Shares of Arhaus, Inc. (NASDAQ: ARHS) plummeted 6.70% in Thursday's trading session following the release of disappointing first-quarter 2025 financial results and a cautious full-year outlook. The luxury furniture retailer's performance fell short of analyst expectations, raising concerns about its growth trajectory in a challenging economic environment.

Arhaus reported quarterly earnings of $0.03 per share, significantly missing the analyst consensus estimate of $0.07 by 57.14%. This represents a substantial 72.73% decrease from earnings of $0.11 per share in the same period last year. The company's Q1 revenue came in at $311.37 million, slightly below the analyst consensus estimate of $314.72 million, despite showing a 5.49% increase from the previous year.

Adding to investor concerns, Arhaus provided a cautious outlook for the full year 2025. The company forecasts net revenue between $1.29 billion and $1.38 billion, with comparable growth ranging from -5% to 1.5%. Additionally, Arhaus projects adjusted EBITDA of $123-145 million and net income of $48-68 million for the fiscal year. These figures suggest potential headwinds in the luxury furniture market and have likely contributed to the stock's significant decline. As the company faces uncertainties, investors will be closely watching Arhaus's performance in the coming quarters to assess its ability to navigate the challenging economic environment.