Arhaus (ARHS) 10-Q 7 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 04, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 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	Q3
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		53,414,106
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		87,115,600

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 177,722	$ 223,098
Restricted cash	3,216	3,207
Accounts receivable, net	1,196	2,394
Merchandise inventory, net	294,596	254,292
Prepaid and other current assets	32,530	26,304
Total current assets	509,260	509,295
Operating right-of-use assets	348,612	302,157
Financing right-of-use assets	37,129	38,835
Property, furniture and equipment, net	285,292	220,248
Deferred tax assets	15,358	19,127
Goodwill	10,961	10,961
Other noncurrent assets	2,699	4,525
Total assets	1,209,311	1,105,148
Current liabilities
Accounts payable	73,559	63,699
Accrued taxes	5,998	9,638
Accrued wages	11,753	15,185
Accrued other expenses	47,567	46,062
Client deposits	224,138	173,808
Current portion of operating lease liabilities	51,669	33,051
Current portion of financing lease liabilities	991	904
Total current liabilities	415,675	342,347
Operating lease liabilities, long-term	415,410	362,598
Financing lease liabilities, long-term	53,453	53,870
Deferred rent and lease incentives	0	1,952
Other long-term liabilities	4,128	4,143
Total liabilities	888,666	764,910
Commitments and contingencies (Note 9)
Stockholders’ equity
Retained earnings	121,600	145,292
Additional paid-in capital	198,905	194,807
Total stockholders’ equity	320,645	340,238
Total liabilities and stockholders’ equity	1,209,311	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	Sep. 30, 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)	53,636,032	53,254,088
Common stock, shares outstanding (in shares)	53,412,809	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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net revenue	$ 319,133	$ 326,229	$ 924,096	$ 943,696
Cost of goods sold	196,061	195,372	561,598	544,481
Gross margin	123,072	130,857	362,498	399,215
Selling, general and administrative expenses	112,401	106,977	304,085	275,890
Income from operations	10,671	23,880	58,413	123,325
Interest income, net	(544)	(1,080)	(2,582)	(1,731)
Other income	(250)	(78)	(447)	(738)
Income before taxes	11,465	25,038	61,442	125,794
Income tax expense	1,542	5,297	14,186	31,771
Net and comprehensive income	9,923	19,741	47,256	94,023
Net and comprehensive income	$ 9,923	$ 19,741	$ 47,256	$ 94,023
Net and comprehensive income per share, basic
Weighted-average number of common shares outstanding, basic (in shares)	140,166,990	139,628,776	139,990,522	139,365,870
Net and comprehensive income per share, basic (in dollars per share)	$ 0.07	$ 0.14	$ 0.34	$ 0.67
Net and comprehensive income per share, diluted
Weighted-average number of common shares outstanding, diluted (in shares)	140,722,915	140,140,899	140,732,337	140,021,670
Net and comprehensive income per share, diluted (in dollars per share)	$ 0.07	$ 0.14	$ 0.34	$ 0.67

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	94,023						94,023
Shareholder capital contribution	42							42
Equity based compensation (in shares)				1,312,000
Equity based compensation	5,752			$ 1				5,751
Shares withheld to cover employees' withholding taxes for equity based compensation (in shares)				(83,000)		83,000
Shares withheld to cover employees’ withholding taxes for equity based compensation	(1,024)							(1,024)
Ending Balance (in shares) at Sep. 30, 2023				52,666,000	87,116,000
Ending Balance at Sep. 30, 2023	308,488			$ 52	$ 87	$ 0	114,076	194,273
Ending Balance (in shares) at Sep. 30, 2023						83,000
Beginning Balance (in shares) at Jun. 30, 2023				52,345,000	87,116,000
Beginning Balance at Jun. 30, 2023	287,564			$ 52	$ 87	$ 0	94,335	193,090
Beginning Balance (in shares) at Jun. 30, 2023						25,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,741						19,741
Shareholder capital contribution	12							12
Equity based compensation (in shares)				379,000
Equity based compensation	1,848							1,848
Shares withheld to cover employees' withholding taxes for equity based compensation (in shares)				(58,000)		58,000
Shares withheld to cover employees’ withholding taxes for equity based compensation	(677)							(677)
Ending Balance (in shares) at Sep. 30, 2023				52,666,000	87,116,000
Ending Balance at Sep. 30, 2023	308,488			$ 52	$ 87	$ 0	114,076	194,273
Ending Balance (in shares) at Sep. 30, 2023						83,000
Beginning Balance (in shares) at 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	47,256						47,256
Shareholder capital contribution	24							24
Equity based compensation (in shares)				609,000
Equity based compensation	5,352			$ 1				5,351
Shares withheld to cover employees' withholding taxes for equity based compensation (in shares)				(139,000)		139,000
Shares withheld to cover employees’ withholding taxes for equity based compensation	(1,277)							(1,277)
Dividends declared	(70,948)						(70,948)
Ending Balance (in shares) at Sep. 30, 2024		53,412,809	87,115,600	53,139,000	87,116,000
Ending Balance at Sep. 30, 2024	320,645			$ 53	$ 87	$ 0	121,600	198,905
Ending Balance (in shares) at Sep. 30, 2024						223,000
Beginning Balance (in shares) at Jun. 30, 2024				52,994,000	87,116,000
Beginning Balance at Jun. 30, 2024	309,310			$ 53	$ 87	$ 0	111,544	197,626
Beginning Balance (in shares) at Jun. 30, 2024						121,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,923						9,923
Shareholder capital contribution	7							7
Equity based compensation (in shares)				247,000
Equity based compensation	2,001							2,001
Shares withheld to cover employees' withholding taxes for equity based compensation (in shares)				(102,000)		102,000
Shares withheld to cover employees’ withholding taxes for equity based compensation	(729)							(729)
Dividends declared	133						133
Ending Balance (in shares) at Sep. 30, 2024		53,412,809	87,115,600	53,139,000	87,116,000
Ending Balance at Sep. 30, 2024	$ 320,645			$ 53	$ 87	$ 0	$ 121,600	$ 198,905
Ending Balance (in shares) at Sep. 30, 2024						223,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Cash flows from operating activities
Net income	$ 9,923	$ 19,741	$ 47,256	$ 94,023
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization			27,895	21,439
Amortization of operating lease right-of-use asset			27,432	24,733
Amortization of deferred financing fees, interest on finance lease in excess of principal paid and interest on operating leases			19,859	16,037
Equity based compensation			5,352	5,752
Deferred tax assets			3,769	256
Amortization of cloud computing arrangements			1,206	386
Amortization and write-off of lease incentives			(80)	(241)
Insurance proceeds			0	60
Changes in operating assets and liabilities
Accounts receivable			1,198	(228)
Merchandise inventory			(40,304)	17,399
Prepaid and other assets			(6,527)	(4,363)	$ (11,109)
Other noncurrent liabilities			224	273
Accounts payable			8,983	(10,141)
Accrued expenses			(8,096)	3,502
Operating lease liabilities			(23,071)	(30,836)	(39,020)
Client deposits			50,330	9,819
Net cash provided by operating activities			115,426	147,870	168,685
Cash flows from investing activities
Purchases of property, furniture and equipment			(88,686)	(58,808)	(93,441)
Insurance proceeds			0	333
Net cash used in investing activities			(88,686)	(58,475)	(93,108)
Cash flows from financing activities
Principal payments under finance leases			(686)	(503)
Repurchase of shares for payment of withholding taxes for equity based compensation			(1,277)	(1,024)
Cash dividend payments			(70,144)	0
Net cash used in financing activities			(72,107)	(1,527)
Net (decrease) increase in cash, cash equivalents and restricted cash			(45,367)	87,868
Cash, cash equivalents and restricted cash
Beginning of period			226,305	152,527	152,527
End of period	$ 180,938	$ 240,395	180,938	240,395	226,305
Supplemental disclosure of cash flow information
Interest paid in cash			3,402	3,962
Interest received in cash			7,068	5,395
Income taxes paid in cash			16,001	28,856
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities			12,650	13,210	$ 10,286
Noncash financing activities:
Capital contributions			$ 24	$ 42

