Arhaus, Inc. (ARHS): Modelo de negócios Canvas [Jan-2025 Atualizado]

Descubra o intrincado mundo da Arhaus, Inc., uma marca de móveis de luxo que transforma a decoração de casa por meio de design inovador e abordagem de negócios estratégicos. Essa exploração de seu modelo de negócios Canvas revela como a empresa combina magistralmente artesanato premium, fornecimento sustentável e experiências digitais de ponta para capturar o coração dos consumidores afluentes que buscam mais do que apenas móveis-eles estão buscando um estilo de vida de elegância e design personalizado. De showrooms meticulosamente com curadoria a sofisticadas plataformas de comércio eletrônico, Arhaus criou uma proposta de valor única que as diferencia no mercado competitivo de móveis para casa.

Arhaus, Inc. (ARHS) - Modelo de negócios: Parcerias -chave

Fabricantes de móveis e fornecedores

Arhaus trabalha com aproximadamente 50 parceiros de fabricação de móveis nos Estados Unidos. A partir de 2023, a empresa adquiriu móveis de:

Região	Número de fabricantes	Valor anual de compras
Carolina do Norte	18 fabricantes	US $ 42,3 milhões
Michigan	12 fabricantes	US $ 28,7 milhões
Califórnia	8 fabricantes	US $ 19,5 milhões
Outros estados	12 fabricantes	US $ 26,9 milhões

Profissionais de design de interiores e influenciadores de decoração de casa

Arhaus colabora com:

• 120 designers de interiores profissionais
• 45 influenciadores de decoração de casa com mídias sociais combinadas seguintes de 3,2 milhões
• Orçamento de parceria de marketing de US $ 1,8 milhão em 2023

Plataformas de comércio eletrônico

Parcerias estratégicas com mercados on -line:

Plataforma	Volume de vendas	Taxa de comissão
Wayfair	US $ 12,6 milhões em 2023	12.5%
Amazon	US $ 8,3 milhões em 2023	15%

Fornecedores focados em sustentabilidade

Parcerias de fornecimento sustentável incluem:

• 7 fornecedores de madeira sustentável certificados
• 4 fabricantes de tecidos ecológicos
• Investimento total de fornecimento sustentável: US $ 5,2 milhões em 2023

Companhias de logística e navegação

Parcerias de entrega em todo o país:

Parceiro de remessa	Cobertura de entrega	Custo de envio anual
FedEx	48 estados	US $ 22,7 milhões
UPS	50 estados	US $ 19,5 milhões
Transportadoras regionais	Selecione áreas metropolitanas	US $ 6,3 milhões

Arhaus, Inc. (ARHS) - Modelo de negócios: Atividades -chave

Design de móveis de última geração e desenvolvimento de produtos

A partir do quarto trimestre 2023, a Arhaus mantém um portfólio de produtos de aproximadamente 1.500 designs de móveis exclusivos. A empresa emprega 87 profissionais de design internos com um investimento médio anual de US $ 4,2 milhões em pesquisa e desenvolvimento de produtos.

Categoria de design	Investimento anual	Tamanho da equipe de design
Design de móveis	US $ 4,2 milhões	87 profissionais

Operações e gerenciamento de lojas de varejo

A Arhaus opera 77 locais de varejo físico em 26 estados em dezembro de 2023. O tamanho médio da loja é de 22.000 pés quadrados, com um custo operacional anual de US $ 3,8 milhões por loja.

Total de lojas	Estados cobertos	Tamanho médio da loja
77 lojas	26 estados	22.000 pés quadrados

Gerenciamento de experiência digital e física do cliente

As plataformas digitais geram 38% da receita total, com um investimento anual de experiência digital de US $ 2,6 milhões. A equipe de atendimento ao cliente compreende 215 profissionais que lidam com as interações omnichannel.

• Porcentagem de receita digital: 38%
• Investimento de experiência digital: US $ 2,6 milhões
• Tamanho da equipe de atendimento ao cliente: 215 profissionais

Otimização de compras de estoque e cadeia de suprimentos

O investimento anual de inventário atinge US $ 127,3 milhões, com 62% provenientes de fornecedores internacionais. A equipe de gerenciamento da cadeia de suprimentos consiste em 43 profissionais.

Investimento anual de inventário	Fornecimento internacional	Equipe da cadeia de suprimentos
US $ 127,3 milhões	62%	43 profissionais

Marketing e posicionamento da marca

O orçamento de marketing para 2023 foi de US $ 18,7 milhões, representando 5,4% da receita total. O marketing digital é responsável por 47% das despesas de marketing.

