Arhaus Announces Fourth Quarter and Full Year 2023 Financial Results
- Record net revenue of $1.3 billion for full year 2023
- Special cash dividend announced
- Full year 2024 guidance provided with net revenue expected to be between $1.33 billion to $1.37 billion
- CEO John Reed highlights the company's vision and achievements in 2023, including showroom growth and product introductions
- Plans for expansion in 2024 with new showroom openings and strategic investments
- None.
Insights
The reported financial results from Arhaus, Inc. indicate a robust performance for the full year 2023, with a record net revenue of $1.3 billion. The company's ability to maintain net and comprehensive income of $125 million and an adjusted EBITDA of $203 million despite a slight dip in comparable growth is indicative of strong operational efficiency and cost management. The announcement of a special cash dividend reflects confidence in the company's liquidity and financial health, which is further underscored by the debt-free balance sheet and substantial cash reserves exceeding $223 million.
Looking ahead, the full year 2024 guidance suggests a conservative revenue growth projection, with a slight decline in comparable growth. Investors should note the anticipated net and comprehensive income range of $95 million to $105 million and adjusted EBITDA of $185 million to $200 million, which, while still robust, represent a decrease from 2023 figures. This may be factored into market expectations and could influence the stock's performance as it may signal a more cautious outlook for the year ahead.
Arhaus, Inc.'s strategic expansion, including the opening of new Showrooms and renovation projects, is a strong indicator of the company's commitment to increasing brand awareness and market penetration. The addition of new Showrooms is expected to contribute to top-line growth, although it is worth noting the projected decrease in comparable growth for 2024. This could be a reflection of market saturation, increased competition, or a shift in consumer spending habits, which are all critical factors that could impact future revenue streams.
The company's emphasis on artisan-crafted and responsibly sourced products aligns with current consumer trends favoring sustainability and quality. However, the luxury home furnishings market is susceptible to economic cycles and a downturn could affect consumer spending in this segment. Therefore, while the expansion strategy appears sound, it is not without risks, especially given the economic uncertainties that may lie ahead.
The financial performance of Arhaus, Inc. must be contextualized within the broader economic environment. The company's success in a period of economic recovery and consumer spending resilience is commendable. However, the projected slowdown in comparable growth for 2024 could be indicative of macroeconomic headwinds, such as inflationary pressures or a potential economic slowdown, which could dampen discretionary spending on luxury items.
The decision to issue a special cash dividend may be interpreted as a positive signal to investors regarding the company's current financial strength. However, it also raises questions about the company's long-term investment strategy and whether returning capital to shareholders is the most efficient use of funds in light of the anticipated growth slowdown. This balance between rewarding shareholders and reinvesting in the business is a critical strategic decision that could have long-term implications for the company's growth trajectory and market position.
Full Year 2023 Record Net Revenue of
Announces Special Cash Dividend and Full Year 2024 Guidance
BOSTON HEIGHTS, Ohio, March 07, 2024 (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 unaudited financial results for the fourth quarter and full year ended December 31, 2023.
Fourth Quarter 2023 Highlights
- Net revenue of
$344 million - Comparable growth(1) of (6.8)%
- Net and comprehensive income of
$31 million - Adjusted net income of
$31 million - Adjusted EBITDA of
$51 million
Full Year 2023 Highlights
- Net revenue of
$1.3 billion - Comparable growth(1) of
1.4% - Net and comprehensive income of
$125 million - Adjusted net income of
$126 million - Adjusted EBITDA of
$203 million
Full Year 2024 Outlook Highlights
- Net revenue of
$1.33 billion to$1.37 billion - Comparable growth(1) of (4.0)% to (2.0)%
- Net and comprehensive income of
$95 million to$105 million - Adjusted EBITDA of
$185 million to$200 million
CEO Comments
John Reed, Co-Founder and Chief Executive Officer, commented,
“Our vision as the premium home furnishing destination in the U.S. is to stand for impeccable design, incomparable craftsmanship, inspirational presentation and responsibly sourced home furnishings that are artisan-made to last for generations. In our endeavor to provide high quality, livable luxury furnishings, we delivered another outstanding year in 2023, with record net revenue of approximately
“Our Showroom growth was tremendous in 2023, with eleven new Showroom openings and eight renovation, relocation and expansion project completions. We are excited to continue to expand our brand awareness as we introduce the Arhaus Showroom experience to many more new clients across the U.S.
