Arhaus (ARHS) 10-Q/A 11 Mar 24 2023 Q3 Quarterly report (amended) Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Oct. 27, 2023
Document Information [Line Items]
Document Type	10-Q/A
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Central Index Key	0001875444
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	true
Current Fiscal Year End Date	--12-31
Amendment Description	EXPLANATORY NOTEArhaus, Inc. (the “Company”) is filing this Amendment No. 1 (the “Form 10-Q/A”) to its Quarterly Report on Form 10-Q for the period ended September 30, 2023 (the “Q3 Form 10-Q” and such period, the “Affected Period”), filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 2, 2023 as further described below:As disclosed in the Company’s Current Report of Form 8-K filed on March 6, 2024, the Company is amending and restating its previously issued unaudited condensed consolidated financial statements for the Affected Period. In preparation of the December 31, 2023 consolidated financial statements, the Company identified an error within the unaudited condensed consolidated balance sheet as of September 30, 2023, 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 for the nine months ended September 30, 2023. The unaudited condensed consolidated financial statements are being amended and restated to correct the error in this Form 10-Q/A. In connection with the restatement of the Company’s unaudited condensed consolidated financial statements for the Affected Period, the Company determined it is appropriate to correct for certain other previously identified immaterial errors.The Company has also revised the unaudited condensed consolidated balance sheet as of December 31, 2022 and the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2022 to correct for the error described above as well as for certain other previously identified errors, which were considered immaterial both individually and in the aggregate to such unaudited condensed consolidated financial statements.For more detailed financial information related to the restatement and revision, refer to Note 1 in the Notes to Condensed Consolidated Financial Statements (Unaudited) – Nature of Business and Basis of Presentation. The following sections have been amended to reflect this restatement:•Part I – Item 1. Financial Statements of Arhaus Inc, and Subsidiaries•Part I – Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations•Part II – Item 4. Controls and Procedures•Part II – Item 6. ExhibitsThe Company’s management has previously concluded and disclosed that the Company's disclosure controls and procedures were not effective due to the existence of material weaknesses in the Company’s internal control over financial reporting ("ICFR"). The Company has evaluated the impact of the errors described above on its ICFR and concluded the existing material weaknesses resulted in these errors.Further, in accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended, the Company is including currently dated certifications from its chief executive officer and chief financial officer with this Form 10-Q/A. These certifications are filed or furnished, as applicable, as Exhibits 31.1, 31.2, 32.1 and 32.2.This Form 10-Q/A sets forth the original Q3 Form 10-Q in its entirety, as amended to reflect the restatement and revisions. Except as specifically noted above, this Form 10-Q/A does not modify, amend or update disclosures in the original Q3 Form 10-Q and this Form 10-Q/A does not reflect events occurring after the filing of the original Q3 Form 10-Q or modify or update any other disclosures. This Form 10-Q/A should be read in conjunction with the Company’s filings with the SEC subsequent to the date on which the original Q3 Form 10-Q was filed.
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		53,167,306
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		87,115,600

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 236,930	$ 145,181
Restricted cash equivalents	3,465	7,346
Accounts receivable, net	1,962	1,734
Merchandise inventory, net	268,960	286,419
Prepaid and other current assets	36,699	29,868
Total current assets	548,016	470,548
Operating right-of-use assets	309,572	257,347
Financing right-of-use assets	39,480	38,522
Property, furniture and equipment, net	183,073	140,613
Deferred tax asset	16,585	16,841
Goodwill	10,961	10,961
Other noncurrent assets	3,081	2,252
Total assets	1,110,768	937,084
Current liabilities
Accounts payable	58,138	62,636
Accrued taxes	13,134	12,256
Accrued wages	12,015	20,860
Accrued other expenses	47,073	35,169
Client deposits	212,406	202,587
Current portion of operating lease liabilities	42,566	39,250
Current portion of financing lease liabilities	925	531
Total current liabilities	386,257	373,289
Operating lease liabilities, long-term	355,808	295,657
Financing lease liabilities, long-term	54,010	51,835
Deferred rent and lease incentives	2,032	2,272
Other long-term liabilities	4,173	4,336
Total liabilities	802,280	727,389
Commitments and contingencies (Note 9)
Stockholders' equity
Retained earnings	114,076	20,053
Additional paid-in capital	194,273	189,504
Total Arhaus, Inc. stockholders' equity	308,488	209,695
Total liabilities and stockholders' equity	1,110,768	937,084
Class A
Stockholders' equity
Stock issued	52	51
Class B
Stockholders' equity
Stock issued	$ 87	$ 87

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
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)	52,749,450	51,437,348
Common stock, shares outstanding (in shares)	52,666,334	51,437,348
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

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Net revenue	$ 326,229	$ 320,030	$ 943,696	$ 872,595
Cost of goods sold	195,372	183,739	544,481	505,561
Gross margin	130,857	136,291	399,215	367,034
Selling, general and administrative expenses	106,977	89,145	275,890	246,767
Income from operations	23,880	47,146	123,325	120,267
Interest expense (income), net	(1,080)	751	(1,731)	3,367
Other income	(78)	(109)	(738)	(584)
Income before taxes	25,038	46,504	125,794	117,484
Income tax expense	5,297	9,568	31,771	27,851
Net and comprehensive income	$ 19,741	$ 36,936	$ 94,023	$ 89,633
Net and comprehensive income per share, basic
Weighted-average number of common shares outstanding, basic (in shares)	139,628,776	138,484,495	139,365,870	137,939,577
Net and comprehensive income per share, basic (in dollars per share)	$ 0.14	$ 0.27	$ 0.67	$ 0.65
Net and comprehensive income per share, diluted
Weighted-average number of common shares outstanding, diluted (in shares)	140,140,899	139,845,333	140,021,670	139,545,802
Net and comprehensive income per share, diluted (in dollars per share)	$ 0.14	$ 0.26	$ 0.67	$ 0.64

