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Arhaus, Inc. (ARHS) 10-Year Financial Performance & Capital Metrics

ARHS • • Industrial / General
Consumer CyclicalHome Improvement RetailHome Furnishings RetailPremium Furniture Retailers
AboutArhaus, Inc. operates as a lifestyle brand and premium retailer in the home furnishings market. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases and modular storage, etc.; and outdoor products include outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It also offers lighting products, such as various distinct and artistic lighting fixtures, including chandeliers, pendants, table and floor lamps, and sconces; textile products comprising handcrafted indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, including various wall art to mirrors, vases to candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, e-commerce platform, catalog, and in-home designer services. As of December 31, 2021, it operated through a network of 71 traditional showrooms, 5 Design Studios, and 3 Outlets, as well as 58 showrooms with in-home interior designers. The company was founded in 1986 and is headquartered in Boston Heights, Ohio.Show more
  • Revenue $1.27B -1.3%
  • EBITDA $163M -28.2%
  • Net Income $69M -45.3%
  • EPS (Diluted) 0.49 -44.9%
  • Gross Margin 39.43% -6.0%
  • EBITDA Margin 12.83% -27.3%
  • Operating Margin 6.84% -46.4%
  • Net Margin 5.39% -44.6%
  • ROE 20.04% -56.0%
  • ROIC 10.76% -55.5%
  • Debt/Equity 1.45 +9.8%
  • Interest Coverage 16.00 -46.9%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Excellent 3Y average ROE of 54.5%
  • ✓Strong 5Y profit CAGR of 55.6%
  • ✓High quality earnings: Operating CF exceeds net income
  • ✓Strong 5Y sales CAGR of 20.8%
  • ✓Healthy dividend yield of 4.5%
  • ✓Efficient asset utilization: 1.1x turnover

✗Weaknesses

  • ✗Weak Piotroski F-Score: 3/9
  • ✗Dividend payout exceeds 100% of earnings

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-
5Y20.78%
3Y16.84%
TTM7.36%

Profit (Net Income) CAGR

10Y-
5Y55.55%
3Y48.07%
TTM-6.39%

EPS CAGR

10Y-
5Y-2.64%
3Y21.98%
TTM-7.23%

ROCE

10Y Avg25.57%
5Y Avg26.49%
3Y Avg28.39%
Latest11.11%

Peer Comparison

Premium Furniture Retailers
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
ARHSArhaus, Inc.596.12M11.0522.55-1.29%5.4%18.35%6.67%1.45

Profit & Loss

Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Sales/Revenue+494.54M507.43M796.92M1.23B1.29B1.27B
Revenue Growth %-0.03%0.57%0.54%0.05%-0.01%
Cost of Goods Sold+318.55M307.93M466.99M703.87M747.28M769.88M
COGS % of Revenue0.64%0.61%0.59%0.57%0.58%0.61%
Gross Profit+175.99M199.5M329.93M525.06M540.42M501.23M
Gross Margin %0.36%0.39%0.41%0.43%0.42%0.39%
Gross Profit Growth %-0.13%0.65%0.59%0.03%-0.07%
Operating Expenses+146.33M168.62M296.58M340.39M376.11M414.22M
OpEx % of Revenue0.3%0.33%0.37%0.28%0.29%0.33%
Selling, General & Admin146.31M168.62M296.12M340.39M376.11M415.43M
SG&A % of Revenue0.3%0.33%0.37%0.28%0.29%0.33%
Research & Development000000
R&D % of Revenue------
Other Operating Expenses23K8K466K00-1.2M
Operating Income+29.66M30.88M33.35M184.67M164.31M87M
Operating Margin %0.06%0.06%0.04%0.15%0.13%0.07%
Operating Income Growth %-0.04%0.08%4.54%-0.11%-0.47%
EBITDA+45.62M47.84M57.27M238.62M227.06M163.03M
EBITDA Margin %0.09%0.09%0.07%0.19%0.18%0.13%
EBITDA Growth %-0.05%0.2%3.17%-0.05%-0.28%
D&A (Non-Cash Add-back)15.96M16.96M23.92M53.95M62.75M76.02M
EBIT29.66M30.88M33.82M184.67M164.31M85.8M
Net Interest Income+-13.45M-13.06M-5.43M-3.39M3.35M3.16M
Interest Income00008.8M8.6M
Interest Expense13.45M13.06M5.43M3.39M5.45M5.44M
Other Income/Expense-13.45M-13.06M-6.56M-2.09M4.38M3.92M
Pretax Income+16.21M17.82M26.79M182.58M168.69M90.92M
Pretax Margin %0.03%0.04%0.03%0.15%0.13%0.07%
Income Tax+368K783K-10.14M45.94M43.45M22.37M
Effective Tax Rate %0.46%0.34%0.79%0.75%0.74%0.75%
Net Income+7.53M6.08M21.12M136.63M125.24M68.55M
Net Margin %0.02%0.01%0.03%0.11%0.1%0.05%
Net Income Growth %--0.19%2.47%5.47%-0.08%-0.45%
Net Income (Continuing)15.84M17.04M36.93M136.63M125.24M68.55M
Discontinued Operations000000
Minority Interest0-7.69M0000
EPS (Diluted)+0.560.130.270.980.890.49
EPS Growth %--0.77%1.08%2.63%-0.09%-0.45%
EPS (Basic)0.560.130.270.990.900.49
Diluted Shares Outstanding28.43M136.95M136.95M139.61M140.1M140.69M
Basic Shares Outstanding28.43M136.95M136.95M138.09M139.47M140.07M
Dividend Payout Ratio--2.93%--1.02%

