Arhaus Inc (NASDAQ:ARHS) stock rose 3.69% (As on March 8, 8:00:00 AM UTC-4, Source: Google Finance) after the company beat analysts’ expectations in Q4 FY2023. Comparable growth was (6.8)% and demand comparable growth was 1.6% in the fourth quarter of 2023. Gross margin decreased 10.6% to $141 million, compared to $158 million in the fourth quarter of 2022, driven primarily by the decrease in net revenue and higher transportation expense and Showroom costs, partially offset by lower costs related to the reduction in net revenue. Adjusted net income was $31 million in the fourth quarter of 2023, compared to $48 million in the fourth quarter of 2022. Adjusted EBITDA decreased 30.9% to $51 million, compared to $74 million in the fourth quarter of 2022. Adjusted EBITDA as a percent of net revenue decreased 590 basis points to 14.9% in the fourth quarter of 2023, compared to 20.8% in the fourth quarter of 2022. Cash and cash equivalents totaled $223 million, and the Company had no long-term debt at December 31, 2023. Net merchandise inventory decreased 11.2% to $254 million, compared to $286 million as of December 31, 2022. Client deposits decreased 14.2% to $174 million. For the year ended December 31, 2023, net cash provided by operating activities was $172 million, compared to $73 million for the full year ended December 31, 2022.

ARHS in the fourth quarter of FY 23 has reported the adjusted earnings per share of 22 cents, beating the analysts’ estimates for the adjusted earnings per share of 16 cents. The company had reported 3.5 percent decline in the adjusted revenue growth to $344 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $335.5 million. The decrease was the result of strong prior year delivery of orders in the backlog, partially offset by favorable demand versus prior year with demand comparable growth of 1.6%.

Additionally, the company has approved a special cash dividend of $0.50 per share payable on or about April 4, 2024, to shareholders of record at the close of business on March 21, 2024.

The company is guiding for a 13% year-on-year revenue decline next quarter to $265 million, a reversal from the 23.7% year-on-year increase it recorded in the same quarter last year.

Management’s revenue guidance for the upcoming financial year 2024 is $1.35 billion at the midpoint, beating analyst estimates by 1.8% and implying 4.8% growth (vs 6.1% in FY2023)