Arhaus Q2 2026 Results Beat High End of Guidance; Raises Full-Year Profit Outlook on Tariff Recovery
ARHS sits 54% above its 52-week low of $5.57 on elevated volume (3.0× avg).
Summary
Arhaus reported record Q2 2026 revenue of $385 million, beating the high end of guidance, and raised its full-year profit outlook. Comparable Written Sales jumped 12.5%, and the company benefited from a $23.8 million IEEPA tariff recovery.
Key Events · Earnings and Guidance · ARHS
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Record Q2 Revenue Beats Guidance
Net revenue of $385 million, up 7.4% year-over-year, exceeded the high end of the company's guidance range. Comparable Delivered Sales increased 4.0%, also above guidance.
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Comparable Written Sales Surge 12.5%
Comparable Written Sales — a leading indicator of demand — accelerated to 12.5% in Q2, bringing year-to-date growth to 2.8%. This signals strong client engagement and order momentum.
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IEEPA Tariff Recovery Boosts Profitability
A $23.8 million benefit from recovered IEEPA tariffs was recognized in cost of goods sold, of which $15.5 million related to inventory sold before April 2026. The company has received $37.8 million in total refunds as of August 6, 2026.
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Full-Year Profit Guidance Raised
Full-year 2026 net income guidance raised to $71–$80 million and Adjusted EBITDA to $160–$171 million, reflecting the tariff recovery net of $7–$10 million in strategic reinvestments and $20 million in elevated fuel and shipping costs.
Analysis · ARHS · Trade & Services
Arhaus delivered its strongest quarter ever, with net revenue of $385 million — up 7.4% year-over-year and above the high end of its own guidance. Comparable Written Sales surged 12.5%, signaling accelerating demand after a soft Q1. The quarter included a one-time $23.8 million benefit from recovered IEEPA tariffs, which boosted reported gross margin to 44.7%. Excluding that benefit, normalized gross margin still expanded 70 basis points. Management raised full-year net income guidance to $71–$80 million and Adjusted EBITDA to $160–$171 million, reflecting the tariff recovery net of $7–$10 million in strategic reinvestments and $20 million in elevated fuel and shipping costs. The company also provided Q3 guidance, with net revenue expected between $355–$375 million. With zero long-term debt and $226 million in cash, Arhaus is investing in technology and showroom expansion while returning capital to shareholders. The strong demand trends and raised outlook reinforce the premium home furnishings brand's growth trajectory despite a cautious consumer environment.
At the time of this filing, ARHS was trading at $8.55 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $5.57 to $12.98. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.