Condensed Consolidated Statem_2

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 (Accumulated Deficit)	Additional Paid-in Capital
Beginning Balance (in shares) at Dec. 31, 2021				50,428,000	86,519,000
Beginning Balance at Dec. 31, 2021	$ 69,765			$ 50	$ 87	$ 0	$ (116,581)	$ 186,209
Beginning Balance (in shares) at Dec. 31, 2021						0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	89,633						89,633
Shareholder capital contribution	62							62
Equity based compensation (in shares)				1,009,000	597,000
Equity based compensation	2,613			$ 1				2,612
Adjustment to deferred tax asset impact of Reorganization from partnership to a corporation	(1,278)							(1,278)
Ending Balance (in shares) at Sep. 30, 2022				51,437,000	87,116,000
Ending Balance at Sep. 30, 2022	160,795			$ 51	$ 87	$ 0	(26,948)	187,605
Ending Balance (in shares) at Sep. 30, 2022						0
Beginning Balance (in shares) at Jun. 30, 2022				51,360,000	87,116,000
Beginning Balance at Jun. 30, 2022	123,894			$ 51	$ 87	$ 0	(63,884)	187,640
Beginning Balance (in shares) at Jun. 30, 2022						0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	36,936						36,936
Shareholder capital contribution	19							19
Equity based compensation (in shares)				77,000
Equity based compensation	1,224							1,224
Adjustment to deferred tax asset impact of Reorganization from partnership to a corporation	(1,278)							(1,278)
Ending Balance (in shares) at Sep. 30, 2022				51,437,000	87,116,000
Ending Balance at Sep. 30, 2022	160,795			$ 51	$ 87	$ 0	(26,948)	187,605
Ending Balance (in shares) at Sep. 30, 2022						0
Beginning Balance (in shares) at Dec. 31, 2022		51,437,348	87,115,600	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	94,023						94,023
Shareholder capital contribution	42							42
Equity based compensation (in shares)				1,312,000
Equity based compensation	5,752			$ 1				5,751
Shares withheld to cover employees' withholding taxes for equity based compensation (in shares)				(83,000)		(83,000)
Shares withheld to cover employees' withholding taxes for equity based compensation	(1,024)							(1,024)
Ending Balance (in shares) at Sep. 30, 2023		52,666,334	87,115,600	52,666,000	87,116,000
Ending Balance at Sep. 30, 2023	308,488			$ 52	$ 87	$ 0	114,076	194,273
Ending Balance (in shares) at Sep. 30, 2023						83,000
Beginning Balance (in shares) at Jun. 30, 2023				52,345,000	87,116,000
Beginning Balance at Jun. 30, 2023	287,564			$ 52	$ 87	$ 0	94,335	193,090
Beginning Balance (in shares) at Jun. 30, 2023						25,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,741						19,741
Shareholder capital contribution	12							12
Equity based compensation (in shares)				379,000
Equity based compensation	1,848							1,848
Shares withheld to cover employees' withholding taxes for equity based compensation (in shares)				(58,000)		(58,000)
Shares withheld to cover employees' withholding taxes for equity based compensation	(677)							(677)
Ending Balance (in shares) at Sep. 30, 2023		52,666,334	87,115,600	52,666,000	87,116,000
Ending Balance at Sep. 30, 2023	$ 308,488			$ 52	$ 87	$ 0	$ 114,076	$ 194,273
Ending Balance (in shares) at Sep. 30, 2023						83,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities
Net income	$ 94,023	$ 89,633
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	21,439	18,319
Amortization of operating lease right-of-use asset	24,733	21,976
Amortization of deferred financing fees, interest on finance lease in excess of principal paid and interest on operating leases	16,037	8,731
Equity based compensation	5,752	2,613
Deferred tax assets	256	5,458
Amortization of cloud computing arrangements	386	0
Amortization and write-off of lease incentives	(241)	(224)
Insurance proceeds	60	0
Changes in operating assets and liabilities
Accounts receivable	(228)	(1,550)
Merchandise inventory	17,399	(84,228)
Prepaid and other assets	(8,448)	(6,217)
Other noncurrent liabilities	273	456
Accounts payable	(10,141)	8,524
Accrued expenses	3,502	23,682
Operating lease liabilities	(28,797)	(22,586)
Client deposits	9,819	(3,128)
Net cash provided by operating activities	145,824	61,459
Cash flows from investing activities
Purchases of property, furniture and equipment	(56,762)	(40,172)
Insurance proceeds	333	0
Net cash used in investing activities	(56,429)	(40,172)
Cash flows from financing activities
Principal payments under finance leases	(503)	(113)
Repurchase of shares for payment of withholding taxes for equity based compensation	(1,024)	0
Net cash used in financing activities	(1,527)	(113)
Net increase (decrease) in cash, cash equivalents and restricted cash equivalents	87,868	21,174
Cash, cash equivalents and restricted cash equivalents
Beginning of period	152,527	130,908
End of period	240,395	152,082
Supplemental disclosure of cash flow information
Interest paid in cash	3,962	3,858
Interest received in cash	5,395	316
Income taxes paid in cash	28,856	20,579
Lease incentives	0	0
Noncash investing activities:
Purchase of property, furniture and equipment in accounts payable	8,804	4,471
Noncash financing activities:
Adjustment to deferred tax asset impact of Reorganization from partnership to a corporation	0	(1,278)
Derecognition of build-to-suit assets as a result of ASC 842 adoption	0	(31,017)
Capital contributions	$ 42	$ 62

Nature of Business and Basis of

Nature of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	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 86 Showrooms at September 30, 2023. 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 September 30, 2023 and December 31, 2022, the condensed consolidated statements of comprehensive income and changes in stockholders’equity for the nine and three months ended September 30, 2023 and 2022, the condensed consolidated statements of cash flows for the nine months ended September 30, 2023 and 2022 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 September 30, 2023, the results of operations and changes in stockholders’equity for the nine and three months ended September 30, 2023 and 2022 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2023 and 2022. The condensed consolidated balance sheet as of December 31, 2022 included herein was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The results for the nine and three months ended September 30, 2023 and 2022 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, 2022. Restatement and Revision of Previously Issued Condensed Consolidated Financial Statements The Company identified an error within the unaudited condensed consolidated balance sheet as of September 30, 2023, 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 for the nine months ended September 30, 2023. The unaudited condensed consolidated balance sheet as of September 30, 2023 and the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2023 have been restated to correct for this error. In connection with the restatement of the Company’s unaudited condensed consolidated financial statements for the nine months ended September 30, 2023, we determined it is appropriate to correct for certain other previously identified immaterial errors. The Company has also revised the unaudited condensed consolidated balance sheet as of December 31, 2022 and the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2022 to correct for the error described above as well as for certain other previously identified errors, which were considered immaterial both individually and in the aggregate to such unaudited condensed consolidated financial statements. We have also restated and 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): September 30, 2023 Condensed Consolidated Balance Sheet As Reported Adjustment As Restated Prepaid and other current assets $ 63,140 $ (26,441) $ 36,699 Total current assets $ 574,457 $ (26,441) $ 548,016 Operating right-of-use assets (1) $ 314,378 $ (4,806) $ 309,572 Property, furniture and equipment, net 156,632 26,441 183,073 Total assets $ 1,115,574 $ (4,806) $ 1,110,768 Current portion of operating lease liabilities (1) $ 42,472 $ 94 $ 42,566 Total current liabilities $ 386,163 $ 94 $ 386,257 Operating lease liabilities, long-term (1) $ 360,708 $ (4,900) $ 355,808 Total liabilities $ 807,086 $ (4,806) $ 802,280 Total liabilities and stockholders' equity $ 1,115,574 $ (4,806) $ 1,110,768 (1) These identified adjustments are to correct other immaterial errors. Nine months ended September 30, 2023 Condensed Consolidated Statement of Cash Flows As Reported Adjustment As Restated Cash flows from operating activities Changes in prepaid and other assets $ (28,952) $ 20,504 $ (8,448) Changes in accounts payable (4,093) (6,048) (10,141) Net cash provided by operating activities $ 131,368 $ 14,456 $ 145,824 Cash flows from investing activities Purchases of property, furniture and equipment $ (42,306) $ (14,456) $ (56,762) Net cash used in investing activities $ (41,973) $ (14,456) $ (56,429) Supplemental disclosure of cash flow information Noncash operating activities: Lease incentives $ 7,313 $ (7,313) $ — Noncash investing activities: Purchase of property, furniture and equipment in accounts payable $ 2,756 $ 6,048 $ 8,804 December 31, 2022 Condensed Consolidated Balance Sheet As Reported Adjustment As Revised Prepaid and other current assets $ 37,371 $ (7,503) $ 29,868 Total current assets $ 478,051 $ (7,503) $ 470,548 Operating right-of-use assets $ 252,055 $ 5,292 $ 257,347 Property, furniture and equipment, net 135,066 5,547 140,613 Other noncurrent assets 296 1,956 2,252 Total assets $ 931,792 $ 5,292 $ 937,084 Current portion of operating lease liabilities $ 39,744 $ (494) $ 39,250 Total current liabilities $ 373,783 $ (494) $ 373,289 Operating lease liabilities, long-term $ 289,871 $ 5,786 $ 295,657 Total liabilities $ 722,097 $ 5,292 $ 727,389 Total liabilities and stockholders' equity $ 931,792 $ 5,292 $ 937,084 Nine months ended September 30, 2022 Condensed Consolidated Statement of Cash Flows As Reported Adjustment As Revised Cash flows from operating activities Changes in prepaid and other assets $ (11,249) $ 5,032 $ (6,217) Changes in accounts payable 10,334 (1,810) 8,524 Net cash provided by operating activities $ 58,237 $ 3,222 $ 61,459 Cash flows from investing activities Purchases of property, furniture and equipment $ (36,950) $ (3,222) $ (40,172) Net cash used in investing activities $ (36,950) $ (3,222) $ (40,172) Supplemental disclosure of cash flow information Noncash operating activities: Lease incentives $ 7,532 $ (7,532) $ — Noncash investing activities: Purchase of property, furniture and equipment in accounts payable $ 2,661 $ 1,810 $ 4,471 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, goodwill and fair value of financial instruments which include, but are not limited to, accounts receivable, payables and lease obligations. Client Deposits Client deposits represent payments made by clients on orders. At the time of purchase, 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 September 30, 2023 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 September 30, 2023 and December 31, 2022 of $0.4 million and $1.0 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 nine and three months ended September 30, 2023 , breakage income was $0.8 million and $0.1 million, respectively . For the nine and three months ended September 30, 2022, breakage was minimal. Fair Values of Financial Instruments The Company’s primary financial ins truments are cash and cash equivalent investments, accounts receivable, payables, lease obligations and equity based compensation instruments. Due to the shor t-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 September 30, 2023 and December 31, 2022. 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 1 Unadjusted 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 2 Inputs 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 3 Unobservable 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. From time to time, the Company invests in money market funds and other Level 1 cash and cash equivalent investments. For the nine and three months ended September 30, 2023, the Company earned $5.8 million and $2.5 million , respectively, in interest income. For the nine and three months ended September 30, 2022, interest income was $0.6 million and $0.6 million, respectively . Interest income is included within interest expense (income), net on our condensed consolidated statements of comprehensive income. Prepaid and Other Current Assets Prepaid and other current assets consist of the following (amounts in thousands): September 30, 2023 December 31, 2022 As Restated Tenant allowance receivable $ 7,373 $ 4,312 Prepaid expenses 8,802 11,228 Right of return asset 2,576 2,938 Prepaid advertising 3,760 816 Prepaid cloud computing arrangements, net (1) 2,845 1,054 Other current assets 11,343 9,520 Total prepaid and other current assets $ 36,699 $ 29,868 (1) Presented net of accumulated amortization of $1.2 million as of September 30, 2023.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards New Accounting Standards Adopted in Fiscal 2023 We did not adopt any Accounting Standards Updates (“ASU”) in the nine months ended September 30, 2023 that had a material impact on our accounting policies or our condensed consolidated financial statements. 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 2023-01 is effective for annual periods beginning after December 15, 2023. We believe the adoption will not have a material impact on our accounting policies or our consolidated financial statements and related disclosures. ASU Description Adoption Date ASU 2023-01 Leases (Topic 842): Common Control Arrangements January 1, 2024

