Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, $0.001 par value per share | |
Trading Symbol | ARHS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001875444 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 53,241,316 | |
Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 87,115,600 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 233,230 | $ 223,098 |
Restricted cash | 3,210 | 3,207 |
Accounts receivable, net | 1,805 | 2,394 |
Merchandise inventory, net | 268,410 | 254,292 |
Prepaid and other current assets | 33,122 | 26,304 |
Total current assets | 539,777 | 509,295 |
Operating right-of-use assets | 322,905 | 302,157 |
Financing right-of-use assets | 38,209 | 38,835 |
Property, furniture and equipment, net | 243,167 | 220,248 |
Deferred tax assets | 18,953 | 19,127 |
Goodwill | 10,961 | 10,961 |
Other noncurrent assets | 2,407 | 4,525 |
Total assets | 1,176,379 | 1,105,148 |
Current liabilities | ||
Accounts payable | 62,135 | 63,699 |
Dividends payable | 70,628 | 0 |
Accrued taxes | 13,296 | 9,638 |
Accrued wages | 11,156 | 15,185 |
Accrued other expenses | 43,195 | 46,062 |
Client deposits | 202,922 | 173,808 |
Current portion of operating lease liabilities | 42,694 | 33,051 |
Current portion of financing lease liabilities | 919 | 904 |
Total current liabilities | 446,945 | 342,347 |
Operating lease liabilities, long-term | 383,684 | 362,598 |
Financing lease liabilities, long-term | 53,658 | 53,870 |
Deferred rent and lease incentives | 1,871 | 1,952 |
Other long-term liabilities | 4,574 | 4,143 |
Total liabilities | 890,732 | 764,910 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity | ||
Retained earnings | 89,206 | 145,292 |
Additional paid-in capital | 196,301 | 194,807 |
Total Arhaus, Inc. stockholders’ equity | 285,647 | 340,238 |
Total liabilities and stockholders’ equity | 1,176,379 | 1,105,148 |
Class A | ||
Stockholders’ equity | ||
Stock issued | 53 | 52 |
Class B | ||
Stockholders’ equity | ||
Stock issued | $ 87 | $ 87 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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) | 53,361,983 | 53,254,088 |
Common stock, shares outstanding (in shares) | 53,241,316 | 53,169,711 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net revenue | $ 295,162 | $ 304,568 |
Cost of goods sold | 180,108 | 176,330 |
Gross margin | 115,054 | 128,238 |
Selling, general and administrative expenses | 96,693 | 82,782 |
Income from operations | 18,361 | 45,456 |
Interest expense (income), net | (1,432) | (173) |
Other income | (122) | (572) |
Income before taxes | 19,915 | 46,201 |
Income tax expense | 4,816 | 12,102 |
Net and comprehensive income | $ 15,099 | $ 34,099 |
Net and comprehensive income per share, basic | ||
Weighted-average number of common shares outstanding, basic (in shares) | 139,816,792 | 139,072,756 |
Net and comprehensive income per share, basic (in dollars per share) | $ 0.11 | $ 0.25 |
Net and comprehensive income per share, diluted | ||
Weighted-average number of common shares outstanding, diluted (in shares) | 140,556,031 | 139,939,543 |
Net and comprehensive income per share, diluted (in dollars per share) | $ 0.11 | $ 0.24 |
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 | Additional Paid-in Capital |
Beginning Balance (in shares) at Dec. 31, 2022 | 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 | 34,099 | 34,099 | ||||||
Shareholder capital contribution | 17 | 17 | ||||||
Equity based compensation (in shares) | 804,000 | |||||||
Equity based compensation | 1,630 | $ 1 | 1,629 | |||||
Shares withheld to cover employees' withholding taxes for equity based compensation (in shares) | (25,000) | (25,000) | ||||||
Shares withheld to cover employees’ withholding taxes for equity based compensation | (347) | (347) | ||||||
Ending Balance (in shares) at Mar. 31, 2023 | 52,216,000 | 87,116,000 | ||||||
Ending Balance at Mar. 31, 2023 | 245,094 | $ 52 | $ 87 | $ 0 | 54,152 | 190,803 | ||
Ending Balance (in shares) at Mar. 31, 2023 | 25,000 | |||||||
Beginning Balance (in shares) at Dec. 31, 2023 | 53,169,711 | 87,115,600 | 52,669,000 | 87,116,000 | ||||
Beginning Balance at Dec. 31, 2023 | 340,238 | $ 52 | $ 87 | $ 0 | 145,292 | 194,807 | ||
Beginning Balance (in shares) at Dec. 31, 2023 | 84,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 15,099 | 15,099 | ||||||
Shareholder capital contribution | 11 | 11 | ||||||
Equity based compensation (in shares) | 129,000 | |||||||
Equity based compensation | 2,024 | $ 1 | 2,023 | |||||
Shares withheld to cover employees' withholding taxes for equity based compensation (in shares) | (37,000) | (37,000) | ||||||
Shares withheld to cover employees’ withholding taxes for equity based compensation | (540) | (540) | ||||||
Dividends declared | (71,185) | (71,185) | ||||||
Ending Balance (in shares) at Mar. 31, 2024 | 53,241,316 | 87,115,600 | 52,761,000 | 87,116,000 | ||||
Ending Balance at Mar. 31, 2024 | $ 285,647 | $ 53 | $ 87 | $ 0 | $ 89,206 | $ 196,301 | ||
Ending Balance (in shares) at Mar. 31, 2024 | 121,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | |||||
Net income | $ 15,099 | $ 34,099 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||
Depreciation and amortization | 8,603 | 6,740 | |||
Amortization of operating lease right-of-use asset | 8,738 | 7,559 | |||
Amortization of deferred financing fees, interest on finance lease in excess of principal paid and interest on operating leases | 6,233 | 4,640 | |||
Equity based compensation | 2,024 | 4,599 | |||
Deferred tax assets | 174 | 0 | |||
Amortization of cloud computing arrangements | 310 | 1,630 | |||
Amortization and write-off of lease incentives | (80) | (80) | |||
Insurance proceeds | 0 | 47 | |||
Changes in operating assets and liabilities | |||||
Accounts receivable | 589 | (173) | |||
Merchandise inventory | (14,118) | (5,750) | |||
Prepaid and other assets | (5,758) | (1,286) | $ 619 | $ (11,109) | $ (7,154) |
Other noncurrent liabilities | 18 | 93 | |||
Accounts payable | (4,819) | (12,625) | (10,525) | 10,296 | |
Accrued expenses | (5,092) | (13,346) | |||
Operating lease liabilities | (4,207) | (10,628) | (17,253) | (39,020) | (29,131) |
Client deposits | 29,114 | (4,654) | |||
Net cash provided by operating activities | 36,828 | 10,865 | 64,196 | 168,685 | 77,462 |
Cash flows from investing activities | |||||
Purchases of property, furniture and equipment | (25,932) | (11,693) | (35,216) | (93,441) | (55,666) |
Insurance proceeds | 0 | 333 | |||
Net cash used in investing activities | (25,932) | (11,360) | (34,883) | (93,108) | (55,666) |
Cash flows from financing activities | |||||
Principal payments under finance leases | (221) | (65) | |||
Repurchase of shares for payment of withholding taxes for equity based compensation | (540) | (347) | |||
Net cash used in financing activities | (761) | (412) | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | 10,135 | (907) | |||
Cash, cash equivalents and restricted cash | |||||
Beginning of period | 226,305 | 152,527 | 152,527 | 152,527 | |
End of period | 236,440 | 151,620 | 226,305 | 152,527 | |
Supplemental disclosure of cash flow information | |||||
Interest paid in cash | 840 | 1,305 | |||
Interest received in cash | 2,871 | 1,507 | |||
Income taxes paid in cash | 991 | 1,246 | |||
Noncash investing activities: | |||||
Purchase of property, furniture and equipment in current liabilities | 15,250 | 8,025 | $ 8,542 | $ 10,286 | $ 8,469 |
Noncash financing activities: | |||||
Capital contributions | $ 11 | $ 17 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [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 92 Showrooms as of March 31, 2024. 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 March 31, 2024 and December 31, 2023, the condensed consolidated statements of comprehensive income, changes in stockholders’equity and cash flows for the three months ended March 31, 2024 and March 31, 2023 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 March 31, 2024, the results of operations, changes in stockholders’equity and cash flows for the three months ended March 31, 2024 and March 31, 2023 . The condensed consolidated balance sheet as of December 31, 2023 included herein was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The results for the three months ended March 31, 2024 and March 31, 2023 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, 2023 . 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, impairment of long-lived assets 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 order, 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 March 31, 2024 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 March 31, 2024 and December 31, 2023 of $0.4 million and $0.5 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 three months ended March 31, 2024 and March 31, 2023, breakage income 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 March 31, 2024 and December 31, 2023. 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 Level 1 cash and cash equivalent investments such as money market funds and interest-bearing checking accounts. For the three months ended March 31, 2024, the Company earned $2.8 million in interest income. For the three months ended March 31, 2023, interest income was $1.5 million . Interest income is included within interest expense (income), net on our condensed consolidated statements of comprehensive income. Revision to Previously Issued Consolidated Financial Statements and Interim Unaudited Condensed Consolidated Financial Statements As previously disclosed, in preparation of the December 31, 2023 consolidated financial statements, the Company identified an error within the unaudited condensed consolidated balance sheets 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 and the Company concluded to revise the consolidated financial statements and interim unaudited condensed consolidated financial statements as presented below in Adjustment No.1. In preparation of the March 31, 2024 unaudited condensed consolidated financial statements, the Company identified an additional error within the unaudited condensed consolidated balance sheets related to certain cash receipts from landlord reimbursements prior to showroom completion being incorrectly included in 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 as presented below in Adjustment No. 2. The Company has evaluated the errors both quantitatively and qualitatively and concluded they were not material, individually or in the aggregate, to the prior period consolidated financial statements and interim unaudited condensed consolidated financial statements. The Company concluded to further revise: the unaudited condensed consolidated balance