• Orçamento anual de marketing: US $ 18,7 milhões
• Orçamento de marketing como porcentagem de receita: 5,4%
• Alocação de marketing digital: 47%

Arhaus, Inc. (ARHS) - Modelo de negócios: Recursos -chave

Recursos de design de móveis proprietários

A partir do quarto trimestre 2023, Arhaus mantém um Portfólio de design proprietário de 1.200 mais de coleções de móveis exclusivas. A empresa emprega 42 profissionais de design internos Responsável por criar linhas de móveis exclusivas.

Métrica de recurso de design	Valor quantitativo
Tamanho total da equipe de design	42 profissionais
Coleções de móveis exclusivas	1,200+
Investimento anual de design	US $ 3,2 milhões

Forte reputação da marca em móveis para casas de luxo

Arhaus gera US $ 541,3 milhões em receita anual com um posicionamento da marca no segmento de móveis para casas de luxo.

Locais de varejo físico

Em 31 de dezembro de 2023, Arhaus opera:

• 76 lojas de varejo físico
• Concentrado em 26 estados nos Estados Unidos
• Tamanho médio da loja: 25.000 pés quadrados

Métrica de localização do varejo	Valor quantitativo
Total de lojas de varejo	76
Estados com presença	26
Tamanho médio da loja	25.000 pés quadrados

Plataforma de vendas digital e infraestrutura de comércio eletrônico

Desempenho do canal digital para 2023:

• Receita de comércio eletrônico: US $ 127,4 milhões
• Crescimento das vendas digital: 12,3%
• Tráfego do site: 4,2 milhões de visitantes mensais

Equipes de design e atendimento ao cliente qualificados

Composição da força de trabalho em dezembro de 2023:

Categoria de equipe	Total de funcionários
Força de trabalho total	1,342
Equipe de design	42
Representantes de atendimento ao cliente	186
Associados de vendas	514

Arhaus, Inc. (ARHS) - Modelo de negócios: proposições de valor

Móveis artesanais premium com estética de design exclusivo

A partir do quarto trimestre de 2023, Arhaus registrou US $ 547,3 milhões em vendas líquidas anuais, com foco em designs de móveis distintos. A empresa mantém um preço médio de US $ 2.500 por peça de móveis, visando os consumidores da classe média alta que buscam móveis domésticos exclusivos.

Categoria de design	Porcentagem de linha de produtos	Faixa de preço médio
Contemporâneo moderno	35%	$1,800 - $4,500
Artesão tradicional	25%	$2,200 - $5,000
Transitório	40%	$1,500 - $3,800

Materiais de alta qualidade e de origem sustentável

A Arhaus aloca 22% de seu orçamento de fornecimento de produtos para materiais sustentáveis ​​e ecológicos. A empresa relata usando:

• Madeira certificada por FSC de fontes florestais responsáveis
• Metais reciclados em 18% dos quadros de móveis
• Algodão orgânico e poliéster reciclado em estofados

Serviços personalizados de consulta de design de interiores

Em 2023, a Arhaus ofereceu serviços de design gratuitos a 67% dos clientes que compram mais de US $ 5.000 em móveis. O tempo médio de consulta é de 2,5 horas, com opções virtuais e nas lojas disponíveis.

Tipo de consulta	Disponibilidade	Taxa de satisfação do cliente
Na loja	100% dos locais	92%
Virtual	Disponível em todo o país	85%

Soluções abrangentes de móveis domésticas

A Arhaus fornece pacotes de design de quarto inteiro, com um valor médio de pacote de US $ 15.000 a US $ 35.000. A empresa oferece soluções completas de salas em 42 lojas nos Estados Unidos.

Garantia vitalícia em peças de móveis selecionadas

A partir de 2023, 15% dos itens de móveis Arhaus Qualifique -se para a garantia vitalícia, cobrindo a integridade estrutural e o artesanato. A garantia se aplica a madeira maciça e peças de estofamento de ponta.

Categoria de garantia	Período de cobertura	Porcentagem de linha de produtos
Garantia estrutural vitalícia	Vida	15%
Garantia limitada de 10 anos	10 anos	45%
Garantia limitada de 5 anos	5 anos	40%

Arhaus, Inc. (ARHS) - Modelo de negócios: relacionamentos com o cliente

Consultas pessoais de design na loja

A partir do quarto trimestre de 2023, a Arhaus opera 77 lojas em 25 estados. A empresa emprega aproximadamente 150 consultores de design internos, com uma média de 7,5 anos de experiência em design de interiores.

