By Alan Hatfield
Artisanal furniture retailer Arhaus, Inc. (Nasdaq: ARHS) today increased its 2022 full year guidance following a strong first quarter driven by supply chain improvements.
Net revenue increased 43.8% to $246 million compared to the first quarter of 2021, as increased delivery of backlogged orders paralleled strong demand in both the company’s showroom and eCommerce channels.
Profitability followed suit as adjusted EBITDA increased 22.4% on the year to $31 million, although partially offset by higher product costs, transportation costs, variable rent expense related to increased net revenue, higher SG&A expenses, and public company related costs.
As a result, Arhaus raised its full year guidance for net revenue, comparable growth, net income, and adjusted EBITDA.
In a statement, Co-Founder and Chief Executive Officer John Reed commented, “we are very pleased with our first quarter 2022 performance. Net revenue and comparable growth were driven by the investments we are making to ensure faster and more efficient delivery of product to our clients and our improving supply chain. By delivering product to our clients more quickly than anticipated, we also outperformed our first quarter expectations for revenue and earnings. Demand trends were positive throughout the quarter and remain solid going into the second quarter. Outstanding execution by our team and our vendor partners continues to drive Arhaus’ momentum and is reflected in our increased outlook for full year 2022.”