0001875444-24-000128 | 10-Q | XBRL Viewer

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Nature of Business and Basis of Presentation - Revision of Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prepaid and other current assets	$ 38,010	$ 26,304	$ 18,430
Total current assets	490,510	509,295	496,393
Operating right-of-use assets	352,472	302,157	301,861
Property, furniture and equipment, net	268,339	220,248	177,949
Total assets	1,177,301	1,105,148	1,041,709
Accrued other expenses	45,584	46,062	36,267
Current portion of operating lease liabilities	49,463	33,051	42,853
Total current liabilities	392,123	342,347	348,407
Operating lease liabilities, long-term	417,861	362,598	345,548
Total liabilities	867,991	764,910	754,145
Total liabilities and stockholders' equity	$ 1,177,301	1,105,148	1,041,709
As Previously Disclosed
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prepaid and other current assets		45,260	29,810
Total current assets		528,251	507,773
Operating right-of-use assets			301,861
Property, furniture and equipment, net		210,238	162,789
Total assets		1,114,094	1,037,929
Accrued other expenses		42,502	33,857
Current portion of operating lease liabilities		45,557	41,483
Total current liabilities		351,293	344,627
Operating lease liabilities, long-term			345,548
Total liabilities		773,856	750,365
Total liabilities and stockholders' equity		1,114,094	1,037,929
Adjustment No. 1
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prepaid and other current assets			(13,274)
Total current assets			(13,274)
Operating right-of-use assets			(7,350)
Property, furniture and equipment, net			13,274
Total assets			(7,350)
Accrued other expenses			0
Current portion of operating lease liabilities			0
Total current liabilities			0
Operating lease liabilities, long-term			(7,350)
Total liabilities			(7,350)
Total liabilities and stockholders' equity			(7,350)
Adjustment No. 2
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prepaid and other current assets		(18,956)	(11,380)
Total current assets		(18,956)	(11,380)
Operating right-of-use assets			0
Property, furniture and equipment, net		10,010	15,160
Total assets		(8,946)	3,780
Accrued other expenses		3,560	2,410
Current portion of operating lease liabilities		(12,506)	1,370
Total current liabilities		(8,946)	3,780
Operating lease liabilities, long-term			0
Total liabilities		(8,946)	3,780
Total liabilities and stockholders' equity		$ (8,946)	3,780
As Originally Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prepaid and other current assets			43,084
Total current assets			521,047
Operating right-of-use assets			309,211
Property, furniture and equipment, net			149,515
Total assets			1,045,279
Accrued other expenses			33,857
Current portion of operating lease liabilities			41,483
Total current liabilities			344,627
Operating lease liabilities, long-term			352,898
Total liabilities			757,715
Total liabilities and stockholders' equity			$ 1,045,279

Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

The Company leases real estate and equipment under operating and finance leases, some of which are from related parties as discussed in Note 10 — Related Party Transactions. The most significant obligations under these lease agreements require the payments of periodic rentals, real estate taxes, insurance and maintenance costs. Depending on particular Showroom leases, the Company can also owe a percentage rent payment if particular Showrooms meet certain sales figures.

The following table summarizes the amounts recognized in our condensed consolidated balance sheets related to leases (amounts in thousands):


	Condensed Consolidated Balance Sheet Classification	June 30, 2024		December 31, 2023
Assets
Operating lease assets	Operating right-of-use assets	$	352,472	$	302,157
Finance lease assets	Financing right-of-use assets	37,764		38,835
Total leased assets		$	390,236	$	340,992

Liabilities
Current operating leases	Current portion of operating lease liabilities	$	49,463	$	33,051
Non-current operating leases	Operating lease liabilities, long-term	417,861		362,598
Total operating lease liabilities		467,324		395,649

Current finance leases	Current portion of financing lease liabilities	975		904
Non-current finance leases	Financing lease liabilities, long-term	53,636		53,870
Total finance lease liabilities		54,611		54,774
Total lease liabilities		$	521,935	$	450,423

The components of lease cost recognized within our condensed consolidated statements of comprehensive income for the six and three months ended June 30, 2024 and June 30, 2023 are as follows (amounts in thousands):


		Six months ended				Three months ended
		June 30,				June 30,
	Condensed Consolidated Statements of Comprehensive Income Classification	2024		2023		2024		2023
Lease costs:
Operating lease costs	Cost of goods sold	$	25,344	$	20,376	$	13,159	$	10,662
Operating lease costs	Selling, general and administrative expenses	5,095		4,857		2,594		2,456
Finance lease costs
Amortization of right-of-use assets	Selling, general and administrative expenses	1,255		1,080		629		540
Interest expense on lease liabilities	Interest income, net	2,601		2,536		1,300		1,268
Variable lease costs(1)	Cost of goods sold	19,562		19,147		10,074		9,116
Short term lease costs	Selling, general and administrative expenses	39		136		21		16
Total lease costs		$	53,896	$	48,132	$	27,777	$	24,058

(1) For the six and three months ended June 30, 2024, there were no month-to-month lease costs. For the six months ended June 30, 2023, total lease costs includes $0.4 million of month-to-month lease costs and a minimal amount for the three months ended June 30, 2023.

We often have options to renew lease terms for Showrooms and other assets. The exercise of lease renewal options is generally at our sole discretion. In addition, certain lease agreements may be terminated prior to their original expiration date at our discretion. We evaluate each renewal and termination option at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease terms are as follows:


	Six months ended
	June 30,
Weighted Average Remaining Lease Term (In Years)	2024	2023
Operating leases	9.11	9.16
Finance leases	20.43	21.24

When readily determinable, we use the discount rate implicit within the lease as determined at the time of lease commencement. However, the discount rate implicit within many of our leases is generally not determinable at the time of lease commencement and therefore the Company determines the discount rate based on its incremental borrowing rate (“IBR”). For leases in which the discount rate was not explicit, the Company utilized a market-based approach to estimate the IBR, which required significant judgment. The Company estimated the base IBR based on an analysis of (i) yields on the Company’s 2021 Credit Facility, as well as comparable companies and (ii) unsecured yields and discount rates. The Company applied adjustments to the base IBRs to account for full collateralization and lease term. The weighted average discount rates used to measure our lease liabilities are as follows:


	Six months ended
	June 30,
Weighted Average Discount Rate	2024		2023
Operating leases	6.03	%	5.67	%
Finance leases	9.64	%	9.63	%

Future lease liabilities at June 30, 2024 are as follows (amounts in thousands):


Year Ending December 31,	Operating Lease Liabilities (1)		Finance Lease Liabilities		Total Lease Liabilities
Remainder of 2024	$	36,844	$	2,923	$	39,767
2025	74,888		5,851		80,739
2026	70,856		6,309		77,165
2027	67,435		6,110		73,545
2028	62,027		5,635		67,662
2029	59,172		5,224		64,396
Thereafter	247,525		104,719		352,244
Total lease payments	618,747		136,771		755,518
Less: Amounts representing interest	(151,423)		(82,160)		(233,583)
Total	$	467,324	$	54,611	$	521,935

(1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties.

At June 30, 2024, the Company has entered into leases for Showrooms and equipment which have not yet commenced with expected lease terms ranging from 2 to 13 years. The aggregate minimum rental payments over the term of the leases of approximately $115.1 million are not included in the above table.

Supplemental cash flow information related to leases for the six months ended June 30, 2024 and June 30, 2023 is as follows (amounts in thousands):


	Six months ended
	June 30,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	32,847	$	27,248
Operating cash flows for finance leases	2,457		2,406
Financing cash flows for finance leases	448		261
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	67,691	$	60,186
Finance leases	185		2,637

Leases

The following table summarizes the amounts recognized in our condensed consolidated balance sheets related to leases (amounts in thousands):


	Condensed Consolidated Balance Sheet Classification	June 30, 2024		December 31, 2023
Assets
Operating lease assets	Operating right-of-use assets	$	352,472	$	302,157
Finance lease assets	Financing right-of-use assets	37,764		38,835
Total leased assets		$	390,236	$	340,992

Liabilities
Current operating leases	Current portion of operating lease liabilities	$	49,463	$	33,051
Non-current operating leases	Operating lease liabilities, long-term	417,861		362,598
Total operating lease liabilities		467,324		395,649

Current finance leases	Current portion of financing lease liabilities	975		904
Non-current finance leases	Financing lease liabilities, long-term	53,636		53,870
Total finance lease liabilities		54,611		54,774
Total lease liabilities		$	521,935	$	450,423


		Six months ended				Three months ended
		June 30,				June 30,
	Condensed Consolidated Statements of Comprehensive Income Classification	2024		2023		2024		2023
Lease costs:
Operating lease costs	Cost of goods sold	$	25,344	$	20,376	$	13,159	$	10,662
Operating lease costs	Selling, general and administrative expenses	5,095		4,857		2,594		2,456
Finance lease costs
Amortization of right-of-use assets	Selling, general and administrative expenses	1,255		1,080		629		540
Interest expense on lease liabilities	Interest income, net	2,601		2,536		1,300		1,268
Variable lease costs(1)	Cost of goods sold	19,562		19,147		10,074		9,116
Short term lease costs	Selling, general and administrative expenses	39		136		21		16
Total lease costs		$	53,896	$	48,132	$	27,777	$	24,058


	Six months ended
	June 30,
Weighted Average Remaining Lease Term (In Years)	2024	2023
Operating leases	9.11	9.16
Finance leases	20.43	21.24


	Six months ended
	June 30,
Weighted Average Discount Rate	2024		2023
Operating leases	6.03	%	5.67	%
Finance leases	9.64	%	9.63	%

Future lease liabilities at June 30, 2024 are as follows (amounts in thousands):


Year Ending December 31,	Operating Lease Liabilities (1)		Finance Lease Liabilities		Total Lease Liabilities
Remainder of 2024	$	36,844	$	2,923	$	39,767
2025	74,888		5,851		80,739
2026	70,856		6,309		77,165
2027	67,435		6,110		73,545
2028	62,027		5,635		67,662
2029	59,172		5,224		64,396
Thereafter	247,525		104,719		352,244
Total lease payments	618,747		136,771		755,518
Less: Amounts representing interest	(151,423)		(82,160)		(233,583)
Total	$	467,324	$	54,611	$	521,935

(1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties.