sheets and unaudited condensed consolidated statements of cash flows as of and for the three months ended March 31, 2023 and 2022, and as of and for the six months ended June 30, 2023 and 2022; the unaudited condensed consolidated balance sheet as of September 30, 2022; the consolidated balance sheets as of December 31, 2023 and 2022; and the consolidated statements of cash flows for the years ended December 31, 2023, 2022 and 2021. In connection with the revisions, the Company determined it is appropriate to correct for certain other immaterial errors. The Company will effect the revisions of the consolidated financial statements for 2023 and 2022 within our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The Company will effect the revision of the unaudited interim condensed consolidated financial statements for the second quarter of 2023 within our Quarterly Report on Form 10-Q for the fiscal period ended June 30, 2024. The Company has also revised impacted amounts within the accompanying notes to the unaudited condensed co nsolidated financial statements, as applicable . The following tables summarize the impact of these corrections for the periods presented (amounts in thousands): December 31, 2023 Consolidated Balance Sheet As Reported Adjustment No. 2 As Revised Prepaid and other current assets $ 45,260 $ (18,956) $ 26,304 Total current assets $ 528,251 $ (18,956) $ 509,295 Property, furniture and equipment, net $ 210,238 $ 10,010 $ 220,248 Total assets $ 1,114,094 $ (8,946) $ 1,105,148 Accrued other expenses $ 42,502 $ 3,560 $ 46,062 Current portion of operating lease liabilities 45,557 (12,506) 33,051 Total current liabilities $ 351,293 $ (8,946) $ 342,347 Total liabilities $ 773,856 $ (8,946) $ 764,910 Total liabilities and stockholders' equity $ 1,114,094 $ (8,946) $ 1,105,148 Year ended December 31, 2023 Consolidated Statement of Cash Flows As Reported Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (20,721) $ 9,612 $ (11,109) Changes in operating lease liabilities (25,794) (13,226) (39,020) Net cash provided by operating activities $ 172,299 $ (3,614) $ 168,685 Cash flows from investing activities Purchases of property, furniture and equipment $ (97,055) $ 3,614 $ (93,441) Net cash used in investing activities $ (96,722) $ 3,614 $ (93,108) Supplemental disclosure of cash flow information Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 6,726 $ 3,560 $ 10,286 June 30, 2023 Condensed Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Prepaid and other current assets $ 43,084 $ (13,274) $ 29,810 $ (11,380) $ 18,430 Total current assets $ 521,047 $ (13,274) $ 507,773 $ (11,380) $ 496,393 Operating right-of-use assets $ 309,211 $ (7,350) $ 301,861 $ — $ 301,861 Property, furniture and equipment, net 149,515 13,274 162,789 15,160 177,949 Total assets $ 1,045,279 $ (7,350) $ 1,037,929 $ 3,780 $ 1,041,709 Accrued other expenses $ 33,857 $ — $ 33,857 $ 2,410 $ 36,267 Current portion of operating lease liabilities 41,483 — 41,483 1,370 42,853 Total current liabilities $ 344,627 $ — $ 344,627 $ 3,780 $ 348,407 Operating lease liabilities, long-term $ 352,898 $ (7,350) $ 345,548 $ — $ 345,548 Total liabilities $ 757,715 $ (7,350) $ 750,365 $ 3,780 $ 754,145 Total liabilities and stockholders' equity $ 1,045,279 $ (7,350) $ 1,037,929 $ 3,780 $ 1,041,709 Six months ended June 30, 2023 Condensed Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (6,808) $ 5,391 $ (1,417) $ 2,036 $ 619 Changes in accounts payable (4,849) (5,676) (10,525) — (10,525) Changes in operating lease liabilities (17,903) — (17,903) 650 (17,253) Net cash provided by operating activities $ 61,795 $ (285) $ 61,510 $ 2,686 $ 64,196 Cash flows from investing activities Purchases of property, furniture and equipment $ (32,815) $ 285 $ (32,530) $ (2,686) $ (35,216) Net cash used in investing activities $ (32,482) $ 285 $ (32,197) $ (2,686) $ (34,883) Supplemental disclosure of cash flow information Noncash operating activities Lease incentives $ 4,945 $ (4,945) $ — $ — $ — Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 456 $ 5,676 $ 6,132 $ 2,410 $ 8,542 March 31, 2023 Condensed Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Prepaid and other current assets $ 44,122 $ (10,221) $ 33,901 $ (12,469) $ 21,432 Total current assets $ 489,771 $ (10,221) $ 479,550 $ (12,469) $ 467,081 Property, furniture and equipment, net $ 136,156 $ 7,908 $ 144,064 $ 16,636 $ 160,700 Other noncurrent assets 277 2,313 2,590 — 2,590 Total assets $ 965,886 $ — $ 965,886 $ 4,167 $ 970,053 Accrued other expenses $ 33,174 $ — $ 33,174 $ 1,804 $ 34,978 Current portion of operating lease liabilities 40,233 — 40,233 2,363 42,596 Total current liabilities $ 346,816 $ — $ 346,816 $ 4,167 $ 350,983 Total liabilities $ 720,792 $ — $ 720,792 $ 4,167 $ 724,959 Total liabilities and stockholders' equity $ 965,886 $ — $ 965,886 $ 4,167 $ 970,053 Three months ended March 31, 2023 Condensed Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (7,513) $ 3,102 $ (4,411) $ 3,125 $ (1,286) Changes in accounts payable (7,943) (4,682) (12,625) — (12,625) Changes in operating lease liabilities (12,271) — (12,271) 1,643 (10,628) Net cash provided by operating activities $ 7,677 $ (1,580) $ 6,097 $ 4,768 $ 10,865 Cash flows from investing activities Purchases of property, furniture and equipment $ (8,505) $ 1,580 $ (6,925) $ (4,768) $ (11,693) Net cash used in investing activities $ (8,172) $ 1,580 $ (6,592) $ (4,768) $ (11,360) Supplemental disclosure of cash flow information Noncash operating activities Lease incentives $ 741 $ (741) $ — $ — $ — Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 1,539 $ 4,682 $ 6,221 $ 1,804 $ 8,025 December 31, 2022 Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Reported Adjustment No. 2 As Revised Prepaid and other current assets $ 37,371 $ (7,503) $ 29,868 $ (9,344) $ 20,524 Total current assets $ 478,051 $ (7,503) $ 470,548 $ (9,344) $ 461,204 Operating right-of-use assets $ 252,055 $ 5,292 $ 257,347 $ — $ 257,347 Property, furniture and equipment, net 135,066 5,547 140,613 11,655 152,268 Other noncurrent assets 296 1,956 2,252 — 2,252 Total assets $ 931,792 $ 5,292 $ 937,084 $ 2,311 $ 939,395 Accrued other expenses $ 35,169 $ — $ 35,169 $ 1,591 $ 36,760 Current portion of operating lease liabilities 39,744 (494) 39,250 720 39,970 Total current liabilities $ 373,783 $ (494) $ 373,289 $ 2,311 $ 375,600 Operating lease liabilities, long-term $ 289,871 $ 5,786 $ 295,657 $ — $ 295,657 Total liabilities $ 722,097 $ 5,292 $ 727,389 $ 2,311 $ 729,700 Total liabilities and stockholders' equity $ 931,792 $ 5,292 $ 937,084 $ 2,311 $ 939,395 Year ended December 31, 2022 Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Reported Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (9,329) $ 2,442 $ (6,887) $ (267) $ (7,154) Changes in accounts payable 14,014 (3,718) 10,296 — 10,296 Changes in operating lease liabilities (33,682) — (33,682) 4,551 (29,131) Net cash provided by operating activities $ 74,454 $ (1,276) $ 73,178 $ 4,284 $ 77,462 Cash flows from investing activities Purchases of property, furniture and equipment $ (52,658) $ 1,276 $ (51,382) $ (4,284) $ (55,666) Net cash used in investing activities $ (52,658) $ 1,276 $ (51,382) $ (4,284) $ (55,666) Supplemental disclosure of cash flow information Noncash operating activities Lease incentives $ 4,312 $ (4,312) $ — $ — $ — Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 3,160 $ 3,718 $ 6,878 $ 1,591 $ 8,469 September 30, 2022 Condensed Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Prepaid and other current assets $ 35,867 $ (5,772) $ 30,095 $ (11,298) $ 18,797 Total current assets $ 482,298 $ (5,772) $ 476,526 $ (11,298) $ 465,228 Operating right-of-use assets $ 224,921 $ 7,092 $ 232,013 $ — $ 232,013 Property, furniture and equipment, net 128,783 4,249 133,032 7,246 140,278 Other noncurrent assets 235 1,523 1,758 — 1,758 Total assets $ 907,208 $ 7,092 $ 914,300 $ (4,052) $ 910,248 Accrued other expenses $ 33,756 $ — $ 33,756 $ 1,044 $ 34,800 Current portion of operating lease liabilities 39,248 680 39,928 (5,096) 34,832 Total current liabilities $ 423,986 $ 680 $ 424,666 $ (4,052) $ 420,614 Operating lease liabilities, long-term $ 263,753 $ 6,412 $ 270,165 $ — $ 270,165 Total liabilities $ 746,413 $ 7,092 $ 753,505 $ (4,052) $ 749,453 Total liabilities and stockholders' equity $ 907,208 $ 7,092 $ 914,300 $ (4,052) $ 910,248 June 30, 2022 Condensed Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Prepaid and other current assets $ 29,509 $ (5,264) $ 24,245 $ (10,390) $ 13,855 Total current assets $ 455,100 $ (5,264) $ 449,836 $ (10,390) $ 439,446 Property, furniture and equipment, net $ 116,620 $ 4,105 $ 120,725 $ 5,891 $ 126,616 Other noncurrent assets 249 1,159 1,408 — 1,408 Total assets $ 877,032 $ — $ 877,032 $ (4,499) $ 872,533 Accrued other expenses $ 26,718 $ — $ 26,718 $ 777 $ 27,495 Current portion of operating lease liabilities 37,624 — 37,624 (5,276) 32,348 Total current liabilities $ 426,659 $ — $ 426,659 $ (4,499) $ 422,160 Total liabilities $ 753,138 $ — $ 753,138 $ (4,499) $ 748,639 Total liabilities and stockholders' equity $ 877,032 $ — $ 877,032 $ (4,499) $ 872,533 Six months ended June 30, 2022 Condensed Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (5,095) $ 4,520 $ (575) $ 779 $ 204 Changes in accounts payable 15,197 (321) 14,876 — 14,876 Changes in operating lease liabilities (15,401) — (15,401) (1,445) (16,846) Net cash provided by operating activities $ 41,110 $ 4,199 $ 45,309 $ (666) $ 44,643 Cash flows from investing activities Purchases of property, furniture and equipment $ (20,355) $ (4,199) $ (24,554) $ 666 $ (23,888) Net cash used in investing activities $ (20,355) $ (4,199) $ (24,554) $ 666 $ (23,888) Supplemental disclosure of cash flow information Noncash operating activities Lease incentives $ 4,494 $ (4,494) $ — $ — $ — Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 1,673 $ 321 $ 1,994 $ 777 $ 2,771 March 31, 2022 Condensed Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Prepaid and other current assets $ 31,013 $ (5,060) $ 25,953 $ (9,015) $ 16,938 Total current assets $ 435,116 $ (5,060) $ 430,056 $ (9,015) $ 421,041 Operating right-of-use assets $ 196,896 $ 3,071 $ 199,967 $ — $ 199,967 Property, furniture and equipment, net 107,581 4,083 111,664 8,823 120,487 Other noncurrent assets 264 977 1,241 — 1,241 Total assets $ 814,189 $ 3,071 $ 817,260 $ (192) $ 817,068 Accrued other expenses $ 20,946 $ — $ 20,946 $ 717 $ 21,663 Current portion of operating lease liabilities 37,957 (138) 37,819 (909) 36,910 Total current liabilities $ 444,885 $ (138) $ 444,747 $ (192) $ 444,555 Operating lease liabilities, long-term $ 227,191 $ 3,209 $ 230,400 $ — $ 230,400 