Merchandise Warranties

Merchandise Warranties	9 Months Ended
	Sep. 30, 2023
Product Warranties Disclosures [Abstract]
Merchandise Warranties	Merchandise Warranties The Co mpany 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 A reconciliation of the changes in our limited merchandise warranty liability is as follows (amounts in thousands): Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Balance as of beginning of period $ 6,375 $ 4,724 $ 6,578 $ 5,412 Accruals during the period 10,292 8,285 3,543 3,181 Settlements during the period (9,854) (7,152) (3,308) (2,736) Balance as of end of the period (1) $ 6,813 $ 5,857 $ 6,813 $ 5,857 (1) $3.9 million and $3.7 million were recorded in accrued other expenses at September 30, 2023 and December 31, 2022, 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.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term 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 September 30, 2023 and 2022), 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 September 30, 2023 and December 31, 2022 , we had no borrowings on the 2021 Credit Facility. Deferred financing costs related to the 2021 Credit Facility of $0.4 million are recorded in other noncurrent assets on the 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 $0.1 million as of September 30, 2023 and December 31, 2022 . The Company was in compliance with all applicable debt covenants at September 30, 2023 and December 31, 2022, and expects to remain in compliance over the next 12 months.

Leases

Leases	9 Months Ended
	Sep. 30, 2023
Leases [Abstract]
Leases	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 obligati ons 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 as of September 30, 2023 and December 31, 2022, respectively (amounts in thousands): Condensed Consolidated Balance Sheet Classification September 30, 2023 December 31, 2022 As Restated Assets Operating lease assets Operating right-of-use assets $ 309,572 $ 257,347 Finance lease assets Financing right-of-use assets 39,480 38,522 Total leased assets $ 349,052 $ 295,869 Liabilities Current operating leases Current portion of operating lease liabilities $ 42,566 $ 39,250 Non-current operating leases Operating lease liabilities, long-term 355,808 295,657 Total operating lease liabilities 398,374 334,907 Current finance leases Current portion of financing lease liabilities 925 531 Non-current finance leases Financing lease liabilities, long-term 54,010 51,835 Total finance lease liabilities 54,935 52,366 Total lease liabilities $ 453,309 $ 387,273 The components of lease cost recognized within our condensed consolidated statements of comprehensive income for the nine and three months ended September 30, 2023 and 2022, respectively are as follows (amounts in thousands): Nine months ended September 30, Three months ended September 30, Condensed Consolidated Income Statement Classification 2023 2022 2023 2022 Lease costs: Operating lease costs Cost of goods sold $ 31,894 $ 25,798 $ 11,518 $ 8,716 Operating lease costs Selling, general and administrative expenses 7,375 4,743 2,518 1,955 Finance lease costs Amortization of right-of-use assets Selling, general and administrative expenses 1,838 1,516 758 540 Interest expense on lease liabilities Interest expense (income), net 3,852 3,758 1,316 1,270 Variable lease costs (1) Cost of goods sold 28,474 26,764 9,327 9,961 Short term lease costs Selling, general and administrative expenses 165 507 29 170 Total lease costs $ 73,598 $ 63,086 $ 25,466 $ 22,612 (1) Includes $0.4 million of month-to-month lease costs for the nine months ended September 30, 2023 . The Company did not have month-to-month lease costs for the nine and three months ended September 30, 2022 or the three months ended September 30, 2023 . We often have options to renew lease terms for Showrooms and other as sets. 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 options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The table below summarizes the weighted average remaining lease terms as of September 30, 2023 and 2022, respectively. Weighted Average Remaining Lease Term (In Years) September 30, 2023 September 30, 2022 As Restated Operating leases 9.27 8.72 Finance leases 21.02 22.66 The discount rate implicit within our finance leases was determined at the time of lease commencement. However, the discount rate implicit within our operating 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. For all operating leases in which the discount rate is not explicit, the Company utilized a market-based approach to estimate the incremental borrowing rate (“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 table below summarizes the weighted average discount rate used to measure our lease liabilities as of September 30, 2023 and 2022, respectively. Weighted Average Discount Rate September 30, 2023 September 30, 2022 As Restated Operating leases 5.94 % 4.56 % Finance leases 9.63 % 9.72 % Future lease liabilities at September 30, 2023 are as follows (amounts in thousands): Year Ending December 31, Operating Lease Liabilities (1) Finance Lease Liabilities Total Lease Liabilities As Restated As Restated Remainder of 2023 $ 15,087 $ 1,533 $ 16,620 2024 65,085 5,789 70,874 2025 61,146 5,789 66,935 2026 56,918 6,249 63,167 2027 53,111 6,060 59,171 2028 47,930 5,610 53,540 Thereafter 229,657 109,943 339,600 Total lease payments 528,934 140,973 669,907 Less: Amounts representing interest (130,560) (86,038) (216,598) Total $ 398,374 $ 54,935 $ 453,309 (1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties. At September 30, 2023, the Company has entered into leases for Showrooms and equipment which have not yet commenced with expected leas e terms ranging from 3 to 17 years. The aggregate minimum rental payments over the term of the leases of approximately $159.5 million are not included i n the above table. Supplemental cash flow information related to leases for the nine months ended September 30, 2023 and 2022, respectively is as follows (amounts in thousands): Nine months ended September 30, 2023 2022 As Restated Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 41,759 $ 35,587 Operating cash flows for finance leases 3,642 3,758 Financing cash flows for finance leases 503 113 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 76,375 $ 50,565 Finance leases 2,813 2,018