Supplemental cash flow information related to leases for the six months ended June 30, 2024 and June 30, 2023 is as follows (amounts in thousands):


	Six months ended
	June 30,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	32,847	$	27,248
Operating cash flows for finance leases	2,457		2,406
Financing cash flows for finance leases	448		261
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	67,691	$	60,186
Finance leases	185		2,637

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 05, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-41009
Entity Registrant Name	Arhaus, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-1729256
Entity Address, Address Line One	51 E. Hines Hill Road
Entity Address, City or Town	Boston Heights
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44236
City Area Code	440
Local Phone Number	439-7700
Title of 12(b) Security	Class A common stock, $0.001 par value per share
Trading Symbol	ARHS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001875444
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		53,460,616
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		87,115,600

Equity Based Compensation - Narrative (Details) - shares	6 Months Ended
	Jun. 30, 2024	Aug. 02, 2022
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum shares that may be granted (in shares)	11,205,100
RSU and PSU \| 2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stocks received per each award unit vested	1
RSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting percentage		33.00%
RSU Awards \| 2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
PSU Awards \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	0.00%
PSU Awards \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	200.00%

Equity Based Compensation - Equity Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	$ 671	$ 662	$ 1,331	$ 1,360
Incentive Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	4,800		$ 4,800
Unrecognized compensation cost, period for recognition			1 year 11 months 1 day
PSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	(638)	812	$ (286)	1,245
Unrecognized compensation cost	3,500		$ 3,500
Unrecognized compensation cost, period for recognition			2 years 7 days
RSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	1,294	$ 800	$ 2,306	$ 1,299
Unrecognized compensation cost	$ 10,600		$ 10,600
Unrecognized compensation cost, period for recognition			2 years 3 months

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Segment Reporting

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Reporting

Our chief operating decision maker is our Chief Executive Officer (“CEO”), who reviews financial information presented on a consolidated basis for purposes of making decisions, assessing financial performance and allocating resources. We operate our business as one operating segment and therefore we have one reportable segment that offers an assortment of merchandise across a number of categories, including furniture, outdoor, lighting, textiles, and décor. The assortment of merchandise can be purchased through our Retail and eCommerce merchandise sales channels.

The majority of our net revenue is generated through sales to clients in the United States. Sales to clients outside of the United States are not significant. Further, no single client represents ten percent or more of our net revenue.

Net revenue by merchandise sales channel for the six and three months ended June 30, 2024 and June 30, 2023 is as follows (amounts in thousands):


	Six months ended				Three months ended
	June 30,				June 30,
	2024		2023		2024		2023
Retail	$	501,336	$	506,838	$	258,081	$	256,736
eCommerce	103,627		110,629		51,720		56,163
Total net revenue	$	604,963	$	617,467	$	309,801	$	312,899

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Leasing transactions In November 2000, the Company entered into a lease agreement with Pagoda Partners, LLC, a company of which John Reed, our CEO, indirectly owns 50%, for our warehouse in Walton Hills, Ohio. The base lease term was 17 years with a 5-year renewal option. In August 2020, the Company amended the lease agreement to extend the lease term to April 2024. The monthly rental payments are $0.1 million. In July 2023, the Company amended the lease agreement to extend the lease term to April 2034 with one additional 5-year renewal option. The monthly rental payments range from $0.1 million to $0.2 million. Rent expense was $0.9 million and $0.7 million for the six months ended June 30, 2024 and June 30, 2023, respectively. Rent expense was $0.5 million and $0.4 million for the three months ended June 30, 2024 and June 30, 2023, respectively. In July 2010, the Company entered into a lease agreement with Brooklyn Arhaus, a company of which our CEO and Mr. Beargie, a Director of the Company, own 85% and 15%, respectively, for our Outlet in Brooklyn, Ohio. The base lease term is 15 years with no lease renewal options. The monthly rental payments are $20 thousand. Rent expense was $0.2 million and $0.2 million for the six months ended June 30, 2024 and June 30, 2023, respectively. Rent expense was $0.1 million and $0.1 million for the three months ended June 30, 2024 and June 30, 2023, respectively. In March 2021, the Company entered into a lease agreement with Premier Conover, LLC, a company of which our CEO indirectly owns 40%, for a distribution center and manufacturing building, for which construction was completed in the fourth quarter of 2021. The base lease term is for 12 years, with a 10-year renewal option and two additional 5-year renewal options at the higher of the minimum base rent or the fair market rent at the time of renewal execution. The monthly rental payments range from $0.2 million to $0.3 million during the 12-year base lease term and from $0.4 million to $0.5 million during the 10-year renewal period. Rent expense was $2.0 million and $2.0 million for the six months ended June 30, 2024 and June 30, 2023, respectively. Rent expense was $1.0 million and $1.0 million for the three months ended June 30, 2024 and June 30, 2023, respectively. Other transactions The accounts payable due to related parties for state and federal income tax refunds were $0.2 million and $2.3 million at June 30, 2024 and December 31, 2023, respectively, and are included within accounts payable on the condensed consolidated balance sheets.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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+ Details

Debt	6 Months Ended
Debt	Jun. 30, 2024
Debt Disclosure [Abstract]
Debt	Debt On November 8, 2021, the Company entered into a revolving credit facility (the “2021 Credit Facility”). The 2021 Credit Facility provides for, among other things, (1) a revolving credit facility in an aggregate amount not to exceed at any time outstanding the amount of such lender’s commitment, (2) a letter of credit commitment in an amount equal to the lesser of (a) $10.0 million, and (b) the amount of the revolving credit facility as of such date, and (3) a swingline loan in an amount equal to the lesser of (a) $5.0 million, and (b) the amount of the revolving credit facility as of such date. The aggregate amount of all commitments of all lenders under the 2021 Credit Facility was initially $50.0 million. The 2021 Credit Facility contains restrictive covenants and has certain financial covenants, including a minimum rent-adjusted total leverage ratio and a minimum fixed charge ratio. The 2021 Credit Facility bears variable interest rates at the prevailing Bloomberg Short-Term Bank Yield index rate plus the applicable margin (1.50% at June 30, 2024 and 1.50% at June 30, 2023), whereas the applicable margin is adjusted quarterly based on the Company’s consolidated rent-adjusted total leverage ratio. On December 9, 2022, the Company amended the 2021 Credit Facility to increase the revolving credit commitment thereunder by $25.0 million. After giving effect to such increase, the aggregate amount of all commitments under the 2021 Credit Facility is $75.0 million. The 2021 Credit Facility expires on November 8, 2026. At June 30, 2024 and December 31, 2023, we had no borrowings on the 2021 Credit Facility. Deferred financing costs related to the 2021 Credit Facility of $0.4 million and $0.4 million as of June 30, 2024 and December 31, 2023, respectively, are recorded in other noncurrent assets on the condensed consolidated balance sheets and will be amortized over the term of the 2021 Credit Facility on a straight-line basis. Accumulated amortization related to deferred financing costs for the 2021 Credit Facility was $0.2 million as of June 30, 2024 and $0.1 million as of December 31, 2023. The Company was in compliance with all applicable debt covenants at June 30, 2024 and December 31, 2023, and expects to remain in compliance over the next 12 months.

Equity Based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Unvested Stock Activity

Activity of the Company’s Restricted Stock for the six months ended June 30, 2024 and related equity based compensation expense for the six and three months ended June 30, 2024 and June 30, 2023 are summarized in the following tables (amounts in thousands, except share and per share data):


	Restricted Stock - Class A
	Amount	Weighted Average Grant Date Fair Value
Unvested at December 31, 2023	500,304	$	15.47
Granted	—	—
Forfeited	—	—
Vested	(150,110)	15.98
Unvested at June 30, 2024	350,194	$	15.25


	Six months ended				Three months ended
	June 30,				June 30,
	2024		2023		2024		2023
Equity based compensation expense - Restricted Stock(1)	$	1,331	$	1,360	$	671	$	662

(1) Total unrecognized equity based compensation to be recognized in future periods is $4.8 million at June 30, 2024, and will be recognized over a weighted average period of 1.92 years. Equity based compensation expense is recorded within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income.

