The penetration of that program continues to expand and AOV continues to be over 3x that of our average AOV for the company. However, the average rate of Arhaus products is nearly 16 hundred dollars. The forward-looking statements are made as of today's date. So we're pleased with what we're seeing there and think that now is the right time to make that change. Our next question comes from the line of Steve Forbes from Guggenheim Partners. 2023 www.beaconjournal.com. For all other details related to our updated 2022 outlook, please refer to our press release. We had another great quarter, our third as a public company, and we are excited to share our results. John Reed usually trades in December, with the busiest year in 2022 and 2021. Again, it's something we could do if we wanted to. I wanted to ask first about Dallas, and understand that it's going to be a cost headwind in the second half. Curious if you guys are seeing in terms of new customer acquisitions, maybe an outsized increase in customers with presumably maybe higher household income, maybe potentially trading down? Our current momentum gives us confidence in our performance for the remainder of the year. Country of residence : Unknown. Currently working as President and Chief Executive Officer at Arhaus in Ohio, United States. Super helpful. This net worth evaluation does not reflect any other assets that Ms. Phillipson may own. Kuckelman, who has over three decades of leadership experience in retail operations and logistics, will be . We've touched on previously those marketing spends are always based upon return driven targets. . Ms. Phillipson owns 644,985 shares of Arhaus stock worth more than $8,655,699 as of January 29th. 51 E Hines Hill Rd, Boston Hts, OH 44236-1151. We are very pleased with what we are seeing in the early part of the third quarter. Good morning, and thank you for joining Arhaus' second quarter 2022 earnings call. In the long term, we view all expenses as variable, but we feel we're really well positioned with our balance sheet strength to kind of weather what uncertainties lie ahead for the next 6 to 12 months. Thank you. 1986, John Reed first established a furniture store with his father, Jack Reed, in Cleveland, Ohio. What our strategy had been through recessions is we were always focused on actually growing our business. Thats hard to say. We just launched about a week or two weeks ago, we added UTC onto the homepage, so really being able to show our product in clients' homes. Lolois new president, changes at the top for IMC and DLN and more, Interior Define is starting over with a new owner, Why Frank Lloyd Wright is still driving product design today, How this Delaware designer is getting creative with deliveries. We still have room to take other increases if we need to. Thank you. Breaking this down a bit, as I mentioned, we significantly beat our internal expectations for net revenue and earnings in the second quarter. I'd also like you to keep in mind that Dallas is kind of at peak on productivity for the third quarter. So as demand continues to be strong, it refills the pipeline, so therefore kind of pushing out the backlog a little bit longer. But we're also seeing really strong results. The company in July opened its third distribution center in Texas. Founded in 1986 by current CEO John Reed as a shop in Cleveland, Arhaus has achieved considerable scale over the past three decades, now encompassing 75 showrooms nationwide and more than 1,400 employees. So really pleased with the performance that we're seeing out of North Carolina, the productivity there. John Reed Co-Founder and Chairman. Those dollars are shifting across campaigns, across channels and we've been really pleased with the results today this year and are really excited moving forward with our new fall launch coming. Is there anything else you plan to take? And the distribution center is phenomenal, and has certainly outpaced our original expectations for that facility. While our inventory dollars are growing due to inflationary conditions, our inventory units are growing at a significantly lower rate. And like I said, we'll continue to monitor what's going on in the environment. John mentioned it in the comments earlier, we are really excited about this launch with a lot of new products, a lot of new storytelling and marketing that aligns really, really nicely with some really exciting trends and things that are happening within the industry as a whole going into fall. Additionally, Ms. Phillipson receives an annual salary of $2,710,000 . The two work hand-in-glove. The company turned public in November 2021. Elton John (1970-75) John Reid (born 9 September 1949) is a Scottish former music manager, known for being the manager and former lover of singer Elton John, as well as for managing the British . The Company ended the quarter with 80 total showrooms across 28 states. Our second quarter performance is particularly notable on top of last year's very strong second quarter performance that included comp growth of 71% and demand comp growth of 73%. Follow. Dallas is coming up a little bit slower. Thank you for your attention, and we would now like to open the call up for questions. Arhaus grew more than twice as fast, with sales rising 51% for the first six months in 2021 compared with pre-pandemic 2019, reaching $355.4 million from $235.9 million in 2019. As we announced this morning, we are raising our full year 2022 outlook to reflect our second quarter outperformance. Yes, we have three -- three will be open this year -- three have been pushed into next year, sorry. I'm not going to get into too many more specifics there, because I don't want to give away all of our secrets. It's also operated by a third party. Thank you for taking the question. But we'd like to look at a lot of things on a three-year basis. Second quarter 2022 net income increased 436% to $37 million. That's something that we know works incredibly well for us on our social channels. And how should we think about going into 2023? We're not planning on taking discounts or discounting in the future right now. But we are very excited for what we're seeing. Certainly know where they were three years ago, but lower than last year. As leases expire, and going back to landlords and if we want to stay in this space, then renegotiating leases, trying to get some landlord contribution if we are going to remodel or if we need to move it down the street or across the street or something, then we'd look at that. And Simeon, just to add some color to that as well. On with me today are John Reed, Co-Founder, Chairman, and Chief Executive Officer; and Dawn Phillipson, Chief Financial Officer. Please go ahead. Yes. At the same time, we recognize that over the next 6 to 12 months, a lot could change. It's a fair amount. Gross margin as a percent of net revenue increased 110 basis points to 43%, reflecting our ability to leverage our fixed showroom occupancy costs over higher net revenue, partially offset by higher transportation costs and variable rent expense. Though by now its accepted wisdom that the pandemic has been good for home brands, its still eye-opening to see COVID growth in real numbers. Demand continues to be strong, though a moderation from the levels in Q2. The soul of a company is their mission statement, described by Arhaus as a simple idea, Ramey concludes. And, of course, in that case, the dollar is quite a bit stronger. 