Key Takeaways RH is expected to post Q2 revenue growth of 0.5%-2.5% amid housing and sourcing pressures.RH's Q2 adjusted EBITDA margin is guided at 11.5%-13%, hit by 380 bps of startup costs.RH's global expansion may support demand, with larger benefits expected later in fiscal 2026. RH (RH - Free Report) is scheduled to report second-quarter fiscal 2026 (ended Aug. 1, 2026) results on Sept. 10, after the closing bell.
In the last reported quarter, the company’s adjusted loss per share of $1.97 was narrower than the Zacks Consensus Estimate of a loss of $2.13 by 7.5%. In the year-ago quarter, RH reported adjusted earnings of 13 cents per share. Net revenues of $800.3 million topped the consensus estimate by 1.1% but declined 1.7% year over year.
RH’s earnings surpassed estimates in only one of the trailing four quarters and missed on the other three occasions, but the average surprise was negative 12.8%.
How Are Estimates Placed for RH Stock?The Zacks Consensus Estimate for the fiscal second quarter indicates earnings of 42 cents per share, which has declined from 79 cents over the past 30 days. In the year-ago period, the company reported earnings of $2.93 per share.
The consensus estimate for revenues is pegged at $914.2 million, indicating a 1.7% year-over-year growth.
Factors Likely to Have Shaped RH’s Q2 PerformanceAssessing the Sales Environment: RH’s fiscal second-quarter revenue performance is likely to have remained constrained by a difficult housing backdrop, tariff-related sourcing disruptions and elevated backorder and special-order balances. Management expects these balances to remain unusually high in the fiscal second quarter before normalizing later in fiscal 2026. Accordingly, RH guided for fiscal second-quarter revenue growth of 0.5% to 2.5%, suggesting only modest top-line improvement during the period.
Despite these pressures, RH’s luxury positioning, international expansion and broader product transformation may have supported demand. The company has been building its presence across key European luxury markets, with Paris and Milan ramping up and London viewed by management as a potential accelerator for the international business. RH also continued expanding its trade platform and introducing higher-end customization through RH Bespoke Furniture and RH Couture Upholstery.
However, the larger benefits from RH Estates, backlog conversion and new-store growth are expected to be weighted toward the second half of fiscal 2026 rather than the fiscal second quarter. Management expects these initiatives to collectively drive a meaningful acceleration later in the year.
Factors Affecting Profitability: Profitability is likely to have remained under pressure from RH’s elevated investment cycle. Management guided for a fiscal second-quarter adjusted EBITDA margin of 11.5% to 13%, including an estimated 380-basis-point negative impact from pre-opening and startup expenses related to international expansion. Management indicated that a meaningful portion of these opening-related costs is transitory and should ease in the second half.
Overall, RH’s second-quarter results are expected to reflect modest revenue growth alongside continued near-term margin pressure from international investments and sourcing disruptions.
What the Zacks Model Says for RHOur proven model predicts an earnings beat for RH this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of +127.49%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer ReleasesWilliams-Sonoma, Inc. (WSM - Free Report) posted second-quarter fiscal 2026 adjusted earnings of $2.10 per share, up 5% year over year and came in above the Zacks Consensus Estimate of $2.05 by 2.4%. Net revenues rose 6.7% to $1.96 billion and beat the consensus mark of $1.91 billion by 2.5%.
Williams-Sonoma raised fiscal 2026 guidance after strong year-to-date performance. The company now expects annual net revenues to increase 4.7% to 7.2%, with comparable brand revenue growth of 4.0% to 6.5%. Non-GAAP operating margin is projected to be between 17.8% and 18.2%.
The Home Depot, Inc. (HD - Free Report) has delivered solid second-quarter fiscal 2026 results, with the top and bottom lines surpassing the Zacks Consensus Estimate. Adjusted earnings were $4.92 per share, up 5.1% year over year from $4.68. The figure topped the Zacks Consensus Estimate of $4.71.
Home Depot reaffirmed its fiscal 2026 outlook, calling for total sales growth of 2.5-4.5% and comps growth of flat to 2%. The company anticipates earnings per share to be flat to up 4% from $14.23 in the year-ago quarter. Meanwhile, adjusted earnings per share are also projected to be flat to up 4% from the $14.69 reported in the year-ago quarter.
Lowe’s Companies, Inc. (LOW - Free Report) reported second-quarter fiscal 2026 adjusted earnings of $4.40 per share, up 1.6% year over year, surpassing the Zacks Consensus Estimate of $4.22. Revenues rose 8.3% to $25,956 million but missed the consensus estimate of $26,135 million.
Lowe’s expects fiscal 2026 total sales of $92 billion compared with its prior range of $92-$94 billion. Comparable sales are projected to be flat, versus the previous expectation of flat to up 2%. The revision reflects first-half operating results and current demand trends.
Baypointe Partners LLC decreased its position in RH (NYSE:RH – Free Report) by 71.4% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 14,286 shares of the company’s stock after selling 35,714 shares during the period. RH accounts for 5.6% of Baypointe Partners LLC’s investment portfolio, making the stock its 6th biggest holding. Baypointe Partners LLC owned 0.08% of RH worth $2,353,000 at the end of the most recent quarter.
Several other hedge funds have also recently modified their holdings of RH. Harvest Fund Management Co. Ltd bought a new position in shares of RH in the third quarter valued at approximately $30,000. Wilmington Savings Fund Society FSB lifted its holdings in RH by 200.0% during the fourth quarter. Wilmington Savings Fund Society FSB now owns 174 shares of the company’s stock worth $31,000 after acquiring an additional 116 shares during the period. Advisory Services Network LLC purchased a new position in RH in the third quarter worth $31,000. Modus Advisors LLC purchased a new position in RH in the fourth quarter worth $34,000. Finally, Geneos Wealth Management Inc. bought a new position in RH in the 1st quarter valued at $42,000. Institutional investors own 90.17% of the company’s stock.
Key Headlines Impacting RH Here are the key news stories impacting RH this week:
Positive Sentiment: RH is scheduled to release fiscal second-quarter 2026 results after the market close on September 10. The report will include a shareholder letter from Chairman and CEO Gary Friedman, giving investors an update on recent performance and the company’s ongoing strategic evolution. RH to Report Second Quarter Fiscal 2026 Financial Results on September 10, 2026 Positive Sentiment: A Zacks preview indicates that RH has factors supporting a potential earnings beat, which could help the stock if the company exceeds expectations and provides constructive guidance. However, the article does not disclose actual results or a confirmed estimate revision. RH Expected to Beat Earnings Estimates Negative Sentiment: Investors remain exposed to execution risk ahead of the report. RH’s previous quarter showed revenue down 1.7% year over year, and the company’s shares are trading below their 50-day moving average, suggesting caution as the market assesses demand, margins and forward guidance. RH Stock Performance Shares of RH stock opened at $146.82 on Friday. The firm’s 50 day moving average is $169.19 and its 200 day moving average is $152.51. The stock has a market capitalization of $2.77 billion, a P/E ratio of 28.34, a PEG ratio of 3.51 and a beta of 1.85. RH has a 12 month low of $106.30 and a 12 month high of $257.00. The company has a current ratio of 1.13, a quick ratio of 0.32 and a debt-to-equity ratio of 54.96. RH (NYSE:RH – Get Free Report) last issued its earnings results on Thursday, June 11th. The company reported ($1.97) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($2.12) by $0.15. The business had revenue of $800.33 million for the quarter, compared to analysts’ expectations of $792.55 million. RH had a net margin of 3.01% and a return on equity of 423.79%. The business’s revenue for the quarter was down 1.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.13 EPS. On average, sell-side analysts anticipate that RH will post 4.2 earnings per share for the current year.
Analyst Upgrades and Downgrades Several equities research analysts have recently issued reports on the company. KeyCorp reaffirmed a “sector weight” rating on shares of RH in a research report on Friday, June 12th. Robert W. Baird increased their price target on shares of RH from $125.00 to $150.00 and gave the company a “neutral” rating in a research report on Friday, June 12th. Morgan Stanley reaffirmed an “overweight” rating and issued a $240.00 price objective on shares of RH in a research report on Monday, May 11th. Stifel Nicolaus boosted their target price on shares of RH from $110.00 to $130.00 and gave the company a “hold” rating in a research note on Friday, June 12th. Finally, JPMorgan Chase & Co. reduced their target price on shares of RH from $225.00 to $212.00 and set an “overweight” rating for the company in a research report on Monday, August 17th. Seven investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, RH presently has a consensus rating of “Hold” and an average target price of $173.36.
Read Our Latest Stock Report on RH
Insider Activity at RH In other RH news, Director Mark S. Demilio sold 2,445 shares of the firm’s stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $168.44, for a total value of $411,835.80. Following the completion of the transaction, the director owned 25,680 shares in the company, valued at $4,325,539.20. This trade represents a 8.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Gary G. Friedman sold 48,238 shares of RH stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $158.66, for a total value of $7,653,441.08. Following the transaction, the chief executive officer directly owned 3,226,337 shares of the company’s stock, valued at $511,890,628.42. The trade was a 1.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 132,749 shares of company stock worth $21,856,812. 26.90% of the stock is owned by company insiders.
About RH (Free Report)
RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.
Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.
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CORTE MADERA, Calif.--(BUSINESS WIRE)--RH (NYSE: RH) today announced that it will report financial results for second quarter fiscal 2026 ended August 1, 2026, on Thursday, September 10, 2026, after market close. RH's second quarter fiscal 2026 financial results will include a shareholder letter from Gary Friedman, RH Chairman and Chief Executive Officer, highlighting the Company's continued evolution and recent performance. The shareholder letter and financial results will be posted to the Com.
Wall Street expects a year-over-year decline in earnings on higher revenues when RH (RH - Free Report) reports results for the quarter ended July 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis furniture and housewares company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -85.7%.
Revenues are expected to be $914.18 million, up 1.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 3.9% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for RH?For RH, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +127.49%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that RH will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that RH would post a loss of$2.13 per share when it actually produced a loss of -$1.97, delivering a surprise of +7.51%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
RH appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
RH (RH - Free Report) ended the recent trading session at $144.48, demonstrating a -3.13% change from the preceding day's closing price. This change lagged the S&P 500's 0.71% loss on the day. Meanwhile, the Dow experienced a drop of 0.79%, and the technology-dominated Nasdaq saw a decrease of 1.03%.
Prior to today's trading, shares of the furniture and housewares company had lost 14.15% lagged the Consumer Staples sector's loss of 0.39% and the S&P 500's gain of 2.72%.
The investment community will be closely monitoring the performance of RH in its forthcoming earnings report. The company is predicted to post an EPS of $0.42, indicating a 85.67% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $914.18 million, indicating a 1.67% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.1 per share and a revenue of $3.62 billion, representing changes of -18.92% and +5.26%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for RH. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.65% lower within the past month. RH currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that RH has a Forward P/E ratio of 29.25 right now. For comparison, its industry has an average Forward P/E of 18.96, which means RH is trading at a premium to the group.