Activity of the Company’s PSU and RSU awards for the six months ended June 30, 2024 and their related equity based compensation expense for the six and three months ended June 30, 2024 and June 30, 2023 are summarized in the following tables (amounts in thousands, except share and per share data):


	PSU Awards			RSU Awards
	Amount	Weighted Average Grant Date Fair Value		Amount	Weighted Average Grant Date Fair Value
Unvested at December 31, 2023	700,229	$	7.20	1,248,165	$	7.79
Granted	250,708	15.90		340,236	15.86
Forfeited	(74,068)	9.09		(32,556)	9.86
Vested	—	—		(212,177)	8.54
Unvested at June 30, 2024	876,869	$	9.53	1,343,668	$	9.67


	Six months ended				Three months ended
	June 30,				June 30,
	2024		2023		2024		2023
Equity based compensation expense - PSUs(1)	$	(286)	$	1,245	$	(638)	$	812
Equity based compensation expense - RSUs(2)	$	2,306	$	1,299	$	1,294	$	800

(1) Total unrecognized equity based compensation for the PSUs to be recognized in future periods is $3.5 million at June 30, 2024, and will be recognized over a weighted average period of 2.02 years. Equity based compensation expense is recorded within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income.

(2) Total unrecognized equity based compensation for the RSUs to be recognized in future periods is $10.6 million at June 30, 2024, and will be recognized over a weighted average period of 2.25 years. Equity based compensation expense is recorded within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income.

Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating cash flows for operating leases	$ 32,847	$ 27,248
Operating cash flows for finance leases	2,457	2,406
Financing cash flows for finance leases	448	261
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	67,691	60,186
Finance leases	$ 185	$ 2,637

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Class A	Class B	Common Stock Class A	Common Stock Class B	Treasury Stock Class A	Retained Earnings	Additional Paid-in Capital
Beginning Balance (in shares) at Dec. 31, 2022				51,437,000	87,116,000
Beginning Balance at Dec. 31, 2022	$ 209,695			$ 51	$ 87	$ 0	$ 20,053	$ 189,504
Beginning Balance (in shares) at Dec. 31, 2022						0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	74,282						74,282
Shareholder capital contribution	30							30
Equity based compensation (in shares)				933,000
Equity based compensation	3,904			$ 1				3,903
Shares withheld to cover employees' withholding taxes for equity based compensation (in shares)				(25,000)		(25,000)
Shares withheld to cover employees’ withholding taxes for equity based compensation	(347)							(347)
Ending Balance (in shares) at Jun. 30, 2023				52,345,000	87,116,000
Ending Balance at Jun. 30, 2023	287,564			$ 52	$ 87	$ 0	94,335	193,090
Ending Balance (in shares) at Jun. 30, 2023						25,000
Beginning Balance (in shares) at Mar. 31, 2023				52,216,000	87,116,000
Beginning Balance at Mar. 31, 2023	245,094			$ 52	$ 87	$ 0	54,152	190,803
Beginning Balance (in shares) at Mar. 31, 2023						25,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	40,183						40,183
Shareholder capital contribution	13							13
Equity based compensation (in shares)				129,000
Equity based compensation	2,274							2,274
Ending Balance (in shares) at Jun. 30, 2023				52,345,000	87,116,000
Ending Balance at Jun. 30, 2023	287,564			$ 52	$ 87	$ 0	94,335	193,090
Ending Balance (in shares) at Jun. 30, 2023						25,000
Beginning Balance (in shares) at Dec. 31, 2023		53,169,711	87,115,600	52,669,000	87,116,000
Beginning Balance at Dec. 31, 2023	340,238			$ 52	$ 87	$ 0	145,292	194,807
Beginning Balance (in shares) at Dec. 31, 2023						84,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	37,333						37,333
Shareholder capital contribution	17							17
Equity based compensation (in shares)				362,000
Equity based compensation	3,351			$ 1				3,350
Shares withheld to cover employees' withholding taxes for equity based compensation (in shares)				(37,000)		(37,000)
Shares withheld to cover employees’ withholding taxes for equity based compensation	(548)							(548)
Dividends declared	(71,081)						(71,081)
Ending Balance (in shares) at Jun. 30, 2024		53,345,001	87,115,600	52,994,000	87,116,000
Ending Balance at Jun. 30, 2024	309,310			$ 53	$ 87	$ 0	111,544	197,626
Ending Balance (in shares) at Jun. 30, 2024						121,000
Beginning Balance (in shares) at Mar. 31, 2024				52,761,000	87,116,000
Beginning Balance at Mar. 31, 2024	285,647			$ 53	$ 87	$ 0	89,206	196,301
Beginning Balance (in shares) at Mar. 31, 2024						121,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	22,234						22,234
Shareholder capital contribution	6							6
Equity based compensation (in shares)				233,000
Equity based compensation	1,327							1,327
Shares withheld to cover employees’ withholding taxes for equity based compensation	(8)							(8)
Dividends declared	104						104
Ending Balance (in shares) at Jun. 30, 2024		53,345,001	87,115,600	52,994,000	87,116,000
Ending Balance at Jun. 30, 2024	$ 309,310			$ 53	$ 87	$ 0	$ 111,544	$ 197,626
Ending Balance (in shares) at Jun. 30, 2024						121,000

Debt (Details) - 2021 Credit Facility - USD ($)		6 Months Ended
Debt (Details) - 2021 Credit Facility - USD ($)	Dec. 09, 2022	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Nov. 08, 2021
Debt Instrument [Line Items]
Credit facility increase	$ 25,000,000.0
Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, face amount	$ 75,000,000.0				$ 50,000,000
Credit facility, basis spread on variable rate		1.50%	1.50%
Borrowings on credit facility		$ 0		$ 0
Loan costs, net		400,000		400,000
Accumulated amortization, deferred loan costs		$ 200,000		$ 100,000
Revolving Credit Facility \| Letter of Credit
Debt Instrument [Line Items]
Credit facility, face amount					10,000,000
Revolving Credit Facility \| Swingline Loan
Debt Instrument [Line Items]
Credit facility, face amount					$ 5,000,000

Equity Based Compensation - Unvested Stock Activity (Details)	6 Months Ended
	Jun. 30, 2024 $ / shares shares
PSU Awards
Amount
Unvested, beginning of period (in shares) \| shares	700,229
Granted (in shares) \| shares	250,708
Forfeited (in shares) \| shares	(74,068)
Vested (in shares) \| shares	0
Unvested, end of period (in shares) \| shares	876,869
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) \| $ / shares	$ 7.20
Granted (in dollars per share) \| $ / shares	15.90
Forfeited (in dollars per share) \| $ / shares	9.09
Vested (in dollars per share) \| $ / shares	0
Unvested, end of period (in dollars per share) \| $ / shares	$ 9.53
RSU Awards
Amount
Unvested, beginning of period (in shares) \| shares	1,248,165
Granted (in shares) \| shares	340,236
Forfeited (in shares) \| shares	(32,556)
Vested (in shares) \| shares	(212,177)
Unvested, end of period (in shares) \| shares	1,343,668
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) \| $ / shares	$ 7.79
Granted (in dollars per share) \| $ / shares	15.86
Forfeited (in dollars per share) \| $ / shares	9.86
Vested (in dollars per share) \| $ / shares	8.54
Unvested, end of period (in dollars per share) \| $ / shares	$ 9.67
Class A \| Restricted Stock
Amount
Unvested, beginning of period (in shares) \| shares	500,304
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Vested (in shares) \| shares	(150,110)
Unvested, end of period (in shares) \| shares	350,194
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) \| $ / shares	$ 15.47
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	15.98
Unvested, end of period (in dollars per share) \| $ / shares	$ 15.25

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 7,828	$ 14,372	$ 12,644	$ 26,474
Effective income tax rate	26.00%	26.30%	25.30%	26.30%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
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-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.7)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-10

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
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-Subparagraph (a)
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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-SubTopic 10
-Topic 235
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

Recently Issued Accounting Standards

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Recently Issued Accounting Standards

New Accounting Standards Adopted in Fiscal 2024

The Company adopted Accounting Standards Updates (“ASU”) 2023-01 — Leases (Topic 842): Common Control Arrangements in the six months ended June 30, 2024. The adoption of ASU 2023-01 did not have a material impact on our accounting policies or our condensed consolidated financial statements and related disclosures.

Accounting Standards Not Yet Adopted

The following table summarizes accounting pronouncements which we have not yet adopted but will be adopted in the upcoming fiscal year. ASU 2023-07 is effective for annual periods beginning after December 15, 2023. We believe the adoption will not have a material impact on our accounting policies, financial position or results of operations but could require additional disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. We believe the adoption will not have a material impact on our accounting policies, financial position or results of operations but could require additional disclosures.