Nature of Business and Basis of

Nature of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 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 101 Showrooms as of September 30, 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 September 30, 2024 and December 31, 2023, the condensed consolidated statements of comprehensive income and changes in stockholders’ equity for the nine and three months ended September 30, 2024 and September 30, 2023, the condensed consolidated statements of cash flows for the nine months ended September 30, 2024 and September 30, 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 September 30, 2024, the results of operations and changes in stockholders’ equity for the nine and three months ended September 30, 2024 and cash flows for the nine months ended September 30, 2024 . 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 nine and three months ended September 30, 2024 and September 30, 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 September 30, 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 September 30, 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 nine and three months ended September 30, 2024, breakage income was minimal. For the nine and three months ended September 30, 2023, breakage income was $0.8 million and $0.1 million, respectively. Fair Values of Financial Instruments The Company’s primary financial ins truments are cash and cash equivalent investments, accounts receivable, payables, lease obligations and equity based compensation instruments. Due to the shor t-term maturities of cash and cash equivalent investments, accounts receivable and payables, the Company believes the fair values of these instruments approximate their respective carrying values at September 30, 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 nine and three months ended September 30, 2024, the Company earned $6.7 million and $1.9 million, respectively, in interest income. For the nine and three months ended September 30, 2023, interest income was $5.8 million and $2.5 million, respectively , which is included within interest income, net on our condensed consolidated statements of comprehensive income. Accounts Receivable The Company’s accounts receivables are $1.2 million and $2.4 million, respectively, at September 30, 2024 and December 31, 2023, net of allowance for expected credit losses of $0.3 million and $0.6 million, respectively. The allowance for expected credit losses is determined by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, the client’s current ability to pay its obligations, and the current and future condition of the general economy and industry as a whole. Accounts receivable are written off when they become uncollectible and any payments subsequently received on such receivables are credited to the allowance for expected credit losses. Accounts receivable are recorded at the invoiced amount and do not bear interest. Prepaid and Other Current Assets P repaid and other current assets consist of the following (amounts in thousands): September 30, December 31, 2024 2023 Prepaid expenses $ 13,398 $ 9,374 Right of return asset 1,867 2,844 Prepaid advertising 1,032 610 Prepaid cloud computing arrangements, net (1) 8,554 4,253 Deposits 5,513 4,470 Other current assets 2,166 4,753 Total prepaid and other current assets $ 32,530 $ 26,304 (1) Presented net of accumulated amortization of $5.2 million and $2.7 million as of September 30, 2024 and December 31, 2023, respectively. 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 restate the 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 and the Company concluded to revise the consolidated financial statements and restate the interim unaudited condensed consolidated financial statements 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 effected the restatement of the interim unaudited condensed consolidated financial statements for the nine and three months ended September 30, 2023 within the previously filed Quarterly Report on Form 10-Q/A. 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 September 30, 2023 Condensed Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Restated Prepaid and other current assets $ 63,140 $ (26,441) $ 36,699 $ (13,428) $ 23,271 Total current assets $ 574,457 $ (26,441) $ 548,016 $ (13,428) $ 534,588 Operating right-of-use assets $ 314,378 $ (4,806) $ 309,572 $ — $ 309,572 Property, furniture and equipment, net 156,632 26,441 183,073 16,516 199,589 Total assets $ 1,115,574 $ (4,806) $ 1,110,768 $ 3,088 $ 1,113,856 Accrued other expenses $ 47,073 $ — $ 47,073 $ 4,406 $ 51,479 Current portion of operating lease liabilities 42,472 94 42,566 (1,318) 41,248 Total current liabilities $ 386,163 $ 94 $ 386,257 $ 3,088 $ 389,345 Operating lease liabilities, long-term $ 360,708 $ (4,900) $ 355,808 $ — $ 355,808 Total liabilities $ 807,086 $ (4,806) $ 802,280 $ 3,088 $ 805,368 Total liabilities and stockholders' equity $ 1,115,574 $ (4,806) $ 1,110,768 $ 3,088 $ 1,113,856 Nine months ended September 30, 2023 Condensed Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Restated Cash flows from operating activities Changes in prepaid and other assets $ (28,952) $ 20,504 $ (8,448) $ 4,085 $ (4,363) Changes in accounts payable (4,093) (6,048) (10,141) — (10,141) Changes in operating lease liabilities (28,797) — (28,797) (2,039) (30,836) Net cash provided by operating activities $ 131,368 $ 14,456 $ 145,824 $ 2,046 $ 147,870 Cash flows from investing activities Purchases of property, furniture and equipment $ (42,306) $ (14,456) $ (56,762) $ (2,046) $ (58,808) Net cash used in investing activities $ (41,973) $ (14,456) $ (56,429) $ (2,046) $ (58,475) Supplemental disclosure of cash flow information Noncash operating activities Lease incentives $ 7,313 $ (7,313) $ — $ — $ — Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 2,756 $ 6,048 $ 8,804 $ 4,406 $ 13,210

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 2024. 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 to Reportable Segment Disclosures Fiscal Year 2024 ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures Fiscal Year 2025

Merchandise Warranties

Merchandise Warranties	9 Months Ended
	Sep. 30, 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): Nine months ended Three months ended September 30, September 30, 2024 2023 2024 2023 Balance as of beginning of period $ 7,084 $ 6,375 $ 7,106 $ 6,578 Accruals during the period 9,504 10,292 3,128 3,543 Settlements during the period (9,369) (9,854) (3,015) (3,308) Balance as of end of the period (1) $ 7,219 $ 6,813 $ 7,219 $ 6,813 (1) $4.1 million and $4.1 million were recorded in accrued other expenses at September 30, 2024 and December 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	9 Months Ended
	Sep. 30, 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 maximum rent-adjusted total leverage ratio and a minimum fixed charge ratio. The 2021 Credit Facility initially bore variable interest rates at the prevailing Bloomberg Short-Term Bank Yield index rate plus the applicable margin (1.50% at September 30, 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. On August 30, 2024, the Company amended the 2021 Credit Facility to adjust the index rate from the Bloomberg Short-Term Bank Yield Index to Term Secured Overnight Financing Rate. The 2021 Credit Facility bears variable interest rates at the prevailing Term Secured Overnight Financing Rate plus the applicable margin (1.75% at September 30, 2024). The 2021 Credit Facility expires on November 8, 2026. At September 30, 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 September 30, 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 September 30, 2024 and $0.1 million as of December 31, 2023 . The Company was in compliance with all applicable debt covenants at September 30, 2024 and December 31, 2023, and expects to remain in compliance over the next 12 months.

