Arhaus Earnings: What To Look For From ARHS

Luxury furniture retailer Arhaus (NASDAQ:ARHS) will be reporting earnings tomorrow before market hours. Here's what to expect.

Arhaus beat analysts' revenue expectations by 2.5% last quarter, reporting revenues of $344 million, down 3.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates.

Is Arhaus a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Arhaus's revenue to decline 13.2% year on year to $264.3 million, a reversal from the 23.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Arhaus has missed Wall Street's revenue estimates twice over the last two years.

Looking at Arhaus's peers in the home furnishing and improvement retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sleep Number's revenues decreased 10.7% year on year, meeting analysts' expectations, and Floor And Decor reported a revenue decline of 2.2%, falling short of estimates by 1.5%. Sleep Number traded up 4.8% following the results while Floor And Decor's stock price was unchanged.

Read our full analysis of Sleep Number's results here and Floor And Decor's results here.

Growth stocks have seen elevated volatility as investors debate the Fed's monetary policy, and while some of the home furnishing and improvement retail stocks have fared somewhat better, they have not been spared, with share prices down 2% on average over the last month. Arhaus is down 18.1% during the same time and is heading into earnings with an average analyst price target of $17.5 (compared to the current share price of $13.27).

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