NEW YORK, NY / ACCESSWIRE / September 27, 2024 / Pomerantz LLP is investigating claims on behalf of investors of Arhaus, Inc. ("Arhaus" or the "Company") (NASDAQ:ARHS). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.
The investigation concerns whether Arhaus and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On or around November 4, 2021, Arhaus conducted its initial public offering ("IPO"), selling 12.9 million shares priced at $13.00 per share.
Then, on April 29, 2024, Arhaus issued a press release disclosing 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 stated 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" and 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." Accordingly, 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 advised that it "will restate its financial statements for the Affected Period . . . as soon as practicable."
On this news, Arhaus's stock price fell $0.80 per share, or 5.94%, to close at $12.66 per share on April 30, 2024.
Then, on August 8, 2024, Arhaus issued a press release announcing its financial results for the second quarter of 2024. Among other items, Arhaus reported revenue of $310 million, representing a year-over-year decline of 0.9% and missing consensus estimates by $4.28 million.
On this news, Arhaus's stock price fell $1.74 per share, or 12.57%, to close at $12.10 per share on August 8, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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SOURCE: Pomerantz LLP
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