SAN DIEGO, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Shareholder rights law firm Johnson Fistel, LLP is investigating whether Arhaus, Inc. ("Arhaus" or the "Company") (NASDAQ: ARHS) or any of its executive officers or others violated securities laws by misrepresenting or failing to timely disclose material, adverse information to investors. The investigation focuses on investors’ losses and whether they may be recovered under federal securities laws.
What if I purchased Arhaus securities? If you purchased securities and suffered losses on your investment, join our investigation now:
Click Here to Join the Investigation
Or for more information, contact Jim Baker at jimb@johnsonfistel.com or (619) 814-4471.
There is no cost or obligation to you.
What is Johnson Fistel investigating? Around November 4, 2021, Arhaus went public by conducting its initial public offering ("IPO"), during which it sold 12.9 million shares at a price of $13.00 per share.
Later, on April 29, 2024, Arhaus released a press statement revealing 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 acknowledged 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." The company also noted 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." Consequently, 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 announced that it "will restate its financial statements for the Affected Period . . . as soon as practicable."
Following this disclosure, Arhaus's stock price dropped by $0.80 per share, or 5.94%, closing at $12.66 per share on April 30, 2024.
Subsequently, on August 8, 2024, Arhaus issued another press release, this time announcing its financial results for the second quarter of 2024. Among the highlights, Arhaus reported revenue of $310 million, reflecting a year-over-year decline of 0.9% and falling short of consensus estimates by $4.28 million.
In response to this news, Arhaus's stock price declined by $1.74 per share, or 12.57%, closing at $12.10 per share on August 8, 2024.
What if I have relevant nonpublic information? Individuals with nonpublic information regarding the company should consider whether to assist our investigation or take advantage of the SEC Whistleblower program. Under the SEC program, whistleblowers who provide original information may, under certain circumstances, receive rewards totaling up to thirty percent of any successful recovery made by the SEC. For more information, contact Jim Baker at (619) 814-4471 or jimb@johnsonfistel.com.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com.
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Johnson Fistel, LLP
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James Baker, Investor Relations or Frank J. Johnson, Esq., (619) 814-4471
jimb@johnsonfistel.com or fjohnson@johnsonfistel.com
