Arhaus reported second quarter results on August 6 that beat its own guidance on nearly every line, with net revenue for the quarter ended June 30 climbing 7.4% to $385 million. Comparable Written Sales, which track new orders rather than completed deliveries, jumped 12.5%, a sharp reversal from a 5.7% decline in the first quarter of 2026, pushing the year-to-date figure positive at 2.8%, while client deposits grew 11.8% from the end of 2025 to $264 million as of June 30. A large piece of the quarter's profit growth came from a one-time tariff recovery rather than improved operations: of the $23.8 million tariff benefit that flowed through cost of goods sold, $15.5 million was tied to inventory already sold before April 2026, and the company has now collected the full $37.8 million it sought in tariff refunds plus $1.3 million in interest as of August 6. Selling, general and administrative expenses grew 16.1% to $118 million, more than double the pace of revenue growth, and free cash flow for the first six months of 2026 fell to $22.9 million from $39.8 million a year earlier, even as reported net income rose. Arhaus carries no long-term debt, completed four showroom projects in the quarter including new locations in Ashburn, Virginia, and Ontario, California, and still expects 10 to 14 total showroom projects in 2026, while Comparable Delivered Sales are up just 1.4% for the year with third-quarter guidance ranging from negative 1% to positive 5%.
Arhaus IncArhaus beat its own Q2 guidance with revenue up 7.4% to $385M and net income boosted by a $23.8M one-time tariff recovery.
