Arhaus (NASDAQ:ARHS) Shares Gap Down After Earnings Miss

Arhaus, Inc. (NASDAQ:ARHS)’s share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $8.36, but opened at $7.80. Arhaus shares last traded at $8.03, with a volume of 463,821 shares trading hands.

The company reported $0.03 earnings per share for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.03). Arhaus had a return on equity of 24.92% and a net margin of 6.18%. The business had revenue of $311.37 million during the quarter, compared to the consensus estimate of $314.76 million. During the same quarter last year, the firm earned $0.11 earnings per share. The business’s quarterly revenue was up 5.5% on a year-over-year basis.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on ARHS. Loop Capital cut their target price on Arhaus from $12.00 to $8.00 and set a “hold” rating on the stock in a research report on Friday. Telsey Advisory Group reissued a “market perform” rating and issued a $10.00 target price on shares of Arhaus in a research note on Friday. Piper Sandler dropped their price target on shares of Arhaus from $12.00 to $10.00 and set a “neutral” rating for the company in a research note on Monday, May 5th. Guggenheim reduced their price objective on shares of Arhaus from $14.00 to $12.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Stifel Nicolaus decreased their price objective on shares of Arhaus from $14.00 to $11.50 and set a “buy” rating for the company in a research note on Monday, March 3rd. Ten analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat, Arhaus presently has a consensus rating of “Hold” and a consensus target price of $10.62.

Institutional Trading of Arhaus

A number of hedge funds have recently modified their holdings of ARHS. CenterBook Partners LP boosted its stake in shares of Arhaus by 145.8% during the 1st quarter. CenterBook Partners LP now owns 1,891,457 shares of the company’s stock worth $16,456,000 after acquiring an additional 1,122,004 shares in the last quarter. Emerald Advisers LLC boosted its position in Arhaus by 2.4% during the first quarter. Emerald Advisers LLC now owns 1,667,128 shares of the company’s stock worth $14,504,000 after purchasing an additional 38,674 shares in the last quarter. New York State Common Retirement Fund grew its holdings in Arhaus by 69.8% in the first quarter. New York State Common Retirement Fund now owns 103,606 shares of the company’s stock valued at $901,000 after purchasing an additional 42,601 shares during the period. Arizona State Retirement System raised its stake in shares of Arhaus by 24.9% during the 1st quarter. Arizona State Retirement System now owns 14,525 shares of the company’s stock worth $126,000 after buying an additional 2,899 shares during the period. Finally, Emerald Mutual Fund Advisers Trust lifted its position in shares of Arhaus by 3.4% during the 1st quarter. Emerald Mutual Fund Advisers Trust now owns 934,333 shares of the company’s stock valued at $8,129,000 after buying an additional 30,649 shares in the last quarter. Hedge funds and other institutional investors own 27.88% of the company’s stock.

Arhaus Stock Performance

The company has a current ratio of 1.23, a quick ratio of 0.52 and a debt-to-equity ratio of 0.17. The firm’s fifty day moving average is $8.42 and its 200 day moving average is $9.77. The company has a market cap of $1.12 billion, a PE ratio of 14.21, a price-to-earnings-growth ratio of 11.57 and a beta of 2.65.

About Arhaus

Arhaus, Inc operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits.