which is marketed to high net-worth investors rather than institutional clients like pension funds and . Thank you. That's my first question. However managing a public company is rarely simple. Hi. John Reed owns about 41,000 units of Arhaus, Inc common stock. Thanks so much. Arhaus offers directly-sourced furnishings with focus on sustainability. The estimated net worth of Dawn Phillipson is at least $8.66 million as of June 1st, 2022. Business Started Locally: This net worth estimate does not reflect any other investments that Ms. Porter may own. That's driven both by price increases filtering through that were deployed last year. Yes. And how should we think about going into 2023? Thank you for everything you've done and continue to do to make Arhaus and the team the best in the business. Our next question comes from the line of Peter Benedict from Baird. And then on to the fall product release, can you give us a sense -- is fall always going to be a new product release for this business? Notably, 40% of these clients make five or more purchases throughout their customer lifetime. The conference of Arhaus, Inc. has now concluded. So everything is kind of as is in that regards. We also expect the expansion of our Ohio distribution facility to be complete near the end of this year. And then my follow up is I wanted to ask about the store opening cadence you alluded to, some delays in opening stores. Our showrooms are designed to inspire, highlighting the beauty of every piece of furniture and dcor within them. Community and timeless designs are what inspire us at Arhaus, and we are thrilled to celebrate these values through our partnership with The Surf Lodge. So as we think about the constraints, it's really around getting Dallas ramped up and being able to put the capacity towards pushing that product out of the distribution centers and delivering it into the client's home. Okay, that's very helpful. So keep in mind that clients aren't waiting six-plus months for product. John Reed owns about 41,000 units of Arhaus, Inc common stock. Whats more, it brought in that money more efficiently, with an adjusted EBITDA of $60 million, as opposed to $31 million in the first half of 2020. In the quarter, net revenue increased 68.7%, comparable growth was 61.3%, net and comprehensive income was up 1736.9%, adjusted . A replay of the call will be available on our Web site within 24 hours. and Dawn Phillipson, Chief Financial Officer And then what should we be expecting over the next 12 to 24 months on that front? We opened two new showrooms during the quarter in Colorado Springs and in White Plains, New York. As we think about the expectation heading into the quarter, we've continued to say over the last few quarters that we expected the cost to elevate a bit more. Jennifer Porter Chief Marketing Officer. I am proud to work alongside each of you. Additionally, Ms. Phillipson receives an annual salary of $2,710,000 . 33% of employees say "Yes, they approve of the job the executive team is doing at Arhaus Furniture", with 33% of the Sales department saying yes and 1% of employees with Entry Level experience saying yes. But I would love to just hear kind of how that's trending and where things are relative to prior expectations for the rest of the year? And we certainly had some small hiccups during recessions, especially the Great Recession. Very excited about the product. Please go ahead. Yes, the other thing I just forgot is the dollar has gotten a lot stronger. Through those in-home visits, the company has been able to increase average-order-value more than three times that of a standard order. The first store opened in downtown Cleveland as part of the Flats district in a building from the 1840s; thirty years later Arhaus now has . . At the same time, we recognize that over the next 6 to 12 months, a lot could change. Should Arhaus choose to terminate your employment with the Company for any reason other than Cause (as defined below), or should you voluntarily resign from your employment with the Company for Good Reason (as defined below) you will be entitled, at the time of such termination or resignation, to the payment of a lump sum equal to the sum of: (a) 50% of the greater of (X) $390,000 or (Y . So it is a rolling backlog. Our next question is from the line of Jonathan Matuszewski from Jefferies. Dawn Phillipson Chief Financial Officer. So really pleased with the performance that we're seeing out of North Carolina, the productivity there. But looking at the results of them, we felt we could handle a couple more. So we don't guide to gross margin. John Reed, Co-Founder and Chief Executive Officer, commented, . Arhaus: Arhaus Ups Net Guidance But A Recession Awaits. So we're being fiscally responsible with our growth needs and trying to balance the potential macro factors that could impact the business with supporting the growth that we anticipate. Our next question is from the line of Cristina Fernandez from Telsey Advisory Group. JOHN REED Dallas is now open. Net income and adjusted EBITDA also significantly exceeded our internal expectations, driven by higher revenues and better gross margins. I wanted to ask first about Dallas, and understand that it's going to be a cost headwind in the second half. Clients love to engage with it, be