Arhaus vs The RealReal

Arhaus vs The RealReal: this page compares approaches across business models, financial performance, and market context, presented in a neutral, accessible way. Explore how each company positions itself, what drives revenue, and the factors shaping their competitive landscape. Educational content, not financial advice.

Arhaus vs The RealReal: this page compares approaches across business models, financial performance, and market context, presented in a neutral, accessible way. Explore how each company positions itse...

About The Companies

Arhaus (ARHS)

Arhaus, Inc. (NASDAQ: ARHS) is a US-based designer and retailer of premium home furnishings and décor. The company operates a hybrid model combining e‑commerce with a network of branded showrooms and design studios, targeting design-conscious, higher‑end customers. Revenue is driven by furniture, lighting, rugs and accessories, with custom pieces and delivery services adding to margins. Investors should note sensitivity to discretionary consumer spending, housing trends and interest rates, which can affect demand for big‑ticket items. Supply‑chain dynamics, commodity and shipping costs influence margins and inventory management is important. With a market capitalisation near $1.49bn, Arhaus is relatively small compared with larger furniture chains, offering potential growth alongside greater volatility. This is general educational information, not personal advice: values can rise or fall and returns are not guaranteed. Consider your investment goals and risk tolerance before making decisions.

The RealReal (REAL)

The RealReal (REAL) operates an online marketplace specialising in authenticated secondhand luxury goods — including designer clothing, handbags, watches and jewellery. The company connects consignors with buyers and earns revenue through consignment commissions, direct sales margins and ancillary services such as authentication and logistics. With a market capitalisation around $1.40 billion, investors should note the business sits at the intersection of e-commerce, luxury retail and the growing circular economy. Strengths can include brand recognition in resale authentication and a large inventory network; key risks include sensitivity to consumer discretionary spending, competition from other resale platforms and the operational challenge of reliably authenticating high-value items. RealReal has historically reinvested in growth; it does not represent a guaranteed income source and may be volatile. This summary is educational and not personal financial advice — consider your own objectives, time horizon and risk tolerance before acting.

Comparison Snapshot

Key Financial Metrics

ARHS

Metric

REAL

$1.53B

Market Cap

$1.66B

1.96%

Potential Profit

-18.09%

Buy

Analyst Rating

Buy

Which Baskets Do They Appear In?

Shifting Sparkle: The Rise of Alternative Luxury

This carefully selected group of stocks captures the exciting shift from traditional diamonds to lab-grown alternatives and new luxury experiences. Our professional analysts have identified companies poised to benefit as consumer preferences evolve toward more accessible, ethical, and diverse luxury options.

Published: July 21, 2025

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Which Baskets Do They Appear In?

Shifting Sparkle: The Rise of Alternative Luxury

This carefully selected group of stocks captures the exciting shift from traditional diamonds to lab-grown alternatives and new luxury experiences. Our professional analysts have identified companies poised to benefit as consumer preferences evolve toward more accessible, ethical, and diverse luxury options.

Published: July 21, 2025

Explore Basket

Investment Analysis

Arhaus

ARHS

Pros

Arhaus achieved record third-quarter net revenue of $345 million in 2025, reflecting 8% year-over-year growth.
The company reported significant earnings growth with Q3 2025 EPS of $0.37, beating estimates by over 360%.
Arhaus maintains a strong balance sheet with $262 million in cash and no debt as of Q3 2025.

Considerations

Stock price dipped despite strong earnings, indicating market concerns about October demand softness.
Tariffs and broader economic uncertainties create headwinds, potentially impacting future revenue growth.
High valuation multiples compared to sector averages may limit immediate upside potential.

The RealReal

REAL

Pros

The RealReal is the largest luxury resale platform in the U.S., with significant gross merchandise volume of $1.48 billion in 2021.
It benefits from growing consumer interest in sustainable and circular luxury markets.
The RealReal operates in a niche market with limited direct competition in luxury resale.

Considerations

Luxury resale market is sensitive to economic cycles which may affect discretionary spending.
Company faces execution risks tied to inventory sourcing and authentication processes.
Profitability remains a challenge as the business balances growth investments and cost controls.

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About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

Shifting Sparkle: The Rise of Alternative Luxury

Which Baskets Do They Appear In?

Shifting Sparkle: The Rise of Alternative Luxury