three years is expected to enhance brand visibility and customer engagement, reinforcing a strong competitive position in the market.

Arhaus's financial outlook is negatively impacted by an erosion in its EBITDA margin, which has shown a compression of 10 basis points year-over-year, dropping to 10.1%. The company is also facing a significant decline in revenue derived from China, projected to fall from 13% in April 2025 to just 5% by the end of the year, which signals potential challenges in international market performance. These factors may contribute to an overall stagnation in profitability and growth for Arhaus in the near term.