Why Are Arhaus (ARHS) Shares Soaring Today

What Happened?

Shares of luxury furniture retailer Arhaus (NASDAQ:ARHS) jumped 10.3% in the morning session after the company reported fourth-quarter 2025 results that beat Wall Street's expectations for revenue and profit. 

For the quarter, revenue grew 5.1% year on year to $364.8 million, beating analysts' expectations. The company's profit was also a bright spot, with GAAP earnings per share of $0.11 coming in 15.8% above consensus estimates. This strong performance appeared to outweigh some of the report's weaker points, such as a 2.8% decline in same-store sales and a drop in operating margin from 8.2% to 5.6% year on year. Additionally, the company's revenue guidance for the first quarter of 2026 came in below expectations. However, the beat on both the top and bottom lines for the reported quarter, along with a better-than-expected EBITDA forecast for the full year 2026, provided investors with enough positive news to send the stock higher.

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What Is The Market Telling Us

Arhaus’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. But moves this big are rare even for Arhaus and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 6 days ago when the stock gained 3.6% on the news that the Supreme Court struck down sweeping Trump tariffs, bringing potential relief to companies impacted by international trade disputes. 

The ruling was seen as a significant win for sectors reliant on global supply chains, as tariffs, which are essentially taxes on imported goods, have increased operating costs and squeezed profit margins for many U.S. companies. The removal of these levies is expected to lower expenses for manufacturers and retailers, potentially leading to more competitive pricing and stronger earnings. This positive development appeared to outweigh earlier concerns in the session regarding reports of slowing economic growth and rising inflation, with the broader market, including the S&P 500, ticking higher on the news. In response to the ruling, the Trump administration announced plans to impose a new 10% global tariff.

Arhaus is down 20.4% since the beginning of the year, and at $9.05 per share, it is trading 29.3% below its 52-week high of $12.80 from August 2025. Investors who bought $1,000 worth of Arhaus’s shares at the IPO in November 2021 would now be looking at an investment worth $706.64.

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