Shares of Arhaus, Inc. (NASDAQ: ARHS) tumbled 5.26% in pre-market trading on Thursday following the release of its disappointing first-quarter 2025 financial results. The luxury furniture retailer reported earnings that fell short of analyst expectations, raising concerns about the company's near-term growth prospects.

Arhaus announced quarterly earnings of $0.03 per share, significantly missing the analyst consensus estimate of $0.07 by 57.14%. This represents a substantial decrease of 72.73% compared to earnings of $0.11 per share in the same period last year. The company's revenue also fell short, coming in at $311.37 million, slightly below the analyst consensus estimate of $314.72 million. Despite the miss, this still represents a 5.49% increase over sales of $295.16 million in the same quarter of the previous year.

Adding to investor concerns, Arhaus provided a cautious outlook for the rest of the year. The company forecasts full-year 2025 net revenue between $1.29 billion and $1.38 billion, with comparable growth ranging from -5% to 1.5%. For the second quarter, Arhaus expects net revenue between $320 million and $350 million, with comparable growth between -2% and 5%. These projections suggest potential challenges in maintaining consistent growth, which may be contributing to the negative market reaction. As the luxury furniture market faces uncertainties, investors will be closely watching Arhaus's performance in the coming quarters to assess its ability to navigate the challenging economic environment.