RH (NYSE:RH) Releases Quarterly Earnings Results

RH (NYSE:RH) released its quarterly earnings data on Thursday. The company reported $2.70 EPS for the quarter, beating the consensus estimate of $0.38 by $2.32, FiscalAI reports. The firm had revenue of $922.15 million for the quarter, compared to the consensus estimate of $915.09 million. RH had a net margin of 3.01% and a return on equity of 423.79%. The company’s quarterly revenue was up 2.6% on a year-over-year basis. During the same period in the previous year, the company earned $2.93 earnings per share.

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

• RH reported second-quarter revenue of $922.2 million, up 2.6% year over year and above the high end of guidance, while normalized adjusted EBITDA margin of 13.4% also exceeded expectations.
• Management expects RH Estates, its traditional and classic furniture offering, to materially expand the company’s addressable market, contribute approximately 8 percentage points of fourth-quarter growth, and eventually represent about 50% of the assortment. The collection carries an average price point 45% above the existing assortment and is expected to be margin accretive.
• RH raised or provided a fiscal 2026 outlook for 5.5%–7% revenue growth, a 15%–16.2% adjusted EBITDA margin, and $300 million–$400 million in free cash flow, asset sales, and investment distributions. Management also expects international start-up costs to weigh less in 2027 as the flagship-opening cycle ends.
• Early demand at RH London was strong, with nearly $7 million in design pipeline generated during its first eight weeks, while new compound and single-story gallery formats are expected to reduce construction costs and improve returns on invested capital.
• Management cited a prolonged housing downturn, promotional pressure, and roughly $50 million of unplanned supply-chain costs tied largely to higher oil prices and regional conflict. Tariff benefits are expected to offset much of the impact in fiscal 2026, but executives warned that inflationary cost pressure could persist for the next six to 12 months.

RH Stock Down 3.9%

Shares of RH opened at $133.89 on Friday. RH has a 12 month low of $106.30 and a 12 month high of $248.44. The firm’s 50 day moving average is $167.02 and its 200-day moving average is $150.20. The stock has a market capitalization of $2.53 billion, a PE ratio of 25.85, a P/E/G ratio of 3.32 and a beta of 1.85. The company has a current ratio of 1.13, a quick ratio of 0.32 and a debt-to-equity ratio of 54.96.

Key RH News

Here are the key news stories impacting RH this week:

• Positive Sentiment: Quarterly earnings beat expectations: RH reported adjusted EPS of $2.70, well above the roughly $0.38-$0.42 consensus estimate. Revenue was approximately $922 million, up 2.6% year over year and broadly in line with estimates. Gross profit increased 8.7%, while operating cash flow reached $145.2 million. RH quarterly earnings report
• Positive Sentiment: RH Estates creates a potential growth catalyst: CEO Gary Friedman said the new RH Estates collection could potentially double RH’s total addressable market. Management aims for Estates to represent 50% of the company’s offering within five years, with the first freestanding gallery now open in Connecticut. RH Estates growth outlook
• Positive Sentiment: Full-year outlook exceeded expectations: RH projected fiscal 2026 revenue of $3.6 billion to $3.7 billion, above the approximately $3.5 billion analyst consensus, implying revenue growth of about 5.5% to 7%. This helped reinforce expectations for a stronger second half. RH fiscal 2026 results
• Neutral Sentiment: Near-term execution remains important: Third-quarter revenue guidance of $928 million to $936.8 million was below the roughly $964 million consensus, suggesting that much of the recovery is weighted toward the fourth quarter. RH mixed quarterly results
• Negative Sentiment: Quality of the earnings beat is a concern: Reports indicated that a tariff refund provided a substantial boost to second-quarter profitability. Operating profit declined year over year, and revenue growth remains modest, raising questions about the durability of the earnings improvement. RH tariff refund impact

Insider Activity at RH

In related news, Director Carlos Alberini acquired 11,388 shares of the stock in a transaction on Monday, June 29th. The shares were purchased at an average price of $160.90 per share, for a total transaction of $1,832,329.20. Following the purchase, the director directly owned 32,190 shares in the company, valued at approximately $5,179,371. The trade was a 54.74% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Gary G. Friedman sold 48,238 shares of RH 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 completion of the transaction, the chief executive officer directly owned 3,226,337 shares of the company’s stock, valued at $511,890,628.42. This represents a 1.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 132,749 shares of company stock worth $21,856,812. Company insiders own 26.90% of the company’s stock.

Institutional Trading of RH

Several large investors have recently modified their holdings of RH. Harvest Fund Management Co. Ltd acquired a new position in RH in the third quarter valued at about $30,000. Advisory Services Network LLC bought a new position in RH in the 3rd quarter valued at about $31,000. Wilmington Savings Fund Society FSB raised its position in shares of RH by 200.0% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 174 shares of the company’s stock valued at $31,000 after buying an additional 116 shares in the last quarter. Federation des caisses Desjardins du Quebec raised its position in shares of RH by 3,800.0% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 312 shares of the company’s stock valued at $56,000 after buying an additional 304 shares in the last quarter. Finally, Quadrant Capital Group LLC bought a new stake in shares of RH during the 3rd quarter worth approximately $77,000. 90.17% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on RH shares. Robert W. Baird upped their price target on shares of RH from $125.00 to $150.00 and gave the company a “neutral” rating in a research note on Friday, June 12th. TD Cowen restated a “buy” rating on shares of RH in a research report on Tuesday, September 1st. Citigroup raised their price objective on shares of RH from $150.00 to $166.00 and gave the stock a “neutral” rating in a research report on Monday, June 15th. Guggenheim reaffirmed a “buy” rating and issued a $200.00 target price on shares of RH in a research report on Friday, June 12th. Finally, KeyCorp reiterated a “sector weight” rating on shares of RH in a research note on Friday, June 12th. Seven equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $173.36.

About 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.