Total liabilities $ 727,645 $ 3,071 $ 730,716 $ (192) $ 730,524 Total liabilities and stockholders' equity $ 814,189 $ 3,071 $ 817,260 $ (192) $ 817,068 Three months ended March 31, 2022 Condensed Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (3,016) $ 1,628 $ (1,388) $ (596) $ (1,984) Changes in accounts payable 8,680 (2,247) 6,433 — 6,433 Changes in operating lease liabilities (11,485) — (11,485) 2,922 (8,563) Net cash provided by operating activities $ 35,219 $ (619) $ 34,600 $ 2,326 $ 36,926 Cash flows from investing activities Purchases of property, furniture and equipment $ (10,151) $ 619 $ (9,532) $ (2,326) $ (11,858) Net cash used in investing activities $ (10,151) $ 619 $ (9,532) $ (2,326) $ (11,858) Supplemental disclosure of cash flow information Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 108 $ 2,247 $ 2,355 $ 717 $ 3,072 Year ended December 31, 2021 Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Reported Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (3,621) $ (8,673) $ (12,294) $ 3,590 $ (8,704) Changes in accounts payable 17,595 (3,088) 14,507 — 14,507 Changes in deferred rent and lease incentives 4,518 5,352 9,870 (2,074) 7,796 Net cash provided by operating activities $ 146,243 $ (6,409) $ 139,834 $ 1,516 $ 141,350 Cash flows from investing activities Purchases of property, furniture and equipment $ (47,870) $ 6,409 $ (41,461) $ (1,516) $ (42,977) Net cash used in investing activities $ (47,870) $ 6,409 $ (41,461) $ (1,516) $ (42,977) Supplemental disclosure of cash flow information Noncash operating activities Lease incentives $ 5,352 $ (5,352) $ — $ — $ — Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 5,968 $ 3,088 $ 9,056 $ 363 $ 9,419 As previously disclosed, these errors also resulted in the restatement of the unaudited condensed consolidated balance sheet and statement of cash flows as of and for the nine months ended September 30, 2023 and the revision of the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2022. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards New Accounting Standards Adopted in Fiscal 2024 The Company adopted Accounting Standards Updates (“ASU”) 2023-01 — Leases (Topic 842): Common Control Arrangements in the three months ended March 31, 2024. We believe the adoption of ASU 2023-01 did not have a material impact on our accounting policies or our condensed consolidated financial statements and related disclosures. 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 2023-07 is effective for annual periods beginning after December 15, 2023. We believe the adoption will not have a material impact on our accounting policies, financial position or results of operations but could require additional disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. We believe the adoption will not have a material impact on our accounting policies, financial position or results of operations but could require additional disclosures. ASU Description Adoption Date ASU 2023-07 Segment Reporting (Topic 280): Improvements Fiscal Year 2024 ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures Fiscal Year 2025 |
Merchandise Warranties
Merchandise Warranties | 3 Months Ended |
Mar. 31, 2024 | |
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): Three months ended March 31, 2024 2023 Balance as of beginning of period $ 7,084 $ 6,375 Accruals during the period 3,080 3,381 Settlements during the period (3,136) (3,291) Balance as of end of the period (1) $ 7,028 $ 6,465 (1) $4.0 million and $3.7 million were recorded in accrued other expenses at March 31, 2024 and March 31, 2023, 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. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | 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 March 31, 2024 and 1.50% at March 31, 2023), 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 March 31, 2024 and December 31, 2023 , we had no borrowings on the 2021 Credit Facility. Deferred financing costs related to the 2021 Credit Facility of $0.4 million and $0.4 million as of March 31, 2024 and December 31, 2023, respectively, are recorded in other noncurrent assets on the condensed 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 $0.2 million as of March 31, 2024 and $0.1 million as of December 31, 2023 . The Company was in compliance with all applicable debt covenants at March 31, 2024 and December 31, 2023, and expects to remain in compliance over the next 12 months. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
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 (amounts in thousands): Condensed Consolidated Balance Sheet Classification March 31, December 31, 2023 Assets Operating lease assets Operating right-of-use assets $ 322,905 $ 302,157 Finance lease assets Financing right-of-use assets 38,209 38,835 Total leased assets $ 361,114 $ 340,992 Liabilities Current operating leases Current portion of operating lease liabilities $ 42,694 $ 33,051 Non-current operating leases Operating lease liabilities, long-term 383,684 362,598 Total operating lease liabilities 426,378 395,649 Current finance leases Current portion of financing lease liabilities 919 904 Non-current finance leases Financing lease liabilities, long-term 53,658 53,870 Total finance lease liabilities 54,577 54,774 Total lease liabilities $ 480,955 $ 450,423 The components of lease cost recognized within our condensed consolidated statements of comprehensive income are as follows (amounts in thousands): Three months ended March 31, Condensed Consolidated Statements of Comprehensive Income Classification 2024 2023 Lease costs: Operating lease costs Cost of goods sold $ 12,185 $ 9,714 Operating lease costs Selling, general and administrative expenses 2,501 2,401 Finance lease costs Amortization of right-of-use assets Selling, general and administrative expenses 626 540 Interest expense on lease liabilities Interest expense (income), net 1,301 1,268 Variable lease costs (1) Cost of goods sold 9,488 10,031 Short term lease costs Selling, general and administrative expenses 18 120 Total lease costs $ 26,119 $ 24,074 (1) For the three months ended March 31, 2024, there were no month-to-month lease costs. For the three months ended March 31, 2023, total lease costs includes $0.3 million of month-to-month lease costs . 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 option at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease terms are as follows: Three months ended March 31, Weighted Average Remaining Lease Term (In Years) 2024 2023 Operating leases 9.24 9.32 Finance leases 20.66 22.26 When readily available, we use the discount rate implicit within the lease as determined at the time of lease commencement. However, the discount rate implicit within many of our 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 (“IBR”). For leases in which the discount rate was not explicit, the Company utilized a market-based approach to estimate the 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 weighted average discount rates used to measure our lease liabilities are as follows: Three months ended March 31, Weighted Average Discount Rate 2024 2023 Operating leases 6.04 % 5.80 % Finance leases 9.64 % 9.72 % Future lease liabilities at March 31, 2024 are as follows (amounts in thousands): Year Ending December 31, Operating Lease Liabilities (1) Finance Lease Liabilities Total Lease Liabilities Remainder of 2024 $ 48,161 $ 4,343 $ 52,504 2025 69,044 5,800 74,844 2026 63,772 6,259 70,031 2027 59,709 6,060 65,769 2028 54,283 5,610 59,893 2029 51,279 5,224 56,503 Thereafter 222,283 104,719 327,002 Total lease payments 568,531 138,015 706,546 Less: Amounts representing interest (142,153) (83,438) (225,591) Total $ 426,378 $ 54,577 $ 480,955 (1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties. At March 31, 2024, the Company has entered into leases for Showrooms and equipment which have not yet commenced with expected leas e terms ranging from 3 to 13 years. The aggregate minimum rental payments over the term of the leases of approximately $151.4 million are not included i n the above table. Supplemental cash flow information related to leases is as follows (amounts in thousands): Three months ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 15,996 $ 13,411 Operating cash flows for finance leases 1,230 1,204 Financing cash flows for finance leases 221 129 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 28,751 $ 28,582 Finance leases — — |
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 (amounts in thousands): Condensed Consolidated Balance Sheet Classification March 31, December 31, 2023 Assets Operating lease assets Operating right-of-use assets $ 322,905 $ 302,157 Finance lease assets Financing right-of-use assets 38,209 38,835 Total leased assets $ 361,114 $ 340,992 Liabilities Current operating leases Current portion of operating lease liabilities $ 42,694 $ 33,051 Non-current operating leases Operating lease liabilities, long-term 383,684 362,598 Total operating lease liabilities 426,378 395,649 Current finance leases Current portion of financing lease liabilities 919 904 Non-current finance leases Financing lease liabilities, long-term 53,658 53,870 Total finance lease liabilities 54,577 54,774 Total lease liabilities $ 480,955 $ 450,423 The components of lease cost recognized within our condensed consolidated statements of comprehensive income are as follows (amounts in thousands): Three months ended March 31, Condensed Consolidated Statements of Comprehensive Income Classification 2024 2023 Lease costs: Operating lease costs Cost of goods sold $ 12,185 $ 9,714 Operating lease costs Selling, general and administrative expenses 2,501 2,401 Finance lease costs Amortization of right-of-use assets Selling, general and administrative expenses 626 540 Interest expense on lease liabilities Interest expense (income), net 1,301 1,268 Variable lease costs (1) Cost of goods sold 9,488 10,031 Short term lease costs Selling, general and administrative expenses 18 120 Total lease costs $ 26,119 $ 24,074 (1) For the three months ended March 31, 2024, there were no month-to-month lease costs. For the three months ended March 31, 2023, total lease costs includes $0.3 million of month-to-month lease costs . 