ASU

Description

Adoption Date

ASU 2023-07

Segment Reporting (Topic 280): Improvements

Fiscal Year 2024

ASU 2023-09

Income Taxes (Topic 740): Improvements to Income Tax Disclosures

Fiscal Year 2025

Insider Trading Arrangements	3 Months Ended	6 Months Ended
Insider Trading Arrangements	Jun. 30, 2024 shares	Jun. 30, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
John Reed [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On June 10, 2024, John Reed, director and Chief Executive Officer, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 2,000,000 shares of the Company’s Class A common stock beginning September 9, 2024. The arrangement’s expiration date is May 9, 2025. On June 10, 2024, certain Reed family trusts, of which directors Albert Adams and William Beargie are trustees, also adopted a 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 2,000,000 additional shares of the Company’s Class A common stock beginning September 9, 2024. The arrangement’s expiration date is also May 9, 2025. All shares sold under these arrangements will be converted from Class B common stock to Class A common stock prior to sale.
Name	John Reed
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 10, 2024
Expiration Date	May 9, 2025
Arrangement Duration	333 days
Aggregate Available	2,000,000	2,000,000
Albert Adams And William Beargie [Member]
Trading Arrangements, by Individual
Name	Albert Adams and William Beargie
Title	directors
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 10, 2024
Expiration Date	May 9, 2025
Arrangement Duration	333 days
Aggregate Available	2,000,000	2,000,000

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Net revenue	$ 309,801	$ 312,899	$ 604,963	$ 617,467
Cost of goods sold	185,429	172,779	365,537	349,109
Gross margin	124,372	140,120	239,426	268,358
Selling, general and administrative expenses	94,991	86,131	191,684	168,913
Income from operations	29,381	53,989	47,742	99,445
Interest income, net	(606)	(478)	(2,038)	(651)
Other income	(75)	(88)	(197)	(660)
Income before taxes	30,062	54,555	49,977	100,756
Income tax expense	7,828	14,372	12,644	26,474
Net and comprehensive income	22,234	40,183	37,333	74,282
Net and comprehensive income	$ 22,234	$ 40,183	$ 37,333	$ 74,282
Net and comprehensive income per share, basic
Weighted-average number of common shares outstanding, basic (in shares)	139,985,846	139,389,967	139,901,319	139,232,238
Net and comprehensive income per share, basic (in dollars per share)	$ 0.16	$ 0.29	$ 0.27	$ 0.53
Net and comprehensive income per share, diluted
Weighted-average number of common shares outstanding, diluted (in shares)	140,916,161	139,979,928	140,736,096	139,959,943
Net and comprehensive income per share, diluted (in dollars per share)	$ 0.16	$ 0.29	$ 0.27	$ 0.53

Leases - Schedule of Weighted Average Lease Term (Details)	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating leases	9 years 1 month 9 days	9 years 1 month 28 days
Finance leases	20 years 5 months 4 days	21 years 2 months 26 days

Net and Comprehensive Income per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Net and Comprehensive Income per Share

Basic and diluted net and comprehensive income per share for the six and three months ended June 30, 2024 and June 30, 2023, was calculated by dividing net and comprehensive income by the number of basic and diluted weighted-average common shares outstanding. The Company has elected to not adjust net and comprehensive income for forfeitable dividend equivalents, when declared, related to unvested equity awards. The Company will recognize dividends paid on common shares when the dividend equivalents are no longer forfeitable, such as if the contingency is met or the share-based payment awards vest into common shares.

Basic and diluted net and comprehensive income per share are as follows (amounts in thousands, except per share data):


	Six months ended				Three months ended
	June 30,				June 30,
	2024		2023		2024		2023
Numerator
Net and comprehensive income	$	37,333	$	74,282	$	22,234	$	40,183

Denominator—Weighted Average Shares Outstanding
Weighted-average number of common shares outstanding, basic	139,901,319		139,232,238		139,985,846		139,389,967
Effect of dilutive restricted stock (1) (2)	834,777		727,705		930,315		589,961
Weighted-average number of common shares outstanding, diluted	140,736,096		139,959,943		140,916,161		139,979,928

Net and Comprehensive Income Per Share
Net and comprehensive income per share, basic	$	0.27	$	0.53	$	0.16	$	0.29
Net and comprehensive income per share, diluted	$	0.27	$	0.53	$	0.16	$	0.29

(1) During the six and three months ended June 30, 2024, 348,274 and 284,062 shares of unvested restricted stock and RSUs were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. During the six and three months ended June 30, 2023, 710,490 and 773,662 shares of unvested restricted stock and RSUs were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive.

(2) During the six and three months ended June 30, 2024, 578,665 PSUs were excluded from the calculation of the effect of dilutive restricted stock because they did not meet the required performance criteria. During the six and three months ended June 30, 2023, 768,577 PSUs were excluded from the calculation of the effect of dilutive restricted stock because they did not meet the required performance criteria.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expenses were $12.6 million and $26.5 million in the six months ended June 30, 2024 and June 30, 2023, respectively. Income tax expenses were $7.8 million and $14.4 million for the three months ended June 30, 2024 and June 30, 2023, respectively. The effective tax rate was 25.3% and 26.3% for the six months ended June 30, 2024 and June 30, 2023, respectively. The effective tax rate was 26.0% and 26.3% for the three months ended June 30, 2024 and June 30, 2023, respectively. As of June 30, 2024, no unrecognized tax benefits have been recognized. The Company files income tax returns in the U.S. and various state and local jurisdictions. The tax years after 2019 remain open to examination by the state taxing jurisdictions in which the Company is subject to tax. As of June 30, 2024, the Company was not under examination by the Internal Revenue Service or any state tax jurisdiction.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
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-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Merchandise Warranties - Narrative (Details)	6 Months Ended
Merchandise Warranties - Narrative (Details)	Jun. 30, 2024
Minimum
Product Warranty Liability [Line Items]
Warranty, performance obligation period	3 years
Maximum
Product Warranty Liability [Line Items]
Warranty, performance obligation period	10 years

Net and Comprehensive Income per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings Per Share

Basic and diluted net and comprehensive income per share are as follows (amounts in thousands, except per share data):


	Six months ended				Three months ended
	June 30,				June 30,
	2024		2023		2024		2023
Numerator
Net and comprehensive income	$	37,333	$	74,282	$	22,234	$	40,183

Denominator—Weighted Average Shares Outstanding
Weighted-average number of common shares outstanding, basic	139,901,319		139,232,238		139,985,846		139,389,967
Effect of dilutive restricted stock (1) (2)	834,777		727,705		930,315		589,961
Weighted-average number of common shares outstanding, diluted	140,736,096		139,959,943		140,916,161		139,979,928

Net and Comprehensive Income Per Share
Net and comprehensive income per share, basic	$	0.27	$	0.53	$	0.16	$	0.29
Net and comprehensive income per share, diluted	$	0.27	$	0.53	$	0.16	$	0.29

Segment Reporting - Narrative (Details)	6 Months Ended
Segment Reporting - Narrative (Details)	Jun. 30, 2024 segment
Segment Reporting [Abstract]
Number of operating segments	1
Number of reportable segments	1

Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Operating Lease Liabilities
Remainder of 2024	$ 36,844
2025	74,888
2026	70,856
2027	67,435
2028	62,027
2029	59,172
Thereafter	247,525
Total lease payments	618,747
Less: Amounts representing interest	(151,423)
Total operating lease liabilities	467,324	$ 395,649
Finance Lease Liabilities
Remainder of 2024	2,923
2025	5,851
2026	6,309
2027	6,110
2028	5,635
2029	5,224
Thereafter	104,719
Total lease payments	136,771
Less: Amounts representing interest	(82,160)
Total finance lease liabilities	54,611	$ 54,774
Total Lease Liabilities
Remainder of 2024	39,767
2025	80,739
2026	77,165
2027	73,545
2028	67,662
2029	64,396
Total lease payments	352,244
Thereafter	755,518
Less: Amounts representing interest	(233,583)
Total	$ 521,935

Nature of Business and Basis of Presentation - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($) store	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) store	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of stores \| store	97		97
Client deposits, percentage collected at least (as a percent)			50.00%
Client deposits	$ 210,268		$ 210,268		$ 173,808
Breakage income	0	$ 700	0	$ 700
Interest income	2,000	$ 1,800	4,800	$ 3,300
Accounts receivable, net	1,544		1,544		2,394
Allowance for doubtful accounts	400		400		600
Other Accrued Expenses
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Client deposits	$ 400		$ 400		$ 500

