Latest news with #Arhaus
Yahoo
30-06-2025
- Business
- Yahoo
Can RH Maintain Its 20-21% EBITDA Margin Outlook for Fiscal 2025?
RH RH, previously known as Restoration Hardware, is implementing several diverse in-house strategies to ensure margin expansion amid an uncertain market scenario marked by high mortgage rates, tariff-related risks and lingering inflationary pressures. The company is mainly prioritizing ways to increase its revenue visibility through global expansion, a customer-friendly membership approach and supply-chain optimization. In the first quarter of 2025, its adjusted EBITDA margin expanded 80 basis points year over year to 13.1%.During the first quarter of fiscal 2025, the company highlighted market strength in Europe, with demand growing 60% across RH Munich and RH Dusseldorf alongside continued growth witnessed in noncomparable galleries, RH Brussels and RH Madrid. RH remains optimistic about the September 2025 opening in Paris, alongside another two openings in London and Milan in 2026. Notably, RH threw caution to the wind by increasing its membership discount from 25% to 30%, with the aim of expanding its market share and capturing additional membership opportunities, when the market's choppy water settles there remains ambiguity regarding the new tariff regime's implementation, RH is taking necessary measures to minimize the adverse impacts to be on the safe side. It is currently focusing on shifting its sourcing out of China with the expectation of receipts reducing from 16% in the first quarter of fiscal 2025 to 2% in the fourth quarter of the same year. By the end of 2025, it projects 52% of its upholstered furniture to be produced in the United States and 21% in to these accretive initiatives and a brighter growth prospect, RH expects its adjusted EBITDA margin to be between 20% and 21%, up from 16.9% reported last year. Shares of this California-based luxury retailer in the home furnishing space have gained 13.9% in the past month, outperforming the Hoya Capital Housing ETF (HOMZ) index. HOMZ is an exchange-traded fund that offers a diversified glimpse of the U.S. residential housing industry through 100 companies across homebuilding, rental operators, home improvement, furnishings, mortgage services and real estate tech, to name a few. Image Source: Zacks Investment Research Sharing market space with RH, other renowned players, including Williams-Sonoma, Inc. WSM and Arhaus, Inc. ARHS, seem to have been standing below it in the past month. During the said time frame, the share price performance of Williams-Sonoma and Arhaus has inched up 3.8% and 2.2%, respectively. RH stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 15.3X. This is compared with the forward 12-month P/E ratios of 18.83X and 19.66X at which Williams-Sonoma and Arhaus are currently trading. The discounted valuation of the stock compared with the other market players looks promising for said, in the long term, the valuation could move toward a premium, given the market fundamentals normalizing and the business strategies backing the company's revenue visibility and profitability. RH's earnings estimates for fiscal 2025 have trended upward in the past 30 days to $10.87 per share, which indicates robust 101.7% year-over-year growth. The analysts' sentiments remain bullish for the year, backed by the in-house strategies RH is pulling off to counter the market risks. Image Source: Zacks Investment Research However, even with the earnings estimates for fiscal 2026 having trended down in the past 30 days to $14.77 per share, the estimated figure indicates 35.9% year-over-year stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report RH (RH) : Free Stock Analysis Report Arhaus, Inc. (ARHS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
11-06-2025
- Business
- Yahoo
What To Expect From RH's (RH) Q1 Earnings
Luxury furniture retailer RH (NYSE:RH) will be reporting results tomorrow after market close. Here's what investors should know. RH missed analysts' revenue expectations by 2.6% last quarter, reporting revenues of $812.4 million, up 10% year on year. It was a softer quarter for the company, with a significant miss of analysts' EBITDA estimates and a miss of analysts' EPS estimates. Is RH a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting RH's revenue to grow 12.7% year on year to $819 million, a reversal from the 1.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RH has missed Wall Street's revenue estimates six times over the last two years. Looking at RH's peers in the home furniture retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Williams-Sonoma delivered year-on-year revenue growth of 4.2%, beating analysts' expectations by 4%, and Arhaus reported revenues up 5.5%, falling short of estimates by 0.8%. Williams-Sonoma traded down 5.9% following the results while Arhaus was also down 4.9%. Read our full analysis of Williams-Sonoma's results here and Arhaus's results here. There has been positive sentiment among investors in the home furniture retailer segment, with share prices up 5% on average over the last month. RH is down 14.9% during the same time and is heading into earnings with an average analyst price target of $251.18 (compared to the current share price of $192.62). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
- Yahoo
ARHS Q1 Earnings Call: Tariffs, Showroom Growth, and Guidance Above Expectations for Q2
