Arhaus (ARHS): A Beaten-Down Retailer With New Growth Drivers Taking Shape
Arhaus (ARHS) has had a rough year, with shares down 12% in 2026 as cautious consumer spending and margin pressure weighed on the home furnishings retailer. But there are some encouraging signs that the business could be approaching a turning point.
One of the clearest is happening online. Traffic to Arhaus’ website has more than doubled year over year over the past four weeks. That’s an impressive increase in potential customers, and the company is now pairing that momentum with a broader marketing push designed to turn more of those shoppers into buyers.
Arhaus is expanding circulation of its semiannual catalog to reach more households while also stepping up its digital marketing. Even modest success could have a meaningful impact. Jefferies estimates the expanded catalog initiative alone could add 75 to 200 basis points to comparable sales growth in 2027.
There’s another growth opportunity that’s still in its early stages. Arhaus is building out a business-to-business strategy, opening the door to additional customers beyond its traditional retail base. Jefferies estimates that initiative could eventually provide another 150 to 200 basis points of annual comparable-sales growth, and importantly, that potential isn’t currently reflected in Wall Street estimates.
That combination gives us a clearer path to recovery than the stock’s 31% year-to-date decline might suggest. Arhaus doesn’t necessarily need a dramatic improvement in the consumer environment. Better brand awareness, sharply higher website traffic and two relatively new customer-acquisition initiatives could provide meaningful sales growth on their own.
The stock trades around $10 per share, leaving plenty of room for a recovery if those efforts begin showing up in the numbers. The broader analyst picture also leaves room for sentiment to improve. Of the 15 analysts covering Arhaus, four rate it Strong Buy, three Buy and eight Hold, with no Underperform or Sell ratings.
