RH (NYSE:RH) Releases Earnings Results, Misses Expectations By $0.71 EPS

RH (NYSE:RH) posted its earnings results on Tuesday. The company reported $1.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.24 by ($0.71), Briefing.com reports. RH had a negative return on equity of 161.72% and a net margin of 3.22%.RH’s revenue for the quarter was up 3.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.58 earnings per share.

Here are the key takeaways from RH’s conference call:

• FY2025 results beat peers with 8% revenue growth (two‑year +15%), $597M adjusted EBITDA (17.3% margin) and $252M free cash flow versus negative in 2024.
• Management says 2025 was a peak investment year (≈$289M adjusted CapEx plus $37M in brand acquisitions), producing near‑term margin pressure and a conservative 2026 revenue guide of 4%–8% and adj. EBITDA 14%–16%.
• RH is launching RH Estates (mid‑May source book) with RH Bespoke and RH Couture after acquiring Michael Taylor, Formations and Dennis & Leen, targeting traditional luxury homes and an initial roll‑out into ~30–40 flagship galleries.
• The company is doubling down on a physical‑first global strategy—flagship openings in Paris, Milan and London, immersive galleries and restaurants (26 today, 40 by 2027), plus new lower‑capex formats (Design Compounds, ecosystems) to scale toward a ~$2B North American expansion opportunity.
• Tariffs and supply‑chain resourcing have meaningfully pressured margins and caused back‑order drag (notably metal outdoor, lighting, rugs and furniture); Q4 tariff impact was ~190bp and near‑term tariff uncertainty remains.

RH Stock Up 6.0%

Shares of NYSE:RH traded up $7.96 during trading on Tuesday, hitting $139.98. The stock had a trading volume of 2,903,385 shares, compared to its average volume of 1,122,319. The company has a market capitalization of $2.63 billion, a PE ratio of 25.27, a PEG ratio of 0.54 and a beta of 2.14. The company has a quick ratio of 0.26, a current ratio of 1.19 and a debt-to-equity ratio of 944.39. The firm’s fifty day moving average is $174.82 and its 200 day moving average is $180.43. RH has a 12 month low of $123.03 and a 12 month high of $257.00.

Trending Headlines about RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: TD Cowen kept a “buy” rating on RH while lowering its price target from $265 to $200, signaling continued analyst conviction in RH’s longer-term upside even after the recent weakness. TD Cowen Price Target Note
• Positive Sentiment: Market commentary suggests month‑end/quarter‑start buying lifted stocks, which likely helped RH today as some investors stepped in ahead of the new quarter. Month of March Goes Out Like a Bull
• Neutral Sentiment: RH posted its official fourth-quarter and FY2025 results and released an investor presentation and CEO video; the filing/webcast provides management commentary and the full financial detail investors will parse for guidance and margins. RH Reports Fourth Quarter and Fiscal Year 2025 Results
• Neutral Sentiment: Coverage on RH leadership changes frames shifts toward manufacturing and real‑estate strategy — these are strategic factors that affect longer‑term margins and valuation but are less likely to move the stock intraday than earnings/guidance. RH Leadership Changes Highlight Manufacturing, Real Estate And Valuation Story
• Negative Sentiment: RH missed Q4 earnings estimates: EPS $1.53 vs. the Zacks consensus $2.21, a clear earnings shortfall that weighs on near‑term sentiment and valuation expectations. RH (RH) Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: Media coverage emphasizes the earnings miss and the stock’s sharp reaction; Benzinga details the Q4 shortfall and market reaction, which can drive additional selling pressure or volatility. RH Stock Tanks After Q4 Results Miss Estimates: Details
• Negative Sentiment: Management cited tariff and weather impacts and now expects first‑quarter revenue to decline 2%–4%, a near‑term revenue headwind that increases downside risk for the upcoming quarter. RH Reports Tariff, Weather Impacts in Fourth Quarter, Projects First-Quarter Revenue Decline
• Negative Sentiment: Short interest in RH rose ~28% in March, which can exacerbate moves in either direction (covering can fuel rallies; sustained pressure can signal bearish positioning). RH (NYSE:RH) Short Interest Up 28.3% in March

Wall Street Analyst Weigh In

A number of research firms have commented on RH. TD Cowen lowered their price target on RH from $265.00 to $200.00 and set a “buy” rating for the company in a research report on Monday. Jefferies Financial Group reiterated a “hold” rating on shares of RH in a research report on Tuesday, January 27th. UBS Group reduced their target price on RH from $188.00 to $160.00 and set a “neutral” rating on the stock in a research note on Tuesday, March 17th. Robert W. Baird decreased their target price on RH from $235.00 to $180.00 and set a “neutral” rating for the company in a report on Friday, December 12th. Finally, Zacks Research raised RH from a “strong sell” rating to a “hold” rating in a research note on Friday, February 13th. Seven analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $211.07.

Insider Activity at RH

In other RH news, insider Eri Chaya sold 7,000 shares of the firm’s stock in a transaction on Tuesday, March 24th. The stock was sold at an average price of $129.42, for a total transaction of $905,940.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Mark S. Demilio sold 2,254 shares of the firm’s stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $220.00, for a total value of $495,880.00. Following the transaction, the director directly owned 19,962 shares of the company’s stock, valued at $4,391,640. This represents a 10.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 18,654 shares of company stock worth $2,861,468 over the last 90 days. 27.00% of the stock is currently owned by corporate insiders.

Institutional Trading of RH

A number of hedge funds and other institutional investors have recently modified their holdings of RH. Senvest Management LLC increased its stake in shares of RH by 30.1% in the 4th quarter. Senvest Management LLC now owns 842,577 shares of the company’s stock worth $150,948,000 after acquiring an additional 194,773 shares in the last quarter. Durable Capital Partners LP boosted its stake in RH by 125.1% during the second quarter. Durable Capital Partners LP now owns 646,097 shares of the company’s stock worth $122,119,000 after acquiring an additional 359,101 shares in the last quarter. Alliancebernstein L.P. grew its holdings in RH by 66.1% in the third quarter. Alliancebernstein L.P. now owns 573,666 shares of the company’s stock worth $116,546,000 after purchasing an additional 228,229 shares during the period. Two Sigma Investments LP grew its holdings in RH by 40.9% in the third quarter. Two Sigma Investments LP now owns 359,093 shares of the company’s stock worth $72,953,000 after purchasing an additional 104,154 shares during the period. Finally, Morgan Stanley increased its stake in shares of RH by 0.8% during the fourth quarter. Morgan Stanley now owns 353,996 shares of the company’s stock valued at $63,419,000 after purchasing an additional 2,658 shares in the last quarter. 90.17% of the stock is owned by hedge funds and other institutional investors.

RH Company Profile

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.