We can additionally observe that RH currently boasts a PEG ratio of 2.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Consumer Products - Staples industry currently had an average PEG ratio of 2.81 as of yesterday's close.
The Consumer Products - Staples industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 179, placing it within the bottom 28% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
RH (RH - Free Report) closed the most recent trading day at $143.34, moving -6.44% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.77%.
Shares of the furniture and housewares company have depreciated by 12.21% over the course of the past month, underperforming the Consumer Staples sector's gain of 2.3%, and the S&P 500's gain of 2.31%.
The investment community will be closely monitoring the performance of RH in its forthcoming earnings report. The company is predicted to post an EPS of $0.42, indicating a 85.67% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $914.18 million, indicating a 1.67% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.1 per share and revenue of $3.62 billion. These totals would mark changes of -18.92% and +5.26%, respectively, from last year.
Any recent changes to analyst estimates for RH should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.65% decrease. RH is currently a Zacks Rank #3 (Hold).
In terms of valuation, RH is currently trading at a Forward P/E ratio of 30.05. Its industry sports an average Forward P/E of 20.08, so one might conclude that RH is trading at a premium comparatively.
It's also important to note that RH currently trades at a PEG ratio of 3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Consumer Products - Staples was holding an average PEG ratio of 3.31 at yesterday's closing price.
The Consumer Products - Staples industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 185, positioning it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
RH (RH - Free Report) closed at $171.05 in the latest trading session, marking a -2.76% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.69%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 1.33%.
Shares of the furniture and housewares company have depreciated by 4.38% over the course of the past month, underperforming the Consumer Staples sector's loss of 1.52%, and the S&P 500's gain of 3.96%.
The upcoming earnings release of RH will be of great interest to investors. On that day, RH is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 90.1%. Meanwhile, the latest consensus estimate predicts the revenue to be $913.96 million, indicating a 1.65% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.23 per share and revenue of $3.62 billion, which would represent changes of -16.85% and +5.11%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for RH. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, RH is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, RH is presently being traded at a Forward P/E ratio of 33.63. This expresses a premium compared to the average Forward P/E of 20.29 of its industry.
We can also see that RH currently has a PEG ratio of 3.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Consumer Products - Staples industry held an average PEG ratio of 3.26.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 202, putting it in the bottom 18% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Bank of America Corp DE boosted its position in shares of RH (NYSE:RH – Free Report) by 166.5% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 238,681 shares of the company’s stock after purchasing an additional 149,127 shares during the period. Bank of America Corp DE owned about 1.26% of RH worth $33,372,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in RH. RBF Capital LLC purchased a new position in shares of RH during the first quarter valued at approximately $1,735,000. Lodge Hill Capital LLC bought a new position in RH in the 1st quarter valued at $13,283,000. California State Teachers Retirement System grew its position in RH by 23.0% in the 1st quarter. California State Teachers Retirement System now owns 17,460 shares of the company’s stock valued at $2,441,000 after acquiring an additional 3,262 shares during the last quarter. Quantinno Capital Management LP increased its stake in RH by 138.1% in the first quarter. Quantinno Capital Management LP now owns 24,999 shares of the company’s stock worth $3,495,000 after purchasing an additional 14,500 shares during the period. Finally, Union Square Park Capital Management LLC increased its stake in RH by 18.2% in the first quarter. Union Square Park Capital Management LLC now owns 65,000 shares of the company’s stock worth $9,088,000 after purchasing an additional 10,000 shares during the period. 90.17% of the stock is owned by hedge funds and other institutional investors.
Insiders Place Their Bets In other news, Director Mark S. Demilio sold 3,102 shares of RH stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $144.00, for a total value of $446,688.00. Following the transaction, the director owned 25,830 shares of the company’s stock, valued at $3,719,520. The trade was a 10.72% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Carlos Alberini acquired 11,388 shares of RH stock in a transaction that occurred on Monday, June 29th. The shares were purchased at an average price of $160.90 per share, with a total value of $1,832,329.20. Following the purchase, the director owned 32,190 shares in the company, valued at $5,179,371. This represents a 54.74% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders sold 132,749 shares of company stock worth $21,856,812. 26.90% of the stock is owned by corporate insiders.
Trending Headlines about RH Here are the key news stories impacting RH this week:
Positive Sentiment: Wells Fargo forecast strong price appreciation for RH, providing a potentially supportive analyst signal and helping reinforce the recovery from the stock’s 52-week low. Wells Fargo forecasts strong price appreciation for RH Neutral Sentiment: RH was recently identified among the market’s most-shorted stocks. High short interest can reflect bearish investor expectations, but it also creates the possibility of short-covering and sharper upward moves if sentiment improves. Short sellers attack RH Negative Sentiment: A recent market update said RH fell while the broader market advanced, indicating near-term relative weakness and continued sensitivity to investor concerns about the luxury-home-furnishings retailer. RH stock slides as market rises RH Stock Up 1.0% Shares of RH stock opened at $181.40 on Friday. The company has a debt-to-equity ratio of 54.96, a current ratio of 1.13 and a quick ratio of 0.32. RH has a 1 year low of $106.30 and a 1 year high of $257.00. The firm’s 50-day moving average is $168.18 and its two-hundred day moving average is $157.87. The stock has a market cap of $3.43 billion, a price-to-earnings ratio of 35.02, a PEG ratio of 4.20 and a beta of 1.87.
RH (NYSE:RH – Get Free Report) last posted its quarterly earnings results on Thursday, June 11th. The company reported ($1.97) EPS for the quarter, beating the consensus estimate of ($2.12) by $0.15. RH had a net margin of 3.01% and a return on equity of 423.79%. The business had revenue of $800.33 million during the quarter, compared to analyst estimates of $792.55 million. During the same quarter in the previous year, the business posted $0.13 EPS. The company’s quarterly revenue was down 1.7% compared to the same quarter last year. As a group, research analysts expect that RH will post 4.27 earnings per share for the current fiscal year.
Analyst Upgrades and Downgrades RH has been the subject of several research analyst reports. Bank of America began coverage on RH in a research report on Monday, August 3rd. They set an “underperform” rating and a $156.00 target price for the company. Robert W. Baird upped their price target on shares of RH from $125.00 to $150.00 and gave the stock a “neutral” rating in a report on Friday, June 12th. UBS Group reduced their price target on shares of RH from $160.00 to $155.00 and set a “neutral” rating on the stock in a research note on Tuesday, June 9th. KeyCorp reiterated a “sector weight” rating on shares of RH in a report on Friday, June 12th. Finally, TD Cowen reissued a “buy” rating on shares of RH in a research report on Monday. Seven analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $174.29.
Get Our Latest Research Report on RH
RH Company Profile (Free Report)
RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.
Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.
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Short sellers are circling some of the market’s most beaten-down and most volatile names, led by Venture Global, Inc. (NYSE:VG), which now has more than 80% of its float sold short — the highest ratio among the market’s 10 most-shorted stocks, according to short-interest data from Benzinga Pro.
ONDS stock is moving. See the real-time price action here. Rounding out the top four are car-rental operator Avis Budget Group, Inc. (NASDAQ:CAR), hotel franchisor Choice Hotels International, Inc. (NYSE:CHH) and home-furnishings retailer RH (NYSE:RH) — all carrying short interest above 55% of float, a level that has repeatedly touched off squeeze-chasing trading this year.
Avis has been especially prone to violent reversals: shares soared 160% in a short squeeze in April, and its short interest has stayed elevated ever since.
Here are the most heavily shorted stocks (with market caps above $2 billion and free floats above 5 million) as of Aug. 13, according to data from Benzinga Pro.
CompanyTickerShort % of FloatVenture Global(NYSE:VG)80.57%Avis Budget Group(NASDAQ:CAR)57.06%Choice Hotels International(NYSE:CHH)55.87%RH(NYSE:RH)55.25%Charter Communications(NASDAQ:CHTR)50.40%Lucid Group(NASDAQ:LCID)42.84%Ondas Holdings(NASDAQ:ONDS)41.44%CleanSpark(NASDAQ:CLSK)40.30%SoundHound AI(NASDAQ:SOUN)39.89%Bitdeer Technologies(NASDAQ:BTDR)39.04%Momentum Diverges Across the ListPositioning is shifting fast beneath the surface. Ondas’ short interest has climbed from under 35% in July, even as the drone and defense-tech name slipped Thursday.
Lucid’s ratio, by contrast, has eased from nearly half its float earlier this month, though the EV maker remains a perennial fixture atop short-seller lists.
Reminders: Highly shorted stocks are battlegrounds where negative fundamentals meet speculative trading. Short squeezes can deliver huge, fast gains, but at high risk and volatility. Monitoring the short interest leaderboard can help identify which stocks might be the next short squeeze, but timing such trades remains extremely challenging. Always conduct due diligence, as the volatility often reflects deep underlying risks and business uncertainty. Photo: ZCOOL HelloRF / Shutterstock
Market News and Data brought to you by Benzinga APIs
RH (RH - Free Report) ended the recent trading session at $180.25, demonstrating a -1.42% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.54%.
The furniture and housewares company's stock has climbed by 4.76% in the past month, exceeding the Consumer Staples sector's loss of 1% and the S&P 500's gain of 2.13%.
Analysts and investors alike will be keeping a close eye on the performance of RH in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.29, reflecting a 90.1% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $913.96 million, indicating a 1.65% increase compared to the same quarter of the previous year.
RH's full-year Zacks Consensus Estimates are calling for earnings of $5.23 per share and revenue of $3.62 billion. These results would represent year-over-year changes of -16.85% and +5.11%, respectively.
Investors might also notice recent changes to analyst estimates for RH. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, RH is carrying a Zacks Rank of #4 (Sell).
With respect to valuation, RH is currently being traded at a Forward P/E ratio of 34.96. This represents a premium compared to its industry average Forward P/E of 20.19.
One should further note that RH currently holds a PEG ratio of 3.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Consumer Products - Staples stocks are, on average, holding a PEG ratio of 3.36 based on yesterday's closing prices.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 214, finds itself in the bottom 14% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
RH (RH - Free Report) closed the most recent trading day at $187.97, moving -3.75% from the previous trading session. This move lagged the S&P 500's daily loss of 0.18%. Elsewhere, the Dow lost 0.85%, while the tech-heavy Nasdaq lost 0.06%.
The furniture and housewares company's stock has climbed by 20.12% in the past month, exceeding the Consumer Staples sector's gain of 0.04% and the S&P 500's gain of 3.33%.
Analysts and investors alike will be keeping a close eye on the performance of RH in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.29, reflecting a 90.1% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $914.4 million, up 1.7% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.23 per share and revenue of $3.62 billion. These totals would mark changes of -16.85% and +6.04%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for RH. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 13.4% increase. RH currently has a Zacks Rank of #3 (Hold).
Looking at valuation, RH is presently trading at a Forward P/E ratio of 37.34. This represents a premium compared to its industry average Forward P/E of 20.3.