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 option at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease terms are as follows: Three months ended March 31, Weighted Average Remaining Lease Term (In Years) 2024 2023 Operating leases 9.24 9.32 Finance leases 20.66 22.26 When readily available, we use the discount rate implicit within the lease as determined at the time of lease commencement. However, the discount rate implicit within many of our 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 (“IBR”). For leases in which the discount rate was not explicit, the Company utilized a market-based approach to estimate the 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 weighted average discount rates used to measure our lease liabilities are as follows: Three months ended March 31, Weighted Average Discount Rate 2024 2023 Operating leases 6.04 % 5.80 % Finance leases 9.64 % 9.72 % Future lease liabilities at March 31, 2024 are as follows (amounts in thousands): Year Ending December 31, Operating Lease Liabilities (1) Finance Lease Liabilities Total Lease Liabilities Remainder of 2024 $ 48,161 $ 4,343 $ 52,504 2025 69,044 5,800 74,844 2026 63,772 6,259 70,031 2027 59,709 6,060 65,769 2028 54,283 5,610 59,893 2029 51,279 5,224 56,503 Thereafter 222,283 104,719 327,002 Total lease payments 568,531 138,015 706,546 Less: Amounts representing interest (142,153) (83,438) (225,591) Total $ 426,378 $ 54,577 $ 480,955 (1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties. At March 31, 2024, the Company has entered into leases for Showrooms and equipment which have not yet commenced with expected leas e terms ranging from 3 to 13 years. The aggregate minimum rental payments over the term of the leases of approximately $151.4 million are not included i n the above table. Supplemental cash flow information related to leases is as follows (amounts in thousands): Three months ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 15,996 $ 13,411 Operating cash flows for finance leases 1,230 1,204 Financing cash flows for finance leases 221 129 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 28,751 $ 28,582 Finance leases — — |
Equity Based Compensation
Equity Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Based Compensation | Equity Based Compensation Activity of the Company’s Restricted Stock and related equity based compensation expense are summarized in the following tables (amounts in thousands, except share and per share data): Restricted Stock - Class A Amount Weighted Average Grant Date Fair Value Unvested at December 31, 2023 500,304 $ 15.47 Granted — — Forfeited — — Vested (21,477) 0.20 Unvested at March 31, 2024 478,827 $ 16.16 Three months ended March 31, 2024 2023 Equity based compensation expense - Restricted Stock (1) $ 660 $ 698 (1) Total unrecognized equity based compensation to be recognized in future periods is $5.5 million at March 31, 2024, and will be recognized over a weighted average period of 2.16 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. Per the 2021 Equity Plan, each RSU and PSU 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. RSU and PSU awards contain forfeitable rights to dividend equivalents. Dividend equivalents for outstanding awards are accrued when dividends are declared on the Company’s common stock but are not paid until the awards vest, and dividend equivalents accrued for awards that ultimately do not vest are forfeited. The RSUs issued to certain members of the Board of Directors will vest on the one-year anniversary of the grant date. 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. Activity of the Company’s PSU and RSU awards and related equity based compensation expense are summarized in the following tables (amounts in thousands, except share and per share data): PSU Awards RSU Awards Amount Weighted Average Grant Date Fair Value Amount Weighted Average Grant Date Fair Value Unvested at December 31, 2023 700,229 $ 7.20 1,248,165 $ 7.79 Granted — — — — Forfeited (10,000) 9.93 (7,894) 9.54 Vested — — (107,895) 9.49 Unvested at March 31, 2024 690,229 $ 7.16 1,132,376 $ 7.62 Three months ended March 31, 2024 2023 Equity based compensation expense - PSUs (1) $ 352 $ 433 Equity based compensation expense - RSUs (2) $ 1,012 $ 499 (1) Total unrecognized equ ity based compensation for the PSUs to be recognized in future periods is $2.6 million at March 31, 2024, and will be recognized over a weighted average period of 1.31 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 $6.7 million at March 31, 2024, and will be recognized over a weighted average period of 2.16 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 merchandise 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. Net revenue by merchandise sales channel is as follows (amounts in thousands): Three months ended March 31, 2024 2023 Retail $ 243,255 $ 250,102 eCommerce 51,907 54,466 Total net revenue $ 295,162 $ 304,568 |
Net and Comprehensive Income pe
Net and Comprehensive Income per Share | 3 Months Ended |
Mar. 31, 2024 | |
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 three months ended March 31, 2024 and March 31, 2023, was calculated by dividing net and comprehensive income by the number of basic and diluted weighted-average common shares outstan ding. The Company has elected to not adjust net and comprehensive income for forfeitable dividend equivalents, when declared, related to unvested equity awards. The Company will recognize dividends paid on common shares when the dividend equivalents are no longer forfeitable, such as if the contingency is met or the share-based payment awards vest into common shares. Basic and diluted net and comprehensive income per share are as follows (amounts in thousands, except per share data): Three months ended March 31, 2024 2023 Numerator Net and comprehensive income $ 15,099 $ 34,099 Denominator—Weighted Average Shares Outstanding Weighted-average number of common shares outstanding, basic 139,816,792 139,072,756 Effect of dilutive restricted stock (1) (2) 739,239 866,787 Weighted-average number of common shares outstanding, diluted 140,556,031 139,939,543 Net and Comprehensive Income Per Share Net and comprehensive income per share, basic $ 0.11 $ 0.25 Net and comprehensive income per share, diluted $ 0.11 $ 0.24 (1) During the three months ended March 31, 2024, 412,487 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. During the three months ended March 31, 2023, 547,370 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. (2) Excluded from the calculation of the effect of dilutive restricted stock as of three months ended March 31, 2024 and March 31, 2023, were 540,335 and 768,013 PSUs, respectively, because they did not meet the required performance criteria. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023, we recorded liabilities of $0.2 million and $0.2 million, respectively, in accrued other expenses 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. As of March 31, 2024, we have a remaining commitment of $5.0 million in accrued other expense on our condensed consolidated balance sheets . On February 29, 2024, the Board of Directors of the Company declared a special cash dividend on the Company’s Class A and Class B common stock of $0.50 per share, payable April 4, 2024, to shareholders of record at the close of business on March 21, 2024 (the “Record Date”). As of March 31, 2024, we recorded $70.6 million in current liabilities and $0.6 million in other long-term liabilities on our condensed consolidated balance sheet . The Company paid out the aforementioned special cash dividend in April 2024 on its Class A and Class B common stock in the amount of $69.9 million. The remaining dividends payable balance recorded in current liabilities on our condensed consolidated balance sheet relates to dividend equivalents on outstanding equity awards under the Company’s equity incentive plans that were unvested as of the Record Date and are expected to vest within the next 12 months. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
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 $0.4 million and $0.3 million for the three months ended March 31, 2024 and March 31, 2023 , 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 $0.1 million and $0.1 million for the three months ended March 31, 2024 and March 31, 2023, 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 $1.0 million and $1.0 million for the three months ended March 31, 2024 and March 31, 2023, respectively. Other transactions The accounts payable due to related parties for state and federal income tax refunds were $0.2 million and $2.3 million at March 31, 2024 and December 31, 2023, respectively, and are included within accounts payable on the condensed consolidated balance sheets. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expenses were $4.8 million and $12.1 million in the three months ended March 31, 2024 and March 31, 2023 , respectively. The effective tax rate was 24.2% and 26.2% for the three months ended March 31, 2024 and March 31, 2023 , respectively. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Dawn Sparks [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 11, 2024, Dawn Sparks, Chief Logistics Officer, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 120,000 shares of the Company’s Class A common stock beginning June 10, 2024. The arrangement’s expiration date is December 10, 2024. |
Name | Dawn Sparks |
Title | Chief Logistics Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 11, 2024 |
Arrangement Duration | 274 days |
Aggregate Available | 120,000 |
Dawn Phillipson [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 12, 2024, Dawn Phillipson, Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 150,000 shares of the Company’s Class A common stock beginning June 10, 2024. The arrangement’s expiration date is March 6, 2025. |
Name | Dawn Phillipson |
Title | Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 12, 2024 |
Arrangement Duration | 359 days |
Aggregate Available | 150,000 |
Venkat Nachiappan [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 14, 2024, Venkat Nachiappan, Chief Information Officer, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 20,093 shares of the Company’s Class A common stock beginning June 14, 2024. The arrangement’s expiration date is December 31, 2024. |
Name | Venkat Nachiappan |
Title | Chief Information Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 14, 2024 |
Arrangement Duration | 292 days |
Aggregate Available | 20,093 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [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 March 31, 2024 and December 31, 2023, the condensed consolidated statements of comprehensive income, changes in stockholders’equity and cash flows for the three months ended March 31, 2024 and March 31, 2023 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 March 31, 2024, the results of operations, changes in stockholders’equity and cash flows for the three months ended March 31, 2024 and March 31, 2023 . The condensed consolidated balance sheet as of December 31, 2023 included herein was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The results for the three months ended March 31, 2024 and March 31, 2023 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, 2023 . |
