Furniture retailer Arhaus (NASDAQ:ARHS) reported a 1.94% year-over-year (YoY) increase in Q3 FY2023 revenue, surpassing analysts' expectations. The company posted revenue of $326.2 million and an earnings per share (EPS) of $0.14, beating the market estimate by 19.1%.
Despite facing a gross margin drop from 48.4% to 40.1% YoY and a slight decrease in same-store sales by 2.1%, the firm significantly increased its free cash flow from $532 thousand to $60.1 million YoY. This financial performance reaffirms Arhaus' robust operational resilience amidst market challenges.
In line with market forecasts, Arhaus has maintained its full-year revenue guidance at $1.28 billion. CEO John Reed has led an expansion strategy that saw the addition of five new store locations, bringing the total to 85 by the end of the quarter.
The company remains committed to its growth strategy which includes expanding its product offerings, increasing its showroom footprint, and strengthening operational systems to support sustained growth.
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