Arhaus, Inc. (ARHS) Q1 2026 Earnings Call

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WEBVTT NOTE Transcription provided by Deepgram Request Id: 01a0425b-51b3-79e3-b612-b9e3537a4746 Created: 2026-08-27T08:34:37.883Z Duration: 2728.307 Channels: 1 00:00:00.000 -- 00:00:02.399 Decreasing 70 basis points 00:00:02.639 -- 00:00:04.800 to 36.4%, 00:00:04.960 -- 00:00:07.759 driven by higher fuel prices of 40 basis 00:00:07.759 -- 00:00:08.400 points 00:00:08.639 -- 00:00:12.160 and showroom occupancy costs of 40 basis points. 00:00:14.075 -- 00:00:18.154 Selling, general and administrative expenses increased 1.9% 00:00:18.154 -- 00:00:20.154 to $112,000,000 00:00:20.154 -- 00:00:22.154 driven by a $1,900,000 00:00:22.154 -- 00:00:25.595 increase primarily related to strategic investments to support 00:00:25.595 -- 00:00:27.970 and drive the growth of the business, including 00:00:27.970 -- 00:00:31.330 supply chain and technology improvements and other corporate 00:00:31.330 -- 00:00:32.049 expenses. 00:00:32.450 -- 00:00:35.090 As a result, SG and A load increased 00:00:35.090 -- 00:00:38.290 40 basis points to 35.7%. 00:00:39.090 -- 00:00:41.170 Net income was 2,200,000 00:00:41.170 -- 00:00:44.445 and within our guidance and adjusted EBITDA was 00:00:44.445 -- 00:00:45.405 $18,000,000 00:00:45.405 -- 00:00:47.245 and within our guidance range. 00:00:47.805 -- 00:00:51.405 Adjusted EBITDA margin decreased 30 basis points year 00:00:51.405 -- 00:00:52.204 over year. 00:00:53.245 -- 00:00:55.660 As a reminder, there is seasonal impact to 00:00:55.660 -- 00:00:57.980 margins in the first quarter, which carries lower 00:00:57.980 -- 00:01:00.780 net revenue as a result of less operating 00:01:00.780 -- 00:01:01.500 leverage. 00:01:02.780 -- 00:01:04.700 Turning to our comparable metrics. 00:01:04.780 -- 00:01:08.940 Comparable delivered sales decreased 1.7% 0...