RH (NYSE:RH) Announces Quarterly Earnings Results, Beats Expectations By $0.16 EPS

RH (NYSE:RH) released its quarterly earnings data on Thursday. The company reported ($1.97) earnings per share (EPS) for the quarter, topping the consensus estimate of ($2.13) by $0.16, FiscalAI reports. RH had a net margin of 3.63% and a negative return on equity of 567.82%. The firm had revenue of $800.33 million during the quarter, compared to analysts’ expectations of $792.55 million. During the same period last year, the business earned $0.13 earnings per share. RH’s revenue was down 1.7% compared to the same quarter last year.

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

• Q1 results beat expectations, with revenue of $800.3 million and adjusted EBITDA margin of 7.1% coming in above the high end of guidance. Management said this strength led to a higher full-year fiscal 2026 outlook.
• The company raised fiscal 2026 guidance to revenue growth of 4.5%-8%, adjusted EBITDA margin of 14.2%-16%, and adjusted free cash flow of $300 million-$400 million. RH said the outlook includes a meaningful drag from international pre-opening and start-up costs.
• RH expects the business to accelerate in the second half, helped by a $75 million backlog/special-order benefit, new store growth, and RH Estates. Management called RH Estates the biggest launch in company history and said it could open up a much larger luxury home market.
• The company plans to launch RH Estates, Bespoke Furniture, and Couture Upholstery to expand customization and make high-end trade-only design more accessible. RH is also introducing a new trade compensation program to better attract interior designers and architects.
• Management remained confident in long-term margin and cash flow expansion as the company moves past its peak investment cycle. RH also reiterated its path toward becoming debt-free by 2029, supported by asset sales and improving free cash flow.

RH Trading Up 7.5%

Shares of RH stock opened at $159.82 on Friday. The company has a debt-to-equity ratio of 51.28, a quick ratio of 0.31 and a current ratio of 1.19. The stock has a market capitalization of $3.02 billion, a P/E ratio of 25.33, a price-to-earnings-growth ratio of 2.73 and a beta of 1.91. The company has a 50 day moving average price of $134.41 and a 200 day moving average price of $162.86. RH has a fifty-two week low of $106.30 and a fifty-two week high of $257.00.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the stock. UBS Group dropped their price target on shares of RH from $160.00 to $155.00 and set a “neutral” rating for the company in a research report on Tuesday. Weiss Ratings cut shares of RH from a “sell (d+)” rating to a “sell (d)” rating in a research report on Wednesday, April 29th. Telsey Advisory Group dropped their price target on shares of RH from $165.00 to $140.00 and set a “market perform” rating for the company in a research report on Wednesday, April 1st. Morgan Stanley reiterated an “overweight” rating and set a $240.00 price target on shares of RH in a research report on Monday, May 11th. Finally, Citigroup dropped their price target on shares of RH from $183.00 to $150.00 and set a “neutral” rating for the company in a research report on Thursday, April 2nd. Seven equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and five have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $174.80.

More RH News

Here are the key news stories impacting RH this week:

• Positive Sentiment: RH beat first-quarter expectations, posting a loss of $1.97 per share versus the expected $2.13 loss, while revenue of $800.3 million also came in ahead of estimates. RH Reports First Quarter Fiscal 2026 Results
• Positive Sentiment: RH lifted the lower end of its fiscal 2026 revenue growth outlook to 4.5% from 4.0%, signaling improved expectations for the year. RH Bumps Up Outlook, Expects Boost from Luxury Offerings
• Neutral Sentiment: William Blair maintained a Hold rating, saying RH’s back-half growth dependence and execution risks offset what it sees as a fair valuation. RH: Hold Rating Maintained as Back-Half Growth Dependence and Execution Risks Balance Fair Valuation
• Neutral Sentiment: RH was added to Zacks’ Strong Sell list, reflecting a more cautious near-term view from that service. New Strong Sell Stocks for June 12th
• Negative Sentiment: RH’s Q2 revenue guidance of about $903.6 million to $921.6 million came in below the consensus estimate, which could pressure the stock if investors focus on near-term growth. RH earnings transcript

Insider Buying and Selling at RH

In related news, insider Eri Chaya sold 11,000 shares of RH stock in a transaction that occurred on Tuesday, March 31st. The shares were sold at an average price of $137.92, for a total value of $1,517,120.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders have sold a total of 25,000 shares of company stock valued at $3,370,440 in the last ninety days. Insiders own 26.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Harvest Fund Management Co. Ltd acquired a new position in shares of RH in the third quarter valued at approximately $30,000. Advisory Services Network LLC purchased a new position in RH in the third quarter worth approximately $31,000. Wilmington Savings Fund Society FSB lifted its stake in RH by 200.0% in 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 last quarter. Federation des caisses Desjardins du Quebec lifted its stake in RH by 3,800.0% in the fourth quarter. Federation des caisses Desjardins du Quebec now owns 312 shares of the company’s stock worth $56,000 after acquiring an additional 304 shares during the last quarter. Finally, Quadrant Capital Group LLC purchased a new position in RH in the third quarter worth approximately $77,000. Institutional investors and hedge funds own 90.17% of the company’s stock.

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.