RH (RH - Free Report) closed the most recent trading day at $137.43, moving -1.94% from the previous trading session. This change lagged the S&P 500's daily loss of 0.52%. Meanwhile, the Dow experienced a drop of 1.24%, and the technology-dominated Nasdaq saw a decrease of 0.21%.
The furniture and housewares company's stock has climbed by 15.65% in the past month, exceeding the Consumer Staples sector's gain of 6.6% and the S&P 500's loss of 1.21%.
Investors will be eagerly watching for the performance of RH in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.67, reflecting a 60.82% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $932.39 million, up 5.5% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.23 per share and revenue of $3.63 billion, indicating changes of -16.85% and +5.39%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for RH. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 moved 3.25% lower. RH is currently a Zacks Rank #3 (Hold).
Investors should also note RH's current valuation metrics, including its Forward P/E ratio of 26.81. This expresses a premium compared to the average Forward P/E of 21.41 of its industry.
One should further note that RH currently holds a PEG ratio of 2.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. RH's industry had an average PEG ratio of 3.04 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 200, placing it within the bottom 19% of over 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.
To follow RH in the coming trading sessions, be sure to utilize Zacks.com.
RH (RH - Free Report) shares ended the last trading session 9.5% higher at $140.15. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.7% gain over the past four weeks.
RH is benefiting from the expansion of its RH Estates collection, new gallery openings and international expansion plans, which are expected to support its long-term growth.
This furniture and housewares company is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of -60.8%. Revenues are expected to be $932.39 million, up 5.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For RH, the consensus EPS estimate for the quarter has been revised 30.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on RH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
RH belongs to the Zacks Consumer Products - Staples industry. Another stock from the same industry, Clorox (CLX - Free Report) , closed the last trading session 4.6% higher at $88.66. Over the past month, CLX has returned 1%.
Clorox's consensus EPS estimate for the upcoming report has changed -1.2% over the past month to $0.98. Compared to the company's year-ago EPS, this represents a change of +15.3%. Clorox currently boasts a Zacks Rank of #4 (Sell).
On October 21, 2026, RH RH shares rose 6.9% to $128.01, marking a notable uptick amid a challenging year where the stock has seen a 52-week range from $106.30 to $239.40.
GF Value™ verdict: The current price is $128.01, representing a 52.8% discount compared to the GF Value™ estimate of $271.01.GF Score™ of 73/100 indicates an above-average rating, suggesting a relatively stable investment profile.Notable signal: Insider activity shows a net selling of $24.6 million over the past 12 months, indicating possible caution among insiders.Is RH Overvalued or Undervalued?With a GF Value™ of $271.01, RH is currently trading at $128.01, reflecting an attractive opportunity at a 52.8% undervaluation. This significant margin of safety suggests that the stock could have considerable upside potential if it aligns more closely with its intrinsic value. GF Value™ is GuruFocus' proprietary estimate of a stock's intrinsic worth, derived from historical trading multiples, past business growth, and future performance projections. However, it is essential to approach this opportunity with caution, as the GF Valuation label notes RH as a possible value trap, indicating that while the stock appears undervalued, risks may still be present.
This valuation discrepancy raises questions about the sustainability of RH's business model and its ability to recover from recent downturns. Given the company's profitability rank of 8/10 and growth rank of 7/10, there are strong underlying fundamentals. Yet, investors should weigh the potential risks associated with the financial strength score of just 3/10, which could signal vulnerabilities in the company's operational resilience.
How Does RH's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)22.8x28.4xForward P/E14.4xN/ARH's current P/E ratio of 22.8x is 20% below its 5-year median P/E of 28.4x, indicating that the stock is trading at a lower valuation compared to its historical performance. This lower P/E aligns with the GF Value™ assessment, suggesting that RH is undervalued relative to its historical trading multiples. The forward P/E of 14.4x further indicates a potential for earnings growth, reinforcing the argument for a favorable valuation outlook.
What Does RH's GF Score™ Tell Us?GF Score™ measures a stock's overall quality based on various factors, including financial strength, profitability, growth potential, valuation, and momentum. RH's score of 73/100 indicates that it is above average compared to its peers, with specific strengths and weaknesses across the sub-ranks.
MetricRatingGF Score™73Financial Strength3/10Profitability8/10Growth7/10Valuation2/10Momentum7/10RH's strongest area is profitability, rated 8/10, signifying a solid ability to generate earnings. However, its financial strength is a concern with a low score of 3/10, indicating potential risks in its capital structure or liquidity. The valuation rank at 2/10 underscores the challenges the company faces in achieving a more favorable market perception.
What Are Gurus and Insiders Doing with RH?Currently, five gurus hold RH stock, with three increasing their positions while four have trimmed their holdings in recent quarters. This mixed sentiment among notable investors suggests a cautious outlook on the stock's future performance.
Insider activity further complicates the picture, as insiders have sold $26.5 million worth of shares while purchasing only $1.8 million over the past 12 months, resulting in a net selling of $24.6 million. This pattern of net selling might suggest that insiders lack confidence in the stock's near-term prospects, which is a critical factor for potential investors to consider.
What This Means for InvestorsBased on the GF Value™ assessment, RH appears to be undervalued at its current trading price of $128.01 compared to its intrinsic value of $271.01. However, given the potential for a value trap and the concerning insider selling, investors should proceed with caution. Understanding the underlying financial health and market dynamics will be crucial in making informed decisions regarding RH's stock.
For a comprehensive look at RH's performance and metrics, visit the RH RH stock page, and consider exploring the GF Value™ page for deeper insights.
Frequently Asked QuestionsWhat is RH's GF Score™?
RH has a GF Score™ of 73/100, indicating an above-average rating which reflects its overall quality relative to peers.
Is RH overvalued or undervalued?
RH is currently undervalued with a GF Value™ of $271.01 compared to its market price of $128.01, suggesting a significant investment opportunity.
What is RH's P/E ratio?
RH's P/E ratio is 22.8x, which is 20% below its 5-year median P/E of 28.4x, indicating that the stock is trading at a favorable valuation compared to its historical performance.
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].
Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
RH (RH - Free Report) closed at $112.89 in the latest trading session, marking a -4.23% move from the prior day. This move lagged the S&P 500's daily loss of 1.09%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 2.15%.
Heading into today, shares of the furniture and housewares company had lost 7.06% over the past month, lagging the Consumer Staples sector's gain of 1.5% and the S&P 500's gain of 2.44%.
Investors will be eagerly watching for the performance of RH in its upcoming earnings disclosure. The company is expected to report EPS of $0.67, down 60.82% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $932.39 million, up 5.5% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.23 per share and a revenue of $3.63 billion, signifying shifts of -16.85% and +5.39%, respectively, from the 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.25% lower. RH currently has a Zacks Rank of #3 (Hold).
In the context of valuation, RH is at present trading with a Forward P/E ratio of 22.55. This valuation marks a premium compared to its industry average Forward P/E of 21.37.
One should further note that RH currently holds a PEG ratio of 2.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Consumer Products - Staples industry stood at 2.87 at the close of the market yesterday.
The Consumer Products - Staples industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 23% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Shares of RH (NYSE:RH – Get Free Report) have been assigned a consensus recommendation of “Hold” from the nineteen ratings firms that are covering the firm, Marketbeat.com reports. Three investment analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have issued a buy rating on the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $164.86.
Several brokerages recently commented on RH. Morgan Stanley cut their target price on RH from $240.00 to $210.00 and set an “overweight” rating on the stock in a research report on Friday, September 11th. Telsey Advisory Group lifted their target price on RH from $140.00 to $155.00 and gave the stock a “market perform” rating in a report on Friday, September 11th. Robert W. Baird dropped their price target on RH from $165.00 to $160.00 and set a “neutral” rating on the stock in a research note on Friday, September 11th. UBS Group set a $190.00 price target on RH in a report on Friday, September 11th. Finally, Wall Street Zen raised shares of RH from a “sell” rating to a “hold” rating in a research report on Saturday, September 12th.
Read Our Latest Stock Analysis on RH
Insider Transactions at RH In related news, Director Mark Demilio sold 1,000 shares of the stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $132.00, for a total transaction of $132,000.00. Following the transaction, the director directly owned 25,680 shares of the company’s stock, valued at $3,389,760. This represents a 3.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 26.90% of the stock is currently owned by corporate insiders. Hedge Funds Weigh In On RH Several institutional investors have recently made changes to their positions in the stock. Belpointe Asset Management LLC boosted its holdings in RH by 3.5% in the second quarter. Belpointe Asset Management LLC now owns 2,217 shares of the company’s stock worth $365,000 after acquiring an additional 75 shares in the last quarter. D.B. Root & Company LLC increased its holdings in shares of RH by 0.9% during the second quarter. D.B. Root & Company LLC now owns 8,413 shares of the company’s stock valued at $1,386,000 after acquiring an additional 78 shares in the last quarter. Oregon Public Employees Retirement Fund increased its holdings in shares of RH by 3.3% during the first quarter. Oregon Public Employees Retirement Fund now owns 3,170 shares of the company’s stock valued at $443,000 after acquiring an additional 100 shares in the last quarter. State of Michigan Retirement System raised its position in shares of RH by 2.8% during the first quarter. State of Michigan Retirement System now owns 3,715 shares of the company’s stock worth $519,000 after purchasing an additional 100 shares during the period. Finally, Hilton Head Capital Partners LLC raised its position in shares of RH by 17.0% during the first quarter. Hilton Head Capital Partners LLC now owns 702 shares of the company’s stock worth $98,000 after purchasing an additional 102 shares during the period. Institutional investors and hedge funds own 90.17% of the company’s stock.
More RH News Here are the key news stories impacting RH this week:
Neutral Sentiment: Evacuations and preparations for Hurricane Isaias along the Gulf Coast could create temporary logistical or store-traffic disruptions for retailers in affected areas, but the reports do not mention RH directly. Hurricane Isaias live updates RH Price Performance Shares of NYSE RH opened at $117.23 on Friday. RH has a twelve month low of $106.30 and a twelve month high of $239.40. The firm has a fifty day simple moving average of $145.84 and a 200 day simple moving average of $146.14. The company has a market capitalization of $2.22 billion, a PE ratio of 20.86, a P/E/G ratio of 2.15 and a beta of 1.91. The company has a quick ratio of 0.37, a current ratio of 1.12 and a debt-to-equity ratio of 26.57.
RH (NYSE:RH – Get Free Report) last issued its quarterly earnings results on Thursday, September 10th. The company reported $2.70 EPS for the quarter, beating analysts’ consensus estimates of $0.38 by $2.32. RH had a net margin of 3.23% and a return on equity of 132.79%. The business had revenue of $922.15 million for the quarter, compared to analysts’ expectations of $915.09 million. During the same quarter in the prior year, the firm posted $2.93 earnings per share. The business’s quarterly revenue was up 2.6% compared to the same quarter last year. On average, sell-side analysts forecast that RH will post 5.30 EPS for the current year.
About RH (Get Free Report)
RH, formerly known as Restoration Hardware, is a luxury home-furnishings company that curates and sells products for residential and hospitality environments. Its offerings include furniture, lighting, textiles, rugs, bath and kitchen fixtures, outdoor furnishings, décor and related design products.
The company markets its products through a multichannel platform that includes large-format RH Galleries, outlet locations, source books, websites and trade services for professional designers.
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RH (NYSE:RH) (RH (NYSE:RH)) senior vice president Michael Brown has left the luxury home furnishings retailer to become chief creative officer at Vesta Home, where he will oversee furniture collections and help expand its luxury interior design business.
Brown led interior design globally at RH and will now develop Vesta Home furniture collections and lead expansion of its luxury interior design division, defining its creative vision across markets.
Jefferies, the investment bank, reiterated its 'hold' rating on RH, saying it is premature to have conviction in how much new business the RH Estates line will add.
Jefferies also said international investment could drag on RH margins into 2027, as the retailer is years into building its foundational platform abroad but still needs measurable spending.
Jefferies called the departure notable because it follows other exits of long-tenured executives and comes after RH launched RH Estates and revamped its Trade program.
Brown co-founded RH Interior Design in New York City in 2011 and helped grow it into a global residential design firm after starting as a senior design leader.