Leases	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 obligati ons 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 as of September 30, 2023 and December 31, 2022, respectively (amounts in thousands): Condensed Consolidated Balance Sheet Classification September 30, 2023 December 31, 2022 As Restated Assets Operating lease assets Operating right-of-use assets $ 309,572 $ 257,347 Finance lease assets Financing right-of-use assets 39,480 38,522 Total leased assets $ 349,052 $ 295,869 Liabilities Current operating leases Current portion of operating lease liabilities $ 42,566 $ 39,250 Non-current operating leases Operating lease liabilities, long-term 355,808 295,657 Total operating lease liabilities 398,374 334,907 Current finance leases Current portion of financing lease liabilities 925 531 Non-current finance leases Financing lease liabilities, long-term 54,010 51,835 Total finance lease liabilities 54,935 52,366 Total lease liabilities $ 453,309 $ 387,273 The components of lease cost recognized within our condensed consolidated statements of comprehensive income for the nine and three months ended September 30, 2023 and 2022, respectively are as follows (amounts in thousands): Nine months ended September 30, Three months ended September 30, Condensed Consolidated Income Statement Classification 2023 2022 2023 2022 Lease costs: Operating lease costs Cost of goods sold $ 31,894 $ 25,798 $ 11,518 $ 8,716 Operating lease costs Selling, general and administrative expenses 7,375 4,743 2,518 1,955 Finance lease costs Amortization of right-of-use assets Selling, general and administrative expenses 1,838 1,516 758 540 Interest expense on lease liabilities Interest expense (income), net 3,852 3,758 1,316 1,270 Variable lease costs (1) Cost of goods sold 28,474 26,764 9,327 9,961 Short term lease costs Selling, general and administrative expenses 165 507 29 170 Total lease costs $ 73,598 $ 63,086 $ 25,466 $ 22,612 (1) Includes $0.4 million of month-to-month lease costs for the nine months ended September 30, 2023 . The Company did not have month-to-month lease costs for the nine and three months ended September 30, 2022 or the three months ended September 30, 2023 . We often have options to renew lease terms for Showrooms and other as sets. 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 options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The table below summarizes the weighted average remaining lease terms as of September 30, 2023 and 2022, respectively. Weighted Average Remaining Lease Term (In Years) September 30, 2023 September 30, 2022 As Restated Operating leases 9.27 8.72 Finance leases 21.02 22.66 The discount rate implicit within our finance leases was determined at the time of lease commencement. However, the discount rate implicit within our operating 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. For all operating leases in which the discount rate is not explicit, the Company utilized a market-based approach to estimate the incremental borrowing rate (“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 table below summarizes the weighted average discount rate used to measure our lease liabilities as of September 30, 2023 and 2022, respectively. Weighted Average Discount Rate September 30, 2023 September 30, 2022 As Restated Operating leases 5.94 % 4.56 % Finance leases 9.63 % 9.72 % Future lease liabilities at September 30, 2023 are as follows (amounts in thousands): Year Ending December 31, Operating Lease Liabilities (1) Finance Lease Liabilities Total Lease Liabilities As Restated As Restated Remainder of 2023 $ 15,087 $ 1,533 $ 16,620 2024 65,085 5,789 70,874 2025 61,146 5,789 66,935 2026 56,918 6,249 63,167 2027 53,111 6,060 59,171 2028 47,930 5,610 53,540 Thereafter 229,657 109,943 339,600 Total lease payments 528,934 140,973 669,907 Less: Amounts representing interest (130,560) (86,038) (216,598) Total $ 398,374 $ 54,935 $ 453,309 (1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties. At September 30, 2023, the Company has entered into leases for Showrooms and equipment which have not yet commenced with expected leas e terms ranging from 3 to 17 years. The aggregate minimum rental payments over the term of the leases of approximately $159.5 million are not included i n the above table. Supplemental cash flow information related to leases for the nine months ended September 30, 2023 and 2022, respectively is as follows (amounts in thousands): Nine months ended September 30, 2023 2022 As Restated Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 41,759 $ 35,587 Operating cash flows for finance leases 3,642 3,758 Financing cash flows for finance leases 503 113 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 76,375 $ 50,565 Finance leases 2,813 2,018

Equity Based Compensation

Equity Based Compensation	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Equity Based Compensation	Equity Based Compensation The following tables summarize the activity of the Company’s Restricted Stock for the nine months ended September 30, 2023 and the equity based compensation expense for the nine and three months ended September 30, 2023 and 2022, respectively (dollars in thousands): Restricted Stock - Class A Amount Weighted Average Grant Date Fair Value Unvested at December 31, 2022 1,510,269 $ 6.94 Granted — — Forfeited — — Vested (1,009,965) 2.71 Unvested at September 30, 2023 500,304 $ 15.47 Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Equity based compensation expense - Restricted Stock (1) $ 2,028 $ 2,073 $ 668 $ 684 (1) Total unrecognized equity based compensation to be recognized in future periods is $6.8 million at September 30, 2023, and will be recognized over a weighted average period of 2.65 years. Equity based compensation expense is recorded within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income. 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. As of September 30, 2023 , the Company has granted RSUs and PSUs to certain named executive officers and other key employees (“Award Recipient”). The Company has also issued RSU awards to certain members of the Board of Directors. Each RSU 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. The RSUs issued to certain members of the Board of Directors will vest on the one-year anniversary of the grant date. The Company accounts for forfeitures as they occur. Each PSU represents a contingent right to receive one share of the Company’s Class A common stock upon vesting. 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. The following table summarizes the activity of the Company’s PSU and RSU awards for the nine months ended September 30, 2023, and their equity based compensation expense for the nine and three months ended September 30, 2023 and 2022, respectively (dollars in thousands): PSU Awards RSU Awards Amount Weighted Average Grant Date Fair Value Amount Weighted Average Grant Date Fair Value Unvested at December 31, 2022 513,125 $ 5.95 731,661 $ 5.84 Granted 281,163 9.47 468,483 9.05 Forfeited (89,336) 7.20 (82,368) 7.18 Vested — — (302,137) 5.75 Unvested at September 30, 2023 704,952 $ 7.20 815,639 $ 7.58 Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Equity based compensation expense - PSUs (1) $ 1,662 $ 238 $ 417 $ 238 Equity based compensation expense - RSUs (2) $ 2,062 $ 302 $ 763 $ 302 (1) Total unrecognized equ ity based compensation for the PSUs to be recognized in future periods is $4.2 million at September 30, 2023, and will be recognized over a weighted average period of 1.74 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 $5.1 million at September 30, 2023, and will be recognized over a weighted average period of 2.07 years. Equity based compensation expense is recorded within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Segment Reporting	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 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 more than ten percent or more of our net revenue. The following table shows net revenue by merchandise sales channel for the nine and three months ended September 30, 2023 and 2022, respectively (amounts in thousands): Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Retail $ 768,624 $ 727,953 $ 261,786 $ 268,988 eCommerce 175,072 144,642 64,443 51,042 Total net revenue $ 943,696 $ 872,595 $ 326,229 $ 320,030

