In This Story
Arhaus Inc. (ARHS+0.17%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net revenue to $319.1 million from $326.2 million in the same quarter the previous year. The decrease is attributed to the non-recurrence of prior year abnormal backlog deliveries and lower total demand.
Gross margin for the quarter was reported at $123.1 million, down from $130.9 million in the previous year, with the decline attributed to lower net revenue and higher showroom costs.
Selling, general, and administrative expenses increased to $112.4 million from $107.0 million, primarily due to legal costs, marketing investments, and strategic investments to support business growth.
Net and comprehensive income for the quarter was $9.9 million, down from $19.7 million in the previous year. The decrease was driven by lower net revenue and increased expenses.
Cash provided by operating activities was $115.4 million, while cash used in investing and financing activities was $88.7 million and $72.1 million, respectively.
Arhaus had cash and cash equivalents of $177.7 million as of September 30, 2024. The company expects its operating cash flows to be sufficient to meet working capital requirements for at least the next 12 months.
The filing also details a special cash dividend of $0.50 per share declared on February 29, 2024, with $70.1 million paid out during the nine months ended September 30, 2024.
Arhaus identified material weaknesses in its internal controls over financial reporting, including insufficient segregation of duties and ineffective controls over information technology systems.
The company continues to focus on expanding its showroom presence, with 101 showrooms in operation as of September 30, 2024, up from 92 at the end of 2023.
Arhaus plans to invest approximately $80 million in capital expenditures for fiscal year 2024, primarily related to the opening of new showrooms.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Arhaus Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.