Leases

Leases	9 Months Ended
	Sep. 30, 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 September 30, December 31, Assets Operating lease assets Operating right-of-use assets $ 348,612 $ 302,157 Finance lease assets Financing right-of-use assets 37,129 38,835 Total leased assets $ 385,741 $ 340,992 Liabilities Current operating leases Current portion of operating lease liabilities $ 51,669 $ 33,051 Non-current operating leases Operating lease liabilities, long-term 415,410 362,598 Total operating lease liabilities 467,079 395,649 Current finance leases Current portion of financing lease liabilities 991 904 Non-current finance leases Financing lease liabilities, long-term 53,453 53,870 Total finance lease liabilities 54,444 54,774 Total lease liabilities $ 521,523 $ 450,423 The components of lease cost recognized within our condensed consolidated statements of comprehensive income for the nine and three months ended September 30, 2024 and September 30, 2023 are as follows (amounts in thousands): Nine months ended Three months ended September 30, September 30, Condensed Consolidated Statements of Comprehensive Income Classification 2024 2023 2024 2023 Lease costs: Operating lease costs Cost of goods sold $ 38,807 $ 31,894 $ 13,463 $ 11,518 Operating lease costs Selling, general and administrative expenses 7,689 7,375 2,594 2,518 Finance lease costs Amortization of right-of-use assets Selling, general and administrative expenses 1,774 1,838 519 758 Interest expense on lease liabilities Interest income, net 4,017 3,852 1,416 1,316 Variable lease costs (1) Cost of goods sold 26,974 28,474 7,412 9,327 Short term lease costs Selling, general and administrative expenses 107 165 68 29 Total lease costs $ 79,368 $ 73,598 $ 25,472 $ 25,466 (1) For the nine and three months ended September 30, 2024, there were no month-to-month lease costs. For the nine months ended September 30, 2023, total lease costs includes $0.4 million of month-to-month lease costs. The Company did not have month-to-month lease costs for the three months ended September 30, 2023. We often have options to renew lease terms for Showrooms and other as sets. The exercise of lease renewal options is generally at our sole discretion. In addition, certain lease agreements may be terminated prior to their original expiration date at our discretion. We evaluate each renewal and termination 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: Nine months ended September 30, Weighted Average Remaining Lease Term (In Years) 2024 2023 Operating leases 9.04 9.27 Finance leases 20.25 21.02 When readily determinable, 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: Nine months ended September 30, Weighted Average Discount Rate 2024 2023 Operating leases 6.05 % 5.94 % Finance leases 9.65 % 9.63 % Future lease liabilities at September 30, 2024 are as follows (amounts in thousands): Year Ending December 31, Operating Lease Liabilities (1) Finance Lease Liabilities Total Lease Liabilities Remainder of 2024 $ 18,348 $ 1,463 $ 19,811 2025 77,630 5,851 83,481 2026 72,149 6,309 78,458 2027 68,519 6,110 74,629 2028 63,029 5,635 68,664 2029 60,192 5,224 65,416 Thereafter 256,557 104,712 361,269 Total lease payments 616,424 135,304 751,728 Less: Amounts representing interest (149,345) (80,860) (230,205) Total $ 467,079 $ 54,444 $ 521,523 (1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties. At September 30, 2024, the Company has entered into leases for Showrooms and equipment which have not yet commenced with expected lease terms ranging from 2 to 15 years. The aggregate minimum rental payments over the term of the leases of approximately $114.5 million are not included in the above table. Supplemental cash flow information related to leases for the nine months ended September 30, 2024 and September 30, 2023 is as follows (amounts in thousands): Nine months ended September 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 50,178 $ 41,759 Operating cash flows for finance leases 3,920 3,642 Financing cash flows for finance leases 686 503 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 72,473 $ 76,375 Finance leases 185 2,813
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 September 30, December 31, Assets Operating lease assets Operating right-of-use assets $ 348,612 $ 302,157 Finance lease assets Financing right-of-use assets 37,129 38,835 Total leased assets $ 385,741 $ 340,992 Liabilities Current operating leases Current portion of operating lease liabilities $ 51,669 $ 33,051 Non-current operating leases Operating lease liabilities, long-term 415,410 362,598 Total operating lease liabilities 467,079 395,649 Current finance leases Current portion of financing lease liabilities 991 904 Non-current finance leases Financing lease liabilities, long-term 53,453 53,870 Total finance lease liabilities 54,444 54,774 Total lease liabilities $ 521,523 $ 450,423 The components of lease cost recognized within our condensed consolidated statements of comprehensive income for the nine and three months ended September 30, 2024 and September 30, 2023 are as follows (amounts in thousands): Nine months ended Three months ended September 30, September 30, Condensed Consolidated Statements of Comprehensive Income Classification 2024 2023 2024 2023 Lease costs: Operating lease costs Cost of goods sold $ 38,807 $ 31,894 $ 13,463 $ 11,518 Operating lease costs Selling, general and administrative expenses 7,689 7,375 2,594 2,518 Finance lease costs Amortization of right-of-use assets Selling, general and administrative expenses 1,774 1,838 519 758 Interest expense on lease liabilities Interest income, net 4,017 3,852 1,416 1,316 Variable lease costs (1) Cost of goods sold 26,974 28,474 7,412 9,327 Short term lease costs Selling, general and administrative expenses 107 165 68 29 Total lease costs $ 79,368 $ 73,598 $ 25,472 $ 25,466 (1) For the nine and three months ended September 30, 2024, there were no month-to-month lease costs. For the nine months ended September 30, 2023, total lease costs includes $0.4 million of month-to-month lease costs. The Company did not have month-to-month lease costs for the three months ended September 30, 2023. We often have options to renew lease terms for Showrooms and other as sets. The exercise of lease renewal options is generally at our sole discretion. In addition, certain lease agreements may be terminated prior to their original expiration date at our discretion. We evaluate each renewal and termination 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: Nine months ended September 30, Weighted Average Remaining Lease Term (In Years) 2024 2023 Operating leases 9.04 9.27 Finance leases 20.25 21.02 When readily determinable, 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: Nine months ended September 30, Weighted Average Discount Rate 2024 2023 Operating leases 6.05 % 5.94 % Finance leases 9.65 % 9.63 % Future lease liabilities at September 30, 2024 are as follows (amounts in thousands): Year Ending December 31, Operating Lease Liabilities (1) Finance Lease Liabilities Total Lease Liabilities Remainder of 2024 $ 18,348 $ 1,463 $ 19,811 2025 77,630 5,851 83,481 2026 72,149 6,309 78,458 2027 68,519 6,110 74,629 2028 63,029 5,635 68,664 2029 60,192 5,224 65,416 Thereafter 256,557 104,712 361,269 Total lease payments 616,424 135,304 751,728 Less: Amounts representing interest (149,345) (80,860) (230,205) Total $ 467,079 $ 54,444 $ 521,523 (1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties. At September 30, 2024, the Company has entered into leases for Showrooms and equipment which have not yet commenced with expected lease terms ranging from 2 to 15 years. The aggregate minimum rental payments over the term of the leases of approximately $114.5 million are not included in the above table. Supplemental cash flow information related to leases for the nine months ended September 30, 2024 and September 30, 2023 is as follows (amounts in thousands): Nine months ended September 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 50,178 $ 41,759 Operating cash flows for finance leases 3,920 3,642 Financing cash flows for finance leases 686 503 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 72,473 $ 76,375 Finance leases 185 2,813

