Craig-Hallum Upgrades Arhaus (ARHS) to Buy on Strong Q2 Results

Font: Financial Modeling Prep  • Aug 06, 2026

Craig-Hallum Upgrades Arhaus (NASDAQ: ARHS) to Buy Following Strong Q2 Performance

• Analyst firm Craig-Hallum has upgraded its rating for Arhaus (NASDAQ: ARHS) to Buy from Hold, citing impressive second-quarter results.
• The luxury furniture and home decor retailer reported record net revenue of approximately $385 million, a 7.4% increase year over year, and earnings per share of $0.28, significantly surpassing analyst estimates.
• Arhaus demonstrated robust sales momentum, with comparable written sales growing by 12.5% and gross margin increasing by 16.1% to $172 million, partly aided by a $23.80 million tariff refund.

Analyst firm Craig-Hallum has upgraded its rating for Arhaus (NASDAQ: ARHS) to Buy from Hold. Arhaus is a luxury furniture and home decor retailer that sells its products through showrooms, an e-commerce site, and a catalog. The upgrade follows what the firm calls a “very impressive” second quarter, highlighting strong financial performance. The stock price was $9.68 when the rating change was announced, indicating a positive shift in its investment outlook.

The impressive performance includes record second-quarter net revenue of approximately $385 million, a 7.4% increase from the previous year. This figure surpassed Arhaus’s own guidance. As highlighted by Zacks, this revenue also exceeded the Zacks Consensus Estimate by 5.06%. The company attributed this strong retail-sector growth to broad-based demand across its product lines, supported by e-commerce and showroom sales.

Arhaus also reported strong profitability. The company announced quarterly earnings per share of $0.28, representing the profit allocated to each share of stock. This figure significantly exceeded the Zacks Consensus Estimate of $0.16 per share, marking a 75% earnings surprise. It also increased from $0.25 per share reported a year earlier, reflecting improved earnings performance.

The results show strong customer engagement and sales momentum. During the quarter, comparable written sales grew by 12.5%, indicating an increase in new orders. The company’s gross margin, which measures the profit remaining after the cost of goods sold, also rose by 16.1% to $172 million. This improvement was significantly supported by a $23.80 million tariff refund, as highlighted by GlobeNewswire, further strengthening Arhaus’s financial position.