Net and Comprehensive Income pe

Net and Comprehensive Income per Share	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Net and Comprehensive Income per Share	Net and Comprehensive Income per Share Basic and diluted net and comprehensive income per share for the nine and three months ended September 30, 2023 and 2022, was calculated by dividing net and comprehensive income by the number of basic and diluted weighted average common shares outstanding. Basic and diluted net and comprehensive income per share for the nine and three months ended September 30, 2023 and 2022 , is as follows (amounts in thousands except share and per share data): Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Numerator Net and comprehensive income $ 94,023 $ 89,633 $ 19,741 $ 36,936 Denominator—Weighted Average Shares Outstanding Weighted-average number of common shares outstanding, basic 139,365,870 137,939,577 139,628,776 138,484,495 Effect of dilutive restricted stock (1) 655,800 1,606,225 512,123 1,360,838 Weighted-average number of common shares outstanding, diluted 140,021,670 139,545,802 140,140,899 139,845,333 Net and Comprehensive Income Per Share Net and comprehensive income per share, basic $ 0.67 $ 0.65 $ 0.14 $ 0.27 Net and comprehensive income per share, diluted $ 0.67 $ 0.64 $ 0.14 $ 0.26 (1) During the nine and three months ended September 30, 2023, 736,173 and 416,123 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, respectively. During the nine and three months ended September 30, 2022, 594,312 and 546,164 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, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
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 September 30, 2023 and December 31, 2022, we recorded liabilities of $0.3 million and $0.4 million, respectively, in accrued taxes 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. For the nine and three months ended September 30, 2023, the Company recorded expense of $10.0 million and $10.0 million, respectively, within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income. As of September 30, 2023, we recorded a liability of $10.0 million in accrued other expense on our condensed consolidated balance sheet .

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions L easing transactio ns I n November 2000, the Company entered into a lease agreement with Pagoda Partners, LLC, a company of which John Reed, our CEO, indir ectly 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 $1.1 million and $1.0 million for the nine months ended September 30, 2023 and 2022, respectively. Rent expense w as $0.4 million and $0.3 million for the three months ended September 30, 2023 and 2022, 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 nine months ended September 30, 2023 and 2022, respectively. Rent expense was $0.1 million and $0.1 million for the three months ended September 30, 2023 and 2022, 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 $3.0 million and $2.8 million for the nine months ended September 30, 2023 and 2022, respectively. Rent expense was $1.0 million and $1.0 million for the three months ended September 30, 2023 and 2022, respectively. Other transactions The accounts payable due to related parties for state and federal income tax refunds were $2.4 million and $1.8 million at September 30, 2023 and December 31, 2022, respectively, and are included within accounts payable on the condensed consolidated balance sheets.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expenses were $31.8 million and $27.9 million in the nine months ended September 30, 2023 and 2022, respectively. Income tax expenses were $5.3 million and $9.6 million in the three months ended September 30, 2023 and 2022, respectively. The effective tax rate was 25.3% and 23.7% for the nine months ended September 30, 2023 and 2022, respectively. The effective tax rate was 21.2% and 20.6% for the three months ended September 30, 2023 and 2022, respectively.

Nature of Business and Basis _2

Nature of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	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 September 30, 2023 and December 31, 2022, the condensed consolidated statements of comprehensive income and changes in stockholders’equity for the nine and three months ended September 30, 2023 and 2022, the condensed consolidated statements of cash flows for the nine months ended September 30, 2023 and 2022 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 September 30, 2023, the results of operations and changes in stockholders’equity for the nine and three months ended September 30, 2023 and 2022 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2023 and 2022. The condensed consolidated balance sheet as of December 31, 2022 included herein was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The results for the nine and three months ended September 30, 2023 and 2022 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, 2022.
Use of Estimates	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, goodwill and fair value of financial instruments which include, but are not limited to,
Client Deposits and Gift Cards	Client Deposits Client deposits represent payments made by clients on orders. At the time of purchase, 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 September 30, 2023 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 September 30, 2023 and December 31, 2022 of $0.4 million and $1.0 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 nine and three months ended September 30, 2023 , breakage income was $0.8 million and $0.1 million, respectively . For the nine and three months ended September 30, 2022, breakage was minimal.
Fair Value of Financial Instruments	Fair Values of Financial Instruments The Company’s primary financial ins truments are cash and cash equivalent investments, accounts receivable, payables, lease obligations and equity based compensation instruments. Due to the shor t-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 September 30, 2023 and December 31, 2022. 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 1 Unadjusted 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 2 Inputs 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 3 Unobservable 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 2023	New Accounting Standards Adopted in Fiscal 2023 We did not adopt any Accounting Standards Updates (“ASU”) in the nine months ended September 30, 2023 that had a material impact on our accounting policies or our condensed consolidated financial statements. 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 2023-01 is effective for annual periods beginning after December 15, 2023. We believe the adoption will not have a material impact on our accounting policies or our consolidated financial statements and related disclosures. ASU Description Adoption Date ASU 2023-01 Leases (Topic 842): Common Control Arrangements January 1, 2024

Nature of Business and Basis _3

Nature of Business and Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Revision of Previously Issued Consolidated Financial Statements	The following tables summarize the impact of these corrections for the periods presented (amounts in thousands): September 30, 2023 Condensed Consolidated Balance Sheet As Reported Adjustment As Restated Prepaid and other current assets $ 63,140 $ (26,441) $ 36,699 Total current assets $ 574,457 $ (26,441) $ 548,016 Operating right-of-use assets (1) $ 314,378 $ (4,806) $ 309,572 Property, furniture and equipment, net 156,632 26,441 183,073 Total assets $ 1,115,574 $ (4,806) $ 1,110,768 Current portion of operating lease liabilities (1) $ 42,472 $ 94 $ 42,566 Total current liabilities $ 386,163 $ 94 $ 386,257 Operating lease liabilities, long-term (1) $ 360,708 $ (4,900) $ 355,808 Total liabilities $ 807,086 $ (4,806) $ 802,280 Total liabilities and stockholders' equity $ 1,115,574 $ (4,806) $ 1,110,768 (1) These identified adjustments are to correct other immaterial errors. Nine months ended September 30, 2023 Condensed Consolidated Statement of Cash Flows As Reported Adjustment As Restated Cash flows from operating activities Changes in prepaid and other assets $ (28,952) $ 20,504 $ (8,448) Changes in accounts payable (4,093) (6,048) (10,141) Net cash provided by operating activities $ 131,368 $ 14,456 $ 145,824 Cash flows from investing activities Purchases of property, furniture and equipment $ (42,306) $ (14,456) $ (56,762) Net cash used in investing activities $ (41,973) $ (14,456) $ (56,429) Supplemental disclosure of cash flow information Noncash operating activities: Lease incentives $ 7,313 $ (7,313) $ — Noncash investing activities: Purchase of property, furniture and equipment in accounts payable $ 2,756 $ 6,048 $ 8,804 December 31, 2022 Condensed Consolidated Balance Sheet As Reported Adjustment As Revised Prepaid and other current assets $ 37,371 $ (7,503) $ 29,868 Total current assets $ 478,051 $ (7,503) $ 470,548 Operating right-of-use assets $ 252,055 $ 5,292 $ 257,347 Property, furniture and equipment, net 135,066 5,547 140,613 Other noncurrent assets 296 1,956 2,252 Total assets $ 931,792 $ 5,292 $ 937,084 Current portion of operating lease liabilities $ 39,744 $ (494) $ 39,250 Total current liabilities $ 373,783 $ (494) $ 373,289 Operating lease liabilities, long-term $ 289,871 $ 5,786 $ 295,657 Total liabilities $ 722,097 $ 5,292 $ 727,389 Total liabilities and stockholders' equity $ 931,792 $ 5,292 $ 937,084 Nine months ended September 30, 2022 Condensed Consolidated Statement of Cash Flows As Reported Adjustment As Revised Cash flows from operating activities Changes in prepaid and other assets $ (11,249) $ 5,032 $ (6,217) Changes in accounts payable 10,334 (1,810) 8,524 Net cash provided by operating activities $ 58,237 $ 3,222 $ 61,459 Cash flows from investing activities Purchases of property, furniture and equipment $ (36,950) $ (3,222) $ (40,172) Net cash used in investing activities $ (36,950) $ (3,222) $ (40,172) Supplemental disclosure of cash flow information Noncash operating activities: Lease incentives $ 7,532 $ (7,532) $ — Noncash investing activities: Purchase of property, furniture and equipment in accounts payable $ 2,661 $ 1,810 $ 4,471
Schedule of Prepaid and Other Current Assets	Prepaid and other current assets consist of the following (amounts in thousands): September 30, 2023 December 31, 2022 As Restated Tenant allowance receivable $ 7,373 $ 4,312 Prepaid expenses 8,802 11,228 Right of return asset 2,576 2,938 Prepaid advertising 3,760 816 Prepaid cloud computing arrangements, net (1) 2,845 1,054 Other current assets 11,343 9,520 Total prepaid and other current assets $ 36,699 $ 29,868 (1) Presented net of accumulated amortization of $1.2 million as of September 30, 2023.