One should further note that RH currently holds a PEG ratio of 2.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Consumer Products - Staples industry had an average PEG ratio of 3.22.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 202, finds itself in the bottom 18% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
On August 05, 2026, RH RH shares rose 3.8% to a current price of $195.30, showing strong price performance with a 52-week range of $106.30 to $257.00. This upward momentum is noteworthy given the stock's performance over the past year, which has seen a decline of 10.4%.
GF Value™ verdict: RH is currently trading at $195.30, which is 39.3% below the GF Value™ estimate of $321.84.GF Score™ of 77/100 indicates the stock is above average in terms of overall quality and performance.Insider activity shows that insiders bought $1.8M worth of shares while selling $21.9M in the last three months, indicating mixed sentiment among executives.Is RH Overvalued or Undervalued?According to the GF Value™, RH is currently undervalued at its present price of $195.30, compared to its estimated fair value of $321.84. This represents a significant margin of safety, suggesting that there is potential upside for investors if the market corrects towards this intrinsic value. However, the GF Valuation label identifies RH as a possible value trap, indicating that while the stock appears undervalued, there may be underlying risks that warrant caution.
GF Value™ is a proprietary intrinsic value estimate from GuruFocus that takes into account historical trading multiples, past business growth, and future performance expectations. Investors should be mindful that this valuation may not fully capture the complexities of the business or market conditions.
How Does RH's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)37.7x29.6xForward P/E40.5x-RH's current P/E (TTM) of 37.7x is significantly above its 5-year median P/E of 29.6x, indicating that the stock is trading at a higher valuation compared to its historical averages. This analysis aligns with the GF Value™ verdict, suggesting that while RH may appear undervalued based on intrinsic value, its elevated P/E ratio compared to historical norms raises concerns about the stock's current valuation level.
What Does RH's GF Score™ Tell Us?The GF Score™ is a comprehensive measure that evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. With a score of 77/100, RH demonstrates above-average performance, particularly in profitability and growth, while showing some weaknesses in valuation.
MetricRatingGF Score™77Financial Strength3/10Profitability8/10Growth8/10Valuation4/10Momentum5/10The strongest areas for RH are its profitability and growth, both rated at 8/10, reflecting solid financial performance and potential for expansion. Conversely, the valuation rank of 4/10 indicates concerns about current pricing levels, contributing to a mixed overall assessment of the stock's attractiveness.
What Are Gurus and Insiders Doing with RH?Currently, 5 gurus hold RH stock, with 3 increasing their positions while 5 have trimmed their holdings in recent quarters. This mixed activity suggests that while some institutional investors see potential in RH, others are becoming more cautious.
In terms of insider activity, the recent pattern shows that insiders purchased $1.8M worth of shares but sold $21.9M. This disparity raises questions about the confidence of insiders in the company's future prospects, as significant selling could indicate concerns about performance or strategic decisions.
What This Means for InvestorsOverall, based on the GF Value™ assessment, RH appears to be undervalued relative to its intrinsic value, presenting a potential opportunity for long-term investors. However, the high current P/E ratio and mixed insider activity signal a need for caution. Therefore, while the stock may offer upside, it is essential to consider the associated risks and market conditions before making investment decisions.
For further details, you can visit the RH RH stock page for a comprehensive analysis of this stock.
Frequently Asked QuestionsWhat is RH's GF Score™?
RH has a GF Score™ of 77/100, indicating above-average quality and performance among the stocks evaluated.
Is RH overvalued or undervalued?
RH is currently considered undervalued based on its GF Value™ of $321.84 compared to the current price of $195.30.
What is RH's P/E ratio?
RH's P/E (TTM) ratio is 37.7x, which is significantly above its 5-year median P/E of 29.6x, indicating a higher valuation compared to historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
CORTE MADERA, Calif.--(BUSINESS WIRE)--RH (NYSE: RH) announced today the release of the 2026 RH Modern Sourcebook, introducing a new expression of Modern design across nearly 500 pages of exclusive collections by acclaimed designers and artisans from around the world. Defined by refined forms, timeless materials and unrivaled craftsmanship from the industry's most forward-thinking designers and manufacturers, the Sourcebook presents the largest curated and fully integrated assortment of modern.
RH (RH - Free Report) ended the recent trading session at $179.57, demonstrating a +2.9% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.02% for the day. On the other hand, the Dow registered a gain of 0.51%, and the technology-centric Nasdaq decreased by 0.18%.
The stock of furniture and housewares company has risen by 9.73% in the past month, leading the Consumer Staples sector's gain of 0.3% and the S&P 500's gain of 0.77%.
The upcoming earnings release of RH will be of great interest to investors. In that report, analysts expect RH to post earnings of $0.29 per share. This would mark a year-over-year decline of 90.1%. Alongside, our most recent consensus estimate is anticipating revenue of $914.4 million, indicating a 1.7% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.73 per share and revenue of $3.62 billion, which would represent changes of -24.8% and +5.11%, respectively, from the prior year.
Any recent changes to analyst estimates for RH should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, RH possesses a Zacks Rank of #3 (Hold).
In terms of valuation, RH is currently trading at a Forward P/E ratio of 36.86. This signifies a premium in comparison to the average Forward P/E of 19.2 for its industry.
It's also important to note that RH currently trades at a PEG ratio of 3.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Consumer Products - Staples industry currently had an average PEG ratio of 3.46 as of yesterday's close.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 202, putting it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
MASON, Ohio & WASHINGTON--(BUSINESS WIRE)--Capitol Meridian Partners invests in RH Aero Systems to accelerate global growth, innovation and customer value across aviation markets.
On July 23, 2026, RH (RH) shares fell 5.2% to a current price of $166.08. The stock has seen significant volatility over the past year, with a 52-week range bet
CORTE MADERA, Calif.--(BUSINESS WIRE)--RH (NYSE: RH) announced today the appointment of Ryan Hassanein as Chief Legal & Compliance Officer. Mr. Hassanein will oversee all areas of the Company's legal and compliance functions, including product safety and vendor compliance. Prior to joining RH, Mr. Hassanein spent over ten years at McKesson Corporation, one of the largest healthcare companies in the world, where he was a member of the Chief Legal Officer's leadership team with responsibiliti.
CORTE MADERA, Calif.--(BUSINESS WIRE)--RH (NYSE: RH) announced today the promotion of Sandy Pilon to Chief Customer Experience & Values Officer. In her new role, Sandy will lead the Company's Gallery, Hospitality, Interior Design, Trade, Contract, Delight, People and Optimization teams across every touchpoint of the RH Brand globally. Sandy has been a member of Team RH for 18 years and has held key leadership positions across the organization, including Field Leader of our Northern and Sout.
On July 22, 2026, RH (RH) shares fell 3.0%, closing at $175.09. The stock has seen a 52-week range between $106.30 and $257.00, reflecting significant volatilit
In the latest close session, RH (RH - Free Report) was down 2.09% at $183.95. This move lagged the S&P 500's daily loss of 0.19%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Shares of the furniture and housewares company witnessed a gain of 26.87% over the previous month, beating the performance of the Consumer Staples sector with its gain of 2.55%, and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of RH in its forthcoming earnings report. The company is forecasted to report an EPS of $0.29, showcasing a 90.1% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $914.4 million, indicating a 1.7% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.73 per share and a revenue of $3.62 billion, signifying shifts of -24.8% and +5.11%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for RH. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. RH is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, RH is at present trading with a Forward P/E ratio of 39.69. This denotes a premium relative to the industry average Forward P/E of 19.68.
We can also see that RH currently has a PEG ratio of 3.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Consumer Products - Staples industry was having an average PEG ratio of 3.39.
The Consumer Products - Staples industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 190, placing it within the bottom 23% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Director Mark S. Demilio reported a sale of 2,445 shares of RH (RH +7.56%) on July 10, 2026, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold (indirectly held)2,445Transaction value~$412,000Post-transaction shares57,698Post-transaction shares (directly held)12,593Post-transaction shares (indirectly held)45,105Post-transaction value$9.54 millionKey questionsWhat was the impact of this transaction on the director's total equity exposure?
The sale of 2,445 shares represented 5% of the indirect holdings and 4% of the total equity position. Following the transaction, the aggregate stake decreased from 60,143 shares to 57,698 shares.How is the remaining ownership structured across different entities?
The current position is divided between 12,593 shares held directly and 45,105 shares held indirectly. The indirect holdings are distributed between The Mark S. Demilio Revocable Trust, which holds 25,680 shares, and The Theresa E. Demilio 2012 Family Trust, which holds 19,425 shares.How did the execution price compare to the market valuation on the date of the trade?
The transaction was executed at a weighted average price of $168.44 per share, which was a premium to the $165.35 market close recorded on the July 10, 2026 transaction date.What is the company's current market scale and recent financial profile?
As of the July 10 market close, the company had a market capitalization of $3.1 billion. In the trailing 12 months, the firm generated $3.4 billion in revenue and $103.1 million in net income.Company OverviewMetricValueShare Price (as of market close 2026-07-10)$165.35Market Capitalization$3.1 billionRevenue (TTM)$3.4 billionNet Income (TTM)$103.1 millionCompany SnapshotRH operates as a specialized home furnishings retailer offering an extensive portfolio that includes furniture, lighting, textiles, bathware, decor, outdoor and garden essentials, and specialized furnishings for children and teens.The company generates revenue through a diversified omnichannel distribution model encompassing distinctive retail galleries, curated Source Books catalogs, and a comprehensive digital platform.RH targets affluent consumers seeking premium home furnishings and design solutions, positioning itself as a curator of high-end residential and lifestyle products.RH is a prominent specialty retailer in the consumer cyclical sector with a market capitalization of $3.1 billion. The company has generated $3.4 billion in TTM revenue with net income of $103.1 million, reflecting its position as a significant player in the premium home furnishings market. RH's competitive advantage derives from its curated product selection, distinctive retail experience across multiple channels, and strong brand positioning in the high-end home furnishings segment.
What this transaction means for investorsDemilio trimmed a small block from his indirect holdings and still controls 57,698 shares split across a revocable trust, a family trust, and a direct stake. A long-tenured director shaving 4% off a position mostly held in trust vehicles is the kind of estate-planning move that says nothing about where RH is headed. Worth a small note, though: there's no 10b5-1 plan mentioned, so the timing was discretionary, and he did sell at $168.44, a premium to that day's close.
Coincidentally enough, CEO Gary Friedman reported the sale of “a small portion” of his common stock — 24% of his holdings — earlier this month, prompting a release from the company, which said the move was to help fund improvements to personal residences and the repayment of debt. Shares surged nearly 8% on Tuesday (just four days after the transaction), so it’s clear the stock is in a volatile position, with shares still down about 14% in the year ending Tuesday.
