Business
Arhaus Announces First Quarter 2023 Financial Results
Net Revenue Up 23.7% with Comparable Growth of 21.0%Reaffirming Full Year 2023 Outlook BOSTON HEIGHTS, Ohio, May 04, 2023 (GLOBE NEWSWIRE) -- Arhaus, Inc.
About this update from Arhaus, Inc.
[{"type":"text","content":"Net Revenue Up 23.7% with Comparable Growth of 21.0%Reaffirming Full Year 2023 Outlook BOSTON HEIGHTS, Ohio, May 04, 2023 (GLOBE NEWSWIRE) -- Arhaus, Inc. (NASDAQ: ARHS; “Arhaus” or the “Company”), a rapidly growing lifestyle brand and omni-channel retailer of premium artisan-crafted home furnishings, reported financial results for the first quarter ended March 31, 2023. First Quarter 2023 Highlights Net revenue increased 23.7% to $305 millionComparable Growth(1) of 21.0%Net and Comprehensive Income of $34 millionAdjusted Net Income of $34 millionAdjusted EBITDA increased 75.8% to $55 million 2023 Outlook Reaffirmed Net revenue of $1,240 million to $1,300 millionComparable Growth(1) of (4)% to 1%Net and Comprehensive Income of $95 million to $110 millionAdjusted EBITDA of $180 million to $195 million CEO Comments John Reed, Co-Founder and Chief Executive Officer, commented, “We are very pleased with our first quarter 2023 performance and are reaffirming our full year 2023 outlook. In addition to the notable performance in our revenue and earnings, our first quarter demand comparable growth(2) was 5.6%, with growth in the first two months of the year up high-single-digits and flat in March. In April, our demand comparable growth was flat. “We believe that our strong debt-free balance sheet positions us well to successfully navigate the current macroeconomic backdrop while simultaneously executing on the initiatives that underpin our long term growth strategy, including multiple new Showroom projects and new systems upgrades.” First Quarter 2023 Results Net revenue increased 23.7% to $305 million, compared to $246 million in the first quarter of 2022. The increase was driven by strong demand in both Showroom and eCommerce sales channels, as well as delivery of orders in backlog as our supply chain improves. Comparable growth(1) was 21.0% and demand comparable growth(2) was 5.6% in the first quarter of 2023. Gross margin increased 31.2% to $128 million, compared to $98 million in the first quarter of 2022, driven by higher net revenue, partially offset by higher variable costs related to the increase in net revenue, including product, transportation and variable rent expense as well as higher fixed Showroom costs and credit card fees related to increased interest rates and demand. Selling, general and administrative (“SG&A”) expens...