RH (NYSE:RH) Announces Quarterly Earnings Results

RH (NYSE:RH) announced its quarterly earnings data on Tuesday. The company reported $1.53 earnings per share for the quarter, missing the consensus estimate of $2.21 by ($0.68), Briefing.com reports. The company had revenue of $842.62 million for the quarter, compared to analyst estimates of $873.48 million. RH had a net margin of 3.63% and a negative return on equity of 251.87%. RH’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.58 EPS.

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 Down 0.4%

RH traded down $0.40 during midday trading on Thursday, reaching $112.45. 566,821 shares of the company were exchanged, compared to its average volume of 1,236,916. The company has a debt-to-equity ratio of 944.39, a quick ratio of 0.26 and a current ratio of 1.19. The company’s fifty day moving average price is $172.49 and its 200 day moving average price is $179.95. The company has a market cap of $2.11 billion, a price-to-earnings ratio of 17.81, a price-to-earnings-growth ratio of 0.58 and a beta of 2.14. RH has a one year low of $106.30 and a one year high of $257.00.

Key Headlines Impacting RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: Certain sell‑side investors remain constructive: Guggenheim kept a “Buy” rating while lowering its price target to $200, signaling some firms still view RH as a recovery / long‑term opportunity. Guggenheim lowers price target on RH to 200 from 275, keeps buy rating
• Positive Sentiment: RH is pushing a multi‑year growth plan — management reinforced a target of roughly $5.4B–$5.8B revenue by 2030 and is investing in global expansion and leadership hires, which supports the bull case for recovery if demand stabilizes. RH Reports Fourth Quarter and Fiscal Year 2025 Results
• Neutral Sentiment: Q4 snapshot: revenue rose modestly year‑over‑year but RH missed both top and bottom-line expectations (adjusted EPS $1.53 vs. ~ $2.21 est; revenue ~$842.6M vs. ~$873.5M est.), a primary trigger for the selloff. RH stock tanks as fourth quarter results miss on the top and bottom lines
• Negative Sentiment: Management issued cautious FY26/near‑term guidance: revenue growth of ~4%–8% and EBITDA margin guidance implying compression as RH spends on expansion and pre‑open costs — the outlook lowers near‑term earnings visibility. RH sinks 22% after Q4 earnings miss and softer fiscal 2026 outlook
• Negative Sentiment: Operational headwinds: management cited tariff‑related sourcing/backorder costs (~$30M) and adverse weather (~$10M) that compressed gross margins — a reminder of near‑term margin risk. RH stock: 4 under the surface updates that warrant buying the dip
• Negative Sentiment: Macro demand risk: CEO warned of a worsening housing market as mortgage applications fell ~10.4% on rising rates — weaker housing activity disproportionately pressures high‑end home‑furnishings sales. RH CEO Warns Of ‘Most Dire’ Housing Market As Mortgage Applications Tumble On Rising Rates
• Negative Sentiment: Follow‑on selling and legal risk: multiple analysts slashed forecasts/targets after the miss and several outlets report a shareholder law‑firm inquiry into potential investor claims, adding near‑term downside pressure. These Analysts Slash Their Forecasts On RH After Downbeat Q4 Results RH Shareholders Are Encouraged to Reach Out to Johnson Fistel

Insider Activity at RH

In other RH news, insider Eri Chaya sold 11,000 shares of RH stock in a transaction on Tuesday, March 31st. The shares were sold at an average price of $137.92, for a total transaction of $1,517,120.00. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Mark S. Demilio sold 2,254 shares of the company’s stock in a transaction on Wednesday, January 14th. The stock was sold at an average price of $220.00, for a total transaction of $495,880.00. Following the completion of the sale, the director owned 19,962 shares of the company’s stock, valued at approximately $4,391,640. The trade was a 10.15% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 29,254 shares of company stock worth $4,306,520. 27.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Corient Private Wealth LLC bought a new stake in RH in the 4th quarter worth about $287,000. Invesco Ltd. boosted its stake in shares of RH by 29.3% in the 4th quarter. Invesco Ltd. now owns 37,409 shares of the company’s stock worth $6,702,000 after buying an additional 8,468 shares during the last quarter. Alberta Investment Management Corp purchased a new position in shares of RH in the 4th quarter worth approximately $1,397,000. DCM Advisors LLC grew its holdings in shares of RH by 6.2% in the fourth quarter. DCM Advisors LLC now owns 28,207 shares of the company’s stock valued at $5,053,000 after acquiring an additional 1,658 shares in the last quarter. Finally, Vident Advisory LLC purchased a new stake in shares of RH during the fourth quarter valued at approximately $360,000. 90.17% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on RH. Morgan Stanley dropped their price target on RH from $275.00 to $240.00 and set an “overweight” rating on the stock in a research note on Wednesday. BNP Paribas Exane reduced their price objective on RH from $130.00 to $96.00 and set an “underperform” rating for the company in a research note on Wednesday. KeyCorp reaffirmed a “sector weight” rating on shares of RH in a research report on Friday, December 12th. Bank of America cut their target price on RH from $200.00 to $170.00 and set an “underperform” rating on the stock in a report on Friday, December 12th. Finally, UBS Group reduced their price target on shares of RH from $188.00 to $160.00 and set a “neutral” rating for the company in a research report on Tuesday, March 17th. Seven investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $186.00.

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.