Equity Based Compensation

Equity Based Compensation	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Equity Based Compensation	Equity Based Compensation Activity of the Company’s Restricted Stock for the nine months ended September 30, 2024 and related equity based compensation expense for the nine and three months ended September 30, 2024 and September 30, 2023 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 (48,628) 18.61 Vested (227,224) 11.70 Unvested at September 30, 2024 224,452 $ 18.61 Nine months ended Three months ended September 30, September 30, 2024 2023 2024 2023 Equity based compensation expense - Restricted Stock (1) $ 1,829 $ 2,028 $ 498 $ 668 (1) Total unrecognized equity based compensation to be recognized in future periods is $3.4 million at September 30, 2024, and will be recognized over a weighted average period of 1.68 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 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 generally 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 for the nine months ended September 30, 2024 and their related equity based compensation expense for the nine and three months ended September 30, 2024 and September 30, 2023 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 254,923 15.83 351,405 15.81 Forfeited (105,908) 8.56 (55,360) 9.61 Vested — — (381,944) 7.30 Unvested at September 30, 2024 849,244 $ 9.62 1,162,266 $ 10.29 Nine months ended Three months ended September 30, September 30, 2024 2023 2024 2023 Equity based compensation (benefit) expense - PSUs (1) $ (158) $ 1,662 $ 128 $ 417 Equity based compensation expense - RSUs (2) $ 3,681 $ 2,062 $ 1,375 $ 763 (1) Total unrecognized equ ity based compensation for the PSUs to be recognized in future periods is $2.6 million at September 30, 2024, and will be recognized over a weighted average period of 1.90 years . Equity based compensation (benefit) 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 $9.1 million at September 30, 2024, and will be recognized over a weighted average period of 2.04 years . Equity based compensation expense is recorded within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 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 ten percent or more of our net revenue. Net revenue by merchandise sales channel for the nine and three months ended September 30, 2024 and September 30, 2023 is as follows (amounts in thousands): Nine months ended Three months ended September 30, September 30, 2024 2023 2024 2023 Retail $ 766,124 $ 768,624 $ 264,788 $ 261,786 eCommerce 157,972 175,072 54,345 64,443 Total net revenue $ 924,096 $ 943,696 $ 319,133 $ 326,229

Net and Comprehensive Income pe

Net and Comprehensive Income per Share	9 Months Ended
	Sep. 30, 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 nine and three months ended September 30, 2024 and September 30, 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): Nine months ended Three months ended September 30, September 30, 2024 2023 2024 2023 Numerator Net and comprehensive income $ 47,256 $ 94,023 $ 9,923 $ 19,741 Denominator—Weighted Average Shares Outstanding Weighted-average number of common shares outstanding, basic 139,990,522 139,365,870 140,166,990 139,628,776 Effect of dilutive restricted stock (1) (2) 741,815 655,800 555,925 512,123 Weighted-average number of common shares outstanding, diluted 140,732,337 140,021,670 140,722,915 140,140,899 Net and Comprehensive Income Per Share Net and comprehensive income per share, basic $ 0.34 $ 0.67 $ 0.07 $ 0.14 Net and comprehensive income per share, diluted $ 0.34 $ 0.67 $ 0.07 $ 0.14 (1) During the nine and three months ended September 30, 2024, 397,337 and 495,462, respectively, 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 nine and three months ended September 30, 2023, 736,173 and 416,123, respectively, 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) During the nine and three months ended September 30, 2024, 518,564 PSUs were excluded from the calculation of the effect of dilutive restricted stock because they did not meet the required performance criteria. During the nine and three months ended September 30, 2023, 704,952 PSUs were excluded from the calculation of the effect of dilutive restricted stock because they did not meet the required performance criteria.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 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. As of September 30, 2024, the Company has accrued legal costs of $6.1 million that are recorded in accrued other expenses in our condensed consolidated balance sheet . From time to time, the Company has received inquiries from a number of state and local taxing agencies with respect to the remittance of sales, use, telecommunications, excise, and income taxes. Several jurisdictions are currently conducting tax audits of the Company's records. The Company collects, or has accrued for, taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company. The Company adjusts its accrual when facts relating to specific exposures warrant such adjustment. As of September 30, 2024 and December 31, 2023, we recorded liabilities of $0.7 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 September 30, 2024, we have paid the donation commitment in full. 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”). During the nine months ended September 30, 2024, the Company paid out $70.1 million of the aforementioned special cash dividend on its Class A and Class B common stock. As of September 30, 2024, dividends payable of $0.5 million is recorded in accrued other expenses and $0.3 million is included in other long-term liabilities on our condensed consolidated balance sheet . The remaining dividends payable balance recorded 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.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions L easing transactions 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 were $0.1 million. In July 2023, the Company amended the lease agreement to extend the lease term to April 2034 with one additional 5-year renewal option. The monthly rental payments range from $0.1 million to $0.2 million. Rent expense was $1.3 million and $1.1 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. Rent expense was $0.4 million and $0.4 million for the three months ended September 30, 2024 and September 30, 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 $0.2 million and $0.2 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. Rent expense was $0.1 million and $0.1 million for the three months ended September 30, 2024 and September 30, 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 $3.0 million and $3.0 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. Rent expense was $1.0 million and $1.0 million for the three months ended September 30, 2024 and September 30, 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 September 30, 2024 and December 31, 2023, respectively, and are included within accounts payable on the condensed consolidated balance sheets.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expenses were $14.2 million and $31.8 million in the nine months ended September 30, 2024 and September 30, 2023 , respectively. Income tax expenses were $1.5 million and $5.3 million for the three months ended September 30, 2024 and September 30, 2023, respectively. The effective tax rate was 23.1% and 25.3% for the nine months ended September 30, 2024 and September 30, 2023 , respectively. The effective tax rate was 13.4% and 21.2% for the three months ended September 30, 2024 and September 30, 2023, respectively.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Nature of Business and Basis _2

Nature of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 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 September 30, 2024 and December 31, 2023, the condensed consolidated statements of comprehensive income and changes in stockholders’ equity for the nine and three months ended September 30, 2024 and September 30, 2023, the condensed consolidated statements of cash flows for the nine months ended September 30, 2024 and September 30, 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 September 30, 2024, the results of operations and changes in stockholders’ equity for the nine and three months ended September 30, 2024 and cash flows for the nine months ended September 30, 2024 . 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 nine and three months ended September 30, 2024 and September 30, 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 September 30, 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 September 30, 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 nine and three months ended September 30, 2024, breakage income was minimal. For the nine and three months ended September 30, 2023, breakage income was $0.8 million and $0.1 million, respectively.
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 September 30, 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 nine months ended September 30, 2024. 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 to Reportable Segment Disclosures Fiscal Year 2024 ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures Fiscal Year 2025
Accounts Receivable	Accounts Receivable The Company’s accounts receivables are $1.2 million and $2.4 million, respectively, at September 30, 2024 and December 31, 2023, net of allowance for expected credit losses of $0.3 million and $0.6 million, respectively. The allowance for expected credit losses is determined by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, the client’s current ability to pay its obligations, and the current and future condition of the general economy and industry as a whole. Accounts receivable are written off when they become uncollectible and any payments subsequently received on such receivables are credited to the allowance for expected credit losses. Accounts receivable are recorded at the invoiced amount and do not bear interest.