“Our growth momentum and strategic investments continue in 2024, when we expect to add approximately nine to eleven new Showrooms: four to six Traditional Showroom formats, two Design Studios, and three outlets, along with several renovation, relocation and expansion projects.
“We have introduced incredible new product to start 2024, building on the significant success we have seen with new collections that we have introduced over the past few years. We are also continuing our strategic investments that will support our growth and client-first service capabilities while allowing us to more fully capture the benefits of scale over time.
“Given our strong cash generation and balance sheet strength, I am pleased to announce our Board of Directors approved a special cash dividend of
“I want to thank the Arhaus team for their hard work and tremendous accomplishments in 2023 and for their unwavering dedication to our clients. We are excited about our future and are committed to delivering value to all our stakeholders.”
Fourth Quarter 2023 Results
Net revenue decreased
Comparable growth(1) was (6.8)% and demand comparable growth(2) was
Gross margin decreased
Selling, general and administrative (“SG&A”) expenses increased
Net and comprehensive income was
Adjusted EBITDA decreased
Full Year 2023 Results
Net revenue in 2023 increased
Full year comparable growth(1) was
Gross margin increased
Full year SG&A expense increased
Net and comprehensive income of
Adjusted EBITDA decreased
Balance Sheet and Cash Flow Highlights, as of December 31, 2023
Cash and cash equivalents totaled
For the year ended December 31, 2023, net cash provided by operating activities was
For the full year ended December 31, 2023, net cash used in investing activities was approximately
The Company ended the year with 92 total showrooms across 29 states.
Outlook
The table below presents our expectations for selected full year and first quarter 2024 financial operating results. We expect first quarter net revenue to be impacted by both the warehouse management system implementation in our Ohio distribution center and weather.
| Full Year 2024 | Q1 2024 | |
| Net revenue | ||
| Comparable growth(1) | (4)% to (2)% | (23)% to (20)% |
| Net income (4) | ||
| Adjusted EBITDA(5) | ||
| Other estimates: | ||
| Company-funded capital expenditures(3) | ||
| Fully diluted shares | ~141 million | |
| Effective tax rate | ~ | |
In 2024, the Company plans to open nine to eleven new Showrooms, as well as renovate, relocate and expand several locations.
(1) Comparable growth is a key performance indicator and is defined as the year-over-year percentage change of the dollar value of orders delivered (based on purchase price), net of the dollar value of returns (based on amount credited to client), from our comparable Showrooms and eCommerce, including through our direct-mail catalog.
(2) Demand comparable growth is a key performance indicator and is defined as the year-over-year percentage change of demand from our comparable Showrooms and eCommerce, including through our direct-mail catalog.
(3) Company-funded capital expenditures is defined as total net cash used in investing activities less landlord contributions.
(4) U.S. GAAP net income (loss).
(5) We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. These items include, but are not limited to, future share-based compensation expense, income taxes, interest expense, and transaction costs. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort.
Conference Call
You are invited to listen to Arhaus’ conference call to discuss the fourth quarter and full year 2023 financial results scheduled for today, March 7, 2024, at 8:30 a.m. Eastern Time. The call will be available over the Internet on our website (http://ir.arhaus.com) or by dialing (877) 407-3982 within the U.S., or 1 (201) 493-6780, outside the U.S. The conference ID is: 13741045.
A recorded replay of the conference call will be available within approximately three hours of the conclusion of the call and can be accessed online at http://ir.arhaus.com for approximately twelve months.
About Arhaus
Founded in 1986, Arhaus is a rapidly growing lifestyle brand and omni-channel retailer of premium home furnishings. Through a differentiated proprietary model that directly designs and sources products from leading manufacturers and artisans around the world, Arhaus offers an exclusive assortment of heirloom quality products that are sustainably sourced, lovingly made, and built to last. With over 90 showroom and design center locations across the United States, a team of interior designers providing complimentary in-home design services, and robust online and eCommerce capabilities, Arhaus is known for innovative design, responsible sourcing, and client-first service. For more information, please visit www.arhaus.com.
