Craig Hallum Upgrades Arhaus (NASDAQ:ARHS) to Buy

Arhaus (NASDAQ:ARHS) was upgraded by equities researchers at Craig Hallum from a “hold” rating to a “buy” rating in a research note issued to investors on Thursday, Marketbeat reports. The firm currently has a $12.00 target price on the stock. Craig Hallum’s target price indicates a potential upside of 24.02% from the company’s previous close.

Other research analysts have also recently issued reports about the company. Piper Sandler lowered their price objective on Arhaus from $11.00 to $8.00 and set a “neutral” rating for the company in a research report on Monday, May 11th. Stifel Nicolaus lowered their price target on Arhaus from $12.00 to $11.00 and set a “buy” rating for the company in a report on Monday, May 11th. Guggenheim dropped their price target on shares of Arhaus from $14.00 to $12.00 and set a “buy” rating on the stock in a research note on Friday, May 8th. Wall Street Zen raised shares of Arhaus from a “sell” rating to a “hold” rating in a report on Monday, July 20th. Finally, Telsey Advisory Group set a $8.00 target price on shares of Arhaus and gave the company a “market perform” rating in a report on Friday, May 8th. Four research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, Arhaus currently has a consensus rating of “Hold” and a consensus target price of $9.82.

Arhaus Stock Up 17.6%

NASDAQ ARHS traded up $1.45 on Thursday, hitting $9.68. 2,831,500 shares of the stock were exchanged, compared to its average volume of 1,342,426. Arhaus has a fifty-two week low of $5.57 and a fifty-two week high of $12.98. The company has a 50-day moving average price of $7.52 and a 200-day moving average price of $7.78. The company has a quick ratio of 0.46, a current ratio of 1.25 and a debt-to-equity ratio of 0.14. The company has a market cap of $1.37 billion, a PE ratio of 20.59, a PEG ratio of 3.33 and a beta of 2.29.

Arhaus (NASDAQ:ARHS) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.28 earnings per share for the quarter, beating analysts’ consensus estimates of $0.16 by $0.12. The business had revenue of $384.90 million for the quarter, compared to analyst estimates of $365.66 million. Arhaus had a net margin of 4.67% and a return on equity of 16.39%. The company’s revenue was up 7.5% on a year-over-year basis. During the same period last year, the business earned $0.25 EPS. Sell-side analysts anticipate that Arhaus will post 0.47 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Larson Financial Group LLC boosted its holdings in shares of Arhaus by 89.8% in the third quarter. Larson Financial Group LLC now owns 2,780 shares of the company’s stock valued at $30,000 after acquiring an additional 1,315 shares during the period. Caitong International Asset Management Co. Ltd acquired a new position in shares of Arhaus in the 3rd quarter valued at $30,000. Global Retirement Partners LLC acquired a new position in shares of Arhaus in the 4th quarter valued at $39,000. Fifth Third Bancorp purchased a new stake in Arhaus in the 1st quarter valued at $40,000. Finally, New York State Teachers Retirement System purchased a new stake in Arhaus in the 4th quarter valued at $52,000. Institutional investors and hedge funds own 27.88% of the company’s stock.

Key Stories Impacting Arhaus

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Q2 results exceeded expectations: Earnings were $0.28 per diluted share versus the $0.16 analyst consensus, while revenue rose 7.4% year over year to $384.9 million, ahead of the $365.7 million estimate. Arhaus Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Sales momentum and profitability improved: Comparable written sales increased 12.5% and comparable delivered sales rose 4.0%. Net income grew 13.1% to approximately $40 million, and adjusted EBITDA increased 16.8% to $70 million. Arhaus Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Outlook supports earnings optimism: Arhaus maintained its 2026 revenue outlook of $1.43 billion to $1.47 billion and raised its net income outlook to $71 million-$80 million and adjusted EBITDA outlook to $160 million-$171 million, reflecting expected tariff refunds. Third-quarter revenue guidance is $355 million-$375 million.
• Positive Sentiment: Tariff recoveries boosted margins: The company recognized a $23.8 million benefit from recoveries of previously paid IEEPA tariffs and said it had received $37.8 million in refunds plus $1.3 million of interest by August 6. Arhaus also continues to expand, ending the quarter with 109 showrooms and maintaining plans for 10-14 showroom projects in 2026.
• Neutral Sentiment: Arhaus has no long-term debt and generated $60 million in operating cash flow during the first half, providing financial flexibility for showroom expansion and other investments.
• Negative Sentiment: Some quality-of-earnings and demand concerns remain: A substantial portion of the margin and EBITDA improvement came from tariff recoveries, which may not recur. Year-to-date comparable delivered sales were up only 1.4%, merchandise inventory increased 4.3%, and cash declined 10.6% after a $49 million special dividend.

About Arhaus

Arhaus (NASDAQ:ARHS) is a U.S.-based retailer specializing in high-end home furnishings and décor. Since its founding in 1986 in northeastern Ohio, the company has built a reputation for curating unique, design-forward products that blend contemporary aesthetics with artisanal craftsmanship. Headquartered in Boston Heights, Ohio, Arhaus operates a network of brick-and-mortar galleries across the United States alongside a robust e-commerce platform, serving customers from coastal metropolitan areas to interior regions.

The company’s product portfolio encompasses a wide range of furniture categories—including sofas, dining tables, bedroom pieces and storage solutions—complemented by lighting fixtures, rugs, pillows, wall art and decorative accessories.