Nature of Business and Basis of Presentation - Revision of Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Cash flows from operating activities
Changes in prepaid and other assets	$ (11,545)	$ 619	$ (11,109)
Changes in accounts payable	4,571	(10,525)
Changes in operating lease liabilities	(10,740)	(17,253)	(39,020)
Net cash provided by operating activities	84,304	64,196	168,685
Cash flows from investing activities
Purchases of property, furniture and equipment	(62,158)	(35,216)	(93,441)
Net cash used in investing activities	(62,158)	(34,883)	(93,108)
Noncash operating activities
Lease incentives		0
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities	$ 12,672	8,542	10,286
As Originally Reported
Cash flows from operating activities
Changes in prepaid and other assets		(6,808)
Changes in accounts payable		(4,849)
Changes in operating lease liabilities		(17,903)
Net cash provided by operating activities		61,795
Cash flows from investing activities
Purchases of property, furniture and equipment		(32,815)
Net cash used in investing activities		(32,482)
Noncash operating activities
Lease incentives		4,945
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities		456
Adjustment No. 1
Cash flows from operating activities
Changes in prepaid and other assets		5,391
Changes in accounts payable		(5,676)
Changes in operating lease liabilities		0
Net cash provided by operating activities		(285)
Cash flows from investing activities
Purchases of property, furniture and equipment		285
Net cash used in investing activities		285
Noncash operating activities
Lease incentives		(4,945)
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities		5,676
As Previously Disclosed
Cash flows from operating activities
Changes in prepaid and other assets		(1,417)	(20,721)
Changes in accounts payable		(10,525)
Changes in operating lease liabilities		(17,903)	(25,794)
Net cash provided by operating activities		61,510	172,299
Cash flows from investing activities
Purchases of property, furniture and equipment		(32,530)	(97,055)
Net cash used in investing activities		(32,197)	(96,722)
Noncash operating activities
Lease incentives		0
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities		6,132	6,726
Adjustment No. 2
Cash flows from operating activities
Changes in prepaid and other assets		2,036	9,612
Changes in accounts payable		0
Changes in operating lease liabilities		650	(13,226)
Net cash provided by operating activities		2,686	(3,614)
Cash flows from investing activities
Purchases of property, furniture and equipment		(2,686)	3,614
Net cash used in investing activities		(2,686)	3,614
Noncash operating activities
Lease incentives		0
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities		$ 2,410	$ 3,560

Leases - Liability for Operating and Finance Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Leases [Abstract]
Operating right-of-use assets	$ 352,472	$ 302,157	$ 301,861
Financing right-of-use assets	37,764	38,835
Total leased assets	390,236	340,992
Current portion of operating lease liabilities	49,463	33,051	42,853
Operating lease liabilities, long-term	417,861	362,598	$ 345,548
Total operating lease liabilities	467,324	395,649
Current portion of financing lease liabilities	975	904
Financing lease liabilities, long-term	53,636	53,870
Total finance lease liabilities	54,611	54,774
Total lease liabilities	$ 521,935	$ 450,423

Nature of Business and Basis of Presentation - Schedule of Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Accounting Policies [Abstract]
Prepaid expenses	$ 17,382	$ 9,374
Right of return asset	1,550	2,844
Prepaid advertising	1,219	610
Prepaid cloud computing arrangements, net	7,387	4,253
Deposits	8,432	4,470
Other current assets	2,040	4,753
Prepaid and other current assets	38,010	26,304	$ 18,430
Prepaid cloud computing arrangements, accumulated amortization expense	$ 5,400	$ 2,700

Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Schedule of Liability for Operating and Finance Leases

The following table summarizes the amounts recognized in our condensed consolidated balance sheets related to leases (amounts in thousands):


	Condensed Consolidated Balance Sheet Classification	June 30, 2024		December 31, 2023
Assets
Operating lease assets	Operating right-of-use assets	$	352,472	$	302,157
Finance lease assets	Financing right-of-use assets	37,764		38,835
Total leased assets		$	390,236	$	340,992

Liabilities
Current operating leases	Current portion of operating lease liabilities	$	49,463	$	33,051
Non-current operating leases	Operating lease liabilities, long-term	417,861		362,598
Total operating lease liabilities		467,324		395,649

Current finance leases	Current portion of financing lease liabilities	975		904
Non-current finance leases	Financing lease liabilities, long-term	53,636		53,870
Total finance lease liabilities		54,611		54,774
Total lease liabilities		$	521,935	$	450,423

Schedule of Components of Lease Expense


		Six months ended				Three months ended
		June 30,				June 30,
	Condensed Consolidated Statements of Comprehensive Income Classification	2024		2023		2024		2023
Lease costs:
Operating lease costs	Cost of goods sold	$	25,344	$	20,376	$	13,159	$	10,662
Operating lease costs	Selling, general and administrative expenses	5,095		4,857		2,594		2,456
Finance lease costs
Amortization of right-of-use assets	Selling, general and administrative expenses	1,255		1,080		629		540
Interest expense on lease liabilities	Interest income, net	2,601		2,536		1,300		1,268
Variable lease costs(1)	Cost of goods sold	19,562		19,147		10,074		9,116
Short term lease costs	Selling, general and administrative expenses	39		136		21		16
Total lease costs		$	53,896	$	48,132	$	27,777	$	24,058

The weighted average remaining lease terms are as follows:


	Six months ended
	June 30,
Weighted Average Remaining Lease Term (In Years)	2024	2023
Operating leases	9.11	9.16
Finance leases	20.43	21.24

The weighted average discount rates used to measure our lease liabilities are as follows:


	Six months ended
	June 30,
Weighted Average Discount Rate	2024		2023
Operating leases	6.03	%	5.67	%
Finance leases	9.64	%	9.63	%

Schedule of Lessee, Operating Lease, Liability, Maturity

Future lease liabilities at June 30, 2024 are as follows (amounts in thousands):


Year Ending December 31,	Operating Lease Liabilities (1)		Finance Lease Liabilities		Total Lease Liabilities
Remainder of 2024	$	36,844	$	2,923	$	39,767
2025	74,888		5,851		80,739
2026	70,856		6,309		77,165
2027	67,435		6,110		73,545
2028	62,027		5,635		67,662
2029	59,172		5,224		64,396
Thereafter	247,525		104,719		352,244
Total lease payments	618,747		136,771		755,518
Less: Amounts representing interest	(151,423)		(82,160)		(233,583)
Total	$	467,324	$	54,611	$	521,935

(1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties.

Schedule of Finance Lease, Liability, Fiscal Year Maturity

Future lease liabilities at June 30, 2024 are as follows (amounts in thousands):


Year Ending December 31,	Operating Lease Liabilities (1)		Finance Lease Liabilities		Total Lease Liabilities
Remainder of 2024	$	36,844	$	2,923	$	39,767
2025	74,888		5,851		80,739
2026	70,856		6,309		77,165
2027	67,435		6,110		73,545
2028	62,027		5,635		67,662
2029	59,172		5,224		64,396
Thereafter	247,525		104,719		352,244
Total lease payments	618,747		136,771		755,518
Less: Amounts representing interest	(151,423)		(82,160)		(233,583)
Total	$	467,324	$	54,611	$	521,935

(1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties.

Schedule of Supplemental Cash Flow from Leases

Supplemental cash flow information related to leases for the six months ended June 30, 2024 and June 30, 2023 is as follows (amounts in thousands):


	Six months ended
	June 30,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	32,847	$	27,248
Operating cash flows for finance leases	2,457		2,406
Financing cash flows for finance leases	448		261
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	67,691	$	60,186
Finance leases	185		2,637

Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Net Revenue by Segment

Net revenue by merchandise sales channel for the six and three months ended June 30, 2024 and June 30, 2023 is as follows (amounts in thousands):


	Six months ended				Three months ended
	June 30,				June 30,
	2024		2023		2024		2023
Retail	$	501,336	$	506,838	$	258,081	$	256,736
eCommerce	103,627		110,629		51,720		56,163
Total net revenue	$	604,963	$	617,467	$	309,801	$	312,899

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Cash flows from operating activities
Net income	$ 22,234	$ 40,183	$ 37,333	$ 74,282
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization			17,709	14,140
Amortization of operating lease right-of-use asset			17,942	16,080
Amortization of deferred financing fees, interest on finance lease in excess of principal paid and interest on operating leases			13,008	9,945
Equity based compensation			3,351	3,904
Deferred tax assets			4,870	5,333
Amortization of cloud computing arrangements			762	142
Amortization and write-off of lease incentives			(80)	(160)
Insurance proceeds			0	60
Changes in operating assets and liabilities
Accounts receivable			850	(12)
Merchandise inventory			(19,265)	(8,495)
Prepaid and other assets			(11,545)	619	$ (11,109)
Other noncurrent liabilities			332	169
Accounts payable			4,571	(10,525)
Accrued expenses			(11,254)	(14,847)
Operating lease liabilities			(10,740)	(17,253)	(39,020)
Client deposits			36,460	(9,186)
Net cash provided by operating activities			84,304	64,196	168,685
Cash flows from investing activities
Purchases of property, furniture and equipment			(62,158)	(35,216)	(93,441)
Insurance proceeds			0	333
Net cash used in investing activities			(62,158)	(34,883)	(93,108)
Cash flows from financing activities
Principal payments under finance leases			(448)	(130)
Repurchase of shares for payment of withholding taxes for equity based compensation			(548)	(347)
Cash dividend payments			(70,056)	0
Net cash used in financing activities			(71,052)	(477)
Net increase (decrease) in cash, cash equivalents and restricted cash			(48,906)	28,836
Cash, cash equivalents and restricted cash
Beginning of period			226,305	152,527	152,527
End of period	$ 177,399	$ 181,363	177,399	181,363	226,305
Supplemental disclosure of cash flow information
Interest paid in cash			2,143	2,610
Interest received in cash			5,155	3,172
Income taxes paid in cash			15,815	21,902
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities			12,672	8,542	$ 10,286
Noncash financing activities:
Capital contributions			$ 17	$ 30

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Class A
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock , shares authorized (in shares)	600,000,000	600,000,000
Common stock, shares issued (in shares)	53,466,265	53,254,088
Common stock, shares outstanding (in shares)	53,345,001	53,169,711
Class B
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock , shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	87,115,600	87,115,600
Common stock, shares outstanding (in shares)	87,115,600	87,115,600

Nature of Business and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying condensed consolidated financial statements include our accounts and those of our wholly owned subsidiaries. Accordingly, all intercompany balances and transactions have been eliminated through the consolidation process.