Luxury furniture retailer Arhaus (NASDAQ:ARHS) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 5.5% year on year to $311.4 million. Its non-GAAP EPS of $0.03 per share was 51% below analysts' consensus estimates. Is now the time to buy ARHS? Find out in our full research report (it's free). Revenue: $311.4 million (5.5% year-on-year growth) Adjusted EPS: $0.03 vs analyst expectations of $0.06 (51% miss) Revenue Guidance for Q2 CY2025 is $335 million at the midpoint, above analyst estimates of $331.3 million EBITDA guidance for the full year is $134 million at the midpoint, below analyst estimates of $144 million Operating Margin: 1.7%, down from 6.2% in the same quarter last year Locations: 103 at quarter end, up from 92 in the same quarter last year Same-Store Sales fell 1.5% year on year (-9.5% in the same quarter last year) Market Capitalization: $1.25 billion Arhaus's first quarter results were shaped by continued expansion of its showroom footprint and a resilient affluent customer base, despite volatility in consumer demand. Management pointed to strong engagement in both retail and e-commerce channels, with designer-led services driving higher average order values. CEO John Reed attributed the quarter's performance to the company's diversified supply chain, noting that over 70% of upholstery products were sourced and manufactured in the United States, minimizing exposure to shifting tariffs. Reed also emphasized the importance of long-standing vendor partnerships, which have allowed Arhaus to adapt sourcing strategies quickly in response to global trade developments. The company remained disciplined in its promotional and pricing approach, focusing on product quality and customer experience rather than broad-based discounts. Looking ahead, management expects near-term volatility due to evolving tariff policies and shifts in consumer sentiment, but remains focused on strategic investments and showroom growth to drive long-term performance. CEO John Reed stated that Arhaus will continue to prioritize expanding its physical footprint, with 12 to 15 showroom projects planned for the year and additional relocations to enhance brand visibility. CFO Ryan Brody outlined plans to mitigate the estimated $10 million impact from new tariffs through further sourcing diversification and vendor concessions, rather than broad price increases. Management highlighted ongoing investments in technology and operational infrastructure, such as upgraded warehouse management and payment systems, to support scalability and enhance client experience. They believe these efforts, combined with a debt-free balance sheet, will position Arhaus to navigate uncertainty and capitalize on future demand. Management cited showroom expansion, supply chain agility, and a loyal client base as key factors supporting the quarter's growth, while tariff-related cost pressures and consumer uncertainty weighed on margins. Showroom-driven demand growth: New and relocated showrooms generated meaningful client engagement, with management noting that approximately 90% of clients live within 50 miles of a location. These projects not only expanded market presence but also contributed to higher average order values, especially for transactions exceeding $5,000 and $10,000. Sourcing diversification strategy: The company's supply chain is now spread across North America, Europe, and South Asia, reducing reliance on China. Management expects receipts from China to fall to about 1% by year-end, and highlighted investments in domestic manufacturing—particularly in upholstery—to control quality and costs. Tariff impact and mitigation: Leadership estimated a $10 million profit and loss impact from newly implemented tariffs but anticipates offsetting much of this through strategic sourcing shifts and vendor cost concessions. Management emphasized that the majority of Arhaus's products are not affected by the highest tariffs due to the company's existing U.S. production base. Omnichannel and e-commerce investments: The company continued to invest in technology for both online and showroom experiences, rolling out a new payment platform and enhancing its e-commerce site to drive engagement. Digital and content strategies, including catalog storytelling, remain central to Arhaus's brand positioning. Steady client behavior: Despite macroeconomic headwinds and a choppy demand environment, Arhaus reported no significant change in cancellation rates or delivery delays. Clients remained responsive to both large and small purchases, and the company maintained a flexible promotional approach based on customer response to thresholds in its 'buy more, save more' program. Arhaus's outlook for the next quarter and the full year is shaped by tariff costs, continued showroom expansion, and operational investments to support growth and margin resilience. Tariff mitigation and sourcing shifts: The company anticipates ongoing cost pressure from global tariffs, particularly those affecting Chinese imports. However, management believes strategic sourcing adjustments and strong vendor relationships will help offset much of the anticipated $10 million impact, limiting the need for broad price increases. Showroom expansion as a growth driver: With 12 to 15 showroom projects planned for the year, including new openings and relocations, Arhaus expects these investments to enhance brand visibility, attract new clientele, and capture greater market share. Management underscored that new showrooms are evaluated for long-term returns and are not subject to short-term demand fluctuations. Operational investments and margin focus: Continued investment in technology—such as upgraded warehouse management systems and payment platforms—is expected to improve efficiency and scalability. Management also aims to keep gross margin roughly flat year-over-year by balancing fixed occupancy costs with product margin improvements, even as revenue growth remains volatile. Going forward, the StockStory team will be monitoring (1) the impact of further tariff mitigation and sourcing diversification on margins; (2) execution and returns from new showroom openings and relocations; and (3) the effectiveness of operational investments in technology and supply chain infrastructure. Shifts in consumer sentiment and the company's ability to sustain higher average order values will also be important signposts. Arhaus currently trades at a forward P/E ratio of 17.7×. In the wake of earnings, is it a buy or sell? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
27-05-2025
- Business
- Yahoo
Ross Stores, Kohl's, Arhaus, Bloomin' Brands, and The Cheesecake Factory Stocks Trade Up, What You Need To Know
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Discount Retailer company Ross Stores (NASDAQ:ROST) jumped 5.7%. Is now the time to buy Ross Stores? Access our full analysis report here, it's free. Department Store company Kohl's (NYSE:KSS) jumped 7%. Is now the time to buy Kohl's? Access our full analysis report here, it's free. Home Furniture Retailer company Arhaus (NASDAQ:ARHS) jumped 5.9%. Is now the time to buy Arhaus? Access our full analysis report here, it's free. Sit-Down Dining company Bloomin' Brands (NASDAQ:BLMN) jumped 5.9%. Is now the time to buy Bloomin' Brands? Access our full analysis report here, it's free. Sit-Down Dining company The Cheesecake Factory (NASDAQ:CAKE) jumped 6.1%. Is now the time to buy The Cheesecake Factory? Access our full analysis report here, it's free. Kohl's shares are extremely volatile and have had 31 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock dropped 27.9% on the news that the company reported weak first quarter 2024 results that missed significantly on same-store sales, leading to an EPS miss. Precisely, net sales decreased 5.3% and comparable sales fell 4.4%. The weakness was mostly driven by a significant decline in clearance sales, which negatively impacted overall comparable sales by more than 6%. Looking ahead, the company lowered its full year outlook across the board. Management attributed the conservative guidance to the Q1 underperformance and the ongoing uncertainty in the consumer environment. Despite these challenges, Kohl's highlighted some positive aspects of its performance, including improved gross expansion (highlighting success with its improved pricing strategy), inventory reduction, and continued strong growth in Sephora. Overall, this was a bad quarter for Kohl's given the weak performance and poor guidance. Kohl's is down 42.9% since the beginning of the year, and at $8.02 per share, it is trading 70.6% below its 52-week high of $27.25 from May 2024. Investors who bought $1,000 worth of Kohl's shares 5 years ago would now be looking at an investment worth $359.58. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-05-2025
- Business
- Yahoo
RH Poaches Lisa Chi From Furniture Peer Arhaus, Aims to ‘Elevate' Products and Platform
MILAN — As RH inches closer to its goal of becoming a true American luxury furniture brand, it announced that it's bolstering its creative team. On Tuesday, the company said Lisa Chi is its new president, co-chief merchandising and creative officer. In this role, Chi will report to RH chairman and chief executive officer Gary Friedman and will co-lead product development, merchandising, inventory planning, sourcing, manufacturing and marketing. She will work alongside Eri Chaya, who also holds the title RH president, co-chief merchandising and creative officer. More from WWD Jil Sander Steps Into Venetian Glass With Formafantasma and Venini to Fete New Venice Store Timberland Names Former Dr. Martens Exec Darren McKoy Global VP of Product Design and Creative Direction Paolo Boffi Dies at 85 Chi returned to RH, which was formerly known as Restoration Hardware, from Arhaus, where she held the position of chief merchandising officer. 'We are honored to welcome Lisa back to Team RH as we continue to elevate and expand our product and platform,' Friedman said. 'Lisa's accomplishments while at Arhaus were impressive as she led the merchandising organization during a period of rapid growth, exceeding the billion-dollar mark during her tenure.' In 2024, Arhaus reported $1.27 billion in net revenue. In the fiscal year that ended in February 2025, RH reported that net revenues rose 5 percent to $3.18 billion. Prior to joining Arhaus in 2021, Chi was senior vice president of merchandising for upholstery at RH, and has held senior merchandising roles at Talbots, Kohl's and Lucky Brand, after beginning her retail career at Gap Inc. where she spent 10 years in various merchandise leadership positions. The American brand is on a mission to create a curated world of luxury living, travel, dining and design services and continues to expand its network of international collaborators. In February, the Corte Madera, Calif.-based RH told WWD that it added two new designers to its roster: Mathias de Ferm from Belgium and the Milan-based designer Arthur Gentil. De Ferm is known for his skill in combining natural materials and innovative techniques and is specialized in welding and carpentry. Also in February, the company unveiled 40 exclusive collections from internationally renowned designers with its latest 432-page Sourcebook.'