Tipo de consulta	Duração média	Taxa de conversão
Consulta de design na loja	62 minutos	43%
Consulta de design virtual	45 minutos	37%

Ferramentas de design on -line e planejamento virtual de salas

Arhaus investiu US $ 2,3 milhões em tecnologia de design digital em 2023, oferecendo:

• Plataforma de visualização de quarto 3D
• Ferramenta de colocação de móveis virtuais
• Sistema de correspondência de cor e tecido

Programa de fidelidade para clientes recorrentes

Métricas do Programa de Fidelidade	2023 dados
Membros totais de lealdade	247,000
Repita a taxa de compra	28%
Gasto médio de fidelidade	US $ 1.875 anualmente

Serviços abrangentes de suporte ao cliente

Métricas de suporte ao cliente para 2023:

• Canais de suporte: telefone, e -mail, chat ao vivo, mídia social
• Tempo médio de resposta: 37 minutos
• Classificação de satisfação do cliente: 4.6/5

Recomendações personalizadas de marketing e design

Métricas de personalização de marketing	2023 desempenho
Campanhas de e -mail personalizadas	37% de taxa de abertura
Conversão de publicidade digital direcionada	5.2%
Precisão da recomendação orientada pela IA	62%

Arhaus, Inc. (ARHS) - Modelo de negócios: canais

Showrooms de varejo de propriedade da empresa

A partir do quarto trimestre de 2023, a Arhaus opera 77 shows de varejo em 24 estados nos Estados Unidos. O tamanho médio do showroom é de aproximadamente 25.000 pés quadrados. Mágua quadrada total de varejo: 1.925.000 pés quadrados.

Região	Número de showrooms	Porcentagem de total
Nordeste	22	28.6%
Centro -Oeste	18	23.4%
Sudeste	15	19.5%
Oeste	12	15.6%
Sudoeste	10	13%

Site oficial de comércio eletrônico

Canal de vendas digital gerando US $ 310,2 milhões em receita para o ano fiscal de 2023. Taxa de conversão on -line: 3,7%. Valor médio da ordem: US $ 1.875.

Aplicativo de compra móvel

• Downloads de aplicativos móveis totais: 425.000
• Taxa de conversão de aplicativos móveis: 2,9%
• Duração média da sessão móvel: 7,2 minutos

Plataformas de marketing de mídia social

Plataforma	Seguidores	Taxa de engajamento
Instagram	287,000	4.2%
Facebook	215,000	3.8%
Pinterest	156,000	3.5%

Mercados on-line de terceiros

Vendas por meio de plataformas de terceiros: US $ 42,6 milhões em 2023, representando 8,7% da receita total da empresa.

• Vendas de parceria da Wayfair: US $ 23,4 milhões
• Amazon Marketplace Vendas: US $ 12,8 milhões
• Outras vendas de mercado: US $ 6,4 milhões

Arhaus, Inc. (ARHS) - Modelo de negócios: segmentos de clientes

Profissionais urbanos ricos

Renda familiar média: US $ 150.000 - US $ 250.000 por ano

Faixa etária	Percentagem	Gastos médios na decoração da casa
30-45 anos	42%	US $ 8.500 anualmente

Entusiastas do design de interiores

Tamanho do mercado -alvo: 12,5 milhões de consumidores nos Estados Unidos

• Engajamento anual do mercado de decoração em casa: US $ 45 bilhões
• Porcentagem de compras de móveis de última geração: 28%
• Investimento médio de móveis por ano: US $ 6.200

Proprietários de alta renda

Limite de renda familiar: US $ 250.000+

Faixa de renda	Penetração de mercado	Valor médio da casa
$250,000 - $500,000	35%	$625,000
$500,000+	22%	$1,200,000

Consumidores de decoração de casa de luxo

Mercado endereçável total: US $ 98,5 bilhões em 2023

• Porcentagem disposta a gastar mais de US $ 10.000 em móveis: 17%
• Repita taxa de compra: 36%
• Valor médio da transação: US $ 4.750

Millennials e Gen X com renda disponível

Total -alvo demográfico: 72,1 milhões de consumidores

Geração	Renda média anual	Gastos com decoração de casa
Millennials (25-40 anos)	$85,000	$3,600
Gen X (41-56 anos)	$110,000	$5,200

Arhaus, Inc. (ARHS) - Modelo de negócios: estrutura de custos

Despesas de fabricação e fornecimento de móveis

A partir de 2023, Arhaus registrou um custo total de mercadorias vendidas (engrenagens) de US $ 445,9 milhões. A empresa obtém móveis de vários fabricantes globais, com aproximadamente 70% dos produtos fabricados internamente ou por meio de parcerias exclusivas.

