What happened

Shares of fast-growing home furnishings retailer Arhaus (ARHS 1.48%) rose sharply at the open on Thursday, gaining as much as 30% in the first few minutes of trading. The stock didn't hold on to that gain for long, but was still up a huge 24% or so an hour into the day.

The big news was the company's second-quarter earnings release, which hit the market before the start of the trading day.

So what

Arhaus reported year-over-year sales growth of 66.4% in the second quarter. The company held its initial public offering (IPO) in late 2021, so the comparisons here aren't exactly clean.

Meanwhile, some of the sales gain is related to the fact that Arhaus has been opening new stores. It had 77 locations when it reported third-quarter 2021 results (its first quarter as a public company) and had 80 at the end of the second quarter of 2022. That said, same-store sales advanced 65.2%, which is pretty impressive.

Arhaus also reported that adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 76.4% to $60 million. Earnings per share were $0.26 in the second quarter, compared to $0.03 in 2021, but since the stock wasn't publicly traded during the second quarter of 2021, that comparison should be taken with a grain of salt. Still, the advance in adjusted EBITDA is pretty impressive. It appears that this growing retailer is doing pretty well expanding its business in its first year as a public company.

Now what

Management increased sales guidance for 2022, taking it from a range of $1.145 billion to $1.185 billion to a range of $1.173 billion to $1.193 billion. Comparable-store sales growth projections also increased, from a range of 36% to 46% to a range of 43% to 48%. And the adjusted EBITDA outlook also brightened, with management pushing that range up to $173 million to $180 million from previous guidance of $151 million to $161 million. No wonder investors were upbeat this morning.