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, impairment of long-lived assets 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 order, 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 March 31, 2024 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 March 31, 2024 and December 31, 2023 of $0.4 million |
Fair Values 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 March 31, 2024 and December 31, 2023. 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 2024 and Accounting Standards Not Yet Adopted | New Accounting Standards Adopted in Fiscal 2024 The Company adopted Accounting Standards Updates (“ASU”) 2023-01 — Leases (Topic 842): Common Control Arrangements in the three months ended March 31, 2024. We believe the adoption of ASU 2023-01 did not have a material impact on our accounting policies or our condensed consolidated financial statements and related disclosures. 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 2023-07 is effective for annual periods beginning after December 15, 2023. We believe the adoption will not have a material impact on our accounting policies, financial position or results of operations but could require additional disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. We believe the adoption will not have a material impact on our accounting policies, financial position or results of operations but could require additional disclosures. ASU Description Adoption Date ASU 2023-07 Segment Reporting (Topic 280): Improvements Fiscal Year 2024 ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures Fiscal Year 2025 |
Nature of Business and Basis _3
Nature of Business and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Error Correction | The following tables summarize the impact of these corrections for the periods presented (amounts in thousands): December 31, 2023 Consolidated Balance Sheet As Reported Adjustment No. 2 As Revised Prepaid and other current assets $ 45,260 $ (18,956) $ 26,304 Total current assets $ 528,251 $ (18,956) $ 509,295 Property, furniture and equipment, net $ 210,238 $ 10,010 $ 220,248 Total assets $ 1,114,094 $ (8,946) $ 1,105,148 Accrued other expenses $ 42,502 $ 3,560 $ 46,062 Current portion of operating lease liabilities 45,557 (12,506) 33,051 Total current liabilities $ 351,293 $ (8,946) $ 342,347 Total liabilities $ 773,856 $ (8,946) $ 764,910 Total liabilities and stockholders' equity $ 1,114,094 $ (8,946) $ 1,105,148 Year ended December 31, 2023 Consolidated Statement of Cash Flows As Reported Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (20,721) $ 9,612 $ (11,109) Changes in operating lease liabilities (25,794) (13,226) (39,020) Net cash provided by operating activities $ 172,299 $ (3,614) $ 168,685 Cash flows from investing activities Purchases of property, furniture and equipment $ (97,055) $ 3,614 $ (93,441) Net cash used in investing activities $ (96,722) $ 3,614 $ (93,108) Supplemental disclosure of cash flow information Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 6,726 $ 3,560 $ 10,286 June 30, 2023 Condensed Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Prepaid and other current assets $ 43,084 $ (13,274) $ 29,810 $ (11,380) $ 18,430 Total current assets $ 521,047 $ (13,274) $ 507,773 $ (11,380) $ 496,393 Operating right-of-use assets $ 309,211 $ (7,350) $ 301,861 $ — $ 301,861 Property, furniture and equipment, net 149,515 13,274 162,789 15,160 177,949 Total assets $ 1,045,279 $ (7,350) $ 1,037,929 $ 3,780 $ 1,041,709 Accrued other expenses $ 33,857 $ — $ 33,857 $ 2,410 $ 36,267 Current portion of operating lease liabilities 41,483 — 41,483 1,370 42,853 Total current liabilities $ 344,627 $ — $ 344,627 $ 3,780 $ 348,407 Operating lease liabilities, long-term $ 352,898 $ (7,350) $ 345,548 $ — $ 345,548 Total liabilities $ 757,715 $ (7,350) $ 750,365 $ 3,780 $ 754,145 Total liabilities and stockholders' equity $ 1,045,279 $ (7,350) $ 1,037,929 $ 3,780 $ 1,041,709 Six months ended June 30, 2023 Condensed Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (6,808) $ 5,391 $ (1,417) $ 2,036 $ 619 Changes in accounts payable (4,849) (5,676) (10,525) — (10,525) Changes in operating lease liabilities (17,903) — (17,903) 650 (17,253) Net cash provided by operating activities $ 61,795 $ (285) $ 61,510 $ 2,686 $ 64,196 Cash flows from investing activities Purchases of property, furniture and equipment $ (32,815) $ 285 $ (32,530) $ (2,686) $ (35,216) Net cash used in investing activities $ (32,482) $ 285 $ (32,197) $ (2,686) $ (34,883) Supplemental disclosure of cash flow information Noncash operating activities Lease incentives $ 4,945 $ (4,945) $ — $ — $ — Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 456 $ 5,676 $ 6,132 $ 2,410 $ 8,542 March 31, 2023 Condensed Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Prepaid and other current assets $ 44,122 $ (10,221) $ 33,901 $ (12,469) $ 21,432 Total current assets $ 489,771 $ (10,221) $ 479,550 $ (12,469) $ 467,081 Property, furniture and equipment, net $ 136,156 $ 7,908 $ 144,064 $ 16,636 $ 160,700 Other noncurrent assets 277 2,313 2,590 — 2,590 Total assets $ 965,886 $ — $ 965,886 $ 4,167 $ 970,053 Accrued other expenses $ 33,174 $ — $ 33,174 $ 1,804 $ 34,978 Current portion of operating lease liabilities 40,233 — 40,233 2,363 42,596 Total current liabilities $ 346,816 $ — $ 346,816 $ 4,167 $ 350,983 Total liabilities $ 720,792 $ — $ 720,792 $ 4,167 $ 724,959 Total liabilities and stockholders' equity $ 965,886 $ — $ 965,886 $ 4,167 $ 970,053 Three months ended March 31, 2023 Condensed Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (7,513) $ 3,102 $ (4,411) $ 3,125 $ (1,286) Changes in accounts payable (7,943) (4,682) (12,625) — (12,625) Changes in operating lease liabilities (12,271) — (12,271) 1,643 (10,628) Net cash provided by operating activities $ 7,677 $ (1,580) $ 6,097 $ 4,768 $ 10,865 Cash flows from investing activities Purchases of property, furniture and equipment $ (8,505) $ 1,580 $ (6,925) $ (4,768) $ (11,693) Net cash used in investing activities $ (8,172) $ 1,580 $ (6,592) $ (4,768) $ (11,360) Supplemental disclosure of cash flow information Noncash operating activities Lease incentives $ 741 $ (741) $ — $ — $ — Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 1,539 $ 4,682 $ 6,221 $ 1,804 $ 8,025 December 31, 2022 Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Reported Adjustment No. 2 As Revised Prepaid and other current assets $ 37,371 $ (7,503) $ 29,868 $ (9,344) $ 20,524 Total current assets $ 478,051 $ (7,503) $ 470,548 $ (9,344) $ 461,204 Operating right-of-use assets $ 252,055 $ 5,292 $ 257,347 $ — $ 257,347 Property, furniture and equipment, net 135,066 5,547 140,613 11,655 152,268 Other noncurrent assets 296 1,956 2,252 — 2,252 Total assets $ 931,792 $ 5,292 $ 937,084 $ 2,311 $ 939,395 Accrued other expenses $ 35,169 $ — $ 35,169 $ 1,591 $ 36,760 Current portion of operating lease liabilities 39,744 (494) 39,250 720 39,970 Total current liabilities $ 373,783 $ (494) $ 373,289 $ 2,311 $ 375,600 Operating lease liabilities, long-term $ 289,871 $ 5,786 $ 295,657 $ — $ 295,657 Total liabilities $ 722,097 $ 5,292 $ 727,389 $ 2,311 $ 729,700 Total liabilities and stockholders' equity $ 931,792 $ 5,292 $ 937,084 $ 2,311 $ 939,395 Year ended December 31, 2022 Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Reported Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (9,329) $ 2,442 $ (6,887) $ (267) $ (7,154) Changes in accounts payable 14,014 (3,718) 10,296 — 10,296 Changes in operating lease liabilities (33,682) — (33,682) 4,551 (29,131) Net cash provided by operating activities $ 74,454 $ (1,276) $ 73,178 $ 4,284 $ 77,462 Cash flows from investing activities Purchases of property, furniture and equipment $ (52,658) $ 1,276 $ (51,382) $ (4,284) $ (55,666) Net cash used in investing activities $ (52,658) $ 1,276 $ (51,382) $ (4,284) $ (55,666) Supplemental disclosure of cash flow information Noncash operating activities Lease incentives $ 4,312 $ (4,312) $ — $ — $ — Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 3,160 $ 3,718 $ 6,878 $ 1,591 $ 8,469 September 30, 2022 Condensed Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Prepaid and other current assets $ 35,867 $ (5,772) $ 30,095 $ (11,298) $ 18,797 Total current assets $ 482,298 $ (5,772) $ 476,526 $ (11,298) $ 465,228 Operating right-of-use assets $ 224,921 $ 7,092 $ 232,013 $ — $ 232,013 Property, furniture and equipment, net 128,783 4,249 133,032 7,246 140,278 Other noncurrent assets 235 1,523 1,758 — 1,758 Total assets $ 907,208 $ 7,092 $ 914,300 $ (4,052) $ 910,248 Accrued other expenses $ 33,756 $ — $ 33,756 $ 1,044 $ 34,800 Current portion of operating lease liabilities 39,248 680 39,928 (5,096) 34,832 Total current liabilities $ 423,986 $ 680 $ 424,666 $ (4,052) $ 420,614 Operating lease liabilities, long-term $ 263,753 $ 6,412 $ 270,165 $ — $ 270,165 Total liabilities $ 746,413 $ 7,092 $ 753,505 $ (4,052) $ 749,453 Total liabilities and stockholders' equity $ 907,208 $ 7,092 $ 914,300 $ (4,052) $ 910,248 June 30, 2022 Condensed Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Prepaid and other current assets $ 29,509 $ (5,264) $ 24,245 $ (10,390) $ 13,855 Total current assets $ 455,100 $ (5,264) $ 449,836 $ (10,390) $ 439,446 Property, furniture and equipment, net $ 116,620 $ 4,105 $ 120,725 $ 5,891 $ 126,616 Other noncurrent assets 249 1,159 1,408 — 1,408 Total assets $ 877,032 $ — $ 877,032 $ (4,499) $ 872,533 Accrued other expenses $ 26,718 $ — $ 26,718 $ 777 $ 27,495 Current portion of operating lease liabilities 37,624 — 37,624 (5,276) 32,348 Total current liabilities $ 426,659 $ — $ 426,659 $ (4,499) $ 422,160 Total liabilities $ 753,138 $ — $ 753,138 $ (4,499) $ 748,639 Total liabilities and stockholders' equity $ 877,032 $ — $ 877,032 $ (4,499) $ 872,533 Six months ended June 30, 2022 Condensed Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (5,095) $ 4,520 $ (575) $ 779 $ 204 Changes in accounts payable 15,197 (321) 14,876 — 14,876 Changes in operating lease liabilities (15,401) — (15,401) (1,445) (16,846) Net cash provided by operating activities $ 41,110 $ 4,199 $ 45,309 $ (666) $ 44,643 Cash flows from investing activities Purchases of property, furniture and equipment $ (20,355) $ (4,199) $ (24,554) $ 666 $ (23,888) Net cash used in investing activities $ (20,355) $ (4,199) $ (24,554) $ 666 $ (23,888) Supplemental disclosure of cash flow information Noncash operating activities Lease incentives $ 4,494 $ (4,494) $ — $ — $ — Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 