Arhaus, Inc.
Arhaus, Inc. is a premium home furnishings retailer founded in 1986 and built around a vertically integrated model that combines design, sourcing, manufacturing, and direct-to-consumer selling. The company offers furniture and décor positioned as responsibly sourced, customizable, and built for long-term use, with a strong emphasis on craftsmanship and interior design support. Arhaus sells through more than 100 U.S. showrooms, eCommerce, catalogs, and trade relationships, creating an omni-channel shopping experience that is meant to feel highly personalized. Its operating model includes domestic upholstery production in North Carolina and direct sourcing from a global network of artisan and manufacturing partners.
Fiscal year 2025 · change from previous year
Development 2021–2025
Business
Share of revenueCore indoor furniture assortment including seating, tables, storage, and bedroom pieces.
Patio and outdoor living furniture and related accessories.
Lighting, textiles, bath, décor, and smaller home accents.
Made-to-order upholstered products with fabric and leather customization.
Interior design support, trade program services, and delivery-related offerings.
Customers
Arhaus serves affluent homeowners and design-conscious consumers who want premium, differentiated furniture rather than mass-market product. A meaningful part of the business comes from clients who use Arhaus interior designers, which tends to increase order values and project visibility. The company also targets trade professionals and interior designers through a dedicated program that supports project-based demand and repeat business. Because the brand is sold through showrooms, eCommerce, and catalogs, customers can shop in the channel that best fits their purchase journey, from inspiration to final delivery.
Households purchasing furniture and décor for personal use, attracted by design, quality, and the brand's heirloom positioning.
Customers working with Arhaus designers on larger or more customized projects, often with higher average order values and repeat purchases.
Interior designers and trade professionals buying through the dedicated program for project-based sourcing and customization.
Shoppers who discover products through eCommerce or catalogs and use those channels as an extension of the showroom experience.
Strategy
Arhaus is focused on expanding its premium brand through new showroom openings, showroom refreshes, and a tightly integrated omni-channel experience. The company is investing in supply chain, distribution, and technology infrastructure, including a multi-year ERP, order management, and transportation management transformation, to improve execution and scalability. It is also trying to deepen penetration in trade and interior designer-assisted projects, which management views as a meaningful long-term growth opportunity because these orders are larger and more visible. The strategy relies on preserving product quality and customization while using direct sourcing and domestic manufacturing to maintain control over design, value, and service.
Showrooms are a core brand-building and demand-generation channel that drives discovery and conversion.
These customers tend to place larger, more visible projects and support repeat business.
Better systems and transportation planning should improve service levels and support growth without losing control of the customer experience.
Geography
Arhaus is primarily a U.S. business, with more than 100 showrooms across 31 states and eCommerce serving the same domestic market. The company operates distribution centers in Ohio, Texas, and North Carolina to support nationwide fulfillment and white-glove delivery. It also maintains domestic upholstery manufacturing in North Carolina, which supports customization and supply-chain control. While the brand has trademark registrations in Canada and China and sources globally from nearly 400 vendors, the revenue base disclosed in the reports is overwhelmingly tied to the United States.
Risks
Arhaus faces execution risk from its reliance on a global supply chain and specialty vendors, which can affect product availability, lead times, and input costs. Because the company sells premium, customizable furniture, disruptions in distribution, manufacturing integration, or home delivery can quickly affect customer satisfaction and margins. The business is also exposed to tariffs, trade policy changes, and other international risks because a significant portion of merchandise is sourced from foreign manufacturers and vendors. More broadly, consumer demand for discretionary home furnishings can weaken in slower housing or macroeconomic environments, while cybersecurity and data privacy risks matter because the company handles customer data and card payments across digital and showroom channels.
- Global sourcing and import disruptionImpact: HighLikelihood: High
A significant portion of merchandise comes from foreign manufacturers and vendors, exposing the company to delays, shortages, and cost inflation.
Exposure: Merchandise availability and gross margin
- Tariffs and trade policy changesImpact: HighLikelihood: High
Imported furniture and décor can become more expensive if duties or trade restrictions increase.
Exposure: Product cost and pricing flexibility
- Distribution and fulfillment disruptionImpact: MediumLikelihood: High
The company depends on integrated distribution centers and third-party delivery to serve customers nationwide.
Exposure - Cybersecurity and data privacyImpact: MediumLikelihood: Medium
Showroom, eCommerce, and trade transactions involve customer data and card payments that can be targeted by fraud or breaches.
Exposure: Operating expense and reputation
- Discretionary demand cyclicalityImpact: MediumLikelihood: Medium
Premium home furnishings are discretionary purchases and can slow when consumer confidence or housing activity weakens.
Exposure: Revenue growth and showroom productivity
Accounting
Judgemental itemsOrders are recorded as revenue only when the client obtains control, so shipment and delivery timing can materially shift quarterly results.
Impact: Quarterly revenue comparability and backlog conversion
Merchandise write-downs, inbound freight, and home-delivery costs are embedded in cost of goods sold and can pressure gross margin.
Impact: Gross margin and inventory valuation
Showrooms, distribution centers, and manufacturing assets require estimates of useful life and recoverability.
Impact: Depreciation expense and potential impairment charges
Furniture demand and delivery timing can vary by quarter, making reported revenue and margins uneven across periods.
Impact: Quarterly earnings volatility
Similar listed companies
Publicly listed companies with a comparable business focus.
RH
RH · Retail-Furniture Stores
RH is a U.S.-based luxury home furnishings retailer and lifestyle brand centered on curated furniture, lighting, textiles, décor, and related home categories.
Ethan Allen Interiors Inc
ETD · Wood Household Furniture, (No Upholstered)
Haverty Furniture Companies, Inc
HVT · Retail-Furniture Stores
Bassett Furniture Industries, Incorporated
BSET · Wood Household Furniture, (No Upholstered)
Bassett Furniture Industries makes, sources, markets, and sells home furnishings through two main channels: wholesale and company-owned retail stores.
Brand House Collective, Inc.
TBHC · Retail-Retail Stores, NEC
Innovative Designs Inc
IVDN · Miscellaneous Fabricated Textile Products
Last updated: 24/09/2026