The business is in a similarly tricky but improving spot. Fiscal first-quarter revenue slipped 1.7% to $800.3 million, hurt by roughly $45 million in tariff-related backorders, but RH raised its full-year outlook to 4.5% to 8% revenue growth. Friedman told investors he expects growth to accelerate from roughly flat in the first half to around 12% in the second half as backlog clears. For long-term investors, the insider sale is minor. The real questions are whether that second-half acceleration shows up, and whether RH's debt-heavy balance sheet can carry its costly international expansion.
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About the Author
Jonathan Ponciano is a contributing stock market analyst at The Motley Fool. He has nearly a decade of experience as a financial journalist, most recently as an editor and senior reporter at Forbes focused on markets, technology, and entrepreneurship. Jonathan has also written for Investopedia and the Los Angeles Business Journal. He holds a dual B.A. in Business Journalism and Economics from the University of North Carolina at Chapel Hill and an M.B.A. from Columbia Business School. A North Carolina native now based in New York City, Jonathan has also lived in Mexico City and Los Angeles.
On July 09, 2026, RH (RH) shares rose 3.5% to a current price of $168.33, showing a notable recovery in the midst of a volatile performance over the past year.
CORTE MADERA, Calif.--(BUSINESS WIRE)--RH (NYSE: RH) announced today that Chairman & Chief Executive Officer Gary Friedman sold an aggregate of 125,000 shares of RH common stock from July 6, 2026 through July 8, 2026. Following this sale, Mr. Friedman retains beneficial ownership of 4,926,337 shares, representing beneficial ownership of approximately 23.88%(1) of RH's common stock. Mr. Friedman reported that the current sale of shares was made in order to fund (1) improvements to personal r.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying RH stock? Here’s what analysts think:
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CORTE MADERA, Calif. & BRACKLEY, England--(BUSINESS WIRE)--RH (NYSE: RH), the leading luxury home furnishings brand in the world, and the Mercedes-AMG PETRONAS Formula One Team announced today a multi-year collaboration that will bring RH's distinctive design perspective to destinations across the team's global footprint. As the Global Interior Design and Luxury Furnishings Curator of the Mercedes-AMG PETRONAS Formula One Team, RH will reimagine the team's hospitality environments across key Fo.
CORTE MADERA, Calif.--(BUSINESS WIRE)--RH announced today the recent opening of RH London, The Gallery in Mayfair, Five Levels of Architecture, Design, Food & Wine, standing at the global epicenter of luxury and design between the fashion houses of New Bond Street and the legendary bespoke tailors of Savile Row. Designed by preeminent architect Giacomo Leoni, a pioneer of English Palladianism, the landmark reflects three centuries of London's rich architectural and cultural heritage.To view.
CORTE MADERA, Calif.--(BUSINESS WIRE)--RH announced today the unveiling of RH Estates, making the work of the world's most legendary designers and ateliers accessible to consumers for the first time. The collection is inclusive of: The iconic designs of Michael Taylor, recognized globally as the godfather of the California look and called “One of the 20 greatest interior designers of all time” by Architectural Digest, the meticulous reproductions of Formations and the classical grandeur of Denn.
As the circular economy meets high-end retail, investors are weighing the explosive growth of resale against the established prestige of legacy showrooms. Choosing between The RealReal (REAL 1.13%) and RH (RH 3.39%) requires balancing distinct luxury strategies.
RealReal operates a leading online marketplace for authenticated luxury resale, focusing on a circular economy for high-fashion goods. Rh is a luxury home furnishings retailer that is expanding into hospitality and global galleries. Both companies compete for the disposable income of affluent consumers but operate with very different financial structures.
The case for The RealRealThe RealReal is a dominant player in the authenticated resale market, positioned among luxury brand stocks by offering consumers a way to buy and sell pre-owned designer items. The company serves a dual customer base of consignors and buyers, focusing on trust through physical authentication of high-end brands such as Cartier, Chanel, and Louis Vuitton. By operating a mix of online platforms and physical retail stores, the business captures the growing demand for sustainable, circular luxury consumption among younger shoppers.
In FY 2025, revenue reached nearly $692.8 million, indicating a growth rate of roughly 15.4% over the previous year. Despite this growth, the company reported a net loss of approximately $41.8 million for the period. This resulted in a net margin of -6.0%, which shows the company is still working toward consistent profitability as it scales its marketplace operations.
As of its December 2025 balance sheet, the debt-to-equity ratio is -1.1x, indicating that total liabilities exceed shareholder equity. The current ratio, which measures the ability to pay short-term obligations with short-term assets, is roughly 0.9x.
The case for RHRH has evolved from a furniture retailer into a comprehensive luxury lifestyle brand that serves affluent consumers through an integrated platform of Design Galleries and hospitality offerings. The company manages a unique membership program that drives customer loyalty and serves professional interior designers through its Trade and Contract channels. By opening expansive galleries in major global cities and adding restaurants to its retail footprint, the company creates an immersive brand experience that separates it from traditional home goods stores.
In FY 2025, revenue reached approximately $3.4 billion, up approximately 8.1% from the prior fiscal year. The company reported a net income of nearly $124.8 million for the same period. This resulted in a net margin of roughly 3.6%, representing the percentage of total sales remaining as profit after all business costs are paid.
As of its January 2026 balance sheet, the current ratio is approximately 1.2x, showing its ability to meet short-term debt obligations with its current assets. The debt-to-equity ratio, which compares total debt to shareholder equity, is 65.5x. Free cash flow, the cash left over after subtracting capital expenditures from cash from operations, reached nearly $252.4 million during the fiscal year.
Risk profile comparisonThe RealReal faces significant risks of losses, having accumulated a deficit of nearly $1.295 billion. The business model relies entirely on the accuracy of its authentication process, and any failure to detect counterfeits could destroy customer trust. Additionally, the company faces intense competition from established platforms like eBay (EBAY +3.98%), and recent insider selling may contribute to stock price volatility.
RH faces risks from its aggressive expansion into international markets and from new concepts such as hospitality, which add operational complexity. The company is highly sensitive to the high-end housing market and broader economic conditions that affect affluent consumers. Furthermore, its heavy reliance on foreign sourcing and the leadership of CEO Gary Friedman represents a significant concentration of operational risk compared to competitors like Williams-Sonoma (WSM +0.04%).
Valuation comparisonWhile RealReal is priced for rapid expansion, RH currently appears to be the more value-oriented option, given its much lower P/S ratio and more established earnings profile.
MetricRealRealRhSector BenchmarkForward P/E187.0x29.9x29.6xP/S ratio4.7x0.8xSector benchmark uses the SPDR XLY sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
The RealReal and RH both target affluent customers with their luxury-oriented merchandise, but they approach the business in very different ways. One capitalizes on the growing demand for luxury resale clothing and accessories, while the other sells new home furnishings and décor. And like their customer base, they also attract different types of investors.
The RealReal operates an online marketplace for authenticated luxury goods on consignment. The demand for such pre-owned products remains strong, particularly among younger consumers. While this is a very specific market niche, it still faces competition from other resale platforms such as eBay, ThredUp, and Poshmark. And much of its competitive advantage relies on the accuracy of its authentication service. Still, it has been improving its operating efficiency and growing revenue.
RH, formerly known as Restoration Hardware, remains a respected luxury home furnishings brand. But it has been challenged recently by a soft housing market and tariffs on its imported goods. It has also been spending a lot on expansion into international sales and marketing its products to the hospitality industry. Investors may need patience as they wait for that strategy to produce long-term growth.
Both companies may be attractive to investors seeking exposure to the luxury goods market. However, The RealReal seems to be a better choice today due to its improving financial performance and growing customer base.
Investors in RH (RH - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the June 18, 2026 $85.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for RH shares, but what is the fundamental picture for the company? Currently, RH is a Zacks Rank #4 (Sell) in the Consumer Products - Staples industry that ranks in the Bottom 36% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while two analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $2.01 per share to $1.50 in that period.
Given the way analysts feel about RH right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Key Takeaways RH's Q1 revenue fell 1.7%, with tariff-related sourcing issues delaying about $45M of revenue recognition.Adjusted EBITDA margin dropped to 7.1% as tariffs, softer sales and expansion costs pressured profitability.RH raised its 2026 outlook but faces housing-market softness, elevated debt and margin-recovery challenges. RH (RH - Free Report) is trying to protect a long-term luxury platform story while working through a difficult near-term setup. The first quarter of fiscal 2026 showed both sides of that debate.
Revenues declined, margins compressed and debt remains elevated as of the first quarter of fiscal 2026. Still, management raised its current fiscal 2026 outlook, making execution the central issue for investors.
RH Revenue Timing Has Become the Core StoryFirst-quarter fiscal 2026 revenues fell 1.7% year over year to $800.3 million. The decline was not only a demand issue. Backorder and special-order balances were approximately $75 million higher than a year earlier, largely due to tariff-related resourcing.
That timing issue reduced reported revenues by about $45 million in the quarter. Management expects a similar elevated balance in the second quarter, with normalization by the end of 2026 and roughly $75 million of revenues pickup in the second half.
RH Faces a Weak Luxury Housing CycleRH remains tied to housing turnover, remodeling activity and large project starts. When rates, affordability and confidence weigh on housing, demand for large-ticket luxury furnishings can slow and project conversion can take longer. Management continues to frame the current backdrop as a historically weak housing cycle and sees Europe as softer than the United States. That matters for RH because its Galleries, design services and large projects depend on customers being ready to furnish or renovate.
Williams-Sonoma, Inc. (WSM - Free Report) also gives investors a home-furnishings comparison point through brands such as Pottery Barn and West Elm. Arhaus, Inc. (ARHS - Free Report) is another relevant premium furniture name because it competes for design-focused discretionary spending.
RH Still Sees Long-Term Brand StrengthRH’s broader argument rests on brand elevation, immersive Galleries and a more design-led retail model. As of May 2, 2026, the company operated 75 RH Galleries, 43 RH Outlet stores, one RH Guesthouse, one RH Interior Design Studio and 14 Waterworks Showrooms. The platform story also includes hospitality integration, Sourcebooks, websites and design services. RH believes these elements can create a differentiated luxury experience that is hard to replicate online.
RH Estates is another part of that reset. The initiative is designed to expand access to higher-end classic, contemporary and modern furnishings, while adding bespoke furniture and couture upholstery capabilities for designers and trade customers.
Why RH Margins and Debt Stay in Focus?Adjusted EBITDA margin fell to 7.1% in the first quarter of fiscal 2026 from 13.1% in the prior-year period. Softer revenue recognition, tariff-related disruption and investment costs all weighed on profitability. Pre-opening and startup costs tied to international expansion remain a material drag. Management’s current fiscal-year outlook includes an approximate 270-basis-point adjusted EBITDA margin headwind from those costs, while the second-quarter fiscal 2026 outlook includes a 380-basis-point impact.
The balance sheet adds another constraint. RH ended the first quarter of fiscal 2026 with cash and cash equivalents of $53.8 million and total debt of about $2.42 billion. Net interest expense of $52.7 million limits flexibility if the expected recovery takes longer to arrive.