The accompanying condensed consolidated balance sheets at June 30, 2024 and December 31, 2023, the condensed consolidated statements of comprehensive income and changes in stockholders’ equity for the six and three months ended June 30, 2024 and June 30, 2023, the condensed consolidated statements of cash flows for the six months ended June 30, 2024 and June 30, 2023 and the related interim condensed consolidated disclosures are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

In management’s opinion, the accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the Company’s financial position at June 30, 2024, the results of operations and changes in stockholders’ equity for the six and three months ended June 30, 2024 and cash flows for the six months ended June 30, 2024. The condensed consolidated balance sheet as of December 31, 2023 included herein was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP.

The results for the six and three months ended June 30, 2024 and June 30, 2023 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.

Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The accounting estimates and other matters included within our condensed consolidated financial statements and notes to the condensed consolidated financial statements we have assessed include, but were not limited to, revenue recognition, including a reserve for merchandise returns, inventory reserves, impairment of long-lived assets and fair value of financial instruments which include, but are not limited to, accounts receivable, payables and lease obligations.

Client Deposits and Gift Cards

Client Deposits

Client deposits represent payments made by clients on orders. At the time of order, the Company collects deposits for all orders equivalent to at least 50 percent of the clients’ purchase price. Orders are recognized as revenue when the merchandise is delivered to the client and at the time of delivery the client deposit is no longer recorded as a liability. The

Company expects substantially all client deposits as of June 30, 2024 will be recognized as net revenue within the next 12 months as the performance obligations are satisfied.

Gift Cards

The Company sells gift cards to clients in our Showrooms and through our website. Such gift cards do not have expiration dates. We defer revenue when payments are received in advance of performance for unsatisfied obligations related to our gift cards. The liability related to unredeemed gift cards at June 30, 2024 and December 31, 2023 of $0.4 million and $0.5 million, respectively, is recorded in the accrued other expenses line item of the condensed consolidated balance sheets. The Company recognizes income associated with breakage proportional to actual gift card redemptions. For the six and three months ended June 30, 2024, breakage income was minimal. For the six and three months ended June 30, 2023, breakage income was $0.7 million.

Fair Values of Financial Instruments

The Company’s primary financial instruments are cash and cash equivalent investments, accounts receivable, payables, lease obligations and equity based compensation instruments. Due to the short-term maturities of cash and cash equivalent investments, accounts receivable and payables, the Company believes the fair values of these instruments approximate their respective carrying values at June 30, 2024 and December 31, 2023. See Note 5 — Leases for discussion of our lease obligations and Note 6 — Equity Based Compensation for discussion of our equity based compensation instruments.

The Company has established a hierarchy to measure our financial instruments at fair value, which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect the Company’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. The hierarchy defines three levels of inputs that may be used to measure fair value:

Level 1Unadjusted quoted prices in active markets for identical, unrestricted assets and liabilities that the reporting entity has the ability to access at the measurement date.

Level 2Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

Level 3Unobservable inputs that reflect the entity’s own assumptions about the assumptions market participants would use in the pricing of the asset or liability and are consequently not based on market activity but rather through particular valuation techniques.

New Accounting Standards Adopted in Fiscal 2024 and Accounting Standards Not Yet Adopted

New Accounting Standards Adopted in Fiscal 2024

Accounting Standards Not Yet Adopted

ASU

Description

Adoption Date

ASU 2023-07

Segment Reporting (Topic 280): Improvements

Fiscal Year 2024

ASU 2023-09

Income Taxes (Topic 740): Improvements to Income Tax Disclosures

Fiscal Year 2025

Accounts Receivable

The Company’s accounts receivables are $1.5 million and $2.4 million, respectively, at June 30, 2024 and December 31, 2023, net of allowance for expected credit losses of $0.4 million and $0.6 million, respectively. The allowance for expected credit losses is determined by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, the client’s current ability to pay its obligations, and the current and future condition of the general economy and industry as a whole. Accounts receivable are written off when they become uncollectible and any payments subsequently received on such receivables are credited to the allowance for expected credit losses. Accounts receivable are recorded at the invoiced amount and do not bear interest.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-17

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Section 50
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-19

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/exampleRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company is involved in litigation and claims that are incidental to its business. Although the outcome of these matters cannot be determined at the present time, management of the Company believes that the ultimate resolution of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. From time to time, the Company has received inquiries from a number of state and local taxing agencies with respect to the remittance of sales, use, telecommunications, excise, and income taxes. Several jurisdictions are currently conducting tax audits of the Company's records. The Company collects, or has accrued for, taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company. The Company adjusts its accrual when facts relating to specific exposures warrant such adjustment. As of June 30, 2024 and December 31, 2023, we recorded liabilities of $0.2 million and $0.2 million, respectively, in accrued other expenses on the condensed consolidated balance sheets for non-income tax matters that were probable and reasonably estimable. In August 2023, the Company committed to make a $10.0 million donation to The Nature Conservancy. As of June 30, 2024, we have a remaining commitment of $5.0 million in accrued other expense on our condensed consolidated balance sheets which we anticipate will be disbursed by the end of the fiscal year. On February 29, 2024, the Board of Directors of the Company declared a special cash dividend on the Company’s Class A and Class B common stock of $0.50 per share, payable April 4, 2024, to shareholders of record at the close of business on March 21, 2024 (the “Record Date”). During the six months ended June 30, 2024, the Company paid out $70.1 million of the aforementioned special cash dividend on its Class A and Class B common stock. As of June 30, 2024, dividends payable of $0.6 million is recorded in accrued other expenses and $0.5 million is included in other long-term liabilities on our condensed consolidated balance sheet. The remaining dividends payable balance recorded on our condensed consolidated balance sheet relates to dividend equivalents on outstanding equity awards under the Company’s equity incentive plans that were unvested as of the Record Date.

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 174,186	$ 223,098
Restricted cash	3,213	3,207
Accounts receivable, net	1,544	2,394
Merchandise inventory, net	273,557	254,292
Prepaid and other current assets	38,010	26,304
Total current assets	490,510	509,295
Operating right-of-use assets	352,472	302,157
Financing right-of-use assets	37,764	38,835
Property, furniture and equipment, net	268,339	220,248
Deferred tax assets	14,258	19,127
Goodwill	10,961	10,961
Other noncurrent assets	2,997	4,525
Total assets	1,177,301	1,105,148
Current liabilities
Accounts payable	67,949	63,699
Accrued taxes	7,093	9,638
Accrued wages	10,791	15,185
Accrued other expenses	45,584	46,062
Client deposits	210,268	173,808
Current portion of operating lease liabilities	49,463	33,051
Current portion of financing lease liabilities	975	904
Total current liabilities	392,123	342,347
Operating lease liabilities, long-term	417,861	362,598
Financing lease liabilities, long-term	53,636	53,870
Deferred rent and lease incentives	0	1,952
Other long-term liabilities	4,371	4,143
Total liabilities	867,991	764,910
Commitments and contingencies (Note 9)
Stockholders’ equity
Retained earnings	111,544	145,292
Additional paid-in capital	197,626	194,807
Total stockholders’ equity	309,310	340,238
Total liabilities and stockholders’ equity	1,177,301	1,105,148
Class A
Stockholders’ equity
Stock issued	53	52
Class B
Stockholders’ equity
Stock issued	$ 87	$ 87

Commitments and Contingencies (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended
	Feb. 29, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Aug. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Loss contingency accrual		$ 200		$ 200
Committed donation					$ 10,000
Accrued donation cost		5,000
Common stock, dividends declared (in dollars per share)	$ 0.50
Special cash dividend		70,056	$ 0
Current Liabilities
Other Commitments [Line Items]
Dividends payable		600
Other Long-term Liabilities
Other Commitments [Line Items]
Dividends payable		$ 500

Equity Based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Equity Based Compensation


	Restricted Stock - Class A
	Amount	Weighted Average Grant Date Fair Value
Unvested at December 31, 2023	500,304	$	15.47
Granted	—	—
Forfeited	—	—
Vested	(150,110)	15.98
Unvested at June 30, 2024	350,194	$	15.25


	Six months ended				Three months ended
	June 30,				June 30,
	2024		2023		2024		2023
Equity based compensation expense - Restricted Stock(1)	$	1,331	$	1,360	$	671	$	662

The Arhaus, Inc. 2021 Equity Incentive Plan (the “2021 Plan”) was adopted on November 8, 2021. The 2021 Plan authorizes the Company the ability to grant stock options (either incentive or non-qualified), stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance shares, performance share units (“PSUs”) and other stock-based awards with respect to our Class A common stock to our employees, officers, consultants, advisors and directors. The maximum number of Class A common stock that may be granted under the 2021 Plan is 11,205,100 shares.

