Craig-Hallum upgrades Arhaus to Buy after record Q2 revenue of about $385 million

The rating change followed second-quarter results that showed 7.4% year-over-year net revenue growth, a 12.5% rise in comparable sales and earnings per share of $0.28, beating estimates by 75%.

Summary

Craig-Hallum raised Arhaus to Buy from Hold after the company posted strong second-quarter results, highlighted by record net revenue of approximately $385 million and earnings per share of $0.28. Net revenue rose 7.4% from a year earlier, while comparable sales increased 12.5% and EPS came in 75% above estimates. Gross margin also expanded 16.1%, pointing to stronger operating performance and demand momentum in the quarter.

Terms & Concepts
  • comparable sales: A retail metric that measures sales growth at stores or channels open long enough to allow year-over-year comparison.
  • gross margin: The share of revenue left after subtracting the direct cost of goods sold, used to gauge core profitability.