RH Signals a Cautious Stock SetupThe bottom line is that RH still has a differentiated luxury brand story, but the stock needs clearer evidence that backlog conversion, margin repair and housing stabilization are moving in the right direction. Management’s raised fiscal 2026 outlook calls for revenue growth of 4.5-8% and an adjusted EBITDA margin of 14.2-16%.
RH currently carries a Zacks Rank #4 (Sell). Its Style Scores are a Value Score of B, Growth Score of C, Momentum Score of D and VGM Score of B. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Value Score of B and VGM Score of B suggest better relative characteristics on those measures. However, the current Zacks Rank of 4 and Momentum Score of D point to a cautious short-term setup, especially with estimate pressure and weak share momentum still part of the picture.
Key Takeaways Tariff-related sourcing shifts increased backorders and reduced reported Q1 revenue by about $45M.RH is expanding in Europe with new locations in Paris, Milan and London to build global brand reach.International expansion and strategic investments are pressuring margins as execution remains critical. RH (RH - Free Report) is navigating several shifts at once: tariff disruption, global sourcing changes, experiential retail, European expansion and digital upgrades. These trends are reshaping how the luxury home furnishings retailer manages growth.
The challenge is that strategic change is arriving while housing demand remains weak and margins are under pressure. That makes execution, not just brand ambition, the key issue.
How RH Tariffs Are Reshaping Sourcing DecisionsRH’s supply chain remains highly global. Based on fiscal 2025 purchases, 69% of its products were sourced from Asia, including 39% from Vietnam and 13% from China. Another 21% came from North America, 13% from the United States and 10% from Europe and other countries.
That exposure makes tariffs a direct operating issue. Tariff-related resourcing lifted backorder and special-order balances by about $75 million year over year in the first quarter of fiscal 2026, reducing reported revenues by roughly $45 million.
RH is responding with pricing actions, vendor diversification toward lower-duty jurisdictions and logistics rerouting. These are no longer temporary fixes. They are becoming part of the company’s playbook for managing costs, product availability and quarterly revenue timing.
Why RH Keeps Betting on Experiential RetailRH continues to treat physical retail as central to its luxury model. Its Galleries, hospitality experiences, design services, websites and Sourcebooks are designed to work together rather than operate as separate channels.
The company argues that luxury furniture remains a category where in-person engagement matters. Larger-format Galleries can display more of the assortment, support design services and create a brand experience that is harder to replicate online.
Williams-Sonoma, Inc. (WSM - Free Report) offers investors another lens on the premium home category through brands such as Pottery Barn and West Elm. Arhaus, Inc. (ARHS - Free Report) is also relevant because it competes for design-led, discretionary furniture spending.
Where RH Europe Expansion Could Change the StoryRH is pushing deeper into Europe through high-profile openings. RH Paris opened in September 2025, RH Milan opened in April 2026 and RH London is expected to open in June 2026. These locations are meant to build international brand equity and support a broader global luxury platform. Management views London as an important accelerator because of higher brand awareness and global visitation, while Paris and Milan serve as design and fashion halo markets.
The trade-off is margin pressure. Pre-opening and startup costs tied to international expansion are expected to reduce adjusted EBITDA margin by about 270 basis points in fiscal 2026.
How RH Digital Efforts Support the Luxury FunnelRH’s digital reimagination is not about replacing Galleries. It is about improving the path from discovery to design engagement.
The company is upgrading The World of RH with better content, navigation and search. Internally, it is using design data and visuals to improve product ideation and presentation.
The digital platform also supports RH Estates, which is rolling through Galleries and Sourcebooks. Better search, appointment generation and design tools could help customers navigate a wider assortment as RH expands into bespoke furniture and couture upholstery.
How RH Scores Fit This Trend-Driven ThesisThe bottom line is that RH has a credible trend story, but investors still need to see these initiatives translate into steadier revenue conversion, margin recovery and cash generation. Tariffs, sourcing shifts and European expansion are changing the model, but they also add execution risk.
RH currently carries a Zacks Rank #4 (Sell). Its Style Scores are a Value Score of B, Growth Score of C, Momentum Score of D and VGM Score of B. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Value Score of B and VGM Score of B point to some relative appeal, but the Momentum Score of D signals weak near-term price action. Combined with the Zacks Rank #4, the stock still leans defensive until RH shows that its strategic trends are becoming financial results.
RH RH has become a test of patience after a sharp pullback in the shares. The brand still has luxury appeal, but the near-term investment case depends on whether earnings can stabilize.
The past five years have been a difficult stretch for the stock of luxury furniture company RH (RH 2.32%), which is down more than 75% in that span. The home furnishing industry has been hit with a perfect storm of prior demand pull-forward due to COVID restrictions, low housing turnover, and tariffs.
Despite delivering first-quarter revenue results that topped its prior guidance, RH stock slid as it issued a cautious second-quarter forecast. Let's take a close look at RH's results and prospects to see if a turnaround could be in store.
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Making bold moves Despite facing an incredibly difficult furnishing environment, RH has been putting up respectable results as it expands its brand to Europe through the opening of grandiose galleries.
It's also making one of its boldest brand extensions ever with RH Estates, as it introduces a more traditional furniture line that tends to be preferred by many luxury homeowners. This will include ultra-high-end, fully customizable furniture catering to both wealthy consumers and design professionals, and is expected to help propel growth starting in the second half of the year.
For its fiscal Q1, RH reported a 1.7% decrease in revenue to $800.3 million, which was above its prior guidance for revenue to decline by 2% to 4%. Adjusted earnings per share, meanwhile, had a loss of $1.97, versus a profit of $0.13 a year ago. That was better than the $2.07 loss expected by analysts.
Looking ahead, RH raised its full-year revenue forecast, taking it to growth of between 4.5% and 8%, up slightly from a prior outlook of 4% to 8% growth. For Q2, it projected revenue to grow by between 0.5% to 2.5%, before accelerating to 12% growth in the second half. The second-half growth acceleration is expected to be led by a combination of backlog reduction (4.5%), new store growth (2.5%), and RH Estates (5%).
RH has also been selling some assets, like its Aspen real estate portfolio. Management thinks that the combination of improved sales, reduced spending, and asset sales will lead to significant free cash flow generation and help it become debt-free by 2029.
Image source: Getty Images.
Is it time to buy the stock? If RH can accelerate sales and reduce debt, the stock could have a lot of upside from here. It's making some big bets with Europe and RH Estates, so it certainly isn't sitting still. The stock only trades at a forward price-to-earnings ratio (P/E) of 16 based on next fiscal year analyst estimates, but its leverage and sales growth have been keeping the stock back.
I think the stock looks like an interesting speculative bet at current levels, with some nice potential over the next few years if its strategy works.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$106.30▼
$257.00P/E Ratio28.82
Price Target$171.47
Luxury home furnishings retailer RH NYSE: RH reported first-quarter results after the market closed Thursday, topping Wall Street's earnings and revenue expectations and raising its full-year outlook.
Despite better-than-expected results and the company's enthusiasm for its strategic expansion plans, shares were volatile following the report, as investors appeared focused on the pace of improvement needed to meet the company's second-half forecast.
Get RH alerts:
Shares were recently trading down about 2%.
RH Tops Earnings and Revenue Estimates Despite Q1 LossRH reported a fiscal year 2026 (FY2026) Q1 loss of $1.97 per share, compared with earnings of 13 cents per share in the year-ago quarter. Analysts had expected a loss of $2.13 per share.
Revenue of approximately $800 million declined 1.7% from the prior-year period but topped Wall Street estimates by roughly $8 million.
The company said Q1 net revenue was negatively impacted by tariff-related sourcing disruptions, resulting in an approximately $45 million headwind due to higher backorder and special-order balances.
RH reported an adjusted EBITDA margin of 7.1%, exceeding the high end of its expectations despite the impact of backorders and special-order balances.
RH Sees Stronger Growth Acceleration in Second HalfFollowing its stronger-than-expected Q1, RH raised the low end of its full-year outlook for both revenue growth and adjusted EBITDA margin.
The company now expects FY2026 revenue growth of 4.5% to 8%, compared with its previous outlook of 4% to 8%. It also raised the low end of its adjusted EBITDA margin forecast to 14.2% to 16%, up from its prior range of 14% to 16%.
RH maintained its adjusted free cash flow forecast of $300 million to $400 million.
The outlook includes an approximately 270-basis-point drag from pre-opening and startup costs associated with the company's international expansion efforts.
RH also issued second-quarter guidance calling for revenue growth of 0.5% to 2.5% and adjusted EBITDA margin of 11.5% to 13%. The forecast includes an estimated 380-basis-point headwind related to the international expansion.
In prepared remarks read during the earnings call, Chief Executive Gary Friedman addressed the company's path to achieving its full-year outlook, saying, “How, many may ask, in an economic environment like the one we are navigating through, do you get from your half one numbers to your half two numbers necessary to make the year?"
Friedman pointed to three factors supporting the business's acceleration from flat growth in the first half to approximately 12% growth in the second half: a backlog reduction worth 4.5 percentage points, new-store growth expected to contribute 2.5 percentage points, and RH Estates, which is projected to contribute approximately five percentage points.
Global Expansion and RH Estates Expected to Drive Long-Term GrowthFriedman discussed RH's international expansion efforts, which include openings in Milan, Paris, and London, as well as the launch of RH Estates, a new brand targeting the traditional luxury market.
Friedman described the international locations as "arguably the three most immersive and inspiring brand experiences anywhere in the world," adding that they "will form the foundation necessary to earn the respect and recognition of not only the European and U.K. customer, but a global one."
Friedman described the launch of RH Estates as one of the company's most significant initiatives to date.
"I think it's the most intelligent, deep-thinking launch of a brand we've done," he said. "We're trying to make big moves that are industry-redefining. I think this is one of them. I think this is the biggest move we've ever made."
He also addressed the launch of RH Bespoke Furniture and RH Couture Upholstery, which will offer customizable pieces. Friedman said the new brands make products that were previously available only through trade showrooms more accessible. The company is also launching a compensation program designed to incentivize trade professionals, including interior designers and architects.
Analysts Remain Cautiously Optimistic as RH Faces Execution TestDespite the stock's decline following earnings, at least two analysts reacted favorably to the report. Guggenheim reiterated its Buy rating on the shares, while Robert W. Baird raised its price target to $150 from $125.
Current Price$153.19High Forecast$251.00Average Forecast$171.47Low Forecast$88.00RH Stock Forecast Details
Among the 20 analysts currently covering RH, the consensus rating is Hold, comprising eight Hold ratings, seven Buy ratings, and five Sell ratings. The average 12-month price target is $171.47, implying roughly 13% upside from current levels. Price targets range considerably from $88 to $350.
RH shares closed just under $160 ahead of the earnings release after gaining more than 7% the day leading up to the report. Following the results, the stock swung from as high as $163.55 to as low as $147. Most recently, shares were trading at approximately $157.71, down about 2%. Shares remain down around 13% year to date and roughly 12% over the past 12 months.