Nature of Business and Basis _3

Nature of Business and Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Schedule of Prepaid and Other Current Assets	P repaid and other current assets consist of the following (amounts in thousands): September 30, December 31, 2024 2023 Prepaid expenses $ 13,398 $ 9,374 Right of return asset 1,867 2,844 Prepaid advertising 1,032 610 Prepaid cloud computing arrangements, net (1) 8,554 4,253 Deposits 5,513 4,470 Other current assets 2,166 4,753 Total prepaid and other current assets $ 32,530 $ 26,304 (1) Presented net of accumulated amortization of $5.2 million and $2.7 million as of September 30, 2024 and December 31, 2023, respectively.
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 September 30, 2023 Condensed Consolidated Balance Sheet As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Restated Prepaid and other current assets $ 63,140 $ (26,441) $ 36,699 $ (13,428) $ 23,271 Total current assets $ 574,457 $ (26,441) $ 548,016 $ (13,428) $ 534,588 Operating right-of-use assets $ 314,378 $ (4,806) $ 309,572 $ — $ 309,572 Property, furniture and equipment, net 156,632 26,441 183,073 16,516 199,589 Total assets $ 1,115,574 $ (4,806) $ 1,110,768 $ 3,088 $ 1,113,856 Accrued other expenses $ 47,073 $ — $ 47,073 $ 4,406 $ 51,479 Current portion of operating lease liabilities 42,472 94 42,566 (1,318) 41,248 Total current liabilities $ 386,163 $ 94 $ 386,257 $ 3,088 $ 389,345 Operating lease liabilities, long-term $ 360,708 $ (4,900) $ 355,808 $ — $ 355,808 Total liabilities $ 807,086 $ (4,806) $ 802,280 $ 3,088 $ 805,368 Total liabilities and stockholders' equity $ 1,115,574 $ (4,806) $ 1,110,768 $ 3,088 $ 1,113,856 Nine months ended September 30, 2023 Condensed Consolidated Statement of Cash Flows As Originally Reported Adjustment No. 1 As Previously Disclosed Adjustment No. 2 As Restated Cash flows from operating activities Changes in prepaid and other assets $ (28,952) $ 20,504 $ (8,448) $ 4,085 $ (4,363) Changes in accounts payable (4,093) (6,048) (10,141) — (10,141) Changes in operating lease liabilities (28,797) — (28,797) (2,039) (30,836) Net cash provided by operating activities $ 131,368 $ 14,456 $ 145,824 $ 2,046 $ 147,870 Cash flows from investing activities Purchases of property, furniture and equipment $ (42,306) $ (14,456) $ (56,762) $ (2,046) $ (58,808) Net cash used in investing activities $ (41,973) $ (14,456) $ (56,429) $ (2,046) $ (58,475) Supplemental disclosure of cash flow information Noncash operating activities Lease incentives $ 7,313 $ (7,313) $ — $ — $ — Noncash investing activities: Purchase of property, furniture and equipment in current liabilities $ 2,756 $ 6,048 $ 8,804 $ 4,406 $ 13,210

Merchandise Warranties (Tables)

Merchandise Warranties (Tables)	9 Months Ended
	Sep. 30, 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): Nine months ended Three months ended September 30, September 30, 2024 2023 2024 2023 Balance as of beginning of period $ 7,084 $ 6,375 $ 7,106 $ 6,578 Accruals during the period 9,504 10,292 3,128 3,543 Settlements during the period (9,369) (9,854) (3,015) (3,308) Balance as of end of the period (1) $ 7,219 $ 6,813 $ 7,219 $ 6,813 (1) $4.1 million and $4.1 million were recorded in accrued other expenses at September 30, 2024 and December 31, 2023, respectively. The remainder is recorded in other long-term liabilities on our condensed consolidated balance sheets.

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 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 September 30, December 31, Assets Operating lease assets Operating right-of-use assets $ 348,612 $ 302,157 Finance lease assets Financing right-of-use assets 37,129 38,835 Total leased assets $ 385,741 $ 340,992 Liabilities Current operating leases Current portion of operating lease liabilities $ 51,669 $ 33,051 Non-current operating leases Operating lease liabilities, long-term 415,410 362,598 Total operating lease liabilities 467,079 395,649 Current finance leases Current portion of financing lease liabilities 991 904 Non-current finance leases Financing lease liabilities, long-term 53,453 53,870 Total finance lease liabilities 54,444 54,774 Total lease liabilities $ 521,523 $ 450,423
Schedule of Components of Lease Expense	The components of lease cost recognized within our condensed consolidated statements of comprehensive income for the nine and three months ended September 30, 2024 and September 30, 2023 are as follows (amounts in thousands): Nine months ended Three months ended September 30, September 30, Condensed Consolidated Statements of Comprehensive Income Classification 2024 2023 2024 2023 Lease costs: Operating lease costs Cost of goods sold $ 38,807 $ 31,894 $ 13,463 $ 11,518 Operating lease costs Selling, general and administrative expenses 7,689 7,375 2,594 2,518 Finance lease costs Amortization of right-of-use assets Selling, general and administrative expenses 1,774 1,838 519 758 Interest expense on lease liabilities Interest income, net 4,017 3,852 1,416 1,316 Variable lease costs (1) Cost of goods sold 26,974 28,474 7,412 9,327 Short term lease costs Selling, general and administrative expenses 107 165 68 29 Total lease costs $ 79,368 $ 73,598 $ 25,472 $ 25,466 (1) For the nine and three months ended September 30, 2024, there were no month-to-month lease costs. For the nine months ended September 30, 2023, total lease costs includes $0.4 million of month-to-month lease costs. The Company did not have month-to-month lease costs for the three months ended September 30, 2023. Nine months ended September 30, Weighted Average Remaining Lease Term (In Years) 2024 2023 Operating leases 9.04 9.27 Finance leases 20.25 21.02 Nine months ended September 30, Weighted Average Discount Rate 2024 2023 Operating leases 6.05 % 5.94 % Finance leases 9.65 % 9.63 %
Schedule of Lessee, Operating Lease, Liability, Maturity	Future lease liabilities at September 30, 2024 are as follows (amounts in thousands): Year Ending December 31, Operating Lease Liabilities (1) Finance Lease Liabilities Total Lease Liabilities Remainder of 2024 $ 18,348 $ 1,463 $ 19,811 2025 77,630 5,851 83,481 2026 72,149 6,309 78,458 2027 68,519 6,110 74,629 2028 63,029 5,635 68,664 2029 60,192 5,224 65,416 Thereafter 256,557 104,712 361,269 Total lease payments 616,424 135,304 751,728 Less: Amounts representing interest (149,345) (80,860) (230,205) Total $ 467,079 $ 54,444 $ 521,523 (1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties.
Schedule of Finance Lease, Liability, Fiscal Year Maturity	Future lease liabilities at September 30, 2024 are as follows (amounts in thousands): Year Ending December 31, Operating Lease Liabilities (1) Finance Lease Liabilities Total Lease Liabilities Remainder of 2024 $ 18,348 $ 1,463 $ 19,811 2025 77,630 5,851 83,481 2026 72,149 6,309 78,458 2027 68,519 6,110 74,629 2028 63,029 5,635 68,664 2029 60,192 5,224 65,416 Thereafter 256,557 104,712 361,269 Total lease payments 616,424 135,304 751,728 Less: Amounts representing interest (149,345) (80,860) (230,205) Total $ 467,079 $ 54,444 $ 521,523 (1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties.
Schedule of Supplemental Cash Flow from Leases	Supplemental cash flow information related to leases for the nine months ended September 30, 2024 and September 30, 2023 is as follows (amounts in thousands): Nine months ended September 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 50,178 $ 41,759 Operating cash flows for finance leases 3,920 3,642 Financing cash flows for finance leases 686 503 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 72,473 $ 76,375 Finance leases 185 2,813