He also helped launch embedded design offices and ateliers, the first standalone RH Interior Design studio in Palm Desert, and Bespoke RH Interior Design, an independent full-service offering.
Vesta Home completes more than 2,500 residential projects a year in markets including New York, Los Angeles, San Francisco and the Hamptons, working with homeowners, developers and real estate professionals.
Its vertically integrated platform spans interior design, luxury home staging, custom furniture manufacturing, furniture sales and turnkey furnishing, and it staged more than 5.2 million square feet in 2025, representing about $13.7 billion in transactions.
The exit follows that of Stefan Duban, RH's chief gallery officer, who left after 25 years to become president of merchandising, retail and business-to-business at Thuma.
Jefferies recommends a 'buy' rating on Arhaus, an RH competitor.
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RH (NYSE:RH – Get Free Report) shares passed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $146.70 and traded as low as $115.66. RH shares last traded at $117.4730, with a volume of 860,814 shares.
Analyst Upgrades and Downgrades RH has been the subject of several analyst reports. Morgan Stanley reduced their price objective on shares of RH from $240.00 to $210.00 and set an “overweight” rating for the company in a research note on Friday, September 11th. Wells Fargo & Company lowered their target price on shares of RH from $225.00 to $175.00 and set an “overweight” rating on the stock in a research report on Friday, September 11th. Bank of America reduced their price target on RH from $156.00 to $114.00 and set an “underperform” rating for the company in a research report on Friday, September 11th. Wall Street Zen upgraded RH from a “sell” rating to a “hold” rating in a research note on Saturday, September 12th. Finally, TD Cowen decreased their price target on RH from $220.00 to $190.00 and set a “buy” rating for the company in a research note on Friday, September 11th. Seven research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, RH currently has an average rating of “Hold” and an average target price of $164.86.
Get Our Latest Report on RH
RH Stock Performance The company has a debt-to-equity ratio of 26.57, a quick ratio of 0.37 and a current ratio of 1.12. The stock’s 50-day simple moving average is $150.31 and its two-hundred day simple moving average is $146.70. The stock has a market cap of $2.22 billion, a price-to-earnings ratio of 20.90, a price-to-earnings-growth ratio of 2.27 and a beta of 1.91. RH (NYSE:RH – Get Free Report) last issued its quarterly earnings results on Thursday, September 10th. The company reported $2.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.38 by $2.32. RH had a return on equity of 132.79% and a net margin of 3.23%.The company had revenue of $922.15 million for the quarter, compared to the consensus estimate of $915.09 million. During the same period last year, the business posted $2.93 earnings per share. The firm’s revenue was up 2.6% compared to the same quarter last year. Analysts forecast that RH will post 5.3 earnings per share for the current year.
Insider Activity at RH In other news, CEO Gary G. Friedman sold 48,238 shares of the firm’s stock in a transaction on 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 sale, the chief executive officer owned 3,226,337 shares in the company, valued at approximately $511,890,628.42. This trade represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Mark S. Demilio sold 2,445 shares of the business’s stock in a transaction on Friday, July 10th. The stock was sold at an average price of $168.44, for a total transaction of $411,835.80. Following the transaction, the director directly owned 25,680 shares in the company, valued at $4,325,539.20. This trade represents a 8.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 51,683 shares of company stock worth $8,197,277. Company insiders own 26.90% of the company’s stock.
Institutional Trading of RH A number of hedge funds have recently bought and sold shares of the stock. BlackRock Inc. raised its stake in shares of RH by 41.7% in the second quarter. BlackRock Inc. now owns 1,978,271 shares of the company’s stock worth $325,881,000 after acquiring an additional 581,710 shares during the last quarter. Kettle Hill Capital Management LLC acquired a new position in shares of RH in the 4th quarter valued at $28,865,000. Norges Bank acquired a new position in RH in the fourth quarter valued at about $28,092,000. Bank of America Corp DE grew its position in shares of RH by 166.5% during the 1st quarter. Bank of America Corp DE now owns 238,681 shares of the company’s stock worth $33,372,000 after buying an additional 149,127 shares during the period. Finally, Renaissance Technologies LLC acquired a new position in shares of RH during the 1st quarter worth about $13,954,000. 90.17% of the stock is owned by institutional investors.
About RH (Get Free Report)
RH, formerly known as Restoration Hardware, is a luxury home-furnishings company that curates and sells products for residential and hospitality environments. Its offerings include furniture, lighting, textiles, rugs, bath and kitchen fixtures, outdoor furnishings, décor and related design products.
The company markets its products through a multichannel platform that includes large-format RH Galleries, outlet locations, source books, websites and trade services for professional designers.
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Finding stocks that 10x isn't easy, but it happens more often than you might think. All of the Magnificent Seven stocks have been ten-baggers over their history, as have many other S&P 500 stocks.
Over a long enough time frame, successful companies at reasonable valuations can deliver returns of 900% or more. Sometimes it happens remarkably fast, as we saw with Micron and the rest of the memory sector this year. Who will be next? No one knows for sure, but below are three stocks I think have a strong chance of achieving that return over the next decade.
Image source: Getty Images.
1. UpstartUpstart (UPST +0.93%) was a stock market darling for a brief time during the pandemic as the company posted triple-digit revenue growth and strong profits in 2021.
The stock crashed in 2022 as rising interest rates crushed the business and the hype. Today, Upstart, which is a loan originator that has built an AI model for credit, is still down 90% from its all-time high.
That seems like a mistake. Upstart is in a much stronger position than it was a few years ago. The business is profitable on a generally accepted accounting principles (GAAP) basis, and it's projecting 35% revenue growth through 2028. Upstart is also competing in a massive addressable market, especially after entering the home and auto loan markets, so it could be several times larger than it is today, with a market cap of just $2.4 billion.
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Additionally, the company is in the process of securing a bank charter, which will make it easier to launch new products nationwide and lower its costs. After adjusting for stock-based compensation, as most tech companies do, Upstart is trading at a price-to-earnings ratio of around 13. That looks like a massive mispricing of this growth stock. If Upstart continues to execute, the stock will respond, and if interest rates eventually come down, the stock could skyrocket. Even without a macro tailwind, a 10x in ten years is within reach for a disruptive growth stock that looks significantly undervalued.