1,673 $ 321 $ 1,994 $ 777 $ 2,771 March 31, 2022 Condensed Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Prepaid and other current assets $ 31,013 $ (5,060) $ 25,953 $ (9,015) $ 16,938 Total current assets $ 435,116 $ (5,060) $ 430,056 $ (9,015) $ 421,041 Operating right-of-use assets $ 196,896 $ 3,071 $ 199,967 $ — $ 199,967 Property, furniture and equipment, net 107,581 4,083 111,664 8,823 120,487 Other noncurrent assets 264 977 1,241 — 1,241 Total assets $ 814,189 $ 3,071 $ 817,260 $ (192) $ 817,068 Accrued other expenses $ 20,946 $ — $ 20,946 $ 717 $ 21,663 Current portion of operating lease liabilities 37,957 (138) 37,819 (909) 36,910 Total current liabilities $ 444,885 $ (138) $ 444,747 $ (192) $ 444,555 Operating lease liabilities, long-term $ 227,191 $ 3,209 $ 230,400 $ — $ 230,400 Total liabilities $ 727,645 $ 3,071 $ 730,716 $ (192) $ 730,524 Total liabilities and stockholders' equity $ 814,189 $ 3,071 $ 817,260 $ (192) $ 817,068 Three months ended March 31, 2022 Condensed Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (3,016) $ 1,628 $ (1,388) $ (596) $ (1,984) Changes in accounts payable 8,680 (2,247) 6,433 — 6,433 Changes in operating lease liabilities (11,485) — (11,485) 2,922 (8,563) Net cash provided by operating activities $ 35,219 $ (619) $ 34,600 $ 2,326 $ 36,926 Cash flows from investing activities Purchases of property, furniture and equipment $ (10,151) $ 619 $ (9,532) $ (2,326) $ (11,858) Net cash used in investing activities $ (10,151) $ 619 $ (9,532) $ (2,326) $ (11,858) Supplemental disclosure of cash flow information Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 108 $ 2,247 $ 2,355 $ 717 $ 3,072 Year ended December 31, 2021 Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Reported Adjustment No. 2 As Revised Cash flows from operating activities Changes in prepaid and other assets $ (3,621) $ (8,673) $ (12,294) $ 3,590 $ (8,704) Changes in accounts payable 17,595 (3,088) 14,507 — 14,507 Changes in deferred rent and lease incentives 4,518 5,352 9,870 (2,074) 7,796 Net cash provided by operating activities $ 146,243 $ (6,409) $ 139,834 $ 1,516 $ 141,350 Cash flows from investing activities Purchases of property, furniture and equipment $ (47,870) $ 6,409 $ (41,461) $ (1,516) $ (42,977) Net cash used in investing activities $ (47,870) $ 6,409 $ (41,461) $ (1,516) $ (42,977) Supplemental disclosure of cash flow information Noncash operating activities Lease incentives $ 5,352 $ (5,352) $ — $ — $ — Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 5,968 $ 3,088 $ 9,056 $ 363 $ 9,419 |
Merchandise Warranties (Tables)
Merchandise Warranties (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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): Three months ended March 31, 2024 2023 Balance as of beginning of period $ 7,084 $ 6,375 Accruals during the period 3,080 3,381 Settlements during the period (3,136) (3,291) Balance as of end of the period (1) $ 7,028 $ 6,465 (1) $4.0 million and $3.7 million were recorded in accrued other expenses at March 31, 2024 and March 31, 2023, respectively. The remainder is recorded in other long-term liabilities on our condensed consolidated balance sheets. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 (amounts in thousands): Condensed Consolidated Balance Sheet Classification March 31, December 31, 2023 Assets Operating lease assets Operating right-of-use assets $ 322,905 $ 302,157 Finance lease assets Financing right-of-use assets 38,209 38,835 Total leased assets $ 361,114 $ 340,992 Liabilities Current operating leases Current portion of operating lease liabilities $ 42,694 $ 33,051 Non-current operating leases Operating lease liabilities, long-term 383,684 362,598 Total operating lease liabilities 426,378 395,649 Current finance leases Current portion of financing lease liabilities 919 904 Non-current finance leases Financing lease liabilities, long-term 53,658 53,870 Total finance lease liabilities 54,577 54,774 Total lease liabilities $ 480,955 $ 450,423 |
Schedule of Components of Lease Expense | The components of lease cost recognized within our condensed consolidated statements of comprehensive income are as follows (amounts in thousands): Three months ended March 31, Condensed Consolidated Statements of Comprehensive Income Classification 2024 2023 Lease costs: Operating lease costs Cost of goods sold $ 12,185 $ 9,714 Operating lease costs Selling, general and administrative expenses 2,501 2,401 Finance lease costs Amortization of right-of-use assets Selling, general and administrative expenses 626 540 Interest expense on lease liabilities Interest expense (income), net 1,301 1,268 Variable lease costs (1) Cost of goods sold 9,488 10,031 Short term lease costs Selling, general and administrative expenses 18 120 Total lease costs $ 26,119 $ 24,074 (1) For the three months ended March 31, 2024, there were no month-to-month lease costs. For the three months ended March 31, 2023, total lease costs includes $0.3 million of month-to-month lease costs . Three months ended March 31, Weighted Average Remaining Lease Term (In Years) 2024 2023 Operating leases 9.24 9.32 Finance leases 20.66 22.26 Three months ended March 31, Weighted Average Discount Rate 2024 2023 Operating leases 6.04 % 5.80 % Finance leases 9.64 % 9.72 % |
Schedule of Lessee, Operating Lease, Liability, Maturity | Future lease liabilities at March 31, 2024 are as follows (amounts in thousands): Year Ending December 31, Operating Lease Liabilities (1) Finance Lease Liabilities Total Lease Liabilities Remainder of 2024 $ 48,161 $ 4,343 $ 52,504 2025 69,044 5,800 74,844 2026 63,772 6,259 70,031 2027 59,709 6,060 65,769 2028 54,283 5,610 59,893 2029 51,279 5,224 56,503 Thereafter 222,283 104,719 327,002 Total lease payments 568,531 138,015 706,546 Less: Amounts representing interest (142,153) (83,438) (225,591) Total $ 426,378 $ 54,577 $ 480,955 (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 March 31, 2024 are as follows (amounts in thousands): Year Ending December 31, Operating Lease Liabilities (1) Finance Lease Liabilities Total Lease Liabilities Remainder of 2024 $ 48,161 $ 4,343 $ 52,504 2025 69,044 5,800 74,844 2026 63,772 6,259 70,031 2027 59,709 6,060 65,769 2028 54,283 5,610 59,893 2029 51,279 5,224 56,503 Thereafter 222,283 104,719 327,002 Total lease payments 568,531 138,015 706,546 Less: Amounts representing interest (142,153) (83,438) (225,591) Total $ 426,378 $ 54,577 $ 480,955 (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 is as follows (amounts in thousands): Three months ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 15,996 $ 13,411 Operating cash flows for finance leases 1,230 1,204 Financing cash flows for finance leases 221 129 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 28,751 $ 28,582 Finance leases — — |
Equity Based Compensation (Tabl
Equity Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Unvested Stock Activity | Activity of the Company’s Restricted Stock and related equity based compensation expense are summarized in the following tables (amounts in thousands, except share and per share data): Restricted Stock - Class A Amount Weighted Average Grant Date Fair Value Unvested at December 31, 2023 500,304 $ 15.47 Granted — — Forfeited — — Vested (21,477) 0.20 Unvested at March 31, 2024 478,827 $ 16.16 Three months ended March 31, 2024 2023 Equity based compensation expense - Restricted Stock (1) $ 660 $ 698 (1) Total unrecognized equity based compensation to be recognized in future periods is $5.5 million at March 31, 2024, and will be recognized over a weighted average period of 2.16 years. Equity based compensation expense is recorded within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income. Activity of the Company’s PSU and RSU awards and related equity based compensation expense are summarized in the following tables (amounts in thousands, except share and per share data): PSU Awards RSU Awards Amount Weighted Average Grant Date Fair Value Amount Weighted Average Grant Date Fair Value Unvested at December 31, 2023 700,229 $ 7.20 1,248,165 $ 7.79 Granted — — — — Forfeited (10,000) 9.93 (7,894) 9.54 Vested — — (107,895) 9.49 Unvested at March 31, 2024 690,229 $ 7.16 1,132,376 $ 7.62 Three months ended March 31, 2024 2023 Equity based compensation expense - PSUs (1) $ 352 $ 433 Equity based compensation expense - RSUs (2) $ 1,012 $ 499 (1) Total unrecognized equ ity based compensation for the PSUs to be recognized in future periods is $2.6 million at March 31, 2024, and will be recognized over a weighted average period of 1.31 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 $6.7 million at March 31, 2024, and will be recognized over a weighted average period of 2.16 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) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Net Revenue by Segment | Net revenue by merchandise sales channel is as follows (amounts in thousands): Three months ended March 31, 2024 2023 Retail $ 243,255 $ 250,102 eCommerce 51,907 54,466 Total net revenue $ 295,162 $ 304,568 |
Net and Comprehensive Income _2
Net and Comprehensive Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted net and comprehensive income per share are as follows (amounts in thousands, except per share data): Three months ended March 31, 2024 2023 Numerator Net and comprehensive income $ 15,099 $ 34,099 Denominator—Weighted Average Shares Outstanding Weighted-average number of common shares outstanding, basic 139,816,792 139,072,756 Effect of dilutive restricted stock (1) (2) 739,239 866,787 Weighted-average number of common shares outstanding, diluted 140,556,031 139,939,543 Net and Comprehensive Income Per Share Net and comprehensive income per share, basic $ 0.11 $ 0.25 Net and comprehensive income per share, diluted $ 0.11 $ 0.24 (1) During the three months ended March 31, 2024, 412,487 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. During the three months ended March 31, 2023, 547,370 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. (2) Excluded from the calculation of the effect of dilutive restricted stock as of three months ended March 31, 2024 and March 31, 2023, were 540,335 and 768,013 PSUs, respectively, because they did not meet the required performance criteria. |
Nature of Business and Basis _4
Nature of Business and Basis of Presentation - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) store | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of stores | store | 92 | ||
Client deposits, percentage collected at least (as a percent) | 50% | ||
Client deposits | $ 202,922 | $ 173,808 | |
Breakage income | 0 | $ 0 | |
Interest income | 2,800 | $ 1,500 | |
