Arhaus, Inc. reported a slight increase in net revenue for the first quarter of 2026, reaching $314.3 million, up from $311.4 million in the same period last year. The company’s gross margin decreased to $114.4 million, a decline of 1.0% compared to $115.6 million in the prior year, primarily due to increased product costs and higher occupancy expenses. Net and comprehensive income fell to $2.2 million, down from $4.9 million in the first quarter of 2025, reflecting a decrease in income from operations, which was $2.1 million compared to $5.4 million a year earlier.
The company experienced a 1.7% decline in comparable delivered sales and a 5.7% drop in comparable written sales, indicating a decrease in demand for its products. Selling, general, and administrative expenses rose by 1.9% to $112.2 million, attributed to strategic investments aimed at supporting business growth, including supply chain and technology improvements. As a result, SG&A expenses as a percentage of net revenue increased to 35.7% from 35.3% in the previous year.
Operationally, Arhaus maintained its footprint with 107 showrooms as of March 31, 2026, unchanged from the end of 2025. The company continues to focus on enhancing its omni-channel retail experience, integrating its physical showrooms with eCommerce. The total cash and cash equivalents decreased to $177.1 million from $253.4 million at the end of 2025, largely due to cash used in operating and financing activities, including a special dividend payment of $49.4 million.
Looking ahead, Arhaus is investing in a multi-year transformation to upgrade its technology infrastructure, with an expected total investment of approximately $30 million through 2030. The company anticipates that these upgrades will enhance operational efficiency and support future growth. Despite the challenges faced in the current fiscal period, Arhaus remains committed to its strategic initiatives and believes it is well-positioned to capture market share in the fragmented $100 billion U.S. premium home furnishings market.
About Arhaus, Inc.
Arhaus, Inc. is a premium lifestyle brand and omni-channel retailer specializing in artisan-crafted home furnishings, including furniture, outdoor products, lighting, textiles, and décor. Operating primarily in the U.S. market, Arhaus offers exclusive, responsibly sourced products through its vertically integrated model combining in-house design, manufacturing, and direct global sourcing. Its business model leverages experiential showrooms, eCommerce, and personalized in-home design services to deliver high-quality, livable luxury to discerning customers.
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