2. RHRH (RH -0.22%), the home furnishings company formerly known as Restoration Hardware, was a top performer for much of its history, but it's struggled in the post-pandemic era as the housing market has stalled.
RH is now down more than 80% from its all-time high, even though the company has continued to deliver growth in a challenging macro environment, targeting revenue growth of 5.5%-7% in 2026 and an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 15%-16.2%.
The company will likely need some help from macroeconomic forces like interest rates to 10x, but at a market cap of just $2.4 billion, it's not unreasonable for it to get there.
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RH has expanded into Europe and has extended the brand to guesthouses and jet and yacht charters. CEO Gary Friedman is a visionary, and he will continue to push the company in new directions and hold it to high standards. His previous bold bets, like shifting to a membership model, have paid off, and RH has clearly established itself as a luxury home furnishings retailer able to earn a premium.
The housing market won't be stagnant forever, and once it wakes up, RH is poised to capitalize on the rebound in demand, which could send profits and the stock soaring.
3. SweetgreenSweetgreen (SG +5.56%) has been a disappointment since its 2021 IPO. The company is the leading fast-casual salad chain, but it's struggled to turn a profit and has faced pushback from customers over its high prices. Additionally, after years of billing its Infinite Kitchen as the future of the company, Sweetgreen sold the technology to Wonder, though it retained the rights to use it. More recently, it faced a setback from the cyclosporiasis outbreak.
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Despite those challenges, there are signs that Sweetgreen could be turning the corner. Its restaurants remain popular with average unit volumes of $2.5 million, not far behind Chipotle. Its new wraps, which offer a handheld option at a lower price, have been popular, and the company has also introduced a turnaround plan to cut costs and improve profitability.
At a market cap of less than $1 billion, Sweetgreen seems priced as if it were slowly going out of business, rather than as a company with a significant growth opportunity ahead. If it can return to same-store sales growth and take steps toward profitability, the stock will be rewarded. With new store expansion over the next decade, it could reach a $9 billion market cap, making it a 10x stock.
CORTE MADERA, Calif.--(BUSINESS WIRE)--RH (NYSE: RH) announced today the opening of RH Estates, The Gallery on Greenwich Avenue, an immersive destination marking the North American debut of the brand's latest concept, RH Estates, and its first freestanding Gallery in the world. Previewed at RH Milan during Salone del Mobile and introduced with the opening of RH London, RH Estates will significantly expand its retail presence across the globe this year, followed by a second freestanding RH Estat.
RH UNVEILS RH ESTATES, THE GALLERY ON GREENWICH AVENUE -- THE FIRST FREESTANDING RH ESTATES GALLERY IN THE WORLD RH (NYSE: RH) announced today the opening of RH Estates, The Gallery on Greenwich Avenue, an immersive destination marking the North American debut of the brand's latest concept, RH Estates, and its first freestanding Gallery in the world. Previewed at RH Milan during Salone del Mobile and introduced with the opening of RH London, RH Estates will significantly expand its retail presence across the globe this year, followed by a second freestanding RH Estates Gallery on Melrose Avenue in Los Angeles opening in 2027.
To view the full announcement, please click here.
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, with integrated hospitality experiences in galleries throughout the United States and internationally.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260918821253/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Luxury brands must find a delicate balance between continuing to cultivate an air of exclusivity, maintaining perceived quality even in spite of higher materials costs and inflation, and balancing price increases against customer tolerance. While retail more broadly has faced numerous challenges as consumers have tightened their belts, some high-end luxury brands have largely avoided these pitfalls.
This doesn't necessarily mean that those luxury companies are positioned advantageously looking ahead, though. In order to be truly attractive to investors, high-end brands must not only benefit from continued strength in their sales but must also demonstrate that they are likely to be resilient if those consumers with a higher degree of disposable income trim their discretionary expenses. The companies below have the former, but it will be up to investors to assess whether they also possess the latter.
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RH's Decline May Be an Opportunity, Though Uncertainty LingersHigh-end home furnishings company RH NYSE: RH, formerly Restoration Hardware, recently lost some of its luster for investors after a mixed Q2 2026 earnings report, issued in September 2026. On one hand, the company certainly outperformed analyst predictions: both revenue and earnings per share (EPS) were wins over expectations, the latter beating forecasts by an impressive $2.32 per share. Sales growth was 2.6% year over year (YOY), which is hardly exceptional but still better than analysts had estimated.
RH Today
$126.36 +1.53 (+1.22%)
As of 03:50 PM Eastern
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$106.30▼
$248.4422.45
$165.57
On the other hand, a confluence of factors ranging from the housing downturn to unforeseen supply chain costs are all weighing on internal forecasts going forward. RH management predicts 5.5% to 7% in revenue growth for the full fiscal year as well as free cash flow ranging from $300 million to $400 million.
Investors seem to have expected better on this front; the market sent RH stock cratering by 10% in a five-day period in mid-September, bringing total declines to about 27% year to date (YTD). Still, there are reasons why RH could turn things around.
Its luxury RH Estates line is making real progress at expanding its addressable market and is also helping to boost average price points, which are currently about 45% higher than the company's prior assortment. All of this should help boost RH's margins.
Understandably, analysts are cautious: only seven out of 20 have rated RH shares a Buy, despite the projected upside potential of 27%. After an insider sell-off earlier in the summer, investors must decide if RH shares have farther to fall.
Birkenstock's Brand May Be Its Biggest AssetBirkenstock Holding plc NYSE: BIRK has managed to maintain interest in its high-end sandals, selling them at full price while rivals like On Holding NYSE: ONON have resorted to extensive promotions. The company has one of the strongest brands and most loyal customer bases across the footwear space and may benefit from a perception that its products have not declined in quality while many competitors' have.
Birkenstock Today
$30.43 +0.42 (+1.41%)
As of 03:50 PM Eastern
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$29.93▼
$50.7314.25
$52.50
That's not to say that Birkenstock has been free of challenges. Shares of BIRK are down 25% YTD, and profitability is facing pressure due to tariffs, increased freight costs, foreign exchange rates, and much more.