Investor Contact:
Wendy Watson
SVP, Investor Relations
(440) 439-7700 x3409
invest@arhaus.com
Non-GAAP Financial Measures
In addition to the results provided in accordance with U.S. GAAP, this press release and related tables include adjusted EBITDA, adjusted EBITDA as a percentage of net revenue and adjusted net income, which present operating results on an adjusted basis.
We use non-GAAP measures to help assess the performance of our business, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to our results determined in accordance with U.S. GAAP, we believe that providing these non-GAAP financial measures is useful to our investors as they present an informative supplemental view of our results from period to period by removing the effect of non-recurring items. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. These non-U.S. GAAP measures are not a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. These measures should only be read together with the corresponding U.S. GAAP measures. Please refer to the reconciliations of adjusted EBITDA and adjusted net income to the most directly comparable financial measures prepared in accordance with U.S. GAAP below.
Forward-Looking Statements
Certain statements contained herein, including statements under the headings “Full Year 2024 Outlook Highlights” and “Outlook” are not based on historical fact and are “forward-looking statements” within the meaning of applicable securities laws.
Forward-looking statements can generally be identified by the use of forward-looking terminology, including, but not limited to, “may,” “could,” “seek,” “guidance,” “predict,” “potential,” “likely,” “believe,” “will,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” “forecast,” or variations of these terms and similar expressions, or the negative of these terms or similar expressions. Past performance is not a guarantee of future results or returns and no representation or warranty is made regarding future performance. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond our control that could cause our actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: our ability to manage and maintain the growth rate of our business; our ability to obtain quality merchandise in sufficient quantities; disruption in our receiving and distribution system, including delays in the integration of our distribution centers and the possibility that we may not realize the anticipated benefits of multiple distribution centers; the possibility of cyberattacks and our ability to maintain adequate cybersecurity systems and procedures; loss, corruption and misappropriation of data and information relating to clients and employees; changes in and compliance with applicable data privacy rules and regulations; risks as a result of constraints in our supply chain; a failure of our vendors to meet our quality standards; declines in general economic conditions that affect consumer confidence and consumer spending that could adversely affect our revenue; our ability to anticipate changes in consumer preferences; risks related to maintaining and increasing showroom traffic and sales; our ability to compete in our market; our ability to adequately protect our intellectual property; compliance with applicable governmental regulations; effectively managing our eCommerce business and digital marketing efforts; our reliance on third-party transportation carriers and risks associated with increased freight and transportation costs; and compliance with SEC rules and regulations as a public reporting company. These factors should not be construed as exhaustive. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.
| Arhaus, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited, amounts in thousands, except share and per share data) December 31, 2023 and 2022 | |||||||
| 2023 | 2022 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 223,098 | $ | 145,181 | |||
| Restricted cash | 3,207 | 7,346 | |||||
| Accounts receivable, net | 2,394 | 1,734 | |||||
| Merchandise inventory, net | 254,292 | 286,419 | |||||