Categoria de custo	Despesa anual	Porcentagem de receita
Aquisição de matéria -prima	US $ 189,3 milhões	42.5%
Trabalho de fabricação	US $ 87,6 milhões	19.7%
Envio e logística	US $ 68,2 milhões	15.3%

Custos operacionais da loja de varejo

A Arhaus opera 78 lojas de varejo com despesas anuais relacionadas à loja de US $ 112,5 milhões em 2023.

• Aluguel da loja de varejo: US $ 42,3 milhões
• Utilitários e manutenção: US $ 18,7 milhões
• Equipamentos e acessórios de loja: US $ 12,9 milhões

Salários e treinamento de funcionários

As despesas totais de pessoal para 2023 foram de US $ 156,4 milhões, cobrindo aproximadamente 1.200 funcionários em período integral.

Categoria de funcionários	Despesas salariais anuais	Compensação média
Funcionários corporativos	US $ 68,9 milhões	US $ 95.700 por funcionário
Equipe de varejo	US $ 54,2 milhões	US $ 45.300 por funcionário
Treinamento e desenvolvimento	US $ 7,3 milhões	0,5% da receita total

Investimentos de marketing e publicidade

As despesas de marketing de 2023 totalizaram US $ 38,7 milhões, representando 8,7% da receita total.

• Marketing Digital: US $ 22,4 milhões
• Mídia impressa e tradicional: US $ 9,3 milhões
• Publicidade de mídia social: US $ 6,9 milhões

Manutenção de tecnologia e infraestrutura digital

Os custos de tecnologia e infraestrutura digital para 2023 foram de US $ 24,6 milhões.

Categoria de despesa de tecnologia	Custo anual	Porcentagem de orçamento de tecnologia
Plataforma de comércio eletrônico	US $ 8,9 milhões	36.2%
Infraestrutura de TI	US $ 7,5 milhões	30.5%
Segurança cibernética	US $ 4,2 milhões	17.1%

Arhaus, Inc. (ARHS) - Modelo de negócios: fluxos de receita

Vendas diretas de móveis de varejo

Para o ano fiscal de 2023, Arhaus registrou vendas líquidas totais de US $ 604,3 milhões. As vendas de lojas de varejo físicas representaram US $ 442,1 milhões da receita total.

Canal de varejo	Receita (2023)	Porcentagem de vendas totais
Lojas de varejo físico	US $ 442,1 milhões	73.1%
Vendas líquidas totais	US $ 604,3 milhões	100%

Vendas de produtos de comércio eletrônico

As vendas on -line representaram US $ 162,2 milhões em receita para 2023, compreendendo 26,9% do total de vendas líquidas.

Taxas de consulta de design de interiores

A Arhaus oferece serviços gratuitos de design de interiores, que são incluídos nos preços do produto. Nenhuma receita de taxa de consulta separada é relatada.

Planos estendidos de garantia e proteção

• Plano de proteção de móveis Preço médio: US $ 199 a US $ 499 por item
• Receita anual estimada dos planos de proteção: aproximadamente US $ 15,1 milhões

Decoração de casa complementar e vendas de acessórios

Categoria de produto	Contribuição da receita
Mobília	US $ 485,4 milhões
Decoração e acessórios para casa	US $ 118,9 milhões

Repartição total da receita para 2023:

• Vendas de móveis: US $ 485,4 milhões
• Decoração e acessórios para casa: US $ 118,9 milhões
• Planos de proteção: US $ 15,1 milhões

Arhaus, Inc. (ARHS) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose Arhaus, Inc. over competitors, grounded in the numbers from late 2025.

Heirloom-quality, artisan-crafted home furnishings.

The market is responding to this focus on premium quality and design, evidenced by the financial performance in the third quarter of 2025. Net revenue for Q3 2025 hit $345 million, an 8.0% year-over-year increase, setting a new record for that quarter. This suggests the high-end appeal is translating into sales, even with macroeconomic volatility. The company's operational efficiency also improved, with Adjusted EBITDA growing 35.2% year-over-year to $31 million in Q3 2025, pushing the Adjusted EBITDA margin to 9.1%.

