Arhaus, a premium home furnishings retailer, has seen a significant boost in its stock price following the announcement of an upward revision to its fourth-quarter and fiscal 2024 revenue forecasts. The company now anticipates fourth-quarter net revenues to range between $343 million and $353 million, up from the previous guidance of $306 million to $326 million. This revision comes despite a low-single-digit demand comparable decline in October, as Arhaus achieved a 6% increase in demand comparable growth in the final quarter. The improved outlook is attributed to successful investments in new product offerings, showroom expansion, and enhanced omni-channel capabilities.
In addition to the fourth-quarter forecast, Arhaus has also raised its fiscal 2024 revenue expectations to between $1.27 billion and $1.28 billion, marking an increase of approximately $35 million from earlier projections. This adjustment reflects a more optimistic view of the company's performance, despite an anticipated comparable growth decline of 8-9% for the full year, which is an improvement over the previously forecasted decline of 11-12%. The positive momentum in revenue forecasts has overshadowed the news of CFO Dawn Phillipson's resignation, as the market focuses on the company's strategic growth initiatives and long-term potential.
Arhaus (ARHS) shares are currently trading at $11.01, marking a 16.38% increase from the previous close of $9.46 on January 9th.