NEW YORK, Aug. 16, 2024 (GLOBE NEWSWIRE) -- Attorney Advertising--Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Arhaus, Inc. (“Arhaus” or “the Company”) (NASDAQ: ARHS). Investors who purchased Arhaus securities are encouraged to obtain additional information and assist the investigation by visiting the firm’s site: bgandg.com/ARHS.
Investigation Details
On or around November 4, 2021, Arhaus conducted its initial public offering (“IPO”), selling 12.9 million shares priced at $13.00 per share. Then, on April 29, 2024, Arhaus issued a press release disclosing that “the Company’s previously issued unaudited condensed consolidated financial statements included in Amendment No. 1 to the Company’s Quarterly Report on Form 10-Q/A for the period ended September 30, 2023 (the ‘Q3 Form 10-Q/A’ and such period, the ‘Affected Period’), filed with the U.S. Securities and Exchange Commission (the ‘SEC’) on March 11, 2024, should no longer be relied upon due to the errors described below and should be restated.” Arhaus stated that it had “identified errors within the unaudited condensed consolidated balance sheet as of September 30, 2023 related to certain cash receipts from landlord reimbursements prior to showroom completion being incorrectly included in property, furniture and equipment, net” and that “[t]he errors also resulted in inaccurate cash flows ascribed to operating and investing activities in the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2023.” Accordingly, Arhaus “estimates that the impact of the errors will result in an increase in net cash provided by operating activities and an increase in net cash used in investing activities in the range of approximately $1 million to $5 million in the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2023.” Arhaus further advised that it “will restate its financial statements for the Affected Period . . . as soon as practicable.” On this news, Arhaus’s stock price fell $0.80 per share, or 5.94%, to close at $12.66 per share on April 30, 2024. Then, on August 8, 2024, Arhaus issued a press release announcing its financial results for the second quarter of 2024. Among other items, Arhaus reported revenue of $310 million, representing a year-over-year decline of 0.9% and missing consensus estimates by $4.28 million. On this news, Arhaus’s stock price fell $1.74 per share, or 12.57%, to close at $12.10 per share on August 8, 2024.
What's Next?
If you are aware of any facts relating to this investigation or purchased Arhaus securities, you can assist this investigation by visiting the firm’s site: bgandg.com/ARHS. You can also contact Peretz Bronstein or his client relations manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC: 332-239-2660.
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We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
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Contact
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller
332-239-2660 | info@bgandg.com