Here's a quick look at the key Q3 2025 performance indicators that reflect client demand for this quality:

Metric	Value (Q3 2025)	Context/Change
Net Revenue	$345 million	Up 8.0% YoY
Adjusted EBITDA	$31 million	Up 35.2% YoY
Demand Comparable Growth	7.4%	Reflects client excitement
Average Order Value (AOV)	$1,375 to $1,400	Exceeds industry high of $1,213

Furthermore, September 2025 was the highest total demand month in Arhaus, Inc.'s history. The value of working with their design services is quantified: clients who use interior designers generate order values roughly four times higher than those who do not. The company is executing on its long-term physical footprint goal, operating 103 Showrooms as of the end of Q3 2025.

Commitment to sustainability and ethically sourced materials.

Arhaus, Inc. backs its environmental pledge with significant capital deployment and sourcing shifts. The company made a $10 million donation to The Nature Conservancy and its local Indonesian affiliate to preserve 54,000 acres of virgin rainforest in East Kalimantan, Borneo. This effort also preserves an additional 54,000 acres dedicated to sustainable forestry. Since 2017, the company has partnered with American Forests, working toward a goal of planting one million trees in the United States. Operationally, Arhaus, Inc. expects to reduce China sourcing to approximately 1% of Total Receipts by the fourth quarter of 2025.

• Pledge since 1986: Never use wood harvested from the rainforest.
• Rainforest acres preserved in Borneo: 54,000.
• Goal for US trees planted with American Forests: one million.

Unique, curated designs with broad aesthetic appeal.

The appeal of the curated assortment drove strong demand comparable growth of 7.4% in Q3 2025. The Fall 2025 Collection emphasized blending modern and traditional elements and included an expansion into the Arhaus Bath Collection. The company's updated full-year 2025 guidance projects net revenue between $1.35 billion and $1.38 billion.

Innovative customization tools, like the 2025 3D customizer.

While specific internal adoption rates for Arhaus, Inc.'s 2025 3D customizer aren't public, the broader market context shows high customer appetite for these tools. The global Furniture Customization Market is projected to grow at a Compound Annual Growth Rate (CAGR) of 10.1% from 2025 to 2033, reaching $22.3 billion by 2033, up from an estimated $9.9 billion in 2025.

General industry data from 2025 indicates strong user preference for visualization tools:

• 72% of furniture shoppers customize their purchases.
• 88% of users found a 3D product configurator very helpful.
• 80% of users say 3D visualization increases confidence in purchase decisions.
• 64% of shoppers who skipped a 3D tool wished they had used one.

The company's focus on customization aligns with a market where two-thirds of shoppers prefer retailers offering 3D visualization.

Arhaus, Inc. (ARHS) - Canvas Business Model: Customer Relationships

You're looking at how Arhaus, Inc. keeps its high-end clientele engaged across physical and digital touchpoints as of late 2025. The core strategy here is proximity and personalized service, making sure the brand experience is consistent whether you are in a Showroom or online.

Complimentary in-home and in-showroom design consultations.

Arhaus, Inc. heavily relies on its design services as a key relationship driver. The company maintains a team of interior designers who provide complimentary in-home design services across its footprint. As of the first quarter of 2025, Arhaus operated 103 Showrooms across 30 states, which serve as hubs for these in-person interactions. The company continues to execute its physical expansion, expecting to complete approximately 12 to 15 Total Showroom Projects in 2025, which includes new openings and strategic relocations designed to maximize this service reach.

The physical footprint supports the service model:

• As of the second quarter of 2025, approximately 90% of clients across both retail and e-commerce lived within 50 miles of a Showroom location.
• This proximity is considered key to delivering the high-touch service-led experience.
• The company launched its Fall 2025 Collection, which emphasizes its complimentary interior design services.

High-touch, personalized service to drive higher order values.

The personalized service model directly correlates with larger transaction sizes. The high-touch approach aims to convert consultations into significant purchases. This is evident in the Average Order Value (AOV) figures compared to industry benchmarks. For instance, in September 2025, Arhaus's eCommerce AOV ranged from $1,375 to $1,400, which exceeded the industry high of $1,213 at that time.