Balance Sheet

Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Total Current Assets+140.65M192.61M368M470.55M509.3M531.04M
Cash & Short-Term Investments12.39M57.09M123.78M145.18M223.1M197.51M
Cash Only12.39M57.09M123.78M145.18M223.1M197.51M
Short-Term Investments000000
Accounts Receivable440K600K228K6.05M2.39M1.25M
Days Sales Outstanding0.320.430.11.80.680.36
Inventory110.07M108.02M208.34M286.42M254.29M297.01M
Days Inventory Outstanding126.12128.04162.84148.53124.21140.81
Other Current Assets12.47M6.91M18.63M19.8M10.8M8.16M
Total Non-Current Assets+128.26M129.94M218.55M466.54M595.85M675.27M
Property, Plant & Equipment116.45M117.7M179.63M436.48M561.24M640.93M
Fixed Asset Turnover4.25x4.31x4.44x2.82x2.29x1.98x
Goodwill10.96M10.96M10.96M10.96M10.96M10.96M
Intangible Assets000000
Long-Term Investments000000
Other Non-Current Assets846K1.28M278K2.25M4.53M2.29M
Total Assets+268.91M322.55M586.55M937.08M1.11B1.21B
Asset Turnover1.84x1.57x1.36x1.31x1.17x1.05x
Asset Growth %-0.2%0.82%0.6%0.18%0.09%
Total Current Liabilities+127.49M213.22M401.23M373.29M342.35M402.45M
Accounts Payable27.5M29.11M51.43M62.64M63.7M68.62M
Days Payables Outstanding31.5134.5140.232.4831.1132.53
Short-Term Debt15.22M00000
Deferred Revenue (Current)1000K1000K1000K1000K1000K0
Other Current Liabilities0017.5M8.33M7.99M268.54M
Current Ratio1.10x0.90x0.92x1.26x1.49x1.32x
Quick Ratio0.24x0.40x0.40x0.49x0.74x0.58x
Cash Conversion Cycle94.9393.97122.75117.8493.77108.64
Total Non-Current Liabilities+138.39M143.78M115.55M354.1M422.56M460.12M
Long-Term Debt22.16M00000
Capital Lease Obligations47.21M47.6M50.52M347.49M416.47M456.23M
Deferred Tax Liabilities-64.49M0-63.04M000
Other Non-Current Liabilities69.02M96.18M65.03M6.61M6.09M3.89M
Total Liabilities265.88M356.99M516.78M727.39M764.91M862.57M
Total Debt+84.59M47.6M50.52M387.27M450.42M499.5M
Net Debt72.2M-9.49M-73.25M242.09M227.32M301.99M
Debt / Equity27.90x-0.72x1.85x1.32x1.45x
Debt / EBITDA1.85x1.00x0.88x1.62x1.98x3.06x
Net Debt / EBITDA1.58x-0.20x-1.28x1.01x1.00x1.85x
Interest Coverage2.21x2.37x6.14x54.52x30.15x16.00x
Total Equity+3.03M-34.44M69.77M209.69M340.24M343.75M
Equity Growth %--12.36%3.03%2.01%0.62%0.01%
Book Value per Share0.11-0.250.511.502.432.44
Total Shareholders' Equity3.03M-26.75M69.77M209.69M340.24M343.75M
Common Stock00137K138K139K140K
Retained Earnings-34.75M-28.42M-116.58M20.05M145.29M142.9M
Treasury Stock000000
Accumulated OCI000000
Minority Interest0-7.69M0000

