On April 29, 2024, after market hours, Arhaus filed a Current Report on Form 8-K with the Securities and Exchange Commission (“SEC”) announcing “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 [] SEC on March 11, 2024, should no longer be relied upon due to the errors described below and should be restated.” In addition, Arhaus stated 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 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. The Company currently 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.”
On this news, Arhaus’s stock price fell $0.80 per share, or 5.9%, to close at $12.66 per share on April 30, 2024.