Merchandise Warranties (Tables)

Merchandise Warranties (Tables)	9 Months Ended
	Sep. 30, 2023
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): Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Balance as of beginning of period $ 6,375 $ 4,724 $ 6,578 $ 5,412 Accruals during the period 10,292 8,285 3,543 3,181 Settlements during the period (9,854) (7,152) (3,308) (2,736) Balance as of end of the period (1) $ 6,813 $ 5,857 $ 6,813 $ 5,857 (1) $3.9 million and $3.7 million were recorded in accrued other expenses at September 30, 2023 and December 31, 2022, respectively. The remainder is recorded in other long-term liabilities on our condensed consolidated balance sheets.

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2023
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 as of September 30, 2023 and December 31, 2022, respectively (amounts in thousands): Condensed Consolidated Balance Sheet Classification September 30, 2023 December 31, 2022 As Restated Assets Operating lease assets Operating right-of-use assets $ 309,572 $ 257,347 Finance lease assets Financing right-of-use assets 39,480 38,522 Total leased assets $ 349,052 $ 295,869 Liabilities Current operating leases Current portion of operating lease liabilities $ 42,566 $ 39,250 Non-current operating leases Operating lease liabilities, long-term 355,808 295,657 Total operating lease liabilities 398,374 334,907 Current finance leases Current portion of financing lease liabilities 925 531 Non-current finance leases Financing lease liabilities, long-term 54,010 51,835 Total finance lease liabilities 54,935 52,366 Total lease liabilities $ 453,309 $ 387,273
Schedule of Components of Lease Expense	The components of lease cost recognized within our condensed consolidated statements of comprehensive income for the nine and three months ended September 30, 2023 and 2022, respectively are as follows (amounts in thousands): Nine months ended September 30, Three months ended September 30, Condensed Consolidated Income Statement Classification 2023 2022 2023 2022 Lease costs: Operating lease costs Cost of goods sold $ 31,894 $ 25,798 $ 11,518 $ 8,716 Operating lease costs Selling, general and administrative expenses 7,375 4,743 2,518 1,955 Finance lease costs Amortization of right-of-use assets Selling, general and administrative expenses 1,838 1,516 758 540 Interest expense on lease liabilities Interest expense (income), net 3,852 3,758 1,316 1,270 Variable lease costs (1) Cost of goods sold 28,474 26,764 9,327 9,961 Short term lease costs Selling, general and administrative expenses 165 507 29 170 Total lease costs $ 73,598 $ 63,086 $ 25,466 $ 22,612 (1) Includes $0.4 million of month-to-month lease costs for the nine months ended September 30, 2023 . The Company did not have month-to-month lease costs for the nine and three months ended September 30, 2022 or the three months ended September 30, 2023 . Weighted Average Remaining Lease Term (In Years) September 30, 2023 September 30, 2022 As Restated Operating leases 9.27 8.72 Finance leases 21.02 22.66 Weighted Average Discount Rate September 30, 2023 September 30, 2022 As Restated Operating leases 5.94 % 4.56 % Finance leases 9.63 % 9.72 %
Schedule of Lessee, Operating Lease, Liability, Maturity	Future lease liabilities at September 30, 2023 are as follows (amounts in thousands): Year Ending December 31, Operating Lease Liabilities (1) Finance Lease Liabilities Total Lease Liabilities As Restated As Restated Remainder of 2023 $ 15,087 $ 1,533 $ 16,620 2024 65,085 5,789 70,874 2025 61,146 5,789 66,935 2026 56,918 6,249 63,167 2027 53,111 6,060 59,171 2028 47,930 5,610 53,540 Thereafter 229,657 109,943 339,600 Total lease payments 528,934 140,973 669,907 Less: Amounts representing interest (130,560) (86,038) (216,598) Total $ 398,374 $ 54,935 $ 453,309 (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 September 30, 2023 are as follows (amounts in thousands): Year Ending December 31, Operating Lease Liabilities (1) Finance Lease Liabilities Total Lease Liabilities As Restated As Restated Remainder of 2023 $ 15,087 $ 1,533 $ 16,620 2024 65,085 5,789 70,874 2025 61,146 5,789 66,935 2026 56,918 6,249 63,167 2027 53,111 6,060 59,171 2028 47,930 5,610 53,540 Thereafter 229,657 109,943 339,600 Total lease payments 528,934 140,973 669,907 Less: Amounts representing interest (130,560) (86,038) (216,598) Total $ 398,374 $ 54,935 $ 453,309 (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 nine months ended September 30, 2023 and 2022, respectively is as follows (amounts in thousands): Nine months ended September 30, 2023 2022 As Restated Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 41,759 $ 35,587 Operating cash flows for finance leases 3,642 3,758 Financing cash flows for finance leases 503 113 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 76,375 $ 50,565 Finance leases 2,813 2,018

Equity Based Compensation (Tabl

Equity Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Unvested Stock Activity	The following tables summarize the activity of the Company’s Restricted Stock for the nine months ended September 30, 2023 and the equity based compensation expense for the nine and three months ended September 30, 2023 and 2022, respectively (dollars in thousands): Restricted Stock - Class A Amount Weighted Average Grant Date Fair Value Unvested at December 31, 2022 1,510,269 $ 6.94 Granted — — Forfeited — — Vested (1,009,965) 2.71 Unvested at September 30, 2023 500,304 $ 15.47 Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Equity based compensation expense - Restricted Stock (1) $ 2,028 $ 2,073 $ 668 $ 684 (1) Total unrecognized equity based compensation to be recognized in future periods is $6.8 million at September 30, 2023, and will be recognized over a weighted average period of 2.65 years. Equity based compensation expense is recorded within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income. The following table summarizes the activity of the Company’s PSU and RSU awards for the nine months ended September 30, 2023, and their equity based compensation expense for the nine and three months ended September 30, 2023 and 2022, respectively (dollars in thousands): PSU Awards RSU Awards Amount Weighted Average Grant Date Fair Value Amount Weighted Average Grant Date Fair Value Unvested at December 31, 2022 513,125 $ 5.95 731,661 $ 5.84 Granted 281,163 9.47 468,483 9.05 Forfeited (89,336) 7.20 (82,368) 7.18 Vested — — (302,137) 5.75 Unvested at September 30, 2023 704,952 $ 7.20 815,639 $ 7.58 Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Equity based compensation expense - PSUs (1) $ 1,662 $ 238 $ 417 $ 238 Equity based compensation expense - RSUs (2) $ 2,062 $ 302 $ 763 $ 302 (1) Total unrecognized equ ity based compensation for the PSUs to be recognized in future periods is $4.2 million at September 30, 2023, and will be recognized over a weighted average period of 1.74 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 $5.1 million at September 30, 2023, and will be recognized over a weighted average period of 2.07 years. Equity based compensation expense is recorded within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income.