This has brought down the firm's adjusted gross margin, which fell by 130 basis points YOY last quarter.
At the same time, though, 13.3% YOY revenue growth has given management confidence to suggest that Birkenstock may see 15% in constant-currency revenue growth with solid adjusted EBITDA for the full fiscal year.
Adjusted EPS may be struggling a bit, but broad-based growth may help Birkenstock to recover in the coming quarters.
Capri Is Not Out of Trouble, But Profitability and Reduced Debt Are Strong PointsLuxury fashion holding company Capri Holdings Ltd. NYSE: CPRI is best known for owning brands like Michael Kors and Jimmy Choo.
Capri Today
$14.77 +0.72 (+5.15%)
As of 03:50 PM Eastern
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$12.40▼
$28.2611.38
$21.93
The firm has undergone brand elevation transformations that parallel RH's plan to amplify its Estates line, showing that Capri also believes that ultra-luxury consumers will be a durable source of demand (and revenue) even as other customers are squeezed.
Profitability for the latest quarter was better than expected, even as revenue declined modestly YOY. Perhaps most importantly, though, Capri management maintained a fairly ambitious fiscal year EPS outlook, even though it did lower its revenue outlook for the same period. Capri has also managed to significantly trim its debt to $224 million last quarter, compared to $1.5 billion the year prior, which may signal its financial health. However, like the companies above, Capri has seen shares shed value this year, falling 29% YTD and leaving some analysts cautious.
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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.
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RH (NYSE:RH) reported second-quarter fiscal 2026 revenue and profitability above the high end of its guidance, as the luxury home furnishings retailer said momentum is beginning to build from recently launched growth initiatives.
Chairman and Chief Executive Officer Gary Friedman said GAAP net revenue totaled $922.2 million, up 2.6% from a year earlier and representing a 4.2-point acceleration from the first quarter. Normalized adjusted EBITDA margin was 13.4%, also above the company’s guidance range.
RH generated $72.3 million of cash during the quarter, including free cash flow and a $42 million distribution from its Aspen joint ventures, excluding tariff refunds of $69.2 million, Friedman said. Updated outlook includes Estates growth and international costs The company raised its fiscal 2026 outlook to revenue growth of 5.5% to 7% and adjusted EBITDA margin of 15% to 16.2%. RH also expects free cash flow, asset sales and distributions from equity-method investments of $300 million to $400 million.
The outlook includes an estimated 340-basis-point drag on adjusted EBITDA margin from pre-opening and startup costs associated with international expansion. RH expects that international drag to decline to 150 basis points in fiscal 2027, after the company cycles the opening costs for its global flagships in Paris, Milan and London.
For the third quarter, RH forecast revenue growth of 5% to 6%, including contributions of 2.5 percentage points from backlog reduction, 2 points from RH Estates and 1 point from new galleries and other sources. It expects adjusted EBITDA margin of 12.5% to 13.5%.
Fourth-quarter revenue growth is projected at 16.1% to 21.2%. The company expects backlog reduction to contribute 6.5 points of growth, RH Estates to contribute 8 points and new galleries and other sources to add 4 points. Fourth-quarter adjusted EBITDA margin is projected at 19.7% to 22.9%.
RH recognized a $55.1 million tariff benefit in the second quarter and expects another $13.9 million benefit in the second half. Friedman said the company plans to use tariff proceeds to offset approximately $50 million of unplanned supply-chain costs tied to higher oil prices amid the Middle East conflict. The remaining $19 million of tariff proceeds is included in the company’s updated margin outlook.
RH Estates positioned as a major brand extension Much of the call focused on RH Estates, a traditional and classic furniture collection introduced through a 268-page source book that was mailed from late June through mid-July. Friedman said the company believes the collection could double RH’s total addressable market, noting that more than 60% of luxury homes in North America have traditional or classic architecture.
RH said it has made acquisitions over the past six years—including Michael Taylor Designs, Formations, Dennis & Leen, Joseph Jeup and Dmitriy & Co.—to support the Estates opportunity. Friedman said the company plans to expand the collection’s assortment rapidly over the next five years, when it expects Estates to represent 50% of its offering.
The initial Estates assortment carries an average price point about 45% higher than RH’s existing assortment. Friedman said the collection’s design, quality, finishes and exclusivity support the pricing, and said the products had generated interest from customers who were not previously RH buyers.
RH plans to expand Estates circulation in November, place the collection on the main floor of galleries representing roughly 80% of its business and build inventory levels to meet demand. Friedman said the company expects demand to increase as shoppers can see the products in person, particularly because luxury furniture customers typically prefer to inspect products before making purchases.
The company also expects Estates to be margin accretive, citing both higher expected gross margins and operating leverage from the collection’s higher average price points. Friedman said most of the collection is protected by trade dress or design patents pending, and RH plans to pursue intellectual-property protections against unauthorized copies.
International expansion and evolving gallery strategy RH opened RH London, The Gallery, Mayfair, on June 27. Friedman said the London location built a design pipeline of nearly $7 million in its first eight weeks, comparable with the design pipelines of RH Newport and RH New York. He said larger, complex projects will take several months to convert into revenue.
Friedman said London has an advantage over Paris and Milan because the U.K. is English-speaking, has more expatriates and had already benefited from the RH England location, which he said had reached roughly $38 million in demand over three years. RH is continuing to learn how consumer and trade behavior differs across European markets, he said.
The company expects its capital-spending cycle to move below its peak. Adjusted capital expenditures are projected to decline to $175 million to $200 million in fiscal 2027 from $240 million to $260 million in fiscal 2026. New-gallery opening costs are expected to decrease to $18 million in 2027 from $48 million this year.
RH is also shifting toward new retail formats designed to reduce construction costs and improve returns. Its RH Compounds, which will feature multiple buildings, connected garden courtyards and a central restaurant, are under development in Naples and Aventura, Florida. The company expects both projects to open in 2027 and deliver payback periods of 12 to 18 months.
Friedman said RH is also developing single-story design galleries with integrated restaurants and pursuing “ecosystem” strategies in certain markets, where separate RH Estates, Interiors, Modern and Outdoor locations can operate near one another rather than requiring a single large new gallery.