Per the 2021 Plan, each RSU and PSU represents a contingent right to receive one share of the Company’s Class A common stock upon vesting. The RSUs granted to award recipients vest in one-third increments on each of the first, second and third anniversary of the date of grant, provided that the award recipient continues to serve the Company through the applicable vesting date (“Continuous Service”). If the award recipient’s Continuous Service terminates for any reason other than death, disability or in connection with a change in control (as such terms are defined in the 2021 Plan), unless the Compensation Committee of the Board of Directors determines otherwise, all RSUs that are unvested at the time of such termination shall be forfeited and canceled immediately without consideration. RSU and PSU awards contain forfeitable rights to dividend equivalents. Dividend equivalents for outstanding awards are accrued when dividends are declared on the Company’s common stock but are not paid until the awards vest, and dividend equivalents accrued for awards that ultimately do not vest are forfeited. The RSUs issued to certain members of the Board of Directors will generally vest on the one-year anniversary of the grant date.

The number of PSUs earned will be based on the Company’s financial performance as measured against pre-established target goals for cumulative demand revenue and cumulative adjusted EBITDA (the “Performance Goals”) over the applicable performance period. PSUs will vest as of the end of the performance period subject to the award recipient’s Continuous Service, but will not settle and payout until the number of PSUs earned is determined by the Compensation Committee. The award recipient may earn between 0% and 200% of the PSU target award based on the Company’s achievement of the Performance Goals. The Company accounts for forfeitures as they occur.


	PSU Awards			RSU Awards
	Amount	Weighted Average Grant Date Fair Value		Amount	Weighted Average Grant Date Fair Value
Unvested at December 31, 2023	700,229	$	7.20	1,248,165	$	7.79
Granted	250,708	15.90		340,236	15.86
Forfeited	(74,068)	9.09		(32,556)	9.86
Vested	—	—		(212,177)	8.54
Unvested at June 30, 2024	876,869	$	9.53	1,343,668	$	9.67


	Six months ended				Three months ended
	June 30,				June 30,
	2024		2023		2024		2023
Equity based compensation expense - PSUs(1)	$	(286)	$	1,245	$	(638)	$	812
Equity based compensation expense - RSUs(2)	$	2,306	$	1,299	$	1,294	$	800

Merchandise Warranties

6 Months Ended

Jun. 30, 2024

Product Warranties Disclosures [Abstract]

Merchandise Warranties

The Company warrants certain merchandise to be free of defects in both construction materials and workmanship from the date the performance obligation was fulfilled to the client for three to ten years depending on the merchandise category. The Company accounts for merchandise warranties by accruing an estimated liability when we recognize revenue on the sale of warrantied merchandise. We estimate future warranty claims based on claim experience which includes materials and labor costs to perform the repairs or replace products. We use judgment in making our estimates. We record differences between our estimated and actual costs when the differences are known.

A reconciliation of the changes in our limited merchandise warranty liability is as follows (amounts in thousands):


	Six months ended				Three months ended
	June 30,				June 30,
	2024		2023		2024		2023
Balance as of beginning of period	$	7,084	$	6,375	$	7,028	$	6,465
Accruals during the period	6,376		6,749		3,296		3,368
Settlements during the period	(6,354)		(6,546)		(3,218)		(3,255)
Balance as of end of the period(1)	$	7,106	$	6,578	$	7,106	$	6,578

(1) $4.0 million and $4.1 million were recorded in accrued other expenses at June 30, 2024 and December 31, 2023, respectively. The remainder is recorded in other long-term liabilities on our condensed consolidated balance sheets.

We recorded accruals during the periods presented in the table above, primarily to reflect charges that relate to limited merchandise warranties issued during the respective periods.

Merchandise Warranties (Tables)

6 Months Ended

Jun. 30, 2024

Product Warranties Disclosures [Abstract]

Schedule of Merchandise Warranty Liability

A reconciliation of the changes in our limited merchandise warranty liability is as follows (amounts in thousands):


	Six months ended				Three months ended
	June 30,				June 30,
	2024		2023		2024		2023
Balance as of beginning of period	$	7,084	$	6,375	$	7,028	$	6,465
Accruals during the period	6,376		6,749		3,296		3,368
Settlements during the period	(6,354)		(6,546)		(3,218)		(3,255)
Balance as of end of the period(1)	$	7,106	$	6,578	$	7,106	$	6,578

Segment Reporting - Net Revenue by Merchandise Sales Channel (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting Information [Line Items]
Net revenue	$ 309,801	$ 312,899	$ 604,963	$ 617,467
Retail
Segment Reporting Information [Line Items]
Net revenue	258,081	256,736	501,336	506,838
eCommerce
Segment Reporting Information [Line Items]
Net revenue	$ 51,720	$ 56,163	$ 103,627	$ 110,629

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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+ Details

Related Party Transactions (Details) $ in Thousands	1 Months Ended				3 Months Ended		6 Months Ended
Related Party Transactions (Details) $ in Thousands	Jul. 31, 2023 USD ($) option	Mar. 31, 2021 USD ($)	Aug. 31, 2020 USD ($)	Jul. 31, 2010 USD ($)	Jun. 30, 2024 USD ($) option	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) option	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Nov. 30, 2000
Related Party Transaction [Line Items]
Operating lease, term (in years)		12 years
Renewal options \| option					2		2
Accounts payable					$ 67,949		$ 67,949		$ 63,699
Walton Hills, Ohio \| Warehouse
Related Party Transaction [Line Items]
Operating lease, renewal term (in years)	5 years
Lease monthly payment			$ 100
Number of options to extend \| option	1
Brooklyn, Ohio \| Outlet
Related Party Transaction [Line Items]
Lease monthly payment				$ 20
Minimum
Related Party Transaction [Line Items]
Operating lease, renewal term (in years)		5 years
Minimum \| Base term, 12 years
Related Party Transaction [Line Items]
Lease monthly payment		$ 200
Minimum \| Renewal term, 10 years
Related Party Transaction [Line Items]
Lease monthly payment		$ 400
Minimum \| Walton Hills, Ohio \| Warehouse
Related Party Transaction [Line Items]
Lease monthly payment	$ 100
Maximum
Related Party Transaction [Line Items]
Operating lease, renewal term (in years)		10 years
Maximum \| Base term, 12 years
Related Party Transaction [Line Items]
Lease monthly payment		$ 300
Maximum \| Renewal term, 10 years
Related Party Transaction [Line Items]
Lease monthly payment		$ 500
Maximum \| Walton Hills, Ohio \| Warehouse
Related Party Transaction [Line Items]
Lease monthly payment	$ 200
Related Party
Related Party Transaction [Line Items]
Rent expense					1,000	$ 1,000	2,000	$ 2,000
Accounts payable					200		200		$ 2,300
Related Party \| Chief Executive Officer \| Premier Canover, LLC
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners		40.00%
Related Party \| Walton Hills, Ohio \| Chief Executive Officer \| Pagoda Partners, LLC
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners										50.00%
Related Party \| Walton Hills, Ohio \| Warehouse
Related Party Transaction [Line Items]
Operating lease, term (in years)										17 years
Rent expense					500	400	900	700
Related Party \| Brooklyn, Ohio \| Chief Executive Officer \| Brooklyn Arhaus
Related Party Transaction [Line Items]
Ownership percentage by parent				85.00%
Related Party \| Brooklyn, Ohio \| Director \| Brooklyn Arhaus
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners				15.00%
Related Party \| Brooklyn, Ohio \| Outlet
Related Party Transaction [Line Items]
Operating lease, term (in years)				15 years
Rent expense					$ 100	$ 100	$ 200	$ 200
Related Party \| Maximum \| Walton Hills, Ohio \| Warehouse
Related Party Transaction [Line Items]
Operating lease, renewal term (in years)										5 years

Nature of Business and Basis of Presentation

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Nature of Business and Basis of Presentation

Nature of Business

Arhaus, Inc. (the “Company,” “we” or “Arhaus”) is a Delaware corporation and is a premium retailer in the home furnishings market, specializing in livable luxury supported by heirloom quality merchandise. We offer merchandise in a number of categories, including furniture, outdoor, lighting, textiles and décor. Our curated assortments are presented across our sales channels in sophisticated, family friendly and unique lifestyle settings. We position our retail locations as Showrooms for our brand, while our website acts as a virtual extension of our Showrooms. The Company operated 97 Showrooms as of June 30, 2024.

Basis of Presentation

Use of Estimates

Client Deposits

Company expects substantially all client deposits as of June 30, 2024 will be recognized as net revenue within the next 12 months as the performance obligations are satisfied.

Gift Cards

Fair Values of Financial Instruments

Level 1Unadjusted quoted prices in active markets for identical, unrestricted assets and liabilities that the reporting entity has the ability to access at the measurement date.

From time to time, the Company invests in Level 1 cash and cash equivalent investments such as money market funds and interest-bearing checking accounts. For the six and three months ended June 30, 2024, the Company earned $4.8 million and $2.0 million, respectively, in interest income. For the six and three months ended June 30, 2023, interest income was $3.3 million and $1.8 million, respectively, which is included within interest income, net on our condensed consolidated statements of comprehensive income.

