Update shared on08 Aug 2025
Fair value Increased 19%Despite a modest downgrade in revenue growth forecasts, Arhaus’s rising future P/E indicates improved sentiment or higher expected profitability, resulting in a higher analyst price target from $9.88 to $11.38.
What's in the News
- Arhaus provided Q3 2025 guidance with expected net revenue of $320 million to $350 million and net income of $7 million to $17 million; full year 2025 guidance reaffirmed with net revenue of $1.29 billion to $1.38 billion and net income of $48 million to $68 million.
- The company launched its inaugural Arhaus Bath collection, a major category expansion with over 190 products including vanities, faucets, lighting, hardware, and Turkish cotton textiles.
- Arhaus was dropped from multiple Russell Value indices, including the Russell 2000 Value, 2500 Value, 3000 Value, Small Cap Comp Value, and their respective Value-Defensive and Value Benchmark counterparts.
Valuation Changes
Summary of Valuation Changes for Arhaus
- The Consensus Analyst Price Target has significantly risen from $9.88 to $11.38.
- The Future P/E for Arhaus has significantly risen from 23.66x to 26.53x.
- The Consensus Revenue Growth forecasts for Arhaus has fallen from 7.0% per annum to 6.4% per annum.
Disclaimer
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