Equity Based Compensation (Tabl

Equity Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Unvested Stock Activity	Activity of the Company’s Restricted Stock for the nine months ended September 30, 2024 and related equity based compensation expense for the nine and three months ended September 30, 2024 and September 30, 2023 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 (48,628) 18.61 Vested (227,224) 11.70 Unvested at September 30, 2024 224,452 $ 18.61 Nine months ended Three months ended September 30, September 30, 2024 2023 2024 2023 Equity based compensation expense - Restricted Stock (1) $ 1,829 $ 2,028 $ 498 $ 668 (1) Total unrecognized equity based compensation to be recognized in future periods is $3.4 million at September 30, 2024, and will be recognized over a weighted average period of 1.68 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 for the nine months ended September 30, 2024 and their related equity based compensation expense for the nine and three months ended September 30, 2024 and September 30, 2023 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 254,923 15.83 351,405 15.81 Forfeited (105,908) 8.56 (55,360) 9.61 Vested — — (381,944) 7.30 Unvested at September 30, 2024 849,244 $ 9.62 1,162,266 $ 10.29 Nine months ended Three months ended September 30, September 30, 2024 2023 2024 2023 Equity based compensation (benefit) expense - PSUs (1) $ (158) $ 1,662 $ 128 $ 417 Equity based compensation expense - RSUs (2) $ 3,681 $ 2,062 $ 1,375 $ 763 (1) Total unrecognized equ ity based compensation for the PSUs to be recognized in future periods is $2.6 million at September 30, 2024, and will be recognized over a weighted average period of 1.90 years . Equity based compensation (benefit) 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 $9.1 million at September 30, 2024, and will be recognized over a weighted average period of 2.04 years . Equity based compensation expense is recorded within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income.

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Schedule of Net Revenue by Segment	Net revenue by merchandise sales channel for the nine and three months ended September 30, 2024 and September 30, 2023 is as follows (amounts in thousands): Nine months ended Three months ended September 30, September 30, 2024 2023 2024 2023 Retail $ 766,124 $ 768,624 $ 264,788 $ 261,786 eCommerce 157,972 175,072 54,345 64,443 Total net revenue $ 924,096 $ 943,696 $ 319,133 $ 326,229

Net and Comprehensive Income _2

Net and Comprehensive Income per Share (Tables)	9 Months Ended
	Sep. 30, 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): Nine months ended Three months ended September 30, September 30, 2024 2023 2024 2023 Numerator Net and comprehensive income $ 47,256 $ 94,023 $ 9,923 $ 19,741 Denominator—Weighted Average Shares Outstanding Weighted-average number of common shares outstanding, basic 139,990,522 139,365,870 140,166,990 139,628,776 Effect of dilutive restricted stock (1) (2) 741,815 655,800 555,925 512,123 Weighted-average number of common shares outstanding, diluted 140,732,337 140,021,670 140,722,915 140,140,899 Net and Comprehensive Income Per Share Net and comprehensive income per share, basic $ 0.34 $ 0.67 $ 0.07 $ 0.14 Net and comprehensive income per share, diluted $ 0.34 $ 0.67 $ 0.07 $ 0.14 (1) During the nine and three months ended September 30, 2024, 397,337 and 495,462, respectively, 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 nine and three months ended September 30, 2023, 736,173 and 416,123, respectively, 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) During the nine and three months ended September 30, 2024, 518,564 PSUs were excluded from the calculation of the effect of dilutive restricted stock because they did not meet the required performance criteria. During the nine and three months ended September 30, 2023, 704,952 PSUs were excluded from the calculation of the effect of dilutive restricted stock 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		9 Months Ended
	Sep. 30, 2024 USD ($) store	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) store	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of stores | store	101		101
Client deposits, percentage collected at least (as a percent)			50%
Client deposits	$ 224,138		$ 224,138		$ 173,808
Breakage income	0	$ 100	0	$ 800
Interest income	1,900	$ 2,500	6,700	$ 5,800
Accounts receivable, net	1,196		1,196		2,394
Allowance for doubtful accounts	300		300		600
Other Accrued Expenses
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Client deposits	$ 400		$ 400		$ 500

Nature of Business and Basis _5

Nature of Business and Basis of Presentation - Schedule of Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Accounting Policies [Abstract]
Prepaid expenses	$ 13,398	$ 9,374
Right of return asset	1,867	2,844
Prepaid advertising	1,032	610
Prepaid cloud computing arrangements, net	8,554	4,253
Deposits	5,513	4,470
Other current assets	2,166	4,753
Prepaid and other current assets	32,530	26,304	$ 23,271
Prepaid cloud computing arrangements, accumulated amortization expense	$ 5,200	$ 2,700