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Schedule of Net Revenue by Segment	The following table shows net revenue by merchandise sales channel for the nine and three months ended September 30, 2023 and 2022, respectively (amounts in thousands): Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Retail $ 768,624 $ 727,953 $ 261,786 $ 268,988 eCommerce 175,072 144,642 64,443 51,042 Total net revenue $ 943,696 $ 872,595 $ 326,229 $ 320,030

Net and Comprehensive Income _2

Net and Comprehensive Income per Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Earnings Per Share	Basic and diluted net and comprehensive income per share for the nine and three months ended September 30, 2023 and 2022 , is as follows (amounts in thousands except share and per share data): Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Numerator Net and comprehensive income $ 94,023 $ 89,633 $ 19,741 $ 36,936 Denominator—Weighted Average Shares Outstanding Weighted-average number of common shares outstanding, basic 139,365,870 137,939,577 139,628,776 138,484,495 Effect of dilutive restricted stock (1) 655,800 1,606,225 512,123 1,360,838 Weighted-average number of common shares outstanding, diluted 140,021,670 139,545,802 140,140,899 139,845,333 Net and Comprehensive Income Per Share Net and comprehensive income per share, basic $ 0.67 $ 0.65 $ 0.14 $ 0.27 Net and comprehensive income per share, diluted $ 0.67 $ 0.64 $ 0.14 $ 0.26 (1) During the nine and three months ended September 30, 2023, 736,173 and 416,123 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, respectively. During the nine and three months ended September 30, 2022, 594,312 and 546,164 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, respectively.

Nature of Business and Basis _4

Nature of Business and Basis of Presentation - Revision of Previously Issued Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prepaid and other current assets	$ 36,699	$ 29,868
Total current assets	548,016	470,548
Operating right-of-use assets	309,572	257,347
Property, furniture and equipment, net	183,073	140,613
Total assets	1,110,768	937,084
Current portion of operating lease liabilities	42,566	39,250
Total current liabilities	386,257	373,289
Operating lease liabilities, long-term	355,808	295,657
Other noncurrent assets	3,081	2,252
Total liabilities	802,280	727,389
Total liabilities and stockholders' equity	1,110,768	937,084
As Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prepaid and other current assets	63,140	37,371
Total current assets	574,457	478,051
Operating right-of-use assets	314,378	252,055
Property, furniture and equipment, net	156,632	135,066
Total assets	1,115,574	931,792
Current portion of operating lease liabilities	42,472	39,744
Total current liabilities	386,163	373,783
Operating lease liabilities, long-term	360,708	289,871
Other noncurrent assets		296
Total liabilities	807,086	722,097
Total liabilities and stockholders' equity	1,115,574	931,792
Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prepaid and other current assets	(26,441)	(7,503)
Total current assets	(26,441)	(7,503)
Operating right-of-use assets	(4,806)	5,292
Property, furniture and equipment, net	26,441	5,547
Total assets	(4,806)	5,292
Current portion of operating lease liabilities	94	(494)
Total current liabilities	94	(494)
Operating lease liabilities, long-term	(4,900)	5,786
Other noncurrent assets		1,956
Total liabilities	(4,806)	5,292
Total liabilities and stockholders' equity	$ (4,806)	$ 5,292

Nature of Business and Basis _5

Nature of Business and Basis of Presentation - Revision of Previously Issued Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities
Changes in prepaid and other assets	$ (8,448)	$ (6,217)
Changes in accounts payable	(10,141)	8,524
Net cash provided by operating activities	145,824	61,459
Cash flows from investing activities
Purchases of property, furniture and equipment	(56,762)	(40,172)
Net cash used in investing activities	(56,429)	(40,172)
Noncash operating activities:
Lease incentives	0	0
Noncash investing activities:
Purchase of property, furniture and equipment in accounts payable	8,804	4,471
As Reported
Cash flows from operating activities
Changes in prepaid and other assets	(28,952)	(11,249)
Changes in accounts payable	(4,093)	10,334
Net cash provided by operating activities	131,368	58,237
Cash flows from investing activities
Purchases of property, furniture and equipment	(42,306)	(36,950)
Net cash used in investing activities	(41,973)	(36,950)
Noncash operating activities:
Lease incentives	7,313	7,532
Noncash investing activities:
Purchase of property, furniture and equipment in accounts payable	2,756	2,661
Adjustment
Cash flows from operating activities
Changes in prepaid and other assets	20,504	5,032
Changes in accounts payable	(6,048)	(1,810)
Net cash provided by operating activities	14,456	3,222
Cash flows from investing activities
Purchases of property, furniture and equipment	(14,456)	(3,222)
Net cash used in investing activities	(14,456)	(3,222)
Noncash operating activities:
Lease incentives	(7,313)	(7,532)
Noncash investing activities:
Purchase of property, furniture and equipment in accounts payable	$ 6,048	$ 1,810

Nature of Business and Basis _6

Nature of Business and Basis of Presentation - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) store	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) store	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Number of stores | store	86		86
Client deposits, percentage collected at least (as a percent)			50%
Client deposits	$ 212,406		$ 212,406		$ 202,587
Breakage income	100	$ 0	800	$ 0
Interest income	2,500	$ 600	5,800	$ 600
Other Accrued Expenses
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Client deposits	$ 400		$ 400		$ 1,000

Nature of Business and Basis _7

Nature of Business and Basis of Presentation - Schedule of Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Tenant allowance receivable	$ 7,373	$ 4,312
Prepaid expenses	8,802	11,228
Right of return asset	2,576	2,938
Prepaid advertising	3,760	816
Prepaid cloud computing arrangements, net	2,845	1,054
Other current assets	11,343	9,520
Prepaid and other current assets	36,699	$ 29,868
Prepaid cloud computing arrangements, amortization expense	$ 1,200

Merchandise Warranties - Narrat

Merchandise Warranties - Narrative (Details)	9 Months Ended
	Sep. 30, 2023
Minimum
Product Warranty Liability [Line Items]
Warranty, performance obligation period	3 years
Maximum
Product Warranty Liability [Line Items]
Warranty, performance obligation period	10 years

Merchandise Warranties - Change

Merchandise Warranties - Change in Liability (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance as of beginning of period	$ 6,578	$ 5,412	$ 6,375	$ 4,724
Accruals during the period	3,543	3,181	10,292	8,285
Settlements during the period	(3,308)	(2,736)	(9,854)	(7,152)
Balance as of the end of the period	6,813	5,857	6,813	5,857
Accrued and other expenses	6,813	$ 5,857	6,813	$ 5,857
Accrued Other Expenses
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance as of beginning of period			3,700
Balance as of the end of the period	3,900		3,900
Accrued and other expenses	$ 3,900		$ 3,900

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - 2021 Credit Facility - USD ($)		1 Months Ended
	Dec. 09, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Nov. 08, 2021
Debt Instrument [Line Items]
Credit facility increase	$ 25,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, face amount	$ 75,000,000				$ 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
Accumulated amortization, deferred loan costs		$ 100,000		$ 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

Leases - Liability for Operatin

Leases - Liability for Operating and Finance Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Operating right-of-use assets	$ 309,572	$ 257,347
Financing right-of-use assets	39,480	38,522
Total leased assets	349,052	295,869
Current portion of operating lease liabilities	42,566	39,250
Operating lease liabilities, long-term	355,808	295,657
Total operating lease liabilities	398,374	334,907
Current portion of financing lease liabilities	925	531
Financing lease liabilities, long-term	54,010	51,835
Total finance lease liabilities	54,935	52,366
Total lease liability	$ 453,309	$ 387,273

Leases - Components of Lease Co

Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Lease Cost [Line Items]
Other lease costs	$ 0	$ 0	$ 400	$ 0
Total lease costs	25,466	22,612	73,598	63,086
Cost of goods sold
Lease Cost [Line Items]
Operating lease costs	11,518	8,716	31,894	25,798
Other lease costs	9,327	9,961	28,474	26,764
Selling, general and administrative expenses
Lease Cost [Line Items]
Operating lease costs	2,518	1,955	7,375	4,743
Amortization of right-of-use assets	758	540	1,838	1,516
Other lease costs	29	170	165	507
Interest expense (income), net
Lease Cost [Line Items]
Interest expense on lease liabilities	$ 1,316	$ 1,270	$ 3,852	$ 3,758