Cash Flow

Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Cash from Operations+20.04M148.26M139.83M77.46M172.3M147.11M
Operating CF Margin %0.04%0.29%0.18%0.06%0.13%0.12%
Operating CF Growth %-6.4%-0.06%-0.45%1.22%-0.15%
Net Income15.84M17.04M36.93M136.63M125.24M68.55M
Depreciation & Amortization15.96M16.96M23.92M53.95M62.75M76.02M
Stock-Based Compensation272K403K6.38M4.29M7.91M7.64M
Deferred Taxes00-10.22M9.77M-2.29M-1.96M
Other Non-Cash Items-3.82M13.63M42.08M12.35M22.51M27.07M
Working Capital Changes-8.22M100.23M40.73M-139.53M-43.82M-30.21M
Change in Receivables-180K-160K372K-1.51M-660K1.14M
Change in Inventory-7.82M2.05M-100.32M-78.08M32.07M-42.72M
Change in Payables2.13M1.61M14.51M10.3M1.22M5.62M
Cash from Investing+-9.87M-13.01M-41.46M-55.67M-96.72M-99.53M
Capital Expenditures-9.88M-13.01M-41.46M-55.67M-97.06M-107.37M
CapEx % of Revenue0.02%0.03%0.05%0.05%0.08%0.08%
Acquisitions------
Investments------
Other Investing12K000333K7.84M
Cash from Financing+-14.33M-91.31M-31.47M-177K-1.8M-72.95M
Debt Issued (Net)------
Equity Issued (Net)------
Dividends Paid0-8.55M-61.91M00-70.25M
Share Repurchases------
Other Financing-5.13M-11.04M-126.7M000
Net Change in Cash------
Free Cash Flow+10.16M135.25M98.37M21.8M75.24M39.74M
FCF Margin %0.02%0.27%0.12%0.02%0.06%0.03%
FCF Growth %-12.31%-0.27%-0.78%2.45%-0.47%
FCF per Share0.360.990.720.160.540.28
FCF Conversion (FCF/Net Income)2.66x24.38x6.62x0.57x1.38x2.15x
Interest Paid11.26M9.29M5.12M5.16M5.3M4.67M
Taxes Paid538K1.3M1.4M34.94M47.13M8.78M

Key Ratios

Metric201920202021202220232024
Return on Equity (ROE)248.25%-119.56%97.78%45.55%20.04%
Return on Invested Capital (ROIC)29.57%147.98%-61.79%24.18%10.76%
Gross Margin35.59%39.32%41.4%42.73%41.97%39.43%
Net Margin1.52%1.2%2.65%11.12%9.73%5.39%
Debt / Equity27.90x-0.72x1.85x1.32x1.45x
Interest Coverage2.21x2.37x6.14x54.52x30.15x16.00x
FCF Conversion2.66x24.38x6.62x0.57x1.38x2.15x
Revenue Growth-2.61%57.05%54.21%4.78%-1.29%

Revenue by Segment

2021202220232024
Reportable---1.27B
Reportable Growth----
Segment, Retail652.79M1.02B1.05B-
Segment, Retail Growth-56.61%2.22%-
eCommerce144.13M206.58M242.63M-
eCommerce Growth-43.33%17.45%-

Frequently Asked Questions

Valuation & Price

Arhaus, Inc. (ARHS) has a price-to-earnings (P/E) ratio of 22.6x. This is roughly in line with market averages.

Growth & Financials

Arhaus, Inc. (ARHS) reported $1.36B in revenue for fiscal year 2024. This represents a 175% increase from $494.5M in 2019.

Arhaus, Inc. (ARHS) saw revenue decline by 1.3% over the past year.

Yes, Arhaus, Inc. (ARHS) is profitable, generating $73.5M in net income for fiscal year 2024 (5.4% net margin).

Dividend & Returns

Yes, Arhaus, Inc. (ARHS) pays a dividend with a yield of 4.52%. This makes it attractive for income-focused investors.

Arhaus, Inc. (ARHS) has a return on equity (ROE) of 20.0%. This is excellent, indicating efficient use of shareholder capital.

Arhaus, Inc. (ARHS) generated $80.8M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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