The stock has fared better than some peers, however. Shares of luxury furniture retailer Arhaus NASDAQ: ARHS fell after the company reported Q1 results in May and provided cautious guidance for Q2 amid macroeconomic uncertainty. Shares of Arhaus are down roughly 36% over the past year.
RH also remains one of the market's more heavily shorted stocks, with short interest rising to 40.9% of float as of May 29, up from 23.7% at the end of January.
While RH's message centered on the company's long-term growth opportunities, investors appeared cautious about the path to achieving its second-half targets. The company's ability to execute on its international expansion, RH Estates launch, and trade initiatives will remain a key focus in the quarters ahead as investors assess whether those efforts can deliver the growth needed to support management's outlook.
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Key Takeaways RH is a premier luxury home furnishings retailer.Tariffs are causing cost pressures. RH's performance is deeply tethered to the struggling housing market. Restoration Hardware Company OverviewZacks Rank #5 (Strong Sell) company RH ((RH - Free Report) ) is a leading luxury retailer in the home furnishing space. The company offers dominant merchandise assortments across a growing number of categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, tableware and child and teen furnishings.RH’s business is fully integrated across its multiple channels of distribution, consisting of stores, Source Books and websites. RH positions its Galleries as showrooms for its brand, while websites and Source Books act as virtual extensions of its physical spaces. RH has an integrated RH Hospitality experience in ten of the Design Gallery locations, which include restaurants and wine bars.
RH Faces Tariff Uncertainty & Rising Cost PressuresRH faces significant headwinds from tariffs that continue to disrupt operations and weigh on financial visibility. With about 16 different tariff announcements over the past 10 months, RH has been facing significant resourcing challenges, product delays and out-of-stocks, along with multiple rounds of price negotiations and increases. Tariff-related resourcing has also impacted key categories such as furniture, lighting and rugs, which are more complex to shift across manufacturing locations. The elevated tariffs of 50% on imported steel and aluminum, with a new investigation into furniture imports, burden the company’s cost structure. These cost burdens not only threaten margins but also create timing distortions in revenue recognition. In the fourth quarter of fiscal 2025, tariffs remained a key driver of margin pressure, with an impact of around 90 basis points.
RH: Dependent on Housing MarketRH and other industry peers are highly dependent on housing market demand. The housing industry is cyclical and affected by consumer confidence levels, prevailing economic conditions and interest rates. The federal government’s actions related to economic stimulus, taxation and borrowing limits could affect consumer confidence and spending levels, which could hurt both the economy and the housing market.
Bottom Line
While RH maintains a sophisticated, fully integrated luxury brand identity and continues to innovate through its unique blend of retail and hospitality, its near-term outlook is increasingly challenged by external economic pressures. The convergence of persistent tariff burdens, supply chain bottlenecks, and an unpredictable, interest-rate-sensitive housing market presents a demanding operating environment. Moving forward, RH's ability to maintain its premium margins and sustain revenue growth will heavily depend on how effectively it navigates these macroeconomic headwinds and mitigates ongoing cost volatility.
Key Takeaways RH beat Q1 estimates, raised its fiscal 2026 outlook and pointed to a stronger back-half ramp.Estates is framed as a higher-end luxury launch with customization and broader access to trade-only goods.RH plans to use Paris, Milan and London openings plus new trade incentives to support global growth. RH (RH - Free Report) used its first-quarter fiscal 2026 earnings call to push investors past a modest revenue decline and toward a more ambitious second-half setup built around backlog normalization, new gallery openings and the launch of RH Estates.
Management raised its full-year outlook after first-quarter results came in ahead of expectations, but the call’s bigger message was strategic. Chairman and CEO Gary Friedman framed Estates and RH’s European build-out as the foundation for the next phase of the luxury brand.
RH Leans on a Back-Half BridgeRH reported adjusted loss per share of $1.97, narrower than the Zacks Consensus Estimate of a loss of $2.13 by 7.5%. Revenues of $800.3 million topped the Zacks Consensus Estimate of $791.6 million by 1.1%.
Even so, first-quarter revenues fell 1.7% year over year, and adjusted EBITDA margin came in at 7.1%. The company said elevated backorder and special-order balances, driven mainly by tariff-related resourcing, reduced first-quarter revenue by about $45 million.
Friedman and CFO Jack Preston repeatedly returned to the same bridge for the second half: a $75 million backlog reduction, new store growth and new concept growth tied to Estates. That framework underpins management’s expectation for a much stronger back half.
RH Estates Takes Center StageFriedman spent much of the call arguing that RH Estates is not just another collection launch. He described it as RH’s entry into the highest tier of the luxury home market, with more customization, higher-end craftsmanship and broader access to goods that have traditionally sat behind trade-only channels.
He told analysts RH has underpenetrated the traditional luxury segment and said Estates could open a meaningfully larger addressable market than prior product introductions. He also cast the rollout as one of the most incremental opportunities the company has pursued.
That tone mattered. Rather than defending a soft quarter, Friedman used the call to position Estates as a product, trade and pricing reset that could reshape how RH competes at the top end of home furnishings.
Management Ties Growth to New OpeningsRH raised its fiscal 2026 outlook to revenue growth of 4.5-8% and adjusted EBITDA margin of 14.2-16%. For the second quarter, it guided to revenue growth of 0.5-2.5% and adjusted EBITDA margin of 11.5-13.0%.
Management said that guidance includes pressure from preopening and startup costs tied to international expansion, with a roughly 270-basis-point drag for the year and 380 basis points in the second quarter. Preston later said part of that pressure should fade in the back half as opening-related costs roll off.
Friedman also highlighted Paris, Milan and London as the physical anchors of RH’s global luxury push. In Q&A, he described London as the key amplifier for the European platform, with stronger awareness and the potential to accelerate the ramp across the region.
Analysts Press RH on ExecutionQuestions from Guggenheim, UBS and Morgan Stanley focused on whether Estates can really deliver the second-half acceleration embedded in guidance. Friedman’s answers were notably forceful, especially around market size, pricing power and the uniqueness of the assortment.
A UBS analyst also pressed RH on whether the company needs to modernize customer acquisition beyond Sourcebook mailings. Friedman defended the existing model, pointing to gallery productivity, the importance of physical retail in luxury furniture and RH’s relative outperformance against peers.
On balance sheet questions, management reiterated that debt reduction remains a priority. Friedman pointed to planned asset sales, lower spending after the current peak investment cycle and eventual free cash flow expansion as the main path toward deleveraging.
RH Reworks the Trade PlaybookOne of the clearer strategy shifts came around RH’s relationship with the trade. Friedman said the company will introduce a program that compensates interior designers, architects and trade members more directly, especially as Estates opens access to a higher-end product mix.
In Q&A, he acknowledged RH had removed trade incentives in the past and said the company now views that decision differently. He framed the new program as a way to unlock a supercustomer segment that already buys heavily but has not been fully monetized inside RH’s model.
That exchange gave investors something more concrete than the prepared remarks. It showed RH is not just expanding assortments, but also adjusting the commercial model to capture more of the high-end design ecosystem.
RH Leaves an Assertive ToneThe call ended with an unusually expansive tone from management. Friedman repeatedly described this period as one of the most important in RH’s history, tying together Estates, European openings and a future inflection in cash generation.
For investors, the main takeaway was not the quarter itself. It was management’s insistence that RH is nearing the payoff phase of a heavy investment cycle, with a clearer product story and a more defined path to second-half acceleration.
Zacks Signals Remain WeakRH carries a Zacks Rank #5 (Strong Sell), with a Value Score of C, Growth Score of B, Momentum Score of D and VGM Score of C. Under the Zacks framework, a stronger Style Score can help refine stock selection, but they work best alongside favorable ranks, typically Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
That makes the current signal cautious despite the earnings beat and raised outlook. A Zacks Rank #5 points to unfavorable estimate revision trends, and the rank can change after a report as analysts update projections in response to new results and management commentary.
Albert Einstein's 3 rules of work. Out of clutter, find simplicity. From discord, find harmony. In the middle of difficulty lies opportunity. Seem especially relevant at this moment. Where compounding clutter from tariffs, global discord as a result of war and the most dire housing market in decades can make it difficult to separate the signal from the noise.
It's important to remember, necessity is the mother of invention, and our most important innovations were birthed during the most uncertain times. Transforming a nearly bankrupt Restoration Hardware into RH, the leading luxury home brand in North America was not a feat for the faint of heart. While the external challenges are somewhat familiar, our internal opportunities are massively different. We're not closing stores and fighting to survive. We're building a never seen before brand that's positioned to thrive. Before we get into the details of our strategy, let's start with a few facts that should quiet some of the noise.
In 2025, RH achieved revenue growth of 8% and 2-year growth of 15%, far outpacing our furniture industry peers by 8 to 30 points. Adjusted EBITDA reached $597 million or 17.3% of revenues versus $539 million or 16.9% of revenues in 2024. Free cash flow of $252 million versus negative free cash flow of $214 million in 2024, an increase of $466 million year-over-year. Those results were despite 2025 being our peak investment year with $289 million of adjusted CapEx to support our global expansion, plus an additional $37 million to purchase the Michael Taylor, Formations and Dennis & Lean brands to support the launch of our new concept, RH Estates. A strong performance considering the unusual circumstances.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Past performance is not an indicator of future performance. This post is illustrative and educational and is not a specific offer of products or services or financial advice. Information in this article is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy, and it should not be regarded as a complete analysis of the subjects discussed. Expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Restoration Hardware remains a buy despite a 2% stock decline and recent underperformance versus the benchmark. RH delivered a double beat on earnings and reiterated revenue growth, reinforcing my bullish thesis on sustained expansion. I see favorable catalysts developing for RH, though a quick turnaround is unlikely given its history of earnings misses.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
On June 12, 2026, RH RH shares fell 3.9% to a current price of $153.04. The stock has experienced a volatile year, with a 52-week high of $257.00 and a low of $106.30. Over the past month, RH has seen a positive trend, gaining 16.6%, although it remains down 14.6% year-to-date.
GF Value™ verdict: Current price $153.04 vs GF Value™ of $324.46, indicating a 52.8% upside potential.GF Score™ of 73/100 suggests the stock is above average based on its key financial metrics.Notable signal: Insiders sold $3.4 million worth of shares in the last three months, indicating potential caution. Is RH Overvalued or Undervalued? With a current price of $153.04 and a GF Value™ estimate of $324.46, RH appears significantly undervalued, representing a 52.8% margin of safety. The GF Value™ methodology assesses intrinsic value based on historical trading multiples, past business growth, and future performance estimates. While this undervaluation may suggest a buying opportunity, caution is warranted given the GF Valuation label of "Possible Value Trap, Think Twice." This label implies that while the stock may seem attractive based on its current price relative to the GF Value™, underlying issues might hinder its ability to reach that intrinsic value.
