Yahoo Finance Delving Into Arhaus (ARHS) Ahead of Q1 Earnings Release
Arhaus, Inc. ARHS is likely to register a decrease in the top line when it reports first-quarter 2024 earnings results on May 2 before market open. The Zacks Consensus Estimate for revenues is pegged at $263.2 million, which indicates a decline of 13.6% from the prior-year reported figure.
This lifestyle brand and omnichannel retailer of premium home furnishings is expected to observe a year-over-year decrease in its bottom line. The Zacks Consensus Estimate for first-quarter earnings per share has been stable at 2 cents in the past 30 days, which suggests a sharp decline from 25 cents reported in the year-ago period.
Arhaus has a trailing four-quarter earnings surprise of 25.3%, on average. In the last reported quarter, this Boston Heights, Ohio-based company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 37.5%.
Key Factors to Note
On its last earnings call, management highlighted that the implementation of a new warehouse management system in March could temporarily disrupt operations. Such implementations often lead to logistical challenges and delays in order processing and fulfillment. Consequently, there may have been a slowdown in the pace of product deliveries and fulfillment of customer orders. Furthermore, Arhaus experienced adverse weather conditions in January, which negatively impacted client traffic.
Cumulatively, the aforementioned factors are likely to be reflected in the top line. Arhaus had previously guided first-quarter 2024 revenues between $260 million and $270 million, down from $304.6 million reported in the year-ago period. The company projected a comp decline in the range of 20%-23%.
Alongside the anticipated revenue decline, Arhaus projected adjusted EBITDA deleverage in the first quarter of 2024. Approximately one-third of this expected decrease is attributed to the gross margin, resulting from the deleverage of fixed costs amid the revenue decline and continued delivery of price action SKUs. The remaining balance of the adjusted EBITDA deleverage is attributed to SG&A expenses, impacted by the revenue decline and ongoing strategic investments.
Arhaus, Inc. Price, Consensus and EPS Surprise
Arhaus, Inc. price-consensus-eps-surprise-chart | Arhaus, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Arhaus this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Arhaus currently has a Zacks Rank #3 but an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Burlington Stores BURL currently has an Earnings ESP of +2.72% and a Zacks Rank #1. The company is expected to register a bottom-line increase when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.06 suggests a rise of 26.2% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Burlington Stores’ top line is anticipated to advance year over year. The consensus mark for revenues is pegged at $2.35 billion, which implies an increase of 10.2% from the figure reported in the year-ago quarter. BURL has a trailing four-quarter earnings surprise of 10.1%, on average.
Ross Stores ROST currently has an Earnings ESP of +0.34% and carries a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share is pegged at $1.34, up 22.9% year over year.
Ross Stores’ top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.82 billion, which indicates an increase of 7.3% from the figure reported in the prior-year quarter. ROST has a trailing four-quarter earnings surprise of 9.1%, on average.
Deckers Outdoor Corporation DECK currently has an Earnings ESP of +16.99% and a Zacks Rank #3. The company is likely to register a bottom-line decrease when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.59 suggests a decline of 25.1% from the year-ago quarter.
Deckers’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $874.4 million, which indicates an increase of 10.5% from the figure reported in the prior-year quarter. DECK has a trailing four-quarter earnings surprise of 32.1%, on average.
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Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
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Arhaus, Inc. (ARHS) : Free Stock Analysis Report