On the trade side, Friedman said RH’s recently revamped program has driven a meaningful acceleration in business and that the higher volume has already offset the program’s increased discounting. The company is also expanding support for designers through bespoke furniture, custom sizes, customer’s-own-material offerings, floor plans, renderings, delivery and installation services.
About RH (NYSE:RH) 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.
RH (NYSE:RH) on Thursday reported better-than-expected second-quarter earnings.
RH reported quarterly earnings of $2.70 per share, which beat the Street estimate of $1.78 by 51.69%, per Benzinga Pro data. Quarterly revenue of $922.15 million missed the analyst consensus estimate of $936.25 million, but was up from $899.15 million in the same period last year.
RH narrowed its fiscal 2026 revenue outlook to a range of $3.63 billion to $3.68 billion, versus the $3.63 billion analyst estimate.
RH shares gained 1.5% to trade at $136.00 on Friday.
These analysts made changes to their price targets on RH following earnings announcement.
Baird analyst Peter Benedict maintained the stock with a Neutral and lowered the price target from $165 to $160.B of A Securities analyst Christopher Nardone maintained the stock with an Underperform rating and lowered the price target from $156 to $114.UBS analyst Michael Lasser maintained the stock with a Neutral and lowered the price target from $155 to $154.Wells Fargo analyst Zachary Fadem maintained the stock with an Overweight rating and lowered the price target from $225 to $175.TD Cowen analyst Max Rakhlenko maintained the stock with a Buy and lowered the price target from $220 to $190.JP Morgan analyst Christopher Horvers maintained the stock with an Overweight rating and cut the price target from $212 to $190.Telsey Advisory Group analyst Cristina Fernandez maintained the stock with a Market Perform and raised the price target from $140 to $155.BNP Paribas analyst Chris Bottiglieri reiterated the stock with an Underperform rating and cut the price target from $90 to $81.Considering buying RH stock? Here’s what analysts think:
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RH (RH) is experiencing an uptick in trading following a significant Q2 earnings beat. The company's better-than-expected underlying profitability has helped mi
RH (NYSE:RH) on Thursday reported mixed second-quarter fiscal 2026 results. Several analysts revised the price forecast for the company following the results release.
TD Cowen analyst Max Rakhlenko maintained a Buy rating and lowered the price target from $220 to $190. Wells Fargo analyst Zachary Fadem kept an Overweight rating and slashed the price target from $225 to $175. UBS analyst Michael Lasser reiterated a Neutral rating and cut the price target from $155 to $154. BofA Securities analyst Christopher Nardone retained an Underperform rating and trimmed the price target from $156 to $114. Guggenheim analyst Steven Forbes maintained a Buy rating and $200 price target. Guggenheim analyst writes that he believes RH is nearing the end of a major investment cycle, positioning the company for faster market share gains alongside stronger incremental margins.
Following updated commentary on RH Estates collection, the analyst raised estimates for the company.
Forbes raised fiscal 2026 revenue estimate to $3.629 billion-$3.680 billion (from $3.594 billion-$3.715 billion) and adjusted EPS estimate to $5.22-$6.99 (from $3.81-$6.58).
• RH stock is showing upward movement. Why is RH stock trading higher?
Earnings SnapshotRH reported adjusted earnings of $2.70 per share, beating the $1.78 Street estimate.
Revenue rose 2.6% year over year to $922.15 million but missed the $936.25 million analyst consensus estimate.
The company said its new RH Estates collection could potentially double its total addressable market. RH expects the aesthetic to drive a major industry trend for more than 20 years. The company expects Estates to account for 50% of its offering within five years.
RH narrowed its fiscal 2026 sales guidance to $3.629 billion to $3.681 billion from $3.594 billion to $3.715 billion. The analyst estimate is $3.631 billion.
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RH Stock Price Activity: RH shares were up 1.87% at $136.52 at the time of publication on Friday.
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RH reported Q2 results beating estimates, but gains were driven by a one-time $55M tariff refund, not underlying business strength. Underlying EBITDA and margins remain pressured by weak housing demand, supply chain inflation, and aggressive expansion, with true margins contracting materially. Leverage is elevated at 4.2x net debt/EBITDA, with floating-rate exposure and limited buyback capacity; debt reduction is now prioritized.
RH (RH - Free Report) came out with quarterly earnings of $2.7 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $2.93 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +542.86%. A quarter ago, it was expected that this furniture and housewares company 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 surpassed consensus EPS estimates two times.
RH, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $922.15 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.97%. This compares to year-ago revenues of $899.15 million. The company has topped consensus revenue estimates three 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 22.2% since the beginning of the year versus the S&P 500's gain of 11.6%.
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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $2.89 on $964 million in revenues for the coming quarter and $4.66 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 24% 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.
One other stock from the broader Zacks Consumer Staples sector, Constellation Brands (STZ - Free Report) , is yet to report results for the quarter ended August 2026.
This wine, liquor and beer company is expected to post quarterly earnings of $3.63 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Constellation Brands' revenues are expected to be $2.57 billion, up 3.8% from the year-ago quarter.
For the quarter ended July 2026, RH (RH - Free Report) reported revenue of $922.15 million, up 2.6% over the same period last year. EPS came in at $2.70, compared to $2.93 in the year-ago quarter.
The reported revenue represents a surprise of +0.97% over the Zacks Consensus Estimate of $913.28 million. With the consensus EPS estimate being $0.42, the EPS surprise was +542.86%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how RH performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Number of locations - RH - Total Galleries: 77 compared to the 73 average estimate based on three analysts.Number of locations - RH - North America - Modern Gallery: 1 versus 1 estimated by two analysts on average.Number of locations - Waterworks Showrooms: 15 versus 14 estimated by two analysts on average.Number of locations - Outlets: 44 versus the two-analyst average estimate of 43.Number of locations - RH - North America - Design Galleries: 40 compared to the 40 average estimate based on two analysts.Stores Count - End of period: 93 compared to the 92 average estimate based on two analysts.Number of locations - RH - North America - Legacy Galleries: 25 compared to the 25 average estimate based on two analysts.Total selling square footage - End of period: 1,769.00 Ksq ft versus 1,695.85 Ksq ft estimated by two analysts on average.View all Key Company Metrics for RH here>>>
Shares of RH have returned -22.7% over the past month versus the Zacks S&P 500 composite's -1.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Ryman Checks Into a $1.38B Hospitality UpgradeRH NYSE: RH reported second-quarter fiscal 2026 revenue and profitability above the high end of its guidance, as the luxury home furnishings retailer said momentum is beginning to build from recently launched growth initiatives.
