RH (NYSE:RH) Reaches New 1-Year Low After Earnings Miss

RH (NYSE:RH) reached a new 52-week low during trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $108.00 and last traded at $111.51, with a volume of 387845 shares changing hands. The stock had previously closed at $139.82.

The company reported $1.53 EPS for the quarter, missing analysts’ consensus estimates of $2.21 by ($0.68). The company had revenue of $842.62 million during the quarter, compared to the consensus estimate of $873.48 million. RH had a negative return on equity of 161.72% and a net margin of 3.22%.RH’s quarterly revenue was up 3.7% on a year-over-year basis. During the same period in the previous year, the company earned $1.58 EPS.

Key RH News

Here are the key news stories impacting RH this week:

• Positive Sentiment: Management outlined 2026 revenue growth of 4%–8% and a longer-term target of $5.4B–$5.8B by 2030, signaling a clear growth target that could support valuation if execution improves. RH outlines 2026 revenue growth
• Positive Sentiment: RH announced leadership appointments to expand its global strategy and manufacturing focus — a potential positive for long-term execution and margin improvement if these hires accelerate supply-chain or product initiatives. RH builds out global strategy
• Neutral Sentiment: TD Cowen reduced its price target (from $265 to $200) but kept a Buy rating, showing some analyst conviction remains despite weaker near-term results. TD Cowen price target update
• Neutral Sentiment: The company posted its Q4 earnings release and made the earnings-call transcript / presentation available for investors to review management commentary and detail on headwinds. RH Q4 results press release
• Negative Sentiment: Core driver of the decline: RH missed Q4 consensus (reported EPS $1.53 vs. ~ $2.21 expected) and revenue also missed estimates — a clear near-term earnings disappointment. Earnings miss and weak guidance
• Negative Sentiment: Management guided Q1 revenue to decline 2%–4% and cited tariff headwinds that compressed gross margins (management quantified tariff pressure at roughly 190 basis points), intensifying concerns about near-term margin recovery. Tariff and guidance details
• Negative Sentiment: Market reaction: multiple outlets report the stock “tumbled” or “cratered” after results — indicating selling pressure as investors reprice near-term growth and margin risk. Market reaction coverage

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Wells Fargo & Company lowered their price objective on shares of RH from $250.00 to $225.00 and set an “overweight” rating for the company in a report on Friday, March 13th. Weiss Ratings reissued a “sell (d+)” rating on shares of RH in a research note on Monday, March 23rd. Stifel Nicolaus reaffirmed a “hold” rating and set a $165.00 price objective (down from $320.00) on shares of RH in a research note on Friday, December 12th. Telsey Advisory Group lowered their target price on RH from $165.00 to $140.00 and set a “market perform” rating for the company in a research note on Wednesday. Finally, The Goldman Sachs Group reduced their price target on RH from $195.00 to $144.00 and set a “sell” rating on the stock in a research report on Monday, December 15th. Seven investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, RH has a consensus rating of “Hold” and a consensus target price of $207.07.

Insider Activity

In other RH news, insider Eri Chaya sold 7,000 shares of the stock in a transaction that occurred on Tuesday, March 24th. The stock was sold at an average price of $129.42, for a total value of $905,940.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Mark S. Demilio sold 2,254 shares of RH stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $220.00, for a total value of $495,880.00. Following the completion of the sale, the director owned 19,962 shares in the company, valued at approximately $4,391,640. This represents a 10.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 18,254 shares of company stock worth $2,789,400 over the last three months. 27.00% of the stock is owned by insiders.

Institutional Trading of RH

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Hsbc Holdings PLC boosted its holdings in RH by 41.5% in the fourth quarter. Hsbc Holdings PLC now owns 5,649 shares of the company’s stock valued at $1,015,000 after acquiring an additional 1,656 shares in the last quarter. Rockefeller Capital Management L.P. raised its holdings in RH by 37.8% in the 4th quarter. Rockefeller Capital Management L.P. now owns 133,676 shares of the company’s stock worth $23,948,000 after purchasing an additional 36,691 shares in the last quarter. Corient Private Wealth LLC purchased a new stake in shares of RH in the 4th quarter worth about $287,000. Invesco Ltd. boosted its stake in shares of RH by 29.3% during the 4th quarter. Invesco Ltd. now owns 37,409 shares of the company’s stock valued at $6,702,000 after purchasing an additional 8,468 shares in the last quarter. Finally, Alberta Investment Management Corp bought a new stake in shares of RH during the 4th quarter valued at about $1,397,000. Hedge funds and other institutional investors own 90.17% of the company’s stock.

RH Price Performance

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 50-day moving average is $174.82 and its 200-day moving average is $180.43. The company has a market cap of $2.11 billion, a PE ratio of 20.36, a PEG ratio of 0.55 and a beta of 2.14.

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.