Arhaus: Furniture World News: Arhaus Reports Fourth Quarter and Full Year 2024 Financial Results

Arhaus, Inc. (NASDAQ: ARHS), an omni-channel retailer of home furnishings, has reported its fourth quarter and full year 2024 financial results for the period ending December 31, 2024. Financial Highlights Net Revenue: $347 million in Q4 and $1.27 billion for the full year Gross Margin: $139 million in Q4 (down 1.8%) and $501 million for the full year (down 7.3%) Selling, General & Administrative Expenses: $111 million in Q4 (up 11.1%) and $415 million for the full year (up 10.5%) Net Income: $21 million in Q4 and $69 million for the full year Adjusted EBITDA: $41 million in Q4 and $133 million for the full year Comparable Growth: (6.4)% in Q4 and (8.0)% for the full year Demand Comparable Growth: 5.7% in Q4 and (2.2)% for the full year John Reed, Co-Founder and CEO of Arhaus, stated, "2024 was a transformative year for Arhaus, driven by disciplined execution of our strategy, record showroom expansion, and continued brand momentum. We celebrated a historic milestone by opening our 100th showroom, expanding to a total of 103 locations across 30 states at year-end-our largest one-year expansion in nearly 40 years through new openings and relocations. With $198 million in cash and a debt-free balance sheet, we are well-positioned to invest in our long-term growth strategy. Looking ahead to 2025, demand comparable growth looks solid with positive client engagement." Showroom Expansion Arhaus expanded its showroom footprint to 103 locations across 30 states, adding 11 new showrooms and relocating 5 stores in key growth markets. New showroom openings included: Greenwich, Connecticut - Third location in the state, positioned in the downtown shopping district. Oklahoma City, Oklahoma - First location in the state, situated within a luxury mixed-use development. Palm Desert, California - Expanded showroom in the Coachella Valley. Los Angeles, California - Located at The Grove, strengthening the brand's presence in the state. Corte Madera, California - Largest Arhaus showroom in California. The company plans to open 5-7 new traditional showrooms annually, in addition to new design studios and relocations, with a long-term goal of reaching 165 traditional showrooms. Balance Sheet and Liquidity As of December 31, 2024: Cash and cash equivalents: $198 million No long-term debt Net merchandise inventory: $297 million (up 16.8% year-over-year) Client deposits: $221 million (up 27.1% year-over-year) Net cash provided by operating activities: $147 million Capital expenditures: $66 million (company-funded) with an additional $34 million in landlord contributions About Arhaus Founded in 1986, Arhaus is a growing lifestyle brand and omni-channel retailer of premium home furnishings. Through a differentiated proprietary model that directly designs and sources products from leading manufacturers and artisans around the world, Arhaus offers an exclusive assortment of heirloom quality products that are sustainably sourced, lovingly made, and built to last. With more than 100 showroom and design studio locations across the United States, a team of interior designers providing complimentary in-home design services, and robust online and eCommerce capabilities, Arhaus is known for innovative design, responsible sourcing, and client-first service. For more information, visit www.arhaus.com.