Chairman and Chief Executive Officer Gary Friedman said GAAP net revenue totaled $922.2 million, up 2.6% from a year earlier and representing a 4.2-point acceleration from the first quarter. Normalized adjusted EBITDA margin was 13.4%, also above the company’s guidance range.
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CEOs Sell Millions Worth of These 3 Big Name Stocks—What It Means for InvestorsRH generated $72.3 million of cash during the quarter, including free cash flow and a $42 million distribution from its Aspen joint ventures, excluding tariff refunds of $69.2 million, Friedman said.
Updated outlook includes Estates growth and international costs The company raised its fiscal 2026 outlook to revenue growth of 5.5% to 7% and adjusted EBITDA margin of 15% to 16.2%. RH also expects free cash flow, asset sales and distributions from equity-method investments of $300 million to $400 million.
MarketBeat Week in Review – 06/15 - 06/19The outlook includes an estimated 340-basis-point drag on adjusted EBITDA margin from pre-opening and startup costs associated with international expansion. RH expects that international drag to decline to 150 basis points in fiscal 2027, after the company cycles the opening costs for its global flagships in Paris, Milan and London.
For the third quarter, RH forecast revenue growth of 5% to 6%, including contributions of 2.5 percentage points from backlog reduction, 2 points from RH Estates and 1 point from new galleries and other sources. It expects adjusted EBITDA margin of 12.5% to 13.5%.
Fourth-quarter revenue growth is projected at 16.1% to 21.2%. The company expects backlog reduction to contribute 6.5 points of growth, RH Estates to contribute 8 points and new galleries and other sources to add 4 points. Fourth-quarter adjusted EBITDA margin is projected at 19.7% to 22.9%.
RH recognized a $55.1 million tariff benefit in the second quarter and expects another $13.9 million benefit in the second half. Friedman said the company plans to use tariff proceeds to offset approximately $50 million of unplanned supply-chain costs tied to higher oil prices amid the Middle East conflict. The remaining $19 million of tariff proceeds is included in the company’s updated margin outlook.
RH Estates positioned as a major brand extension Much of the call focused on RH Estates, a traditional and classic furniture collection introduced through a 268-page source book that was mailed from late June through mid-July. Friedman said the company believes the collection could double RH’s total addressable market, noting that more than 60% of luxury homes in North America have traditional or classic architecture.
RH said it has made acquisitions over the past six years—including Michael Taylor Designs, Formations, Dennis & Leen, Joseph Jeup and Dmitriy & Co.—to support the Estates opportunity. Friedman said the company plans to expand the collection’s assortment rapidly over the next five years, when it expects Estates to represent 50% of its offering.
The initial Estates assortment carries an average price point about 45% higher than RH’s existing assortment. Friedman said the collection’s design, quality, finishes and exclusivity support the pricing, and said the products had generated interest from customers who were not previously RH buyers.
RH plans to expand Estates circulation in November, place the collection on the main floor of galleries representing roughly 80% of its business and build inventory levels to meet demand. Friedman said the company expects demand to increase as shoppers can see the products in person, particularly because luxury furniture customers typically prefer to inspect products before making purchases.
The company also expects Estates to be margin accretive, citing both higher expected gross margins and operating leverage from the collection’s higher average price points. Friedman said most of the collection is protected by trade dress or design patents pending, and RH plans to pursue intellectual-property protections against unauthorized copies.
International expansion and evolving gallery strategy RH opened RH London, The Gallery, Mayfair, on June 27. Friedman said the London location built a design pipeline of nearly $7 million in its first eight weeks, comparable with the design pipelines of RH Newport and RH New York. He said larger, complex projects will take several months to convert into revenue.
Friedman said London has an advantage over Paris and Milan because the U.K. is English-speaking, has more expatriates and had already benefited from the RH England location, which he said had reached roughly $38 million in demand over three years. RH is continuing to learn how consumer and trade behavior differs across European markets, he said.
The company expects its capital-spending cycle to move below its peak. Adjusted capital expenditures are projected to decline to $175 million to $200 million in fiscal 2027 from $240 million to $260 million in fiscal 2026. New-gallery opening costs are expected to decrease to $18 million in 2027 from $48 million this year.
RH is also shifting toward new retail formats designed to reduce construction costs and improve returns. Its RH Compounds, which will feature multiple buildings, connected garden courtyards and a central restaurant, are under development in Naples and Aventura, Florida. The company expects both projects to open in 2027 and deliver payback periods of 12 to 18 months.
Friedman said RH is also developing single-story design galleries with integrated restaurants and pursuing “ecosystem” strategies in certain markets, where separate RH Estates, Interiors, Modern and Outdoor locations can operate near one another rather than requiring a single large new gallery.
On the trade side, Friedman said RH’s recently revamped program has driven a meaningful acceleration in business and that the higher volume has already offset the program’s increased discounting. The company is also expanding support for designers through bespoke furniture, custom sizes, customer’s-own-material offerings, floor plans, renderings, delivery and installation services.
About RH (NYSE:RH)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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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CORTE MADERA, Calif.--(BUSINESS WIRE)--RH (NYSE: RH) has released its financial results for the second quarter ended August 1, 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 833.461.5787 or 626.884.3620 for internat.
RH (NYSE:RH) posted mixed second-quarter fiscal 2026 results after Thursday’s closing bell, beating EPS estimates and revenue coming in slightly below expectations.
RH stock is moving. Watch the price action here. RH reported quarterly earnings of $2.70 per share, which beat the Street estimate of $1.78 by 51.69%, per Benzinga Pro data.
Quarterly revenue of $922.15 million missed the analyst consensus estimate of $936.25 million, but was up from $899.15 million in the same period last year.