| Prepaid and other current assets | 45,260 | 29,868 | |||||
| Total current assets | 528,251 | 470,548 | |||||
| Operating right-of-use assets | 302,157 | 257,347 | |||||
| Financing right-of-use assets | 38,835 | 38,522 | |||||
| Property, furniture and equipment, net | 210,238 | 140,613 | |||||
| Deferred tax assets | 19,127 | 16,841 | |||||
| Goodwill | 10,961 | 10,961 | |||||
| Other noncurrent assets | 4,525 | 2,252 | |||||
| Total assets | $ | 1,114,094 | $ | 937,084 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 63,699 | $ | 62,636 | |||
| Accrued taxes | 9,638 | 12,256 | |||||
| Accrued wages | 15,185 | 20,860 | |||||
| Accrued other expenses | 42,502 | 35,169 | |||||
| Client deposits | 173,808 | 202,587 | |||||
| Current portion of operating lease liabilities | 45,557 | 39,250 | |||||
| Current portion of financing lease liabilities | 904 | 531 | |||||
| Total current liabilities | 351,293 | 373,289 | |||||
| Operating lease liabilities, long-term | 362,598 | 295,657 | |||||
| Financing lease liabilities, long-term | 53,870 | 51,835 | |||||
| Deferred rent and lease incentives | 1,952 | 2,272 | |||||
| Other long-term liabilities | 4,143 | 4,336 | |||||
| Total liabilities | $ | 773,856 | $ | 727,389 | |||
| Commitments and contingencies | |||||||
| Stockholders’ equity | |||||||
| Class A shares, par value | $ | 52 | $ | 51 | |||
| Class B shares, par value | 87 | 87 | |||||
| Retained earnings | 145,292 | 20,053 | |||||
| Additional paid-in capital | 194,807 | 189,504 | |||||
| Total Arhaus, Inc. stockholders’ equity | 340,238 | 209,695 | |||||
| Total liabilities and stockholders’ equity | $ | 1,114,094 | $ | 937,084 | |||
| Arhaus, Inc. and Subsidiaries Consolidated Statements of Comprehensive Income (Unaudited, amounts in thousands, except share and per share data) Years ended December 31, 2023 and 2022 | |||||||
| 2023 | 2022 | ||||||
| Net revenue | $ | 1,287,704 | $ | 1,228,928 | |||
| Cost of goods sold | 747,281 | 703,869 | |||||
| Gross margin | 540,423 | 525,059 | |||||
| Selling, general and administrative expenses | 376,112 | 340,388 | |||||
| Income from operations | 164,311 | 184,671 | |||||
| Interest expense (income), net | (3,351 | ) | 3,387 | ||||
| Other income | (1,027 | ) | (1,294 | ) | |||
| Income before taxes | 168,689 | 182,578 | |||||
| Income tax expense | 43,450 | 45,944 | |||||
| Net and comprehensive income attributable to Arhaus, Inc. | $ | 125,239 | $ | 136,634 | |||
| Net and comprehensive income per share, basic | |||||||
| Weighted-average number of common shares outstanding, basic | 139,471,110 | 138,094,180 | |||||
| Net and comprehensive income per share, basic | $ | 0.90 | $ | 0.99 | |||
| Net and comprehensive income per share, diluted | |||||||
| Weighted-average number of common shares outstanding, diluted | 140,096,732 | 139,605,550 | |||||
| Net and comprehensive income per share, diluted | $ | 0.89 | $ | 0.98 | |||
| Arhaus, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited, amounts in thousands) Years Ended December 31, 2023 and 2022 | |||||||
| 2023 | 2022 | ||||||
| Cash flows from operating activities | |||||||
| Net income | $ | 125,239 | 136,634 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities | |||||||
| Depreciation and amortization | 29,442 | 24,901 | |||||
| Amortization of operating lease right-of-use asset | 33,306 | 29,052 | |||||
| Amortization of deferred financing fees and interest on finance/capital lease in excess of principal paid | 22,075 | 12,649 | |||||
| Equity based compensation | 7,909 | 4,288 | |||||
| Deferred tax assets | (2,286 | ) | 9,771 | ||||
| Amortization of cloud computing arrangements | 698 | — | |||||
| Amortization and write-off of lease incentives | (321 | ) | (304 | ) | |||
| Insurance proceeds | 60 | — | |||||
| Changes in operating assets and liabilities | |||||||
| Accounts receivable | (660 | ) | (1,506 | ) | |||
| Merchandise inventory | 32,067 | (78,076 | ) | ||||
| Prepaid and other assets | (20,721 | ) | (6,887 | ) | |||
| Other noncurrent liabilities | 388 | 638 | |||||
| Accounts payable | 1,216 | 10,296 | |||||