Investors should consider the potential risks associated with the company's financial health, as indicated by a Financial Strength rating of only 3/10. The combination of a high GF Value™ and low financial strength could signal that this opportunity may not be as straightforward as it seems, requiring further analysis before making any investment decisions.
How Does RH's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 29.5x 29.6x Forward P/E 28.1x N/A RH's current P/E (TTM) of 29.5x is virtually unchanged from its 5-year median P/E of 29.6x, indicating that the stock is trading in line with its historical valuation metrics. The forward P/E of 28.1x also supports this stance, suggesting that there may not be immediate expectations for significant earnings growth. This P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that RH's stock is undervalued based on its intrinsic worth, yet it also suggests that the stock is not trading at a significant discount compared to its historical valuation.
What Does RH's GF Score™ Tell Us? Metric Rating GF Score™ 73/100 Financial Strength 3/10 Profitability 8/10 Growth 8/10 Valuation 2/10 Momentum 5/10 The GF Score™ of 73/100 indicates that RH is performing above average relative to its peers, driven primarily by strong Profitability and Growth ranks of 8/10. However, the weak Valuation rank of 2/10 raises concerns about whether the stock is appropriately priced, suggesting that it may not offer a compelling value proposition despite its growth potential. The Financial Strength score of 3/10 highlights vulnerabilities that could impact the company's stability, while the Momentum rank of 5/10 suggests a mixed outlook in terms of price trends.
What Are Insiders Doing with RH Stock? In the past three months, insiders have sold $3.4 million worth of RH shares, with no reported insider buying during this period. This selling activity may indicate a lack of confidence in the company's short-term prospects among those with inside knowledge, which could be a red flag for potential investors. It is essential to monitor insider activity as it can reflect management's outlook and sentiment about the company’s future performance.
What This Means for Investors Based on the current GF Value™ assessment, RH appears to be undervalued at its present price of $153.04, compared to a GF Value™ of $324.46. However, investors should approach this opportunity with caution due to the company's low financial strength and the possibility of it being a value trap.
For the complete analysis, visit the RH RH stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is RH's GF Score™?
RH's GF Score™ is 73/100, indicating that the stock is above average based on several financial metrics that assess its potential for long-term returns.
Is RH overvalued or undervalued?
RH is deemed undervalued with a GF Value™ of $324.46, suggesting a significant upside potential from its current price.
What is RH's P/E ratio?
RH's P/E (TTM) is 29.5x, which is in line with its 5-year median P/E of 29.6x, indicating that the stock is not trading at a significant discount relative to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
CORTE MADERA, Calif.--(BUSINESS WIRE)--RH (NYSE: RH) today announced that it will report financial results for the first quarter fiscal 2026 ended May 2, 2026, on Thursday, June 11, 2026, after market close. RH’s first quarter fiscal 2026 financial results will include a shareholder letter from Gary Friedman, RH Chairman and Chief Executive Officer, highlighting the Company’s continued evolution and recent performance. The shareholder letter and financial results will be posted to the Company’s investor relations website at ir.rh.com.
RH leadership will host a live conference call and audio webcast at 2:00 pm Pacific Time (5:00 pm Eastern Time) on June 11, 2026. The live conference call may be accessed by dialing 800.715.9871 or 646.307.1963 for international callers (conference ID: 7345752). The call and replay can also be accessed via audio webcast at ir.rh.com.
ABOUT RH
RH (NYSE: RH) is a global curator of design, taste and style in the luxury lifestyle market. Operating across the United States, Canada, the United Kingdom and Europe, the Company offers collections through its retail galleries, sourcebooks and online at RH.com, RHModern.RH.com, RHBabyandChild.RH.com, RHTEEN.RH.com and Waterworks.RH.com, with integrated hospitality experiences in galleries throughout the United States and internationally.
The stock has key technical support as record short interest creates fuel for further upside
Jun 5, 2026 at 2:14 PM
We recommended an RH call option last week
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Furniture retailer RH (NYSE:RH) last week broke out and above the upper boundary of a three-month basing pattern that followed a multi-year low in April. This low was a fake-out move below the April 2025 lows, and just two weeks ago the equity crossed above the 50-day moving average. This crossover tends to have historically bullish returns, per our quantitative data. Previously, a cross below this trendline was a sell signal.
RH had also cleared the pre-earnings close in late-March that preceded a gap lower, which marked a low in the shares. Short interest is at a record high as well. The security has surged more than 30% since its April post-earnings low, and with the shares clearing the pre-earnings close last week, it could ignite short covering in the weeks ahead.
Our recommended call option has a leverage ratio of 4.0 and will double on a 29.8% rise in the underlying equity.
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Key Takeaways RH will report fiscal Q1 2026 results on June 11 after market close; estimates call for a $2.07 loss.RH revenues are expected at $791.6M, down 2.7% YoY, amid weak housing, high mortgage rates and uncertainty.RH sees EBITDA margin 5.5%-6.5%; Milan/London startup costs may cut margin 420 bps plus tariffs. RH (RH - Free Report) is scheduled to report its first-quarter fiscal 2026 (ended May 2, 2026) results on June 11, after the closing bell.
In the last reported quarter, the company’s adjusted earnings per share of $1.53 missed the Zacks Consensus Estimate of $2.21 by 30.8%. The reported figure decreased slightly by 3.2% from $1.58 in the year-ago period. Net revenues of $842.6 million also lagged the consensus mark of $872 million but improved 3.7% year over year.
RH’s earnings surpassed estimates in only one of the trailing four quarters and missed on the other three occasions, but the average surprise was positive 46.5%.
How Are Estimates Placed for RH Stock?The Zacks Consensus Estimate for the fiscal first quarter indicates a loss of $2.07 per share, which has remained unchanged over the past 30 days. In the year-ago period, the company reported earnings of 13 cents per share.
The consensus estimate for revenues is pegged at $791.6 million, indicating a 2.7% year-over-year decline.
Factors Likely to Have Shaped RH’s Q1 PerformanceAssessing the Sales Environment: RH’s fiscal first-quarter revenue performance is likely to have been pressured by continued weakness in the U.S. housing market, which management has described as one of the most difficult environments in decades for home-related spending. Elevated mortgage rates and macroeconomic uncertainty may have weighed on furniture demand, particularly for larger discretionary purchases. Management guided for first-quarter fiscal 2026 revenue growth of negative 2% to negative 4%, reflecting expectations for a soft demand environment.
Despite these headwinds, several company-specific initiatives may have provided support. RH entered fiscal 2026 with momentum from market-share gains and revenue growth that outpaced many industry peers. The company continued to benefit from its luxury positioning, expansive gallery network and integrated hospitality model, which help drive customer engagement and brand awareness. Management also remained optimistic about growth opportunities tied to new gallery concepts and international expansion efforts.
However, the quarter is likely to have seen limited contribution from RH Estates, the company’s new traditional luxury furnishings concept. Management indicated that major launch activities would occur during the second quarter, with meaningful revenue benefits expected later in the year.
Factors Affecting Profitability: Profitability is expected to have remained under pressure during the quarter. RH forecasted a fiscal first-quarter adjusted EBITDA margin of 5.5% to 6.5%, substantially below its longer-term targets. A major factor is the elevated level of pre-opening and startup expenses tied to international expansion initiatives, including RH Milan and RH London. Management estimated that these costs alone would reduce first-quarter adjusted EBITDA margin by roughly 420 basis points.
Tariff-related costs and supply-chain adjustments are likely to have been another challenge. During the fourth-quarter earnings discussion, management noted that tariff-related sourcing transitions had already created operational disruptions and margin pressure. Continued investments in global expansion, product development and the upcoming RH Estates launch were also expected to weigh on earnings in the near term.
Overall, RH’s fiscal first-quarter results are expected to reflect a balance between near-term macroeconomic pressures and substantial investments intended to strengthen the company’s long-term growth platform.
What the Zacks Model Says for RHOur proven model does not conclusively predict an earnings beat for RH this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer ReleasesWilliams-Sonoma’s (WSM - Free Report) first-quarter fiscal 2026 earnings topped the Zacks Consensus Estimate by 7.2%, while net revenues met the same at $1.81 billion. Year over year, both metrics grew 4.3% and 4.4%, respectively, owing to the broad-based comparable growth across brands and channels and steady earnings delivery.
For fiscal 2026, WSM expects annual net revenues to increase in the range of 2.7-6.7%, with comparable brand revenue growth (comps) in the range of 2-6%. WSM also continues to project an operating margin between 17.5% and 18.1% for the year.
Lowe’s (LOW - Free Report) reported first-quarter fiscal 2026 results, wherein both earnings and sales surpassed the Zacks Consensus Estimate. Adjusted earnings were $3.03 per share, rising 3.8% year over year and beating the Zacks Consensus Estimate of $2.96 by 2.4%. Net sales came in at $23.1 billion, rallying 10.3% from the year-ago quarter and surpassing the consensus mark of $22.9 billion by 0.6%.
Lowe’s reaffirmed its fiscal 2026 guidance and expects total sales between $92 billion and $94 billion, indicating year-over-year growth of 7-9%. Comparable sales are anticipated to be flat to up 2%. The company expects the adjusted operating margin to be 11.6-11.8%. Lowe’s expects EPS of $11.75-$12.25 and adjusted EPS of $12.25-$12.75.
The Home Depot Inc.’s (HD - Free Report) first-quarter fiscal 2026 top and bottom lines outpaced the Zacks Consensus Estimate. Adjusted earnings were $3.43 per share, down 3.7% from the year-ago quarter but beat the consensus mark of $3.40. Net sales rose 4.8% year over year to $41.77 billion and topped the consensus estimate of $41.49 billion.
Home Depot reaffirmed its fiscal 2026 framework, calling for total sales growth of approximately 2.5-4.5% and comparable sales growth of roughly flat to 2%. The company also expects to open about 15 stores this year. HD anticipates EPS growth of approximately flat to 4% from $14.23 in fiscal 2025.
RH (NYSE:RH) will release earnings for its first quarter after the closing bell on Thursday, June 11.
Analysts expect the Corte Madera, California-based company to report a quarterly loss of $2.07 per share, versus a profit of 13 cents per share in the year-ago period. The consensus estimate for RH's quarterly revenue is $792.38 million (it reported $813.95 million last year), according to Benzinga Pro.
On March 31, RH reported worse-than-expected fourth-quarter financial results and issued FY26 sales guidance below estimates.
RH shares fell 0.9% to close at $148.69 on Wednesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period.
Considering buying RH stock? Here’s what analysts think:
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Chicago, June 11, 2026 (GLOBE NEWSWIRE) -- RH CPAs is proud to announce it has received the Audit & Accountancy Services award at the Captive Review Awards USA 2026, presented on June 10 by Captive Review. This is the fifth consecutive year the firm has earned this recognition.
The award was presented at the Captive Review Awards USA 2026 ceremony in Chicago, which celebrates excellence and innovation in the U.S. captive insurance sector.
