Research

Arhaus Is A Very, Very, Very Fine House - 9/18/25

At Restoration Hardware’s (RH) 2015 Investor Day, CEO Gary Friedman constantly mentioned there was no other furniture retailer that was even slightly competitive with their next generation store format and/or merchandising capabilities. Mr. Friedman even encouraged everybody in attendance to visit the other luxury furniture retailers in Cherry Creek, CO to see this for ourselves. At the time RH was over $2 billion in revenue and Arhaus was likely 10-20% of that. Today, Arhaus should surpass $1.3 billion this year, and the future trajectory looks strong enough that Mr. Friedman decided it necessary to recently poach their Chief Merchant, Lisa Chi. Funny that RH already had a Chief Merchant but apparently needed another so now there is a co structure. While the Arhaus lawsuit post this event was dropped against RH it remains in effect towards Ms. Chi. Regardless, it is somewhat perplexing that Arhaus somehow had the ability to go head-to-head against the RH juggernaut and investors should wonder if that was only because of Ms. Chi.

We dug into the marketing/brand positioning difference between the two companies, particularly following the most recent campaign from each. We also looked a bit into the compelling new store economics of Arhaus as well as the new product launch in Bath.