| Accrued expenses | (1,540 | ) | 27,746 | ||||
| Operating lease liabilities | (25,794 | ) | (33,682 | ) | |||
| Client deposits | (28,779 | ) | (62,342 | ) | |||
| Net cash provided by operating activities | 172,299 | 73,178 | |||||
| Cash flows from investing activities | |||||||
| Purchases of property, furniture and equipment | (97,055 | ) | (51,382 | ) | |||
| Insurance proceeds | 333 | — | |||||
| Net cash used in investing activities | (96,722 | ) | (51,382 | ) | |||
| Cash flows from financing activities | |||||||
| Principal payments under finance leases | (763 | ) | (177 | ) | |||
| Repurchase of shares for payment of withholding taxes for equity based compensation | (1,036 | ) | — | ||||
| Net cash used in financing activities | (1,799 | ) | (177 | ) | |||
| Net increase in cash, cash equivalents and restricted cash | 73,778 | 21,619 | |||||
| Cash, cash equivalents and restricted cash | |||||||
| Beginning of year | 152,527 | 130,908 | |||||
| End of year | $ | 226,305 | $ | 152,527 | |||
| Supplemental disclosure of cash flow information | |||||||
| Interest paid in cash | $ | 5,301 | $ | 5,155 | |||
| Interest received in cash | 8,778 | 1,373 | |||||
| Income taxes paid in cash | 47,132 | 34,943 | |||||
| Noncash investing activities: | |||||||
| Purchase of property, furniture and equipment in accounts payable | 6,726 | 6,878 | |||||
| Noncash financing activities: | |||||||
| Adjustment to deferred tax asset impact of Reorganization from partnership to a corporation | (1,625 | ) | (1,072 | ) | |||
| Derecognition of build-to-suit assets as a result of ASC 842 adoption | — | (31,017 | ) | ||||
| Capital contributions | 56 | 80 | |||||
| Arhaus, Inc. and Subsidiaries Reconciliation of Net Income to Adjusted Net Income (Unaudited, amounts in thousands, except share and per share data) Years ended December 31, 2023 and 2022 | |||||||
| 2023 | 2022 | ||||||
| Net and comprehensive income | $ | 125,239 | $ | 136,634 | |||
| Adjustments (pre-tax): | |||||||
| Other expenses(1) | 792 | 7,382 | |||||
| Total non-GAAP adjustments pre-tax | 792 | 7,382 | |||||
| Less: Tax effect of adjustments(2) | 205 | 1,912 | |||||
| Adjusted net income | $ | 125,826 | $ | 142,104 | |||
| Adjusted net income per share, basic | |||||||
| Weighted-average number of common shares outstanding, basic | 139,471,110 | 138,094,180 | |||||
| Adjusted net income per share, basic | $ | 0.90 | $ | 1.03 | |||
| Adjusted net income per share, diluted | |||||||
| Weighted-average number of common shares outstanding, diluted | 140,096,732 | 139,605,550 | |||||
| Adjusted net income per share, diluted | $ | 0.90 | $ | 1.02 | |||
(1) Other expenses represent costs and investments not indicative of ongoing business performance, such as public offering costs, third-party consulting costs, one-time project start-up costs, severance, signing bonuses, recruiting and project-based strategic initiatives. For the year ended December 31, 2023, these expenses consisted largely of
(2) The Company applied its normalized tax rate of
| Arhaus, Inc. and Subsidiaries Reconciliation of Net Income to Adjusted EBITDA (Unaudited, amounts in thousands) Years Ended December 31, 2023 and 2022 | |||||||
| 2023 | 2022 | ||||||
| Net and comprehensive income | $ | 125,239 | $ | 136,634 | |||
| Interest expense (income), net | (3,351 | ) | 3,387 | ||||
| Income tax expense | 43,450 | 45,944 | |||||
| Depreciation and amortization | 29,442 | 24,901 | |||||
| EBITDA | 194,780 | 210,866 | |||||
| Equity based compensation | 7,909 | 4,288 | |||||
| Other expenses(1) | 792 | 7,382 | |||||
| Adjusted EBITDA | $ | 203,481 | $ | 222,536 | |||
| Net revenue | $ | 1,287,704 | $ | 1,228,928 | |||
| Net and comprehensive income as a % of net revenue | 9.7 | % | 11.1 | % | |||
| Adjusted EBITDA as a % of net revenue | 15.8 | % | 18.1 | % | |||
(1) Other expenses represent costs and investments not indicative of ongoing business performance, such as public offering costs, third-party consulting costs, one-time project start-up costs, severance, signing bonuses, recruiting and project-based strategic initiatives. For the year ended December 31, 2023, these expenses consisted largely of
