Shares of Arhaus, Inc. (ARHS) tumbled 5.26% in pre-market trading on Thursday following the release of its disappointing first-quarter 2025 financial results and 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 pre-market decline.