by The Q2 results of Arhaus and Bob’s Discount Furniture illustrate how premium and value consumers continue to drive furniture sales
CHARLOTTE, N.C. — The furniture industry’s divided consumer landscape showed few signs of narrowing in the second quarter as both premium retailer Arhaus, known for its heirloom-style, artisan-crafted furnishings, and value-focused Bob’s Discount Furniture posted strong revenue growth. The results also underscore the growing polarization of the furniture market, where value and luxury continue to outperform, while the middle increasingly finds itself squeezed between the two.
At Bob’s, affordability remained the draw, with the retailer citing its Everyday Low Price strategy as a key driver. At Arhaus, consumers continued to invest in their homes through smaller refreshes, individual furniture purchases and selective bigger projects. Together, the second-quarter results suggest that while consumers may be more hesitant, they haven’t stopped spending. Both ends of the market are holding up, but they’re finding success in different ways.
For the second quarter of 2026, Bob’s net revenue increased 8.8% to $619.6 million, compared with $569.5 million in the second quarter of fiscal 2025. According to a news release from Bob’s Discount Furniture, the company partially attributed this to new stores and comparable sales growth. Bob’s Discount Furniture opened four new stores during the second quarter of 2026, bringing its total stores to 218 locations in 27 states.
“Our strong second quarter results demonstrate the resilience of Bob’s business model and the effectiveness of our strategy in a demanding retail environment,” said Bill Barton, president and CEO of Bob’s Discount Furniture, in a statement. “As consumers remain focused on value, our Everyday Low Price approach continues to resonate, driving market share gains and reinforcing our competitive position. These results are a testament to the outstanding execution of our teams and the unique culture that sets Bob’s apart. By remaining disciplined in our investments and focused on delivering exceptional value and a differentiated experience to our customers, we are well positioned to capitalize on the significant growth opportunities ahead.”
While Bob’s is winning consumers by prioritizing affordability, Arhaus’ premium positioning and storytelling is resonating with higher-income consumers. Arhaus’ net revenue increased 7.4% to $385 million compared to the same period of 2025. In a presentation of its second-quarter results, Arhaus noted that its net revenue has nearly tripled since 2019 to $1.3 billion, representing a 179% increase.
Arhaus said it is currently seeing three main drivers of client demand. Currently, consumers are making smaller updates to existing spaces as an ongoing investment in homes they already own, including replacing individual furniture pieces or updates tied to paint, flooring or other light refreshes. Arhaus stated light refreshes “represent a meaningful portion of ongoing demand. Larger, multiroom or whole-home projects are also driving demand, typically supported by interior design services and contracts. Home turnover, linked to purchases for buying a home, including those who are buying second and third homes, is also a key driver. Arhaus stated home turnover also provides a potential upside when housing activity recovers.
Arhaus also stated that in a highly fragmented premium market, it believes brand awareness is its biggest opportunity, with showrooms being the strongest tool in its omnichannel strategy to drive conversion and repeat engagement.
During the second quarter, Arhaus completed four showroom programs, including opening two new showrooms in Ashburn, Virginia, and Ontario, California. Arhaus also relocated its showroom in Westlake, Ohio, and expanded its showroom in Lone Tree, Colorado. For the remainder of 2026, the company expects to complete between 10 and 14 showroom projects, including opening four to six new showrooms and six to eight relocations, renovations or expansions.
“Exceptional product has been the foundation of Arhaus for 40 years, and our second-quarter performance reinforces how deeply clients value quality, craftsmanship and personalization,” said John Reed, co-founder and CEO of Arhaus, in a statement. “Our newest collections are resonating, customization continues to gain momentum and clients are engaging across our product categories. With an exciting pipeline and compelling storytelling ahead, we believe we are well positioned to inspire more clients and continue our industry-leading growth.”
Adding an interesting twist to the fiscal results reporting for both companies was tariff refunds. In February, the U.S. Supreme Court ruled that certain tariffs previously imposed under the International Emergency Economic Powers Act were invalid and tariffs paid under it must be refunded. Both Bob’s Discount Furniture and Arhaus covered tariff refunds in their earnings presentations. Bob’s reaffirmed its top- and bottom-line guidance for full fiscal year 2026, reflecting the tariff refund it received in the second quarter. Arhaus reported that at the time of its earnings call on Aug. 6, it had received $37.8 million in tariff refunds and $1.3 million in interest.
The second-quarter results from Arhaus and Bob’s Discount Furniture reinforce the idea that there is no single furniture consumer in today’s market. Value shoppers continue to respond to affordability while premium consumers remain willing to spend when they see quality or an opportunity to meaningfully improve their homes.