Nature of Business and Basis _6

Nature of Business and Basis of Presentation - Revision of Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prepaid and other current assets	$ 32,530	$ 26,304	$ 23,271
Total current assets	509,260	509,295	534,588
Operating right-of-use assets	348,612	302,157	309,572
Property, furniture and equipment, net	285,292	220,248	199,589
Total assets	1,209,311	1,105,148	1,113,856
Accrued other expenses	47,567	46,062	51,479
Current portion of operating lease liabilities	51,669	33,051	41,248
Total current liabilities	415,675	342,347	389,345
Operating lease liabilities, long-term	415,410	362,598	355,808
Total liabilities	888,666	764,910	805,368
Total liabilities and stockholders' equity	$ 1,209,311	1,105,148	1,113,856
As Originally Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prepaid and other current assets			63,140
Total current assets			574,457
Operating right-of-use assets			314,378
Property, furniture and equipment, net			156,632
Total assets			1,115,574
Accrued other expenses			47,073
Current portion of operating lease liabilities			42,472
Total current liabilities			386,163
Operating lease liabilities, long-term			360,708
Total liabilities			807,086
Total liabilities and stockholders' equity			1,115,574
Adjustment No. 1
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prepaid and other current assets			(26,441)
Total current assets			(26,441)
Operating right-of-use assets			(4,806)
Property, furniture and equipment, net			26,441
Total assets			(4,806)
Accrued other expenses			0
Current portion of operating lease liabilities			94
Total current liabilities			94
Operating lease liabilities, long-term			(4,900)
Total liabilities			(4,806)
Total liabilities and stockholders' equity			(4,806)
As Previously Disclosed
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prepaid and other current assets		45,260	36,699
Total current assets		528,251	548,016
Operating right-of-use assets			309,572
Property, furniture and equipment, net		210,238	183,073
Total assets		1,114,094	1,110,768
Accrued other expenses		42,502	47,073
Current portion of operating lease liabilities		45,557	42,566
Total current liabilities		351,293	386,257
Operating lease liabilities, long-term			355,808
Total liabilities		773,856	802,280
Total liabilities and stockholders' equity		1,114,094	1,110,768
Adjustment No. 2
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prepaid and other current assets		(18,956)	(13,428)
Total current assets		(18,956)	(13,428)
Operating right-of-use assets			0
Property, furniture and equipment, net		10,010	16,516
Total assets		(8,946)	3,088
Accrued other expenses		3,560	4,406
Current portion of operating lease liabilities		(12,506)	(1,318)
Total current liabilities		(8,946)	3,088
Operating lease liabilities, long-term			0
Total liabilities		(8,946)	3,088
Total liabilities and stockholders' equity		$ (8,946)	$ 3,088

Nature of Business and Basis _7

Nature of Business and Basis of Presentation - Revision of Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Cash flows from operating activities
Changes in prepaid and other assets	$ (6,527)	$ (4,363)	$ (11,109)
Changes in accounts payable	8,983	(10,141)
Changes in operating lease liabilities	(23,071)	(30,836)	(39,020)
Net cash provided by operating activities	115,426	147,870	168,685
Cash flows from investing activities
Purchases of property, furniture and equipment	(88,686)	(58,808)	(93,441)
Net cash used in investing activities	(88,686)	(58,475)	(93,108)
Noncash operating activities
Lease incentives		0
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities	$ 12,650	13,210	10,286
As Originally Reported
Cash flows from operating activities
Changes in prepaid and other assets		(28,952)
Changes in accounts payable		(4,093)
Changes in operating lease liabilities		(28,797)
Net cash provided by operating activities		131,368
Cash flows from investing activities
Purchases of property, furniture and equipment		(42,306)
Net cash used in investing activities		(41,973)
Noncash operating activities
Lease incentives		7,313
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities		2,756
Adjustment No. 1
Cash flows from operating activities
Changes in prepaid and other assets		20,504
Changes in accounts payable		(6,048)
Changes in operating lease liabilities		0
Net cash provided by operating activities		14,456
Cash flows from investing activities
Purchases of property, furniture and equipment		(14,456)
Net cash used in investing activities		(14,456)
Noncash operating activities
Lease incentives		(7,313)
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities		6,048
As Previously Disclosed
Cash flows from operating activities
Changes in prepaid and other assets		(8,448)	(20,721)
Changes in accounts payable		(10,141)
Changes in operating lease liabilities		(28,797)	(25,794)
Net cash provided by operating activities		145,824	172,299
Cash flows from investing activities
Purchases of property, furniture and equipment		(56,762)	(97,055)
Net cash used in investing activities		(56,429)	(96,722)
Noncash operating activities
Lease incentives		0
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities		8,804	6,726
Adjustment No. 2
Cash flows from operating activities
Changes in prepaid and other assets		4,085	9,612
Changes in accounts payable		0
Changes in operating lease liabilities		(2,039)	(13,226)
Net cash provided by operating activities		2,046	(3,614)
Cash flows from investing activities
Purchases of property, furniture and equipment		(2,046)	3,614
Net cash used in investing activities		(2,046)	3,614
Noncash operating activities
Lease incentives		0
Noncash investing activities:
Purchase of property, furniture and equipment in current liabilities		$ 4,406	$ 3,560

Merchandise Warranties - Narrat

Merchandise Warranties - Narrative (Details)	9 Months Ended
	Sep. 30, 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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance as of beginning of period	$ 7,106	$ 6,578	$ 7,084	$ 6,375
Accruals during the period	3,128	3,543	9,504	10,292
Settlements during the period	(3,015)	(3,308)	(9,369)	(9,854)
Balance as of the end of the period	7,219	6,813	7,219	6,813
Accrued and other expenses	7,219	$ 6,813	7,219	$ 6,813
Accrued Other Expenses
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance as of beginning of period			4,100
Balance as of the end of the period	4,100		4,100
Accrued and other expenses	$ 4,100		$ 4,100

Debt (Details)

Debt (Details) - 2021 Credit Facility - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Dec. 09, 2022	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
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 | Bloomberg Short-Term Bank Yield Index Rate
Debt Instrument [Line Items]
Credit facility, basis spread on variable rate		1.50%
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Credit facility, basis spread on variable rate	1.75%
Revolving Credit Facility | Letter of Credit
Debt Instrument [Line Items]
Credit facility, face amount					10,000,000
Revolving Credit Facility | Swingline Loan
Debt Instrument [Line Items]
Credit facility, face amount					$ 5,000,000

Leases - Liability for Operatin

Leases - Liability for Operating and Finance Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Leases [Abstract]
Operating right-of-use assets	$ 348,612	$ 302,157	$ 309,572
Financing right-of-use assets	37,129	38,835
Total leased assets	385,741	340,992
Current portion of operating lease liabilities	51,669	33,051	41,248
Operating lease liabilities, long-term	415,410	362,598	$ 355,808
Total operating lease liabilities	467,079	395,649
Current portion of financing lease liabilities	991	904
Financing lease liabilities, long-term	53,453	53,870
Total finance lease liabilities	54,444	54,774
Total lease liabilities	$ 521,523	$ 450,423

Leases - Components of Lease Co

Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Lease Cost [Line Items]
Other lease costs	$ 0	$ 0	$ 0	$ 400
Total lease costs	25,472	25,466	79,368	73,598
Cost of goods sold
Lease Cost [Line Items]
Operating lease costs	13,463	11,518	38,807	31,894
Other lease costs	7,412	9,327	26,974	28,474
Selling, general and administrative expenses
Lease Cost [Line Items]
Operating lease costs	2,594	2,518	7,689	7,375
Amortization of right-of-use assets	519	758	1,774	1,838
Other lease costs	68	29	107	165
Interest income, net
Lease Cost [Line Items]
Interest expense on lease liabilities	$ 1,416	$ 1,316	$ 4,017	$ 3,852

Leases - Schedule of Weighted A

Leases - Schedule of Weighted Average Lease Term (Details)	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating leases	9 years 14 days	9 years 3 months 7 days
Finance leases	20 years 3 months	21 years 7 days

Leases - Schedule of Weighted_2

Leases - Schedule of Weighted Average Discount Rate (Details)	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating leases	6.05%	5.94%
Finance leases	9.65%	9.63%