RH recognized a tariff benefit of $55.1 million in the second quarter and expects to recognize an additional $13.9 million tariff benefit in the second half of the year.
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The retailer said it plans to use the refund “to offset $50 million of unplanned cost increases across our supply chain due to the significant and sustained spike in oil prices as a result of the continued conflict in the Middle East.”
Looking AheadRH narrowed its fiscal 2026 revenue outlook to a range of $3.63 billion to $3.68 billion, versus the $3.63 billion analyst estimate.
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RH Stock Price: According to data from Benzinga Pro, RH stock was up 5.84% to $141.85 in Thursday’s extended trading.
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Live 1 update · Last at 2:48pm ET Updates appear automatically.
By Thomas Richmond · Updated Sep 10, 2:48pm ET · Published Sep 10, 2:57pm ET
Live UpdatesNewest first
RH reports fiscal second-quarter earnings after today’s close, with shares already under significant pressure heading into the announcement. Wall Street expects earnings of $0.46 per share on $916.5 million in revenue, setting up a steep year-over-year decline in profitability.
The bigger question is whether management can show that the company’s expected second-half acceleration is taking shape. Investors should be watching the normalization of backordered shipments, early traction from RH Estates, and the impact of international expansion and associated pre-opening costs.
If those catalysts get pushed further out while costs remain elevated, investors will likely focus even more on RH’s balance sheet and deleveraging timeline.
RH currently trades at roughly 22x forward earnings with a market capitalization of around $2.59 billion, while prediction markets put the odds of an earnings beat at essentially 50/50.
This article is updated throughout the trading day. Check back for more.
Full CoverageThe story so far
RH (NYSE:RH | RH Price Prediction), the luxury home furnishings retailer, is expected to report Q2 fiscal 2027 results after the bell at 4:10 PM ET on Thursday, September 10, 2026. Shares are down 25.39% over the past month, making tonight a credibility test for the company’s second-half-of-the-year acceleration story.
A Guide CEO Gary Friedman Has to Defend Last quarter, RH delivered revenue of $800.33M, down 1.7% YoY, with an adjusted EBITDA margin of 7.1% that “exceeded the high end of our expectations.” Gross margin compressed to 41.4% from 43.7%, and the company posted an adjusted loss of $(1.97) per diluted share.
Management raised the full-year outlook anyway, guiding to 4.5% to 8.0% revenue growth and $300-400M in adjusted free cash flow. The bridge from flat first half to roughly 12% second-half growth rests on backlog reduction, new stores, and RH Estates. Shares have not cooperated, sliding 23.54% year to date.
Consensus Estimates Metric Q2 FY27 Estimate YoY Change FY27 Estimate FY28 Estimate Revenue $916.5M +1.9% $3.63B $3.94B EPS (Normalized) $0.4629 -84.2% $4.7616 $9.0827 The revenue line matches RH’s own 0.5% to 2.5% growth guide, but the EPS reset is the story. Analysts have taken the Q2 bar down from $2.1140 ninety days ago, a re-rating that reflects 380 bps of pre-opening cost drag and margin compression. Full-year EPS estimates still imply a sharp back-half snapback.
What I’m Watching Tonight: Backorders, Estates, and the Housing Overhang Tonight, I’ll be watching the $75M backorder release most closely. CEO Gary Friedman said last quarter that, “There’s a pretty big number that we don’t have to drive demand to hit it. It’s we’ve already driven that demand.” Any evidence that shipments are flowing on schedule validates the H2 bridge.
RH Estates is the second lever. Management pegged its H2 contribution at five points of growth and called it “one of the most incremental things I think we’ve ever done.” Investors will focus on early gallery attach rates and any commentary on the trade program pipeline.
Third, international. RH Paris opened last fall, with London and Milan following. Pre-opening costs are the reason the Q2 EBITDA guide sits at 11.5% to 13.0%, a 380 basis point headwind.
Fourth, the balance sheet. Debt sits at $2.4B against 4.3x net debt to TTM adjusted EBITDA, with interest expense of $52.7M in Q1. Progress on the debt-free by 2029 target matters as much as the P&L. Finally, CEO Gary Friedman has previously called this the “worst housing market in almost 50 years” yet said, “I don’t need a big move in the housing market to grow.”
Earnings History Quarter EPS Surprise 1-Day Move 7-Day Move 30-Day Move Q1 FY27 n/a -3.94% -7.05% +19.42% Q4 FY26 -30.58% -19.29% -14.18% -7.04% Q3 FY26 -20.90% +1.02% +5.54% +38.00% Q2 FY26 -8.91% +2.39% +3.25% -15.84% On average, RH shares moved 0.2% seven days after earnings across the reported history.
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RH (NYSE:RH) will release its second earnings report after the closing bell on Thursday, Sept. 10.
Analysts expect the Corte Madera, California-based company to report quarterly earnings of 46 cents per share, down from $2.93 per share in the year-ago period. The consensus estimate for RH’s quarterly revenue is $916.51 million. It reported $899.15 million last year, according to Benzinga Pro.
On July 23, RH named Ryan Hassanein as chief legal & compliance officer, while also announcing the promotion of Sandy Pilon to chief customer experience & values officer.
RH shares fell 2.2% to close at $139.37 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.
JP Morgan analyst Christopher Horvers maintained an Overweight rating and cut the price target from $225 to $212 on Aug. 17, 2026. This analyst has an accuracy rate of 69%. Wells Fargo analyst Zachary Fadem maintained an Overweight rating and boosted the price target from $175 to $225 on Aug. 11, 2026. This analyst has an accuracy rate of 76%. B of A Securities analyst Christopher Nardone reinstated an Underperform rating with a price target of $156 on Aug. 3, 2026. This analyst has an accuracy rate of 60%. Goldman Sachs analyst Kate McShane upgraded the stock from Sell to Neutral and boosted the price target from $86 to $155 on July 8, 2026. This analyst has an accuracy rate of 68%. Citigroup analyst Steven Zaccone maintained a Neutral rating and raised the price target from $150 to $166 on June 15, 2026. This analyst has an accuracy rate of 52%. Trending
Considering buying RH stock? Here’s what analysts think:
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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.
