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Arhaus (ARHS) to Report Q2 Earnings: Is a Beat in Store?
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Arhaus, Inc. (ARHS - Free Report) is likely to register a year-over-year improvement in its top line but a decline in its bottom line when it releases second-quarter 2023 earnings on Aug 9 before market open.
The Zacks Consensus Estimate for revenues is pegged at $325.7 million, indicating growth of 6.3% from the prior-year reported figure.
The bottom line of the company is anticipated to have declined year over year. The Zacks Consensus Estimate for second-quarter earnings per share has been stable at 26 cents over the past 30 days. The figure suggests a decline of 7.1% from the year-ago period’s reported number.
The company has a trailing four-quarter earnings surprise of 82.4%, on average. In the last reported quarter, ARHS beat the Zacks Consensus Estimate by a margin of 25%.
Arhaus’ performance in the second quarter is likely to have benefited from healthy demand for products, a solid backlog and strength in the showroom and eCommerce channels. The company’s investments in product development, marketing and omnichannel & technology capabilities are expected to have boosted its performance and supported growth.
The company’s efficient brand-building strategies, effective product assortment management and robust e-commerce sales channel, driven by increased online shopping, are likely to have driven its performance in the to-be-reported quarter.
Its focus on expansion into new markets with investments in showrooms, partnerships and digital competencies are likely to have been tailwinds during the quarter. Also, the normalization of the supply chain is likely to have improved order deliveries, enhancing its performance in the to-be-reported quarter.
Arhaus exited the first quarter of 2023 with cash and cash equivalents of $145 million and no long-term debt. Its strong debt-free balance sheet is expected to have enabled it to navigate the prevalent macroeconomic backdrop while executing its growth strategy in the quarter.
However, Arhaus has been subject to cost-related hurdles for a while now. In the first quarter, the company’s cost of sales and selling, general and administrative expenses increased by 18.7% and 10.7%, respectively, on a year-over-year basis. Any deleverage in operating expenses might have hurt ARHS’ margins and profitability in the quarter under review.
Zacks Model
Our proven model predicts an earnings beat for Arhaus this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here.
Arhaus has an Earnings ESP of +7.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are other three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release:
TJX Companies, Inc. (TJX - Free Report) currently has an Earnings ESP of +0.40%. The company is likely to register top-and bottom-line growth in its upcoming quarter results. The consensus mark for TJX’s quarterly revenues is pegged at $12.4 billion, suggesting growth of 4.7% from the figure reported in the prior-year quarter. TJX currently has a Zacks Rank #2.
The Zacks Consensus Estimate for TJX’s earnings has been stable at 76 cents per share in the past 30 days.
Stitch Fix, Inc. (SFIX - Free Report) currently has an Earnings ESP of +1.32% and a Zacks Rank #2. The company is likely to register a decline in the top line and growth in the bottom line when it reports its upcoming quarter number. The consensus mark for its bottom line has moved down by a penny in the past 30 days.
The Zacks Consensus Estimate for SFIX's quarterly revenues is pegged at $371.5 million, which suggests a decline of 22.9% from the figure reported in the prior-year quarter.
Casey's General Stores, Inc. (CASY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank #2. The company is likely to register top- and bottom-line decline when it reports its upcoming quarterly results. The consensus mark for CASY’s quarterly revenues is pegged at $3.9 billion, which suggests a 13.5% fall from the figure reported in the prior-year quarter.
The consensus mark for CASY’s quarterly earnings has declined 3.4% in the past 30 days to $3.39 per share. The consensus estimate suggests a decline of 17.1% from the year-ago quarter.
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Arhaus (ARHS) to Report Q2 Earnings: Is a Beat in Store?
Arhaus, Inc. (ARHS - Free Report) is likely to register a year-over-year improvement in its top line but a decline in its bottom line when it releases second-quarter 2023 earnings on Aug 9 before market open.
The Zacks Consensus Estimate for revenues is pegged at $325.7 million, indicating growth of 6.3% from the prior-year reported figure.
The bottom line of the company is anticipated to have declined year over year. The Zacks Consensus Estimate for second-quarter earnings per share has been stable at 26 cents over the past 30 days. The figure suggests a decline of 7.1% from the year-ago period’s reported number.
The company has a trailing four-quarter earnings surprise of 82.4%, on average. In the last reported quarter, ARHS beat the Zacks Consensus Estimate by a margin of 25%.
Arhaus, Inc. Price and EPS Surprise
Arhaus, Inc. price-eps-surprise | Arhaus, Inc. Quote
Factors to Note
Arhaus’ performance in the second quarter is likely to have benefited from healthy demand for products, a solid backlog and strength in the showroom and eCommerce channels. The company’s investments in product development, marketing and omnichannel & technology capabilities are expected to have boosted its performance and supported growth.
The company’s efficient brand-building strategies, effective product assortment management and robust e-commerce sales channel, driven by increased online shopping, are likely to have driven its performance in the to-be-reported quarter.
Its focus on expansion into new markets with investments in showrooms, partnerships and digital competencies are likely to have been tailwinds during the quarter. Also, the normalization of the supply chain is likely to have improved order deliveries, enhancing its performance in the to-be-reported quarter.
Arhaus exited the first quarter of 2023 with cash and cash equivalents of $145 million and no long-term debt. Its strong debt-free balance sheet is expected to have enabled it to navigate the prevalent macroeconomic backdrop while executing its growth strategy in the quarter.
However, Arhaus has been subject to cost-related hurdles for a while now. In the first quarter, the company’s cost of sales and selling, general and administrative expenses increased by 18.7% and 10.7%, respectively, on a year-over-year basis. Any deleverage in operating expenses might have hurt ARHS’ margins and profitability in the quarter under review.
Zacks Model
Our proven model predicts an earnings beat for Arhaus this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here.
Arhaus has an Earnings ESP of +7.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are other three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release:
TJX Companies, Inc. (TJX - Free Report) currently has an Earnings ESP of +0.40%. The company is likely to register top-and bottom-line growth in its upcoming quarter results. The consensus mark for TJX’s quarterly revenues is pegged at $12.4 billion, suggesting growth of 4.7% from the figure reported in the prior-year quarter. TJX currently has a Zacks Rank #2.
The Zacks Consensus Estimate for TJX’s earnings has been stable at 76 cents per share in the past 30 days.
Stitch Fix, Inc. (SFIX - Free Report) currently has an Earnings ESP of +1.32% and a Zacks Rank #2. The company is likely to register a decline in the top line and growth in the bottom line when it reports its upcoming quarter number. The consensus mark for its bottom line has moved down by a penny in the past 30 days.
The Zacks Consensus Estimate for SFIX's quarterly revenues is pegged at $371.5 million, which suggests a decline of 22.9% from the figure reported in the prior-year quarter.
Casey's General Stores, Inc. (CASY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank #2. The company is likely to register top- and bottom-line decline when it reports its upcoming quarterly results. The consensus mark for CASY’s quarterly revenues is pegged at $3.9 billion, which suggests a 13.5% fall from the figure reported in the prior-year quarter.
The consensus mark for CASY’s quarterly earnings has declined 3.4% in the past 30 days to $3.39 per share. The consensus estimate suggests a decline of 17.1% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.