UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): March 20, 2024
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(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of Principal Executive Offices)
(Zip Code)
(440 ) 439-7700
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure
On March 20, 2024, Arhaus, Inc. (the “Company”) issued an Investor Presentation. A copy of this presentation is attached hereto as Exhibit 99.1 and is incorporated herein by reference. This presentation, as well as similar presentations that the Company may issue in the future, will be posted in the Investor Relations section of the Company’s website: ir.arhaus.com.
The information contained in this Current Report on Form 8-K (including Exhibit 99.1) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information contained in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit No. | Description | |||||||
| Arhaus, Inc. Investor Presentation | ||||||||
| 104 | Cover Page with Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 20th day of March, 2024.
| ARHAUS, INC. | |||||
By: | /s/ Dawn Phillipson | ||||
Name: | Dawn Phillipson | ||||
Title: | Chief Financial Officer | ||||
$50 $69 $123 $223 $203 16% 2019 2020 2021 2022 2023 $495 $507 $797 $1,229 $1,287 2019 2020 2021 2022 2023 11% 18% 18% 17% 19% 2019 2020 2021 2022 2023 4% 25% 45% 14% 8% 2019 2020 2021 2022 2023 $176 $200 $330 $525 $540 43% 42% 2019 2020 2021 2022 2023
PRODUCT ON-TREND, INNOVATIVE PRODUCT CONSISTENTLY REFRESHED SHOWROOMS INFRASTRUCTUREMARKETING INSPIRATIONAL RESONATES WITH CLIENT AESTHETIC ASPIRATIONAL TAILORED, CLIENT-FOCUSED EXPERIENCE SIGNIFICANT CAPACITY TO DRIVE GROWTH WEBSITE ENHANCEMENTS DRIVE ENGAGEMENT
• Total addressable market of ~$100 billion • Highly fragmented and predominantly served by small local players • Premiumization of consumers – buyers from all income levels are shifting towards more premium purchases • Growth of digital and omni-channel favors larger players Source: Based on management estimates, third-party estimates of retail sales in 2021 and 2022, publicly available industry data and our internal research. 1Refers to the high-end home furniture industry, which we believe is the portion of the market with higher than industry average merchandise price points and quality. RAPIDLY GROWING & HIGHLY FRAGMENTEDU.S. PREMIUM HOME FURNITURE MARKET1 ~$100B <2% MARKET SHARE
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We are a differentiated concept, redefining the premium home furnishings market by offering an attractive combination of design, quality, value and convenience.
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TRADITIONAL SHOWROOM LOFT DESIGN STUDIO
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December 31, December 31, December 31, December 31, December 31, ($ in thousands) 2023 2022 2021 2020 2019 Net income $ 125,239 $ 136,634 $ 36,932 $ 17,040 $ 15,842 (+) Interest expense (income), net (3,351) 3,387 5,432 13,057 13,449 (+) Income tax expense (benefit) 43,450 45,944 (10,144) 783 368 (+) Depreciation and amortization 29,442 24,901 23,922 16,957 15,964 EBITDA $ 194,780 $ 210,866 $ 56,142 $ 47,837 $ 45,623 (+) Equity based compensation (1) 7,909 4,288 9,147 403 272 (+) Loss on extinguishment of debt - - 1,450 - - (+) Derivative expense (2) - - 44,544 17,928 - (+) Other expenses (3) 792 7,382 11,609 3,252 4,013 Adjusted EBITDA $ 203,481 $ 222,536 $ 122,892 $ 69,420 $ 49,908 Net revenue $ 1,287,704 $ 1,228,928 $ 796,922 $ 507,429 $ 494,538 Adjusted EBITDA margin 15.8% 18.1% 15.4% 13.7% 10.1% For the Year Ended