Here's a look at some of the digital service metrics from September 2025:

Metric	Arhaus, Inc. (ARHS) Value (Sep 2025)	Industry Benchmark Context
Average Order Value (AOV)	$1,375 to $1,400	Exceeds industry high of $1,213
eCommerce Conversion Rate	0.50-1.00%	Lower than sector high of 1.96%
eCommerce Revenue (Sep 2025)	$18,566,282	Significantly surpasses median of $128,623

The focus on client engagement is also reflected in demand metrics. For example, Demand comparable growth was up an impressive 15.7% in July 2025, highlighting strong client engagement.

Building long-term brand loyalty with a high-end client base.

Arhaus, Inc. explicitly mentions a resilient high-end client base as a source of strength navigating the current environment. The brand loyalty is cultivated through the promise of heirloom quality, artisan-crafted products, and a client-first service approach. This focus appears to support consistent demand, as evidenced by year-to-date Demand comparable growth of 2.8% through the third quarter of 2025.

Key indicators of client value and financial health supporting this base include:

• Client deposits totaled $262 million as of September 30, 2025, up 15.0% from December 31, 2024.
• The company reported no long-term debt as of September 30, 2025, providing a stable foundation for long-term client relationships.
• Q3 2025 Net Revenue was $344.6 million, an 8.0% increase year-over-year.

Digital engagement via e-commerce and digital media.

Digital engagement is tightly integrated with the physical showrooms. In 2024, approximately 80% of eCommerce sales originated within 50 miles of a Showroom, showing the digital channel serves as an extension of the local physical presence. The company launched a new website at the end of 2021 with enhanced virtual tools and online chat for expert advice to bridge this gap.

Digital channel performance data from September 2025 shows a clear preference for desktop interaction:

• Desktop devices accounted for 92% of sales finalized on arhaus.com.
• Mobile devices accounted for 8.5% of sales (mobile web only).

While annual eCommerce revenue was $266.9M in 2024, the forecast for 2025 suggested a decline of 5-10%. Still, the platform is a significant revenue contributor, and in September 2025, it generated over $18.5 million in online sales.

Arhaus, Inc. (ARHS) - Canvas Business Model: Channels

You're looking at how Arhaus, Inc. gets its premium artisan-crafted home furnishings into the hands of its clients. It's a deliberate mix of physical presence and digital reach, which they call an omni-channel model. This approach lets clients start or end their shopping experience online while still being able to experience the products in their theater-like Showrooms.

Traditional Showrooms and smaller Design Studios (103+ total)

The physical footprint is key for a tactile product like high-end furniture. Arhaus, Inc. uses these locations as brand awareness vehicles. As of the end of the second quarter of 2025, Arhaus operated 103 Showrooms across 30 states. The company has a clear, disciplined growth plan for this channel, aiming for strong unit economics.

Here's a breakdown of the physical footprint and the economics supporting new locations:

Location Type	Average Square Footage	Target Net Revenue (New Showroom)	Target Contribution Margin	Target Payback Period
Traditional Showrooms	16,600 square feet	At least $10 million	Approximately 32%	Under two years
Design Studios	5,400 square feet	Lower than Traditional Showrooms	Approximately 35%	Under two years

For the full year 2025, Arhaus, Inc. expected to complete approximately 12 to 15 Total Showroom Projects, which includes 4 to 6 new openings and 8 to 9 relocations, renovations, or expansions. Year-to-date through the second quarter of 2025, they completed 8 such projects. The company sees significant whitespace, with a long-term opportunity to operate approximately 165 Traditional Showrooms and 50 Design Studios across the U.S.

E-commerce platform for national reach and online sales

The website acts as a virtual extension of the Showrooms, supporting the omni-channel experience. Arhaus, Inc. launched a new eCommerce platform in 2021. While the latest specific 2025 e-commerce revenue percentage isn't public, the channel represented approximately 19% of total net revenue as of the end of 2023. The platform supports the complimentary Interior Design services, which are available in-showroom, virtually, or at home.

Print and digital media, including the Home & Style issue

The brand uses print and digital media to reach clients. A key piece of this is the annual style issue, Home & Style. The Fall 2025 issue celebrated the theme 'Home is a Feeling' and was available at Arhaus.com and in their nationwide showrooms.

Integrated distribution network with regional centers like Dallas

Arhaus, Inc. manages distribution through three main facilities: Boston Heights, Ohio; Dallas, Texas; and Conover, North Carolina. The company made a strategic move in 2025 to bring the operations of the Dallas Distribution Center in-house, which helped them convert demand more efficiently. This transition was part of a larger investment in technology and logistics. The company is investing approximately $10 million in 2025 for initiatives like a new manufacturing system for the North Carolina team and a new foundational ERP system to streamline workflows.