266 posts. BOH Insiders unlock access to weekly designer classes and exclusive Insider-only workshops, Houzz study points to industry slowdown, Sheila Bridges remakes the VPs residence and more. And this morning's press release includes the relevant non-GAAP reconciliations. We will also refer to certain non-GAAP financial measures. Obviously, we're paying very close attention to everything. Thank you. As I mentioned, we have recalibrated the model to bring down container costs for the balance of the year. We opened two new showrooms during the quarter in Colorado Springs and in White Plains, New York. Not only new locations, but going back and renovating older stores or moving older stores that have been proven to be very successful and are worthy of our new look and our new design that has proven to be a huge success for us. Our second quarter net revenue significantly beat our internal expectations with upside across demand comp and delivered orders in both showroom and eCommerce channels. That's my first question. And then just my follow up is on pricing. Kuckelman, who has over three decades of leadership experience in retail operations and logistics, will be . Arhaus is counting on continued expansion at the premium end of the home furnishings market. And that was a different approach. John Reid was born in Paisley . We're definitely -- we're seeing promos out there with our competitors. Despite ongoing macroeconomics, geopolitical concerns, including high inflation, rising interest rates, and ongoing global supply chain challenges, demand for our product remains strong, driven by our passionate approach to design and developments. The conference of Arhaus, Inc. has now concluded. As you mentioned, it is a really exciting and continuous process. John Reed. In 2009, we had a negative comp of 13% and then came out strong in 2010 with a 20% comp growth. Good morning, everyone. Great. This morning, we reported record quarterly net revenue of $306 million, a 66% increase from Q2 last year with our retail channel up 69% and our eComm channel up 54%. As I mentioned, we're really, really pleased with how North Carolina is shipping product out. I am proud to work alongside each of you. The company reports 80% of e-commerce revenue originates from customers within a 50 mile radius of a showroom. Biography of John Reed. Arhaus had net revenue of $355.4 million and net income of $16.2 million in the six months ended June 31, according to the filing. Clients love to engage with it, be inspired with it, visit the showrooms to experience it. So we're, I guess, can be happy as you can be with paying that much for a container. See why everything is bigger in Texas, including our vibes! I do. So we were cautious. And so it's really interesting. Very excited about the product. So just important to keep that in mind as we think about the balance of the year. Learn More about Jennifer E. Porter's net worth. We were focused on coming up with new products that would really entice and thrill our clients. For more information, call 866.427.4287 or visit us on the web at arhaus.com. Inc. reported strong second quarter earnings on Thursday and raised its financial outlook for the year, saying annual revenue will approach $1.2 billion. Arhaus is going public. On October 4th, the Ohio-based home furnishings retailer filed documents with the SEC outlining its plans for an IPO. Net merchandise inventory was $272 million, up 31% from December 31, 2021 and up 100% year-over-year as we continue to build inventory in response to strong ongoing client demand and as inventory value increased due to higher freight and product costs. For a summary of these risk factors and additional information, please refer to this morning's press release and the cautionary statements and risk factors described in our annual report on Form 10-K and subsequent 10-Qs, as such factors may be updated from time-to-time in our filings with the SEC. Yes, Simeon. That's why we offer everything from weight training and cardio to yoga and Pilates, a diverse range of group fitness classes and so much more. We think it's extremely strong. Please go ahead. I will say that there's some offset there relative to the fuel surcharges we're seeing in transportation on the outbound side. Tim Reid. We continue to be really, really pleased with the performance of the new sites. Yes, I can start with that that I don't look at those every day and worry about them too much. And then this is sort of a question it's more philosophical or how much, if at all, do the macro housing data points factor into your business forecast? We have also recalibrated some of our revenue, cost and margin assumptions for the second half of the year. He rethought the business model of consumer banking: as a service built around customers . I believe last quarter you said it was pretty steady across the three months in Q1. I guess it was more of an offensive approach we took than what our competitors would do, which we saw with pull back on things, not introduce new products, pull back on marketing. Though companies like RH and Williams-Sonoma saw their stocks surge in the first year of the pandemic, the growth seems to have plateaued since the spring of this year, despite consistently impressive quarterly reports. So we're pulling that up earlier than what we anticipated at the time of the transaction. As you can see from our results, this is clearly resonating. It also publishes a catalog twice a year to bolster both in-showroom and e-commerce sales. Okay, fair enough. 2 Arhaus Furniture reviews.