Arhaus, Inc. (ARHS) stock experienced a downgrade to a hold rating due to an uncertain demand outlook, which has been influenced by elevated mortgage rates negatively impacting housing demand—a crucial driver for the company's furniture sales. Despite efforts to boost sales through promotions like the "buy more, save more" strategy, the company has seen a decline in comparable sales, indicating weak underlying demand. This downgrade reflects concerns over the company's ability to maintain its growth trajectory amid challenging market conditions.
Arhaus shares closed at $9.39 on December 18, 2024, marking a 7.49% decline from the previous day's close of $10.15. The stock remained flat in after-hours trading.