Key distribution center capacities and actions:

• Ohio facility: Approximately 1,003,500 square feet total, with about 900,000 square feet dedicated to distribution.
• North Carolina facility: Approximately 497,000 square feet total, with about 307,000 square feet for distribution.
• Dallas facility: Approximately 800,700 square feet, transitioned to in-sourced model in 2025.
• Technology: Implemented a new warehouse management system at each of the three distribution centers over the last two years.

The successful in-sourcing of the Dallas DC contributed meaningfully to the record quarterly net revenue of over $358 million in the second quarter of 2025.

Arhaus, Inc. (ARHS) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Arhaus, Inc. as of late 2025. Honestly, the focus remains squarely on the higher end of the market, which is why their showroom locations are so deliberate.

The primary group is the affluent homeowners and families. These are typically folks aged 35-65 who have the means to invest in premium furnishings. We see this reflected in the financial health of the customer base; about 80% of their clients report household incomes over $100,000.

Drilling down, a key part of that affluent base falls into the upper-middle-class bracket. Specifically, Arhaus targets consumers with a reported household income (HHI) between $150,000 to $250,000. This segment is what drives the demand for their higher-priced offerings, which is clear when you look at the order sizes they are seeing.

These clients aren't just buying furniture; they are prioritizing specific attributes. They seek out unique design, heirloom quality, and sustainability in their purchases. This focus helps Arhaus compete in the premium segment of the U.S. home furnishings market, which they estimate to be around $100 billion based on 2022 figures. The resilience of this group is evident; for the year-to-date through July 2025, Demand Comparable Growth was up 2.2%, and July alone saw a strong 15.7% increase.

Then you have the professional trade clients. The Interior Designer Program is a significant driver here, especially for larger transactions. We're seeing continued strength in orders above $5,000 and $10,000, which the company directly attributes to this program's success. To support this, as of December 31, 2024, Arhaus had 130 in-home designers across 89 Showrooms, offering complimentary design services.

Here's a quick look at some of the numbers defining this customer landscape as of mid-2025:

Metric	Value/Range	Context/Date
Projected Full Year 2025 Net Revenue	$1.29 billion to $1.38 billion	2025 Outlook
HHI Range for Upper-Middle Class Segment	$150,000 to $250,000	Target Demographic
% of Customers with HHI > $100,000	80%	Customer Base Estimate
Premium Market Segment Size (Est.)	$100 billion	Total Addressable Market (2022 basis)
Interior Designer Client Lifetime Value (Repeat Purchases)	40% make five or more purchases	Historical Data

The company's strategy is clearly designed to capture and retain these high-value clients through specific engagement points:

• Showrooms strategically located in affluent areas.
• Complimentary in-home design services.
• Focus on artisan-made, heirloom quality products.
• Growing the to-the-trade program for designers.

The success in converting demand, even amidst macro uncertainty, shows the stickiness of this customer base. For instance, Q2 2025 net revenue hit a record $358 million, up 15.7% year-over-year. Finance: draft 13-week cash view by Friday.

Arhaus, Inc. (ARHS) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving Arhaus, Inc.'s operations as of late 2025. Understanding these costs is key to seeing where the margin pressure and investment focus truly lie.

Cost of Goods Sold (COGS) tied to global sourcing and logistics

The cost structure heavily reflects the global nature of sourcing premium, artisan-crafted goods. Arhaus, Inc. has been actively managing this by diversifying its supply chain; for instance, the plan was to reduce China sourcing to about 1% of Total Receipts by the fourth quarter of 2025. This focus on logistics and sourcing directly impacts the Cost of Goods Sold.

For the second quarter of 2025, the Gross margin showed strength, increasing 19.1% to $148 million compared to the second quarter of 2024. Furthermore, transportation costs, a key component of logistics expense, decreased by 30 basis points in that same quarter. This suggests some mitigation efforts in logistics were effective during Q2 2025.

Selling, General, and Administrative (SG&A) expenses, including showroom rent

SG&A expenses are a significant area of focus, reflecting investments in corporate infrastructure, warehouse operations, and the physical footprint. In the second quarter of 2025, Selling, General, and Administrative expenses grew 6.8%, reaching $101 million year-over-year. To be fair, this growth was tied to strategic investments supporting growth, but the efficiency gain is visible in the load percentage.