| Arhaus, Inc. and Subsidiaries Consolidated Statements of Comprehensive Income (Unaudited, amounts in thousands, except share and per share data) Three Months Ended December 31, 2023 and 2022 | |||||||
| 2023 | 2022 | ||||||
| Net revenue | $ | 344,008 | $ | 356,333 | |||
| Cost of goods sold | 202,800 | 198,308 | |||||
| Gross margin | 141,208 | 158,025 | |||||
| Selling, general and administrative expenses | 100,222 | 93,621 | |||||
| Income from operations | 40,986 | 64,404 | |||||
| Interest expense (income), net | (1,620 | ) | 20 | ||||
| Other income | (289 | ) | (710 | ) | |||
| Income before taxes | 42,895 | 65,094 | |||||
| Income tax expense | 11,679 | 18,093 | |||||
| Net and comprehensive income attributable to Arhaus, Inc. | $ | 31,216 | $ | 47,001 | |||
| Net and comprehensive income per share, basic | |||||||
| Weighted-average number of common shares outstanding, basic | 139,783,398 | 138,552,948 | |||||
| Net and comprehensive income per share, basic | $ | 0.22 | $ | 0.34 | |||
| Net and comprehensive income per share, diluted | |||||||
| Weighted-average number of common shares outstanding, diluted | 140,319,792 | 139,782,193 | |||||
| Net and comprehensive income per share, diluted | $ | 0.22 | $ | 0.34 | |||
| Arhaus, Inc. and Subsidiaries Reconciliation of Net Income to Adjusted Net Income (Unaudited, amounts in thousands, except share and per share data) Three Months Ended December 31, 2023 and 2022 | |||||||
| 2023 | 2022 | ||||||
| Net and comprehensive income | $ | 31,216 | $ | 47,001 | |||
| Adjustments (pre-tax): | |||||||
| Other expenses(1) | (200 | ) | 815 | ||||
| Total non-GAAP adjustments pre-tax | (200 | ) | 815 | ||||
| Less: Tax effect of adjustments(2) | (52 | ) | 213 | ||||
| Adjusted net income | $ | 31,068 | $ | 47,603 | |||
| Adjusted net income per share, basic | |||||||
| Weighted-average number of common shares outstanding, basic | 139,783,398 | 138,552,948 | |||||
| Adjusted net income per share, basic | $ | 0.22 | $ | 0.34 | |||
| Adjusted net income per share, diluted | |||||||
| Weighted-average number of common shares outstanding, diluted | 140,319,792 | 139,782,193 | |||||
| Adjusted net income per share, diluted | $ | 0.22 | $ | 0.34 | |||
(1) Other expenses represent costs and investments not indicative of ongoing business performance, such as public offering costs, third-party consulting costs, one-time project start-up costs, severance, signing bonuses, recruiting and project-based strategic initiatives. For the three months ended December 31, 2022, these other expenses consisted largely of
(2) The Company applied its normalized tax rate of
| Arhaus, Inc. and Subsidiaries Reconciliation of Net Income to Adjusted EBITDA (Unaudited, amounts in thousands) Three Months Ended December 31, 2023 and 2022 | |||||||
| 2023 | 2022 | ||||||
| Net and comprehensive income | $ | 31,216 | $ | 47,001 | |||
| Interest expense (income), net | (1,620 | ) | 20 | ||||
| Income tax expense | 11,679 | 18,093 | |||||
| Depreciation and amortization | 8,003 | 6,582 | |||||
| EBITDA | 49,278 | 71,696 | |||||
| Equity based compensation | 2,157 | 1,674 | |||||
| Other expenses(1) | (200 | ) | 815 | ||||
| Adjusted EBITDA | $ | 51,235 | $ | 74,185 | |||
| Net revenue | $ | 344,008 | $ | 356,333 | |||
| Net and comprehensive income as a % of net revenue | 9.1 | % | 13.2 | % | |||
| Adjusted EBITDA as a % of net revenue | 14.9 | % | 20.8 | % | |||
(1) Other expenses represent costs and investments not indicative of ongoing business performance, such as public offering costs, third-party consulting costs, one-time project start-up costs, severance, signing bonuses, recruiting and project-based strategic initiatives. For the three months ended December 31, 2022, these expenses consisted largely of
FAQ
What was Arhaus' net revenue for full year 2023?
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What is Arhaus' full year 2024 guidance for net revenue?
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