The independent judging panel cited the firm’s distinguished performance, noting: "RH CPAs stands out for its responsive, efficient service, specialized knowledge in captive insurance, and ability to deliver personalized solutions for complex audit and tax requirements. The firm's strong industry reputation, innovative service approach, and sustained domestic and international growth further reinforce its position as a highly respected and well-recommended specialist provider."
"Being recognized for five years is an honor that reflects our team's ongoing dedication to our clients," said Leon Rives II, Chief Visionary Officer at RH CPAs. "We appreciate the trust our clients entrust to us and remain committed to setting the standard for audit and accountancy services in the captive industry."
Captive Review has been a trusted voice for the risk management and captive insurance communities since 1999. The Captive Review Awards event was held in conjunction with the 2026 Captive Review Conference USA, which brought together senior captive owners, risk managers, regulators, brokers, reinsurers and advisers to explore how captives are evolving in structure, governance and purpose. For more information about the Captive Review Awards USA 2026 winners, please visit: captivereview2026/en/page/2026-winners
About RH CPAs
RH CPAs is a growth-focused professional services firm dedicated to providing more than compliance. It partners with clients to help build their future. Led by Chief Visionary Officer Leon Rives II, RH CPAs serves a diverse client base spanning nonprofits, school districts, and multi-billion dollar life insurance companies, with offices in North Carolina and operations in Karachi, Pakistan. The firm thrives on being different, not for its own sake, but because its clients deserve partners who think beyond the expected. Learn more at www.rh-accounting.com.
That wraps up our initial coverage of RH’s Q1 results. Thank you for stopping by!
Check out management’s earnings call at 5 PM EST for more updates.
Yesterday
RH raised its fiscal 2026 outlook after reporting first-quarter results that exceeded management’s expectations. The luxury furniture retailer now expects fiscal 2026 revenue growth of 4.5-8.0%, adjusted EBITDA margins of 14.2-16.0%, and adjusted free cash flow of $300-$400 million.
Management identified RH Estates, alongside backlog conversion and new gallery openings, as key factors supporting its expectation for revenue growth to accelerate in the second half of fiscal 2026.
Management said tariff-related sourcing disruptions delayed approximately $45 million of revenue in the quarter, but expects much of that business to be recognized later this year.
Yesterday
RH just reported earnings, with shares initially up about 9% following the report. Here are the key numbers:
Revenue: $800.3 million Adjusted EBITDA: $56.9 million (7.1% margin) Free Cash Flow: $13.3 million Guidance:
FY2026 Revenue Growth: 4.5% to 8.0% FY2026 Adjusted EBITDA Margin: 14.2% to 16.0% FY2026 Adjusted Free Cash Flow: $300 million to $400 million Q2 2026 Revenue Growth: 0.5% to 2.5% Q2 2026 Adjusted EBITDA Margin: 11.5% to 13.0% Quick read:
RH exceeded the high end of management’s expectations in Q1 despite tariff-related sourcing issues that delayed roughly $45 million of revenue.
Management raised its full-year outlook and expects backlog normalization to drive a meaningful revenue acceleration in the second half of 2026.
Investors appear encouraged that RH’s recovery thesis remains intact, with management pointing to backlog reduction, new store openings, and the launch of RH Estates as key growth drivers for the back half of the year.
Yesterday
With RH’s (NYSE:RH | RH Price Prediction) first-quarter results at 4:05 PM ET approaching, here are some key topics analysts will be watching for:
Key Topics Management Must Address Whether the 420 bps international drag is tracking to plan after Paris “exceeded RH New York” traffic. RH Estates rollout across the top 30-40 galleries and the mid-May sourcebook reception. Progress on the $0.5 billion real estate monetization plan. Macro Signals to Weigh Consumer sentiment at 49.8, a fresh 12-month low. Housing starts slipping to 1.47M in April. Red Flags Any softening of the $300M to $400M FCF range, or evasive answers on pending securities probes. Yesterday
With the bar set at -$2.05 non-GAAP EPS, the surprise risk lies in factors beyond the headline beat.
Tariff backorder unwind. Q4 lost ~$30 million in revenue to resourcing. Faster-than-expected resolution as China sourcing moves toward the 2% target could flip the guided -2% to -4% revenue decline. FX exposure. Euro and GBP swings now matter materially with RH Paris live and RH London/Milan launching Spring 2026. Housing inflection. Starts rebounded to 1,465 thousand units in April, the 81.8th percentile historically, challenging Friedman’s “worst in 50 years” framing. Litigation overhang. Investor law firms probing the Q4 miss adds sentiment risk absent from sell-side models. Earnings results are expected at 4:05 PM ET, while the earnings call will be at 5:00 PM ET.
Yesterday
What the Crowd Is Pricing In Polymarket traders are betting heavily on a beat. The active market “Will RH (RH) beat quarterly earnings?” shows a 98.5% implied probability of RH (NYSE:RH) topping the non-GAAP EPS threshold of -$2.05, with 9,614.76 contracts traded. Conviction has surged, with the “Yes” price climbing +48% over the past week and +53% in the last day.
The low bar matters. A negative consensus makes the hurdle easy to clear, even though RH missed in both Q3 and Q4 2025. History suggests the stakes are high: misses have averaged a -12.93% same-day move, while the lone beat delivered +6.93%. Shares trade at $153.23 into the earnings report, down 17% year-to-date.
Yesterday
Luxury home furnishings retailer RH (NYSE:RH) reports Q1 FY2026 results tonight at 4:05 PM ET. With shares at $153.14 and Polymarket pricing a 98.5% probability of beating the -$2.05 non-GAAP EPS bar, here is what to listen for on the 5:00 PM ET call.
Top 5 Analyst Questions How quickly is China sourcing tracking toward the 2% target from 16%? Is the $250M-$350M free cash flow range still intact? RH Paris productivity and RH Milan Spring 2026 readiness? Demand cadence versus the guided 2% to 4% revenue contraction? Path to deleveraging from 4.6x net debt/EBITDA? Key Topics & Buzzwords Listen for “strategic separation,” “climbing the luxury mountain,” and “demand vs. revenue.” Brand extension launch timing, hospitality (Guesthouses, RH One/Two/Three). Red Flags Full-year guide cut, widening negative shareholders’ equity beyond -$110.8 million, or fresh tariff backorder commentary. Yesterday
RH enters earnings under pressure after a difficult year marked by weak housing activity, tariff concerns, and investor skepticism around the company’s spending plans.
The company finished fiscal 2025 with roughly $2.6 billion in debt and net debt running at about 4.0x EBITDA, leaving little room for disappointment. Management has argued that current investments, including the RH Estates strategy, will drive long-term growth, but investors want evidence that the payoff is beginning to materialize.
Tonight’s report will be closely watched for signs that demand is stabilizing, luxury consumers remain engaged, and tariff pressures are easing. If RH can deliver on those fronts, there’s a potential for the recovery narrative to quickly regain momentum.
RH (NYSE: RH) reports first-quarter fiscal 2026 results today, June 11, at 4:05 PM ET. After two straight misses and a stock down 21.49% over the past year, this report carries unusual weight.
Proving the Investment Cycle Is Worth It Last quarter, RH posted adjusted EPS of $1.53, below the $2.20 consensus, and revenue of $842.6 million, below the $873.3 million consensus. Management blamed roughly $30 million in tariff-related backorders and $10 million in weather disruption. The stock dropped 19.5% intraday on the earnings report.
For the quarter ahead, CEO Gary Friedman guided to a revenue decline of 2% to 4% and an adjusted EBITDA margin of 5.5% to 6.5%, which incorporates roughly a 420-basis-point negative margin impact from international pre-opening costs. RH Paris opened on the Champs-Élysées last September, with RH London and RH Milan slated for Spring 2026. Shares have rebounded 15.09% over the past month to $153.50, suggesting some traders see the bar as already low enough. However, shares are up 3% today heading into Q1 earnings.
Consensus Estimates Metric Q1 FY2026 Consensus Full Year FY2026 Guide Adjusted EPS $(2.05) Implied from 14% to 16% EBITDA margin Revenue ~$792M 4% to 8% growth Adjusted Free Cash Flow Not guided $300M to $400M Estates Launch and Europe Will Decide Tonight’s Tone Tonight, I will be watching three things. First, the launch of RH Estates, the brand extension delayed from Fall 2025 to Spring 2026. Friedman told investors it will “become our largest and highest margin brand extension” and premiered at RH Milan during Salone.
Second, Europe. Friedman said Paris traffic in the first six days exceeded RH New York, and RH England demand ran +76% in Q2 and +47% in Q1. Investors will watch whether that comp momentum held through the London and Milan ramp, as international costs are eating into margins right now.
Third, tariffs and sourcing. CFO Jack Preston flagged “some tailwinds from the relatively lower rate that exists under Section 122 today” in the first half. RH has shifted its China sourcing target from 16% to 2% and aims for 52% U.S.-made upholstery. The macro backdrop helps modestly: housing starts hit 1.47 million in April, near the high end of the healthy range.
Polymarket traders are pricing a 98.5% probability of a beat against that loss estimate, signaling the bar may be low.
CORTE MADERA, Calif.--(BUSINESS WIRE)--RH (NYSE: RH) has released its financial results for the first quarter ended May 2, 2026, in a shareholder letter from Chairman and Chief Executive Officer Gary Friedman, available on the Investor Relations section of its website at ir.rh.com.
RH leadership will host a live conference call and audio webcast at 2:00 pm Pacific Time (5:00 pm Eastern Time) today. The live conference call may be accessed by dialing 800.715.9871 or 646.307.1963 for international callers (conference ID: 7345752). The call and replay can also be accessed via audio webcast at ir.rh.com.
ABOUT RH
RH (NYSE: RH) is a global curator of design, taste and style in the luxury lifestyle market. Operating across the United States, Canada, the United Kingdom and Europe, the Company offers collections through its retail galleries, sourcebooks and online at RH.com, RHModern.RH.com, RHBabyandChild.RH.com, RHTEEN.RH.com and Waterworks.com, with integrated hospitality experiences in galleries throughout the United States and internationally.
RH (RH - Free Report) came out with a quarterly loss of $1.97 per share versus the Zacks Consensus Estimate of a loss of $2.13. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +7.59%. A quarter ago, it was expected that this furniture and housewares company would post earnings of $2.21 per share when it actually produced earnings of $1.53, delivering a surprise of -30.77%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
RH, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $800.33 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.10%. This compares to year-ago revenues of $813.95 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
RH shares have lost about 17% since the beginning of the year versus the S&P 500's gain of 6.2%.
What's Next for RH?While RH has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for RH was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.78 on $951.58 million in revenues for the coming quarter and $5.35 on $3.62 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
WD-40 (WDFC - Free Report) , another stock in the same industry, has yet to report results for the quarter ended May 2026.
This maintenance and cleaning product company is expected to post quarterly earnings of $1.58 per share in its upcoming report, which represents a year-over-year change of +2.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
WD-40's revenues are expected to be $171.8 million, up 9.5% from the year-ago quarter.