The SG&A load-that is, SG&A as a percentage of net revenue-improved, decreasing 240 basis points to 28.3% of net revenue for the second quarter of 2025. This improvement shows that revenue growth outpaced the growth in fixed and variable operating costs.

Here are the key Q2 2025 expense and margin figures:

Metric	Amount / Percentage (Q2 2025)	Comparison Point
Net Revenue	$358 million	Up 15.7% vs Q2 2024
Gross Margin	$148 million	Up 19.1% vs Q2 2024
SG&A Expenses	$101 million	Up 6.8% vs Q2 2024
SG&A Load	28.3% of Net Revenue	Down 240 basis points vs Q2 2024
Transportation Costs Change	Down 30 basis points	In Q2 2025

Capital expenditures for showroom projects and technology

Arhaus, Inc. continues to invest in its physical presence and digital backbone. Company-funded capital expenditures (CapEx) for the first six months of 2025 (YTD Q2 2025) were approximately $31 million. Landlord contributions toward these projects totaled approximately $11 million during the same period.

The company is executing on a plan that includes showroom expansion, with 3 total showroom projects completed in Q2 2025 (2 relocations and 1 renovation). However, the full-year CapEx outlook for 2025 was trimmed. Management modestly reduced the full-year capital expenditures outlook by $10 million, citing updated timing on certain investments.

The investment focus includes:

• Showroom projects, with a long-term plan of 5-7 new showrooms per year.
• Technology investments, including an 18-month-long digital transformation project.
• Inventory build to support best sellers and new product introductions, with net merchandising inventory at $311 million as of June 30, 2025.

Impact of incremental 2025 tariffs, estimated at $12 million net of mitigation

Geopolitical trade dynamics present a direct cost headwind. The outlook for the full year 2025 explicitly accounts for the estimated impact of incremental tariffs. This impact is currently quantified at $12 million net of mitigation efforts. You should note that mitigation strategies include strategic sourcing shifts and securing vendor cost concessions.

This $12 million estimate for 2025 is a key input into the cost planning. Looking ahead, the expected net tariff impact for the full year 2026 is significantly higher, estimated to be in the range of $50 million to $60 million annually, before factoring in further pricing actions or operational savings. Finance: draft 13-week cash view by Friday.

Arhaus, Inc. (ARHS) - Canvas Business Model: Revenue Streams

You're looking at the core ways Arhaus, Inc. brings in cash, which is primarily through the sale of its premium furniture and décor. This happens across its established omnichannel approach, meaning both through physical showrooms and the e-commerce sales channel. For instance, the third quarter of 2025 saw net revenue hit $345 million, which was a record for any third quarter in the company's history. This sales engine is supported by a physical footprint that, as of the end of the second quarter of 2025, included 103 Showrooms across 30 states.

Here's a quick look at how the full-year 2025 expectations stack up against the latest reported quarterly performance:

Metric	Full-Year 2025 Outlook	Q3 2025 Actual
Net Revenue	$1.35 billion to $1.38 billion	$345 million
Adjusted EBITDA	$135 million to $145 million	$31.2 million
Net Income	$58 million to $68 million	$12.2 million

Management is definitely confident in hitting the top line, updating the full-year 2025 guidance for net revenue to be between $1.35 billion and $1.38 billion. This reflects a year-over-year growth rate expectation of plus 6.2% to plus 8.6% for the full year. Still, they are maintaining a measured stance on the upper end given the macro uncertainty, which is smart planning. The third quarter results showed strong profit flow-through, with the SG&A load decreasing to 34% of net revenue.

Revenue streams are also being intentionally broadened through product category expansion. A key move here is the introduction of new offerings designed to capture more of the client's home spending. You saw the launch of the Arhaus Bath Collection during the second quarter of 2025. This expansion into a new, personal space in the home is a strategic play to drive larger order sizes from high-value clients seeking whole-home solutions.

Another significant component impacting cash flow, which underpins future sales fulfillment, is customer pre-payments. As of June 30, 2025, Arhaus, Inc. held $233 million in client deposits. This amount represented a 5.5% increase from the balance recorded on December 31, 2024. This liability represents committed future revenue, and the company's ability to manage and use these deposits is critical to its operations.

• Client deposits balance as of June 30, 2025: $233 million.
• Cash and cash equivalents balance as of the end of Q3 2025: $262 million.
• Net merchandise inventory as of the end of Q3 2025: $329 million.
• The company remains debt-free.

Finance: draft 13-week cash view by Friday.