Is Arhaus, Inc. (ARHS) Halal?

NASDAQ Consumer Cyclical United States $917M
✗ NOT HALAL
Confidence: 90/100
Arhaus, Inc. (ARHS) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 53.8% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Arhaus, Inc. operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 53.8%
/ 30%
23.5%
/ 30%
0.1%
/ 30%
0.0%
/ 5%
✗ NOT HALAL
DJIM 53.8%
/ 33%
23.5%
/ 33%
0.1%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
MSCI 41.6%
/ 33%
18.2%
/ 33%
0.0%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
S&P 53.8%
/ 33%
23.5%
/ 33%
0.1%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
FTSE 41.6%
/ 33%
18.2%
/ 33%
0.0%
/ 50%
0.0%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
13.5
Forward: 11.1
EPS
$0.48
P/B Ratio
2.2
EV/EBITDA
9.1
EV: $1.2B
Revenue
$1.4B
Growth: 5.1%
Beta
2.5
High volatility
Current Ratio
1.4

Profitability

Gross Margin 38.9%
Operating Margin 5.6%
Net Margin 4.9%
Return on Equity (ROE) 17.7%
Return on Assets (ROA) 4.3%

Cash Flow & Balance Sheet

Operating Cash Flow$137M
Free Cash Flow$59M
Total Debt$581M
Debt-to-Equity138.8
Current Ratio1.4
Total Assets$1.4B

Price & Trading

Last Close$6.70
50-Day MA$8.84
200-Day MA$9.96
Avg Volume1.3M
Beta2.5
52-Week Range
$6.43
$12.98

About Arhaus, Inc. (ARHS)

CEO
Mr. John P. Reed
Employees
2,700
Sector
Consumer Cyclical
Industry
Specialty Retail
Country
United States
Exchange
NASDAQ
Market Cap
$917M
Currency
USD

Arhaus, Inc. operates as a premium retailer in the home furnishings market in the United States. The company offers bedroom, dining room, and living room, as well as home office furnishings, including sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It also provides bath product assortment comprising vanities and storage pieces, faucets and hardware, and Turkish bath towels; lighting fixtures, including chandeliers, pendants, table and floor lamps, and sconces; indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, such as wall art, mirrors, vases, candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, ecommerce, catalogs and digital media, interior designer services, trade services, and client engagement. Arhaus, Inc. was founded in 1986 and is headquartered in Boston Heights, Ohio.

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Frequently Asked Questions

Is Arhaus, Inc. (ARHS) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Arhaus, Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Arhaus, Inc.'s debt ratio?

Arhaus, Inc.'s debt ratio is 53.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 41.6%.

What are Arhaus, Inc.'s key financial metrics?

Arhaus, Inc. has a market capitalization of $917M, trailing P/E ratio of 13.5, and revenue of $1.4B. The company maintains a gross margin of 38.9% and a net margin of 4.9%. Return on equity stands at 17.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.