NEW YORK, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Arhaus, Inc. (“Arhaus” or the “Company”) (NASDAQ: ARHS) on behalf of Arhaus stockholders. Our investigation concerns whether Arhaus has violated the federal securities laws and/or engaged in other unlawful business practices.
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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.
If you purchased or otherwise acquired Arhaus shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