Accounts Receivable

Prepaid and Other Current Assets

Prepaid and other current assets consist of the following (amounts in thousands):


	June 30,		December 31,
	2024		2023
Prepaid expenses	$	17,382	$	9,374
Right of return asset	1,550		2,844
Prepaid advertising	1,219		610
Prepaid cloud computing arrangements, net(1)	7,387		4,253
Deposits	8,432		4,470
Other current assets	2,040		4,753
Total prepaid and other current assets	$	38,010	$	26,304

(1) Presented net of accumulated amortization of $5.4 million and $2.7 million as of June 30, 2024 and December 31, 2023, respectively.

Revision to Previously Issued Consolidated Financial Statements and Interim Unaudited Condensed Consolidated Financial Statements

As previously disclosed, in preparation of the December 31, 2023 consolidated financial statements, the Company identified an error within the unaudited condensed consolidated balance sheets related to certain leasehold and landlord improvements prior to showroom completion being incorrectly included in prepaid and other current assets rather than property, furniture and equipment, net. The error resulted in inaccurate cash flows ascribed to operating and investing activities in the unaudited condensed consolidated statement of cash flows and the Company concluded to revise the consolidated financial statements and interim unaudited condensed consolidated financial statements as presented below in Adjustment No.1.

In preparation of the March 31, 2024 unaudited condensed consolidated financial statements, the Company identified an additional error within the unaudited condensed consolidated balance sheets related to certain cash receipts from landlord reimbursements prior to showroom completion being incorrectly included in property, furniture and equipment, net. The error resulted in inaccurate cash flows ascribed to operating and investing activities in the unaudited condensed consolidated statement of cash flows as presented below in Adjustment No. 2.

The Company has evaluated the errors both quantitatively and qualitatively and concluded they were not material, individually or in the aggregate, to the prior period consolidated financial statements and interim unaudited condensed consolidated financial statements. The Company concluded to further revise: the unaudited condensed consolidated balance sheets and unaudited condensed consolidated statements of cash flows as of and for the three months ended March 31, 2023 and 2022, and as of and for the six months ended June 30, 2023 and 2022; the unaudited condensed consolidated balance sheet as of September 30, 2022; the consolidated balance sheets as of December 31, 2023 and 2022; and the consolidated statements of cash flows for the years ended December 31, 2023, 2022 and 2021.

In connection with the revisions, the Company determined it is appropriate to correct for certain other immaterial errors. The Company will effect the revisions of the consolidated financial statements for 2023 and 2022 within our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The Company effected the revision of the unaudited interim condensed consolidated financial statements for the second quarter of 2023 within this Quarterly Report on Form 10-Q for the fiscal period ended June 30, 2024.

The Company has also revised impacted amounts within the accompanying notes to the unaudited condensed consolidated financial statements, as applicable.

The following tables summarize the impact of these corrections for the periods presented (amounts in thousands):


	December 31, 2023
Consolidated Balance Sheet	As Reported		Adjustment No. 2		As Revised
Prepaid and other current assets	$	45,260	$	(18,956)	$	26,304
Total current assets	$	528,251	$	(18,956)	$	509,295

Property, furniture and equipment, net	$	210,238	$	10,010	$	220,248
Total assets	$	1,114,094	$	(8,946)	$	1,105,148

Accrued other expenses	$	42,502	$	3,560	$	46,062
Current portion of operating lease liabilities	45,557		(12,506)		33,051
Total current liabilities	$	351,293	$	(8,946)	$	342,347
Total liabilities	$	773,856	$	(8,946)	$	764,910
Total liabilities and stockholders' equity	$	1,114,094	$	(8,946)	$	1,105,148


	Year ended
	December 31, 2023
Consolidated Statement of Cash Flows	As Reported		Adjustment No. 2		As Revised
Cash flows from operating activities
Changes in prepaid and other assets	$	(20,721)	$	9,612	$	(11,109)
Changes in operating lease liabilities	(25,794)		(13,226)		(39,020)
Net cash provided by operating activities	$	172,299	$	(3,614)	$	168,685

Cash flows from investing activities
Purchases of property, furniture and equipment	$	(97,055)	$	3,614	$	(93,441)
Net cash used in investing activities	$	(96,722)	$	3,614	$	(93,108)

Supplemental disclosure of cash flow information
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities	$	6,726	$	3,560	$	10,286

Merchandise Warranties - Change in Liability (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance as of beginning of period	$ 7,028	$ 6,465	$ 7,084	$ 6,375
Accruals during the period	3,296	3,368	6,376	6,749
Settlements during the period	(3,218)	(3,255)	(6,354)	(6,546)
Balance as of the end of the period	7,106	6,578	7,106	6,578
Accrued and other expenses	7,106	$ 6,578	7,106	$ 6,578
Accrued Other Expenses
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance as of beginning of period			4,100
Balance as of the end of the period	4,000		4,000
Accrued and other expenses	$ 4,000		$ 4,000

Nature of Business and Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Schedule of Prepaid and Other Current Assets

Prepaid and other current assets consist of the following (amounts in thousands):


	June 30,		December 31,
	2024		2023
Prepaid expenses	$	17,382	$	9,374
Right of return asset	1,550		2,844
Prepaid advertising	1,219		610
Prepaid cloud computing arrangements, net(1)	7,387		4,253
Deposits	8,432		4,470
Other current assets	2,040		4,753
Total prepaid and other current assets	$	38,010	$	26,304

(1) Presented net of accumulated amortization of $5.4 million and $2.7 million as of June 30, 2024 and December 31, 2023, respectively.

Schedule of Error Correction

The following tables summarize the impact of these corrections for the periods presented (amounts in thousands):


	December 31, 2023
Consolidated Balance Sheet	As Reported		Adjustment No. 2		As Revised
Prepaid and other current assets	$	45,260	$	(18,956)	$	26,304
Total current assets	$	528,251	$	(18,956)	$	509,295

Property, furniture and equipment, net	$	210,238	$	10,010	$	220,248
Total assets	$	1,114,094	$	(8,946)	$	1,105,148

Accrued other expenses	$	42,502	$	3,560	$	46,062
Current portion of operating lease liabilities	45,557		(12,506)		33,051
Total current liabilities	$	351,293	$	(8,946)	$	342,347
Total liabilities	$	773,856	$	(8,946)	$	764,910
Total liabilities and stockholders' equity	$	1,114,094	$	(8,946)	$	1,105,148


	Year ended
	December 31, 2023
Consolidated Statement of Cash Flows	As Reported		Adjustment No. 2		As Revised
Cash flows from operating activities
Changes in prepaid and other assets	$	(20,721)	$	9,612	$	(11,109)
Changes in operating lease liabilities	(25,794)		(13,226)		(39,020)
Net cash provided by operating activities	$	172,299	$	(3,614)	$	168,685

Cash flows from investing activities
Purchases of property, furniture and equipment	$	(97,055)	$	3,614	$	(93,441)
Net cash used in investing activities	$	(96,722)	$	3,614	$	(93,108)

Supplemental disclosure of cash flow information
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities	$	6,726	$	3,560	$	10,286

Leases - Narrative (Details) $ in Millions	Jun. 30, 2024 USD ($)
Lease Cost [Line Items]
Aggregate minimum rental payments, not yet commenced	$ 115.1
Minimum
Lease Cost [Line Items]
Lease term, not yet commenced	2 years
Maximum
Lease Cost [Line Items]
Lease term, not yet commenced	13 years

Leases - Schedule of Weighted Average Discount Rate (Details)	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating leases	6.03%	5.67%
Finance leases	9.64%	9.63%

Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Lease Cost [Line Items]
Other lease costs	$ 0	$ 0	$ 0	$ 400
Total lease costs	27,777	24,058	53,896	48,132
Cost of goods sold
Lease Cost [Line Items]
Operating lease costs	13,159	10,662	25,344	20,376
Other lease costs	10,074	9,116	19,562	19,147
Selling, general and administrative expenses
Lease Cost [Line Items]
Operating lease costs	2,594	2,456	5,095	4,857
Amortization of right-of-use assets	629	540	1,255	1,080
Other lease costs	21	16	39	136
Interest income, net
Lease Cost [Line Items]
Interest expense on lease liabilities	$ 1,300	$ 1,268	$ 2,601	$ 2,536

Net and Comprehensive Income per Share - Calculation of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator
Net and comprehensive income	$ 22,234	$ 40,183	$ 37,333	$ 74,282
Denominator—Weighted Average Shares Outstanding
Weighted-average number of common shares outstanding, basic (in shares)	139,985,846	139,389,967	139,901,319	139,232,238
Effect of dilutive restricted stock (in shares)	930,315	589,961	834,777	727,705
Weighted-average number of common shares outstanding, diluted (in shares)	140,916,161	139,979,928	140,736,096	139,959,943
Net and comprehensive income per share, basic (in dollars per share)	$ 0.16	$ 0.29	$ 0.27	$ 0.53
Net and comprehensive income per share, diluted (in dollars per share)	$ 0.16	$ 0.29	$ 0.27	$ 0.53
Antidilutive securities excluded from computation of earnings per share (in shares)	284,062	773,662	348,274	710,490
Securities not meeting performance target, excluded from computation of earnings per share (in shares)	578,665	768,577	578,665	768,577