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Operating Lease Liabilities
Remainder of 2024	$ 18,348
2025	77,630
2026	72,149
2027	68,519
2028	63,029
2029	60,192
Thereafter	256,557
Total lease payments	616,424
Less: Amounts representing interest	(149,345)
Total operating lease liabilities	467,079	$ 395,649
Finance Lease Liabilities
Remainder of 2024	1,463
2025	5,851
2026	6,309
2027	6,110
2028	5,635
2029	5,224
Thereafter	104,712
Total lease payments	135,304
Less: Amounts representing interest	(80,860)
Total finance lease liabilities	54,444	$ 54,774
Total Lease Liabilities
Remainder of 2024	19,811
2025	83,481
2026	78,458
2027	74,629
2028	68,664
2029	65,416
Total lease payments	361,269
Thereafter	751,728
Less: Amounts representing interest	(230,205)
Total	$ 521,523

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Millions	Sep. 30, 2024 USD ($)
Operating lease, lease not yet commenced
Lease Cost [Line Items]
Aggregate minimum rental payments, not yet commenced	$ 114.5
Minimum
Lease Cost [Line Items]
Lease term, not yet commenced	2 years
Maximum
Lease Cost [Line Items]
Lease term, not yet commenced	15 years

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating cash flows for operating leases	$ 50,178	$ 41,759
Operating cash flows for finance leases	3,920	3,642
Financing cash flows for finance leases	686	503
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	72,473	76,375
Finance leases	$ 185	$ 2,813

Equity Based Compensation - Unv

Equity Based Compensation - Unvested Stock Activity (Details)	9 Months Ended
	Sep. 30, 2024 $ / shares shares
PSU Awards
Amount
Unvested, beginning of period (in shares) | shares	700,229
Granted (in shares) | shares	254,923
Forfeited (in shares) | shares	(105,908)
Vested (in shares) | shares	0
Unvested, end of period (in shares) | shares	849,244
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) | $ / shares	$ 7.20
Granted (in dollars per share) | $ / shares	15.83
Forfeited (in dollars per share) | $ / shares	8.56
Vested (in dollars per share) | $ / shares	0
Unvested, end of period (in dollars per share) | $ / shares	$ 9.62
RSU Awards
Amount
Unvested, beginning of period (in shares) | shares	1,248,165
Granted (in shares) | shares	351,405
Forfeited (in shares) | shares	(55,360)
Vested (in shares) | shares	(381,944)
Unvested, end of period (in shares) | shares	1,162,266
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) | $ / shares	$ 7.79
Granted (in dollars per share) | $ / shares	15.81
Forfeited (in dollars per share) | $ / shares	9.61
Vested (in dollars per share) | $ / shares	7.30
Unvested, end of period (in dollars per share) | $ / shares	$ 10.29
Class A | Restricted Stock
Amount
Unvested, beginning of period (in shares) | shares	500,304
Granted (in shares) | shares	0
Forfeited (in shares) | shares	(48,628)
Vested (in shares) | shares	(227,224)
Unvested, end of period (in shares) | shares	224,452
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	18.61
Vested (in dollars per share) | $ / shares	11.70
Unvested, end of period (in dollars per share) | $ / shares	$ 18.61

Equity Based Compensation - Equ

Equity Based Compensation - Equity Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	$ 498	$ 668	$ 1,829	$ 2,028
Incentive Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	3,400		$ 3,400
Unrecognized compensation cost, period for recognition			1 year 8 months 4 days
PSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	128	417	$ (158)	1,662
Unrecognized compensation cost	2,600		$ 2,600
Unrecognized compensation cost, period for recognition			1 year 10 months 24 days
RSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	1,375	$ 763	$ 3,681	$ 2,062
Unrecognized compensation cost	$ 9,100		$ 9,100
Unrecognized compensation cost, period for recognition			2 years 14 days

Equity Based Compensation - Nar

Equity Based Compensation - Narrative (Details) - shares	9 Months Ended
	Sep. 30, 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)	9 Months Ended
	Sep. 30, 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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Net revenue	$ 319,133	$ 326,229	$ 924,096	$ 943,696
Retail
Segment Reporting Information [Line Items]
Net revenue	264,788	261,786	766,124	768,624
eCommerce
Segment Reporting Information [Line Items]
Net revenue	$ 54,345	$ 64,443	$ 157,972	$ 175,072

Net and Comprehensive Income _3

Net and Comprehensive Income per Share - Calculation of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator
Net and comprehensive income	$ 9,923	$ 19,741	$ 47,256	$ 94,023
Denominator—Weighted Average Shares Outstanding
Weighted-average number of common shares outstanding, basic (in shares)	140,166,990	139,628,776	139,990,522	139,365,870
Effect of dilutive restricted stock (in shares)	555,925	512,123	741,815	655,800
Weighted-average number of common shares outstanding, diluted (in shares)	140,722,915	140,140,899	140,732,337	140,021,670
Net and comprehensive income per share, basic (in dollars per share)	$ 0.07	$ 0.14	$ 0.34	$ 0.67
Net and comprehensive income per share, diluted (in dollars per share)	$ 0.07	$ 0.14	$ 0.34	$ 0.67
Antidilutive securities excluded from computation of earnings per share (in shares)	495,462	416,123	397,337	736,173
Securities not meeting performance target, excluded from computation of earnings per share (in shares)	518,564	704,952	518,564	704,952

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2024	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Aug. 31, 2023
Other Commitments [Line Items]
Accrued legal cost		$ 6,100
Loss contingency accrual		700		$ 200
Committed donation					$ 10,000
Common stock, dividends declared (in dollars per share)	$ 0.50
Special cash dividend		70,144	$ 0
Current Liabilities
Other Commitments [Line Items]
Dividends payable		500
Other Long-term Liabilities
Other Commitments [Line Items]
Dividends payable		$ 300

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	1 Months Ended				3 Months Ended		9 Months Ended
	Jul. 31, 2023 USD ($) option	Mar. 31, 2021 USD ($)	Aug. 31, 2020 USD ($)	Jul. 31, 2010 USD ($)	Sep. 30, 2024 USD ($) option	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) option	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Nov. 30, 2000
Related Party Transaction [Line Items]
Operating lease, term (in years)		12 years
Renewal options | option					2		2
Accounts payable					$ 73,559		$ 73,559		$ 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	3,000	$ 3,000
Accounts payable					200		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	400	1,300	1,100
Related Party | Brooklyn, Ohio | Chief Executive Officer | Brooklyn Arhaus
Related Party Transaction [Line Items]
Ownership percentage by parent				85%
Related Party | Brooklyn, Ohio | Director | Brooklyn Arhaus
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners				15%
Related Party | Brooklyn, Ohio | Outlet
Related Party Transaction [Line Items]
Operating lease, term (in years)				15 years
Rent expense					$ 100	$ 100	$ 200	$ 200
Related Party | Maximum | Walton Hills, Ohio | Warehouse
Related Party Transaction [Line Items]
Operating lease, renewal term (in years)										5 years

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,542	$ 5,297	$ 14,186	$ 31,771
Effective income tax rate	13.40%	21.20%	23.10%	25.30%