Arhaus Provides Fourth Quarter and Full Year 2022 Revenue Outlook Update
09 January 2023 - 10:30PM
Arhaus, Inc. (NASDAQ: ARHS; “Arhaus” or the “Company”), a rapidly
growing lifestyle brand and omni-channel retailer of premium
artisan-crafted home furnishings, announced certain updated
expectations for the Company’s fourth quarter and full year 2022
net revenue, comparable growth(1) and demand comparable growth(2)
in advance of management’s meetings with analysts and investors at
the 25th Annual ICR Conference.
John Reed, Co-Founder and Chief Executive Officer,
commented,
“We are encouraged by the outstanding performance and continued
momentum in our business in the fourth quarter resulting in
expected full year 2022 record net revenue exceeding $1 billion and
expected comparable growth of approximately 51%. Demand comparable
growth for the fourth quarter accelerated from the mid-single-digit
range through early November to approximately 10% for the quarter
overall and was approximately 13.5% for the full year.
“Looking forward, while we are mindful of the current economic
backdrop, we are excited about the multiple opportunities for
growth that lie ahead as we expand our showroom footprint,
accelerate our brand awareness, and continue to enhance our
omni-channel and technology capabilities while making the necessary
investments to support our growth and leverage our scale.”
Outlook
The table below presents our updated expectations for selected
full year 2022 financial results and implied fourth quarter 2022
expectations derived from the outlook.
Full Year 2022 |
Current Guidance |
Previous Guidance |
Implied 4Q 2022 |
Net revenue |
$1,223 to $1,228 million |
$1,173 to $1,193 million |
$351 to $356 million |
Comparable growth(1) |
51.0% to 51.4% |
43% to 48% |
45.5% to 46.5% |
________________________
(1) Comparable growth is a key
performance indicator and is defined as the year-over-year
percentage change of the dollar value of orders delivered (based on
purchase price), net of the dollar value of returns (based on
amount credited to client), from our comparable Showrooms and
eCommerce, including through our direct-mail catalog.(2)
Demand comparable growth is a key performance
indicator and is defined as the year-over-year percentage change of
demand from our comparable Showrooms and eCommerce, including
through our direct-mail catalog.
About Arhaus Founded in 1986, Arhaus is a
rapidly 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 81
showrooms 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, please visit www.arhaus.com.
Investor Contact:Wendy WatsonSVP, Investor
Relations(440) 439-7700invest@arhaus.com
Forward-Looking StatementsCertain statements
contained herein, including statements under the heading “Outlook”
are not based on historical fact and are “forward-looking
statements” within the meaning of applicable securities laws.
Forward-looking statements can generally be identified by the
use of forward-looking terminology, including, but not limited to,
“may,” “could,” “seek,” “guidance,” “predict,” “potential,”
“likely,” “believe,” “will,” “expect,” “anticipate,” “estimate,”
“plan,” “intend,” “forecast,” or variations of these terms and
similar expressions, or the negative of these terms or similar
expressions. Past performance is not a guarantee of future results
or returns and no representation or warranty is made regarding
future performance. Such forward-looking statements involve known
and unknown risks, uncertainties and other important factors beyond
our control that could cause our actual results, performance or
achievements to be materially different from the expected results,
performance or achievements expressed or implied by such
forward-looking statements. These risks and uncertainties include,
but are not limited to: our reliance on third-party transportation
carriers and risks associated with increased freight and
transportation costs; disruption in our receiving and distribution
system, including delays in the integration of our new distribution
centers and the possibility that we may not realize the anticipated
benefits of multiple distribution centers; our ability to obtain
quality merchandise in sufficient quantities; risks as a result of
constraints in our supply chain; a failure of our vendors to meet
our quality standards; the COVID-19 pandemic and its effect on our
business; declines in general economic conditions that affect
consumer confidence and consumer spending that could adversely
affect our revenue; our ability to manage and maintain the growth
rate of our business; our ability to anticipate changes in consumer
preferences; risks related to maintaining and increasing showroom
traffic and sales; our ability to compete in our market; our
ability to adequately protect our intellectual property; the
possibility of cyberattacks and our ability to maintain adequate
cybersecurity systems and procedures; loss, corruption and
misappropriation of data and information relating to clients and
employees; changes in and compliance with applicable data privacy
rules and regulations; compliance with applicable governmental
regulations; effectively managing our eCommerce business and
digital marketing efforts; and compliance with SEC rules and
regulations as a public reporting company. These factors should not
be construed as exhaustive. Furthermore, the potential impact of
the COVID-19 pandemic on our business operations and financial
results and on the world economy as a whole may heighten the risks
and uncertainties that affect our forward-looking statements
described above. Further information on potential factors that
could affect the financial results of the Company and its
forward-looking statements is included in the Company’s filings
with the Securities and Exchange Commission. The Company assumes no
obligation to update any forward-looking statement, except as may
be required by law. These forward-looking statements speak only as
of the date of this release. All forward-looking statements are
qualified in their entirety by this cautionary statement.
Arhaus (NASDAQ:ARHS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Arhaus (NASDAQ:ARHS)
Historical Stock Chart
From Apr 2023 to Apr 2024