Other Accrued Expenses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Client deposits | $ 400 | $ 500 |
Nature of Business and Basis _5
Nature of Business and Basis of Presentation - Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Prepaid and other current assets | $ 33,122 | $ 26,304 | $ 18,430 | $ 21,432 | $ 20,524 | $ 18,797 | $ 13,855 | $ 16,938 |
Total current assets | 539,777 | 509,295 | 496,393 | 467,081 | 461,204 | 465,228 | 439,446 | 421,041 |
Operating right-of-use assets | 322,905 | 302,157 | 301,861 | 257,347 | 232,013 | 199,967 | ||
Property, furniture and equipment, net | 243,167 | 220,248 | 177,949 | 160,700 | 152,268 | 140,278 | 126,616 | 120,487 |
Other noncurrent assets | 2,407 | 4,525 | 2,590 | 2,252 | 1,758 | 1,408 | 1,241 | |
Total assets | 1,176,379 | 1,105,148 | 1,041,709 | 970,053 | 939,395 | 910,248 | 872,533 | 817,068 |
Accrued other expenses | 43,195 | 46,062 | 36,267 | 34,978 | 36,760 | 34,800 | 27,495 | 36,910 |
Current portion of operating lease liabilities | 42,694 | 33,051 | 42,853 | 42,596 | 39,970 | 34,832 | 32,348 | 21,663 |
Total current liabilities | 446,945 | 342,347 | 348,407 | 350,983 | 375,600 | 420,614 | 422,160 | 444,555 |
Operating lease liabilities, long-term | 383,684 | 362,598 | 345,548 | 295,657 | 270,165 | 230,400 | ||
Total liabilities | 890,732 | 764,910 | 754,145 | 724,959 | 729,700 | 749,453 | 748,639 | 730,524 |
Total liabilities and stockholders' equity | $ 1,176,379 | 1,105,148 | 1,041,709 | 970,053 | 939,395 | 910,248 | 872,533 | 817,068 |
As Previously Disclosed | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Prepaid and other current assets | 45,260 | 29,810 | 33,901 | 29,868 | 30,095 | 24,245 | 25,953 | |
Total current assets | 528,251 | 507,773 | 479,550 | 470,548 | 476,526 | 449,836 | 430,056 | |
Operating right-of-use assets | 301,861 | 257,347 | 232,013 | 199,967 | ||||
Property, furniture and equipment, net | 210,238 | 162,789 | 144,064 | 140,613 | 133,032 | 120,725 | 111,664 | |
Other noncurrent assets | 2,590 | 2,252 | 1,758 | 1,408 | 1,241 | |||
Total assets | 1,114,094 | 1,037,929 | 965,886 | 937,084 | 914,300 | 877,032 | 817,260 | |
Accrued other expenses | 42,502 | 33,857 | 33,174 | 35,169 | 33,756 | 26,718 | 37,819 | |
Current portion of operating lease liabilities | 45,557 | 41,483 | 40,233 | 39,250 | 39,928 | 37,624 | 20,946 | |
Total current liabilities | 351,293 | 344,627 | 346,816 | 373,289 | 424,666 | 426,659 | 444,747 | |
Operating lease liabilities, long-term | 345,548 | 295,657 | 270,165 | 230,400 | ||||
Total liabilities | 773,856 | 750,365 | 720,792 | 727,389 | 753,505 | 753,138 | 730,716 | |
Total liabilities and stockholders' equity | 1,114,094 | 1,037,929 | 965,886 | 937,084 | 914,300 | 877,032 | 817,260 | |
Adjustment No. 1 | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Prepaid and other current assets | (13,274) | (10,221) | (7,503) | (5,772) | (5,264) | (5,060) | ||
Total current assets | (13,274) | (10,221) | (7,503) | (5,772) | (5,264) | (5,060) | ||
Operating right-of-use assets | (7,350) | 5,292 | 7,092 | 3,071 | ||||
Property, furniture and equipment, net | 13,274 | 7,908 | 5,547 | 4,249 | 4,105 | 4,083 | ||
Other noncurrent assets | 2,313 | 1,956 | 1,523 | 1,159 | 977 | |||
Total assets | (7,350) | 0 | 5,292 | 7,092 | 0 | 3,071 | ||
Accrued other expenses | 0 | 0 | 0 | 0 | 0 | (138) | ||
Current portion of operating lease liabilities | 0 | 0 | (494) | 680 | 0 | 0 | ||
Total current liabilities | 0 | 0 | (494) | 680 | 0 | (138) | ||
Operating lease liabilities, long-term | (7,350) | 5,786 | 6,412 | 3,209 | ||||
Total liabilities | (7,350) | 0 | 5,292 | 7,092 | 0 | 3,071 | ||
Total liabilities and stockholders' equity | (7,350) | 0 | 5,292 | 7,092 | 0 | 3,071 | ||
Adjustment No. 2 | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Prepaid and other current assets | (18,956) | (11,380) | (12,469) | (9,344) | (11,298) | (10,390) | (9,015) | |
Total current assets | (18,956) | (11,380) | (12,469) | (9,344) | (11,298) | (10,390) | (9,015) | |
Operating right-of-use assets | 0 | 0 | 0 | 0 | ||||
Property, furniture and equipment, net | 10,010 | 15,160 | 16,636 | 11,655 | 7,246 | 5,891 | 8,823 | |
Other noncurrent assets | 0 | 0 | 0 | 0 | 0 | |||
Total assets | (8,946) | 3,780 | 4,167 | 2,311 | (4,052) | (4,499) | (192) | |
Accrued other expenses | 3,560 | 2,410 | 1,804 | 1,591 | 1,044 | 777 | (909) | |
Current portion of operating lease liabilities | (12,506) | 1,370 | 2,363 | 720 | (5,096) | (5,276) | 717 | |
Total current liabilities | (8,946) | 3,780 | 4,167 | 2,311 | (4,052) | (4,499) | (192) | |
Operating lease liabilities, long-term | 0 | 0 | 0 | 0 | ||||
Total liabilities | (8,946) | 3,780 | 4,167 | 2,311 | (4,052) | (4,499) | (192) | |
Total liabilities and stockholders' equity | $ (8,946) | 3,780 | 4,167 | 2,311 | (4,052) | (4,499) | (192) | |
As Originally Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Prepaid and other current assets | 43,084 | 44,122 | 37,371 | 35,867 | 29,509 | 31,013 | ||
Total current assets | 521,047 | 489,771 | 478,051 | 482,298 | 455,100 | 435,116 | ||
Operating right-of-use assets | 309,211 | 252,055 | 224,921 | 196,896 | ||||
Property, furniture and equipment, net | 149,515 | 136,156 | 135,066 | 128,783 | 116,620 | 107,581 | ||
Other noncurrent assets | 277 | 296 | 235 | 249 | 264 | |||
Total assets | 1,045,279 | 965,886 | 931,792 | 907,208 | 877,032 | 814,189 | ||
Accrued other expenses | 33,857 | 33,174 | 35,169 | 33,756 | 26,718 | 37,957 | ||
Current portion of operating lease liabilities | 41,483 | 40,233 | 39,744 | 39,248 | 37,624 | 20,946 | ||
Total current liabilities | 344,627 | 346,816 | 373,783 | 423,986 | 426,659 | 444,885 | ||
Operating lease liabilities, long-term | 352,898 | 289,871 | 263,753 | 227,191 | ||||
Total liabilities | 757,715 | 720,792 | 722,097 | 746,413 | 753,138 | 727,645 | ||
Total liabilities and stockholders' equity | $ 1,045,279 | $ 965,886 | $ 931,792 | $ 907,208 | $ 877,032 | $ 814,189 |
Nature of Business and Basis _6
Nature of Business and Basis of Presentation - Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | ||||||||
Changes in prepaid and other assets | $ (5,758) | $ (1,286) | $ (1,984) | $ 619 | $ 204 | $ (11,109) | $ (7,154) | $ (8,704) |
Changes in accounts payable | (4,819) | (12,625) | 6,433 | (10,525) | 14,876 | 10,296 | 14,507 | |
Changes in operating lease liabilities | (4,207) | (10,628) | (8,563) | (17,253) | (16,846) | (39,020) | (29,131) | |
Changes in deferred rent and lease incentives | 7,796 | |||||||
Net cash provided by operating activities | 36,828 | 10,865 | 36,926 | 64,196 | 44,643 | 168,685 | 77,462 | 141,350 |
Cash flows from investing activities | ||||||||
Purchases of property, furniture and equipment | (25,932) | (11,693) | (11,858) | (35,216) | (23,888) | (93,441) | (55,666) | (42,977) |
Net cash used in investing activities | (25,932) | (11,360) | (11,858) | (34,883) | (23,888) | (93,108) | (55,666) | (42,977) |
Noncash operating activities | ||||||||
Lease incentives | 0 | 0 | 0 | 0 | 0 | |||
Noncash investing activities: | ||||||||
Purchase of property, furniture and equipment in current liabilities | $ 15,250 | 8,025 | 3,072 | 8,542 | 2,771 | 10,286 | 8,469 | 9,419 |
As Originally Reported | ||||||||
Cash flows from operating activities | ||||||||
Changes in prepaid and other assets | (7,513) | (3,016) | (6,808) | (5,095) | (9,329) | (3,621) | ||
Changes in accounts payable | (7,943) | 8,680 | (4,849) | 15,197 | 14,014 | 17,595 | ||
Changes in operating lease liabilities | (12,271) | (11,485) | (17,903) | (15,401) | (33,682) | |||
Changes in deferred rent and lease incentives | 4,518 | |||||||
Net cash provided by operating activities | 7,677 | 35,219 | 61,795 | 41,110 | 74,454 | 146,243 | ||
Cash flows from investing activities | ||||||||
Purchases of property, furniture and equipment | (8,505) | (10,151) | (32,815) | (20,355) | (52,658) | (47,870) | ||
Net cash used in investing activities | (8,172) | (10,151) | (32,482) | (20,355) | (52,658) | (47,870) | ||
Noncash operating activities | ||||||||
Lease incentives | 741 | 4,945 | 4,494 | 4,312 | 5,352 | |||
Noncash investing activities: | ||||||||
Purchase of property, furniture and equipment in current liabilities | 1,539 | 108 | 456 | 1,673 | 3,160 | 5,968 | ||
Adjustment No. 1 | ||||||||
Cash flows from operating activities | ||||||||
Changes in prepaid and other assets | 3,102 | 1,628 | 5,391 | 4,520 | 2,442 | (8,673) | ||
Changes in accounts payable | (4,682) | (2,247) | (5,676) | (321) | (3,718) | (3,088) | ||
Changes in operating lease liabilities | 0 | 0 | 0 | 0 | 0 | |||
Changes in deferred rent and lease incentives | 5,352 | |||||||
Net cash provided by operating activities | (1,580) | (619) | (285) | 4,199 | (1,276) | (6,409) | ||
Cash flows from investing activities | ||||||||
Purchases of property, furniture and equipment | (1,580) | 619 | 285 | (4,199) | 1,276 | 6,409 | ||
Net cash used in investing activities | 1,580 | 619 | 285 | (4,199) | 1,276 | 6,409 | ||
Noncash operating activities | ||||||||
Lease incentives | (741) | (4,945) | (4,494) | (4,312) | (5,352) | |||
Noncash investing activities: | ||||||||
Purchase of property, furniture and equipment in current liabilities | 4,682 | 2,247 | 5,676 | 321 | 3,718 | 3,088 | ||
As Previously Disclosed | ||||||||
Cash flows from operating activities | ||||||||
Changes in prepaid and other assets | (4,411) | (1,388) | (1,417) | (575) | (20,721) | (6,887) | (12,294) | |
Changes in accounts payable | (12,625) | 6,433 | (10,525) | 14,876 | 10,296 | 14,507 | ||
Changes in operating lease liabilities | (12,271) | (11,485) | (17,903) | (15,401) | (25,794) | (33,682) | ||
Changes in deferred rent and lease incentives | 9,870 | |||||||
Net cash provided by operating activities | 6,097 | 34,600 | 61,510 | 45,309 | 172,299 | 73,178 | 139,834 | |
Cash flows from investing activities | ||||||||
Purchases of property, furniture and equipment | (6,925) | (9,532) | (32,530) | (24,554) | (97,055) | (51,382) | (41,461) | |
Net cash used in investing activities | (6,592) | (9,532) | (32,197) | (24,554) | (96,722) | (51,382) | (41,461) | |
Noncash operating activities | ||||||||
Lease incentives | 0 | 0 | 0 | 0 | 0 | |||
Noncash investing activities: | ||||||||
Purchase of property, furniture and equipment in current liabilities | 6,221 | 2,355 | 6,132 | 1,994 | 6,726 | 6,878 | 9,056 | |
Adjustment No. 2 | ||||||||
Cash flows from operating activities | ||||||||
Changes in prepaid and other assets | 3,125 | (596) | 2,036 | 779 | 9,612 | (267) | 3,590 | |
Changes in accounts payable | 0 | 0 | 0 | 0 | 0 | 0 | ||
Changes in operating lease liabilities | 1,643 | 2,922 | 650 | (1,445) | (13,226) | 4,551 | ||
Changes in deferred rent and lease incentives | (2,074) | |||||||