Leases - Schedule of Weighted A

Leases - Schedule of Weighted Average Lease Term (Details)	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating lease, weighted average remaining lease term	9 years 3 months 7 days	8 years 8 months 19 days
Finance leases	21 years 7 days	22 years 7 months 28 days

Leases - Schedule of Weighted_2

Leases - Schedule of Weighted Average Discount Rate (Details)	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating lease, weighted average discount rate	5.94%	4.56%
Finance leases	9.63%	9.72%

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Millions	Sep. 30, 2023 USD ($)
Lease Cost [Line Items]
Aggregate minimum rental payments, not yet commenced	$ 159.5
Minimum
Lease Cost [Line Items]
Lease term, not yet commenced	3 years
Maximum
Lease Cost [Line Items]
Lease term, not yet commenced	17 years

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Operating Lease Liabilities
Remainder of 2023	$ 15,087
2024	65,085
2025	61,146
2026	56,918
2027	53,111
2028	47,930
Thereafter	229,657
Total lease payments	528,934
Less: Amounts representing interest	(130,560)
Total operating lease liabilities	398,374	$ 334,907
Finance Lease Liabilities
Remainder of 2023	1,533
2024	5,789
2025	5,789
2026	6,249
2027	6,060
2028	5,610
Thereafter	109,943
Total lease payments	140,973
Less: Amounts representing interest	(86,038)
Total finance lease liabilities	54,935	$ 52,366
Total Lease Liabilities
Remainder of 2023	16,620
2024	70,874
2025	66,935
2026	63,167
2027	59,171
2028	53,540
Total lease payments	339,600
Thereafter	669,907
Less: Amounts representing interest	(216,598)
Total	$ 453,309

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating cash flows for operating leases	$ 41,759	$ 35,587
Operating cash flows for finance leases	3,642	3,758
Financing cash flows for finance leases	503	113
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	76,375	50,565
Finance leases	$ 2,813	$ 2,018

Equity Based Compensation - Unv

Equity Based Compensation - Unvested Stock Activity (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares shares
PSU Awards
Amount
Unvested, beginning of period (in shares) | shares	513,125
Granted (in shares) | shares	281,163
Forfeited (in shares) | shares	(89,336)
Vested (in shares) | shares	0
Unvested, end of period (in shares) | shares	704,952
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) | $ / shares	$ 5.95
Granted (in dollars per share) | $ / shares	9.47
Forfeited (in dollars per share) | $ / shares	7.20
Vested (in dollars per share) | $ / shares	0
Unvested, end of period (in dollars per share) | $ / shares	$ 7.20
RSU Awards
Amount
Unvested, beginning of period (in shares) | shares	731,661
Granted (in shares) | shares	468,483
Forfeited (in shares) | shares	(82,368)
Vested (in shares) | shares	(302,137)
Unvested, end of period (in shares) | shares	815,639
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) | $ / shares	$ 5.84
Granted (in dollars per share) | $ / shares	9.05
Forfeited (in dollars per share) | $ / shares	7.18
Vested (in dollars per share) | $ / shares	5.75
Unvested, end of period (in dollars per share) | $ / shares	$ 7.58
Class A | Restricted Stock
Amount
Unvested, beginning of period (in shares) | shares	1,510,269
Granted (in shares) | shares	0
Forfeited (in shares) | shares	0
Vested (in shares) | shares	(1,009,965)
Unvested, end of period (in shares) | shares	500,304
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) | $ / shares	$ 6.94
Granted (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	2.71
Unvested, end of period (in dollars per share) | $ / shares	$ 15.47

Equity Based Compensation - Equ

Equity Based Compensation - Equity Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	$ 668	$ 684	$ 2,028	$ 2,073
Incentive Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	6,800		$ 6,800
Unrecognized compensation cost, period for recognition			2 years 7 months 24 days
PSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	417	238	$ 1,662	238
Unrecognized compensation cost	4,200		$ 4,200
Unrecognized compensation cost, period for recognition			1 year 8 months 26 days
RSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	763	$ 302	$ 2,062	$ 302
Unrecognized compensation cost	$ 5,100		$ 5,100
Unrecognized compensation cost, period for recognition			2 years 25 days

Equity Based Compensation - Nar

Equity Based Compensation - Narrative (Details) - shares	Aug. 02, 2022	Sep. 30, 2023
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 Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
Annual vesting percentage	33%
Number of common stocks received per each award unit vested	1
PSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stocks received per each award unit vested	1
PSU Awards | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	0%
PSU Awards | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	200%

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	9 Months Ended
	Sep. 30, 2023 segment
Segment Reporting [Abstract]
Number of operating segments	1
Number of reportable segments	1

Segment Reporting - Net Revenue

Segment Reporting - Net Revenue by Merchandise Sales Channel (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Net revenue	$ 326,229	$ 320,030	$ 943,696	$ 872,595
Retail
Segment Reporting Information [Line Items]
Net revenue	261,786	268,988	768,624	727,953
eCommerce
Segment Reporting Information [Line Items]
Net revenue	$ 64,443	$ 51,042	$ 175,072	$ 144,642

Net and Comprehensive Income _3

Net and Comprehensive Income per Share - Calculation of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator
Net income	$ 19,741	$ 36,936	$ 94,023	$ 89,633
Denominator—Weighted Average Shares Outstanding
Weighted-average number of common shares outstanding, basic (in shares)	139,628,776	138,484,495	139,365,870	137,939,577
Effect of dilutive restricted stock (in shares)	512,123	1,360,838	655,800	1,606,225
Weighted-average number of common shares outstanding, diluted (in shares)	140,140,899	139,845,333	140,021,670	139,545,802
Net and comprehensive income per share, basic (in dollars per share)	$ 0.14	$ 0.27	$ 0.67	$ 0.65
Net and comprehensive income per share, diluted (in dollars per share)	$ 0.14	$ 0.26	$ 0.67	$ 0.64
Antidilutive securities excluded from computation of earnings per hare (in shares)	416,123	546,164	736,173	594,312

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Aug. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Loss contingency accrual	$ 0.3	$ 0.3		$ 0.4
Committed donation			$ 10
Donation expense	10	10
Accrued donation cost	$ 10	$ 10

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	1 Months Ended				3 Months Ended		9 Months Ended
	Jul. 31, 2023 USD ($) option	Mar. 31, 2021 USD ($)	Aug. 31, 2020 USD ($)	Jul. 31, 2010 USD ($)	Sep. 30, 2023 USD ($) option	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) option	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Nov. 30, 2000
Related Party Transaction [Line Items]
Operating lease, term (in years)		12 years
Accounts payable					$ 58,138		$ 58,138		$ 62,636
Lessee, Operating Lease, Number Of Renewal Options | option					2		2
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	$ 3,000	$ 2,800
Accounts payable					2,400		2,400		$ 1,800
Related Party | Chief Executive Officer | Premier Canover, LLC
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners		40%
Related Party | Walton Hills, Ohio | Chief Executive Officer | Pagoda Partners, LLC
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners										50%
Related Party | Walton Hills, Ohio | Warehouse
Related Party Transaction [Line Items]
Operating lease, term (in years)										17 years
Rent expense					400	300	1,100	1,000
Related Party | Brooklyn, Ohio | Chief Executive Officer | Brooklyn Arhaus
Related Party Transaction [Line Items]
Ownership percentage by parent				85%
Related Party | Brooklyn, Ohio | Director | Brooklyn Arhaus
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners				15%
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

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 5,297	$ 9,568	$ 31,771	$ 27,851
Effective income tax rate	21.20%	20.60%	25.30%	23.70%