by The Q1 results of Arhaus and Bob’s Discount Furniture highlight the growing divide between premium and price-focused consumers
BOSTON HEIGHTS, Ohio — Two furniture retailers’ first-quarter earnings reports painted a picture of a deeply divided consumer landscape. On one hand, higher-income shoppers continued to invest in premium furnishings and artisan-made pieces at retailers like Arhaus. On the other hand, value-focused consumers gravitated toward aggressive pricing and promotional strategies from chains like Bob’s Discount Furniture. Both Arhaus and Bob’s posted revenue gains in the first quarter of 2026, underscoring a widening divide in today’s consumer.
For the first quarter of 2026, Arhaus’ net revenue increased 0.9% to $314 million compared to Q1 2025. This marks the Boston Heights, Ohio-based retailer’s highest first-quarter revenue ever. However, its net and comprehensive income decreased 54.5% to $2 million for the period, hampered by an increase in selling, general and administrative expenses of 1.9%.
“We achieved the highest first-quarter net revenue in Arhaus history, reflecting the strength of our operating model, the resilience of our client base, and the disciplined execution of our team,” John Reed, co-founder and chief executive officer, said in a statement. “While broader macro uncertainty created some near-term pressure on Comparable Written Sales, we saw meaningful improvement as the quarter progressed and remain confident in our long-term strategy, differentiated product leadership, and the significant opportunity ahead for Arhaus.”
While Arhaus leaned into its premium positioning, Bob’s Discount Furniture saw gains through emphasizing affordability. Executives at Bob’s credited the company’s merchandising strategy and pricing position, estimated to be 20% to 25% below its competitors’, for helping to drive performance.
Bob’s revenue increased by 8.5% year over year to $578.1 million. However, Bob’s adjusted net income was $11.1 million compared to $14.1 million in the first quarter of fiscal 2025. This was primarily driven by a higher interest expense from a $350 million term loan from October 2025, which was paid in full during the quarter.
“During the first quarter, we saw customers trade up from our good tier to our better tier, led by strength in the motion upholstery, adult bedroom and mattress categories,” Bill Barton, president and CEO at Bob’s Discount Furniture, said in the company’s latest earnings call. “This was a deliberate strategic outcome, not a market anomaly, reflecting our focused efforts to right-size our product architecture and create compelling reasons for customers to trade up.”
Both Arhaus and Bob’s have outlined expansion plans for 2026, signaling a level of confidence in their respective target audiences. This year, Arhaus expects to complete between 10 and 14 showroom projects, including new openings, relocations, renovations or expansions. In the first quarter, Bob’s Discount Furniture opened five new stores, bringing its total retail footprint to 214 showrooms in 26 states. According to the company, it is on track to open 20 new stores in 2026, with a focus on the Southeast.
Together, the results suggest that while middle-market furniture retailers continue to face pressure, both premium and value-focused operators are finding ways to capture today’s cautious consumer.
