by Lifestyle retailer’s full-year revenues once again exceed $1 billion
BOSTON HEIGHTS, Ohio — Lifestyle retailer Arhaus Inc. reported a slight increase in Q4 revenue and 2024 full-year revenue that brought the company to nearly $1.3 billion in sales for the year.
The company’s net revenue for the quarter and year ended Dec. 31 was $347 million, up from $344 million the same period last year. For the full year, net revenue totaled $1.27 billion, down from $1.87 billion in 2023.
For the quarter, net income totaled $21.3 million, or 15 cents per share, compared with $31.2 million, or 22 cents per share, the same period last year. For the full year, net income totaled $68.5 million, or 49 cents per share, compared with $125.2 million, or 89 cents per share, the prior year.
The company said that last year, it also expanded its showroom footprint to 103 showrooms across 30 states and all four geographic regions. This included 11 new openings and five relocations in key growth markets. These included:
+ Greenwich, Connecticut – Representing the company’s third location in the state situated just above Greenwich Avenue in the downtown shopping district.
+ Oklahoma City, Oklahoma – This was the company’s first location in the state, positioned within a mixed-use luxury development.
+ Palm Desert, California – An expanded showroom located in the heart of the Coachella Valley.
+ Los Angeles, California – This store is located at The Grove shopping center, representing another storefront in California.
+ Corte Madera, California – This is the company’s largest retail location in the state and its 14th in California.
John Reed, co-founder and chief executive officer, said that 2024 was a transformative year for Arhaus, “driven by disciplined execution of our strategy, record showroom expansion and continued brand momentum. We celebrated a historic milestone by opening our 100th showroom, expanding to a total of 103 locations across 30 states at year end — our largest one-year expansion in nearly 40 years through new openings and relocations.
“With $198 million in cash and a debt-free balance sheet, we are well-positioned to invest in our long-term growth strategy. Looking ahead to 2025, demand comparable growth looks solid with positive client engagement. I am incredibly proud of our team’s dedication and excited about the opportunities ahead as we continue to elevate the Arhaus brand and deliver exceptional value and a premium product to our clients and shareholders.”
Other highlights from the latest financial report are as follows:
+ The company said that gross margin decreased 1.8% to $139 million in the fourth quarter and decreased 7.3% to $501 million for the full year of 2024.
+ Selling, general and administrative expenses rose 11.1% to $111 million in the fourth quarter and increased 10.5% to $415 million for the full year of 2024.
+ Adjusted EBITDA was $41 million in the fourth quarter and $133 million for the full year of 2024.
It also reported:
+ A net merchandise inventory of $297 million, up 16.8% year-over-year.
+ Client deposits of $221 million, a 27.1% increase year-over-year.
+ Net cash provided by operating activities totaled $147 million for the full year.
+ Net cash used in investing activities was approximately $100 million for the full year. Company-funded capital expenditures were about $66 million, and landlord contributions were approximately $34 million.