Net cash provided by operating activities | 4,768 | 2,326 | 2,686 | (666) | (3,614) | 4,284 | 1,516 | |
Cash flows from investing activities | ||||||||
Purchases of property, furniture and equipment | 4,768 | (2,326) | (2,686) | 666 | 3,614 | (4,284) | (1,516) | |
Net cash used in investing activities | (4,768) | (2,326) | (2,686) | 666 | 3,614 | (4,284) | (1,516) | |
Noncash operating activities | ||||||||
Lease incentives | 0 | 0 | 0 | 0 | 0 | |||
Noncash investing activities: | ||||||||
Purchase of property, furniture and equipment in current liabilities | $ 1,804 | $ 717 | $ 2,410 | $ 777 | $ 3,560 | $ 1,591 | $ 363 |
Merchandise Warranties - Narrat
Merchandise Warranties - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 | |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance as of beginning of period | $ 7,084 | $ 6,375 |
Accruals during the period | 3,080 | 3,381 |
Settlements during the period | (3,136) | (3,291) |
Balance as of the end of the period | 7,028 | 6,465 |
Accrued and other expenses | 7,028 | 6,465 |
Accrued Other Expenses | ||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance as of the end of the period | 4,000 | 3,700 |
Accrued and other expenses | $ 4,000 | $ 3,700 |
Debt (Details)
Debt (Details) - 2021 Credit Facility - USD ($) | 3 Months Ended | ||||
Dec. 09, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | 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 | 400,000 | |||
Accumulated amortization, deferred loan costs | $ 200,000 | $ 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 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 |
Leases [Abstract] | ||||||||
Operating right-of-use assets | $ 322,905 | $ 302,157 | $ 301,861 | $ 257,347 | $ 232,013 | $ 199,967 | ||
Financing right-of-use assets | 38,209 | 38,835 | ||||||
Total leased assets | 361,114 | 340,992 | ||||||
Current portion of operating lease liabilities | 42,694 | 33,051 | 42,853 | $ 42,596 | 39,970 | 34,832 | $ 32,348 | 21,663 |
Operating lease liabilities, long-term | 383,684 | 362,598 | $ 345,548 | $ 295,657 | $ 270,165 | $ 230,400 | ||
Total operating lease liabilities | 426,378 | 395,649 | ||||||
Current portion of financing lease liabilities | 919 | 904 | ||||||
Financing lease liabilities, long-term | 53,658 | 53,870 | ||||||
Total finance lease liabilities | 54,577 | 54,774 | ||||||
Total lease liabilities | $ 480,955 | $ 450,423 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lease Cost [Line Items] | ||
Other lease costs | $ 0 | $ 300 |
Total lease costs | 26,119 | 24,074 |
Cost of goods sold | ||
Lease Cost [Line Items] | ||
Operating lease costs | 12,185 | 9,714 |
Other lease costs | 9,488 | 10,031 |
Selling, general and administrative expenses | ||
Lease Cost [Line Items] | ||
Operating lease costs | 2,501 | 2,401 |
Amortization of right-of-use assets | 626 | 540 |
Other lease costs | 18 | 120 |
Interest expense (income), net | ||
Lease Cost [Line Items] | ||
Interest expense on lease liabilities | $ 1,301 | $ 1,268 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Lease Term (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Leases [Abstract] | ||
Operating leases | 9 years 2 months 26 days | 9 years 3 months 25 days |
Finance leases | 20 years 7 months 28 days | 22 years 3 months 3 days |
Leases - Schedule of Weighted_2
Leases - Schedule of Weighted Average Discount Rate (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Leases [Abstract] | ||
Operating leases | 6.04% | 5.80% |
Finance leases | 9.64% | 9.72% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Lease Liabilities | ||
Remainder of 2024 | $ 48,161 | |
2025 | 69,044 | |
2026 | 63,772 | |
2027 | 59,709 | |
2028 | 54,283 | |
2029 | 51,279 | |
Thereafter | 222,283 | |
Total lease payments | 568,531 | |
Less: Amounts representing interest | (142,153) | |
Total operating lease liabilities | 426,378 | $ 395,649 |
Finance Lease Liabilities | ||
Remainder of 2024 | 4,343 | |
2025 | 5,800 | |
2026 | 6,259 | |
2027 | 6,060 | |
2028 | 5,610 | |
2029 | 5,224 | |
Thereafter | 104,719 | |
Total lease payments | 138,015 | |
Less: Amounts representing interest | (83,438) | |
Total finance lease liabilities | 54,577 | $ 54,774 |
Total Lease Liabilities | ||
Remainder of 2024 | 52,504 | |
2025 | 74,844 | |
2026 | 70,031 | |
2027 | 65,769 | |
2028 | 59,893 | |
2029 | 56,503 | |
Total lease payments | 327,002 | |
Thereafter | 706,546 | |
Less: Amounts representing interest | (225,591) | |
Total | $ 480,955 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Lease Cost [Line Items] | |
Aggregate minimum rental payments, not yet commenced | $ 151.4 |
Minimum | |
Lease Cost [Line Items] | |
Lease term, not yet commenced | 3 years |
Maximum | |
Lease Cost [Line Items] | |
Lease term, not yet commenced | 13 years |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 15,996 | $ 13,411 |
Operating cash flows for finance leases | 1,230 | 1,204 |
Financing cash flows for finance leases | 221 | 129 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 28,751 | 28,582 |
Finance leases | $ 0 | $ 0 |
Equity Based Compensation - Unv
Equity Based Compensation - Unvested Stock Activity (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
PSU Awards | |
Amount | |
Unvested, beginning of period (in shares) | shares | 700,229 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (10,000) |
Vested (in shares) | shares | 0 |
Unvested, end of period (in shares) | shares | 690,229 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning of period (in dollars per share) | $ / shares | $ 7.20 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 9.93 |
Vested (in dollars per share) | $ / shares | 0 |
Unvested, end of period (in dollars per share) | $ / shares | $ 7.16 |
RSU Awards | |
Amount | |
Unvested, beginning of period (in shares) | shares | 1,248,165 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (7,894) |
Vested (in shares) | shares | (107,895) |
Unvested, end of period (in shares) | shares | 1,132,376 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning of period (in dollars per share) | $ / shares | $ 7.79 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 9.54 |
Vested (in dollars per share) | $ / shares | 9.49 |
Unvested, end of period (in dollars per share) | $ / shares | $ 7.62 |
Class A | Restricted Stock | |
Amount | |
Unvested, beginning of period (in shares) | shares | 500,304 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Vested (in shares) | shares | (21,477) |
Unvested, end of period (in shares) | shares | 478,827 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning of period (in dollars per share) | $ / shares | $ 15.47 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0.20 |
Unvested, end of period (in dollars per share) | $ / shares | $ 16.16 |
Equity Based Compensation - Equ
Equity Based Compensation - Equity Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity based compensation expense | $ 660 | $ 698 |
Incentive Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 5,500 | |
Unrecognized compensation cost, period for recognition | 2 years 1 month 28 days | |
PSU Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity based compensation expense | $ 352 | 433 |
Unrecognized compensation cost | $ 2,600 | |
Unrecognized compensation cost, period for recognition | 1 year 3 months 21 days | |
RSU Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity based compensation expense | $ 1,012 | $ 499 |
Unrecognized compensation cost | $ 6,700 | |
Unrecognized compensation cost, period for recognition | 2 years 1 month 28 days |
Equity Based Compensation - Nar
Equity Based Compensation - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Aug. 02, 2022 | |
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 and PSU | 2021 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of common stocks received per each award unit vested | 1 | |
RSU Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual vesting percentage | 33% | |
RSU Awards | 2021 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
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) | 3 Months Ended |
Mar. 31, 2024 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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Net revenue | $ 295,162 | $ 304,568 |
Retail | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 243,255 | 250,102 |
eCommerce | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 51,907 | $ 54,466 |
Net and Comprehensive Income _3
Net and Comprehensive Income per Share - Calculation of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator | ||
Net and comprehensive income | $ 15,099 | $ 34,099 |
Denominator—Weighted Average Shares Outstanding | ||
Weighted-average number of common shares outstanding, basic (in shares) | 139,816,792 | 139,072,756 |
Effect of dilutive restricted stock (in shares) | 739,239 | 866,787 |
Weighted-average number of common shares outstanding, diluted (in shares) | 140,556,031 | 139,939,543 |
Net and comprehensive income per share, basic (in dollars per share) | $ 0.11 | $ 0.25 |
Net and comprehensive income per share, diluted (in dollars per share) | $ 0.11 | $ 0.24 |
Antidilutive securities excluded from computation of earnings per hare (in shares) | 412,487 | 547,370 |
Securities not meeting performance target, excluded from computation of earnings per share (in shares) | 540,335 | 768,013 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | ||||
Feb. 29, 2024 | Apr. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Aug. 31, 2023 | |
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | $ 0.2 | $ 0.2 | |||
Committed donation | $ 10 | ||||
Accrued donation cost | 5 | ||||
Common stock, dividends declared (in dollars per share) | $ 0.50 | ||||
Current liabilities | 70.6 | ||||
Other long-term liabilities | $ 0.6 | ||||
Subsequent Event | |||||
Loss Contingencies [Line Items] | |||||
Special cash dividend | $ 69.9 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||
Jul. 31, 2023 USD ($) option | Mar. 31, 2021 USD ($) | Aug. 31, 2020 USD ($) | Jul. 31, 2010 USD ($) | Mar. 31, 2024 USD ($) option | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Nov. 30, 2000 | |
Related Party Transaction [Line Items] | ||||||||
Operating lease, term (in years) | 12 years | |||||||
Renewal options | option | 2 | |||||||
Accounts payable | $ 62,135 | $ 63,699 | ||||||
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 | ||||||
Accounts payable | 200 | $ 2,300 | ||||||
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 | ||||||
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 | ||||||
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 4,816 | $ 12,102 |
Effective income tax rate | 24.20% | 26.20% |