Walk into an Arhaus and everything is telling you the same thing.
Ceilings that belong in a museum. Reclaimed wood. Hand-forged iron. Hand-knotted rugs. Sofas that cost more than some used cars. Staff who talk about artisans and provenance.
It is one of the most convincing luxury presentations in American retail.
Now here is the number.
Arhaus reported a gross margin of 38.9% for 2025.
That is the lowest in its entire peer group. Ethan Allen runs 61.2%. Lovesac 56.4%. Williams-Sonoma 46.5%. La-Z-Boy about 43.9%.
The most luxurious-feeling furniture brand has the least luxurious margin. So where is all that money going?