by Comparable store sales rise 4.1% resulting from “healthy underlying client demand and strong operational execution”
BOSTON HEIGHTS, Ohio — HNN 125 Retailer Arhaus reported an 8% increase in net revenue and a 23.1% increase in net income for its third quarter ended Sept. 30.
Net revenue totaled $344.6 million, compared to $319.1 million the same period last year. Net income totaled $12.2 million, or 9 cents per share, compared with $9.9 million, or 7 cents per share last year.
The company said comparable store sales rose 4.1% in the third-quarter, reflecting what officials described as “healthy underlying client demand and strong operational execution across the company’s distribution network.”
“The Dallas distribution center, which was successfully brought in-house during the second-quarter, continues to ramp effectively, driving meaningful improvements in delivery performance,” the company said. “Ongoing investments in Arhaus’ distribution network and technology infrastructure are enhancing efficiency and strengthening the overall client experience.”
Gross margin totaled $133.4 million, or 38.7% of revenue, compared with $123.1 million, or 38.6% of revenue the same period last year.
Income from operations totaled $16.4 million, compared with $10.7 million last year and SG&A expenses were $117 million, or 34% of revenue compared with $112.4 million, or 35.2% of revenue the same period last year.
“We delivered another strong quarter, with net revenue of $345 million, up 8% year-over-year —marking the highest third-quarter net revenue in our company’s history,” said John Reed, co-founder and chief executive officer. “This performance reflects the strength of our brand, the appeal of our product offering, and the disciplined execution of our long-term strategy.
He added that demand comparable growth was 7.4%, “supported by the success of our Fall 2025 Collection and continued client excitement across both core products and newness. September marked the highest total demand month in Arhaus’ history. This performance underscores our leadership in design, craftsmanship, and quality and the resilience of our high-end client base.”
He noted that the company also has continued to add showrooms, “opening our largest traditional showroom to date in Pasadena, California, and thoughtfully restoring a century-old building to honor its architectural heritage. This month, we’ll open our first Montana showroom in Bozeman. These additions further strengthen our brand awareness and client engagement as we grow the Arhaus brand.”
Other highlights of the results as of Sept. 30 were as follows:
+ The company reported no long-term debt
+ It reported cash and cash equivalents of $262 million
+ It said net merchandise inventory was $329 million, up 10.7% from Dec. 31, 2024 to Sept. 30, 2025.
+ It also noted that client deposits totaled $254 million, up 15% from Dec. 31, 2024 to Sept. 30, 2025.
+ Net cash provided by operating activities totaled $128 million for the nine months ended Sept. 30, 2025.
+ It estimated that net cash used in investing activities was about $60 million for the nine months ended Sept. 30, 2025. Company-funded capital expenditures were about $43 million and landlord contributions were about $17 million.
“We’re navigating the current environment from a position of strength—debt-free, with ample liquidity,” Reed said. “With a powerful brand, a proven model, and a talented team, we remain focused on finishing the year strong and delivering sustainable, long-term shareholder value.”
