Arhaus (ARHS) Stock Forecast & Price Target

Arhaus Inc. has reported a year-to-date demand increase of 2.8% through the third quarter of 2025, which indicates robust market interest and consumer engagement. The company has enhanced its brand visibility with a 30% increase in showroom locations over three years, contributing to its differentiated product offerings and showroom experience. Additionally, the 4Q25 guidance projects revenues between $336 million and $366 million, alongside a promising EBITDA margin of 8.5%, reflecting the company's ongoing operational strength and potential for profitable growth.

Arhaus Inc. has reported a significant decline in demand for October, with a 15% decrease compared to a previously reported increase of 7% in the third quarter. The company's financials indicate a flattish EBITDA margin at 10.6% and a projected gross margin contraction of 10 basis points to 38.5%, suggesting potential challenges in profitability. Additionally, the company faces numerous risks including volatility in commodity costs, rising interest rates, and declining consumer confidence, which could further impact its financial stability.