inspired with it, visit the showrooms to experience it. Arhaus Furniture has 1,001 to 5,000 employees. Verified. Good morning, and thank you for joining Arhaus' second quarter 2022 earnings call. Congrats, really nicely done. Again, it's something we could do if we wanted to. Good morning and congratulations on the quarter results. Please go ahead. Americanbankingnews. According to the filings, Arhaus brought in $355 million in net revenue in the first half of 2021, compared to $224 million during the same period in 2020, a growth rate of 59 percent. , which has been nothing but disruptive with its ecosystem vision of products, places, services and spaces. Okay. So relative to expectations eight months ago, there are some puts and takes there between the two, but we think it's the right thing to do for the business and the client to have a slower ramp of Dallas. Please go ahead. To learn more about Arhaus and their design team, we . We've opened two this year. In a short time, John Reed expanded his furniture . 1967-1999, 2005-2006. And Simeon, just to add some color to that as well. Our North Carolina distribution center opening went better than expected and has played a large part in our first half net revenue outperformance. It took them 25 years to get here. So at least this year, we're going to do two or three. To celebrate the recent grand opening of Arhaus Aspen, we raised and donated $15,000 to support Challenge Aspen, an organization dedicated to impacting lives through year-round adaptive experiences for individuals faced with cognitive and/or physical disabilities. Arhaus is going public. Kuckelman, who has over three decades of leadership experience in retail operations and logistics, will be . He will report directly to John Reed, Arhaus Co-Founder and Chief Executive Officer. So I'll start there and then I'll pass it over to John for the second portion of your question. The Boston Heights company, which specializes in premium home furnishings, said revenue and earnings were up considerably from a year ago. Lisa Chi, Chief Merchandising Officer, Age : 67. Elton John (1970-75) John Reid (born 9 September 1949) is a Scottish former music manager, known for being the manager and former lover of singer Elton John, as well as for managing the British . Kuckelman, who has over three decades of leadership experience in retail operations and logistics, will be . So supply chain certainly is -- the constraints are easing up from a gross margin perspective. This is Dawn. We know and stay true to what we do well. These were partially offset by the non-recurrence of a prior year derivative expense. We had another great quarter, our third as a public company, and we are excited to share our results. Clients are responding incredibly well to our product. JOHN REED, ARHAUS CO-FOUNDER . We look forward to speaking to you again next quarter. Curious if you guys are seeing in terms of new customer acquisitions, maybe an outsized increase in customers with presumably maybe higher household income, maybe potentially trading down? We have lowered our full year expectations for capital expenditures net of landlord contribution to a range from $55 million to $65 million, as some new showrooms have experienced construction and permitting delays. So what's actually -- is that getting any better the past two kind of like when they booked to when they actually did deliver it and recognize revenue, just trying to figure out like how those two things play into each other? On October 4th, the Ohio-based home furnishings retailer filed documents with the SEC outlining its plans for an IPO. So we are planning on over a two-year basis to stay with our plan of five to seven. So it sounds like we're getting a couple incremental new builds coming up relatively soon. Thank you. We had the initial great reveal of a new site launch back in December. So our customer is more tied to stock market volatility. Lolois new president, changes at the top for IMC and DLN and more, Interior Define is starting over with a new owner, Why Frank Lloyd Wright is still driving product design today, How this Delaware designer is getting creative with deliveries. And that goes the same for channel there. But we're looking at them. Founder of Arhaus LLC and Arhaus, Inc., John Reed holds the position of Chairman & Chief Executive Officer at Arhaus LLC and Chairman & Chief Executive Officer at Arhaus, Inc. Current positions of John Reed. Good morning, Curt. John Reed, chairman and CEO of Arhaus . However, when the companys stock does make its market debut, its performance will surely be seen as a bellwether for low long we can expect the home boom to last. . So we have recalibrated the model for the change in container costs. As leases expire, and going back to landlords and if we want to stay in this space, then renegotiating leases, trying to get some landlord contribution if we are going to remodel or if we need to move it down the street or across the street or something, then we'd look at that. [Operator Instructions]. . Thanks so much, and great job. The warehouse cost increases are the result of higher product storage costs due to the more gradual ramp of the Dallas DC than we originally projected, as well as certain Dallas DC costs that are higher than originally anticipated.