Arhaus received $37.8 million of refunds for previously paid IEEPA tariffs as of August 6, along with another $1.3 million of interest, while underlying customer demand accelerated during the second quarter of 2026.
The premium home furnishings company had requested $37.8 million of tariff refunds following court decisions that invalidated certain tariffs previously imposed under the International Emergency Economic Powers Act.
Arhaus recognized a $23.8 million benefit from the tariff recoveries during Q2. Of that amount, $15.5 million was related to inventory sold before April 2026 and $8.3 million was associated with inventory sold during the quarter. Another $14 million was primarily reflected through reductions in merchandise inventory costs.
The benefit arrived alongside an acceleration in orders. Comparable Written Sales increased 12.5% during Q2, compared with 4% growth in Comparable Delivered Sales. Net revenue increased 7.4% to $385 million.
Gross margin increased 16.1% to $172 million, while Adjusted EBITDA increased 16.8% to approximately $70 million. Net income increased 13.1% to $40 million.
Arhaus maintains a debt-free balance sheet, with no long-term debt and $226 million of cash at June 30. Client deposits reached $264 million, up 11.8% from year-end.
The company expects 2026 revenue of $1.43 billion to $1.47 billion and Adjusted EBITDA of $160 million to $171 million. Arhaus plans four to six new showroom openings and 10 to 14 total showroom projects during the year.
KEY QUOTES:
“Exceptional product has been the foundation of Arhaus for 40 years, and our second-quarter performance reinforces how deeply clients value quality, craftsmanship, and personalization. Our newest collections are resonating, customization continues to gain momentum, and clients are engaging across our product categories.”
John Reed, Co-Founder and Chief Executive Officer of Arhaus
“We delivered results above the high end of our guidance range across our key financial metrics, generated strong Comparable Written Sales, and continued making meaningful progress on our digital transformation initiatives that support the next phase of Arhaus’ growth.”
Michael Lee, Chief Financial Officer of Arhaus
