revenue growth
5.5–7 pct
FY 2026
official guidance
RH
Last · NYSE$110.99-4.89 (-4.22%)close · yahoo · 16h ago
Market cap$2.10B18.9M sh
P/E · TTM19.6fwd 13.0 · eps 5.66
Beta1.91vs S&P 500
Div yield0.00%annual · TTM
52w range
$106.30$239.40
Volume1.3Msession
| Revenue | $1.7B |
|---|---|
| Operating income | $141.8M |
| Net income | $46.5M |
| Free cash flow | $112.9M |
| Operating margin | 8.2% |
| Net margin | 2.7% |
| Return on equity | 38.6% |
| Period | 2026 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Promising product launch, but execution and macro risks make this a wait-and-see investment.
HOLD: RH delivered $922.2 million of Q2 revenue (+2.6%) and a 13.4% normalized adjusted EBITDA margin, while guiding FY2026 revenue growth of 5.5%-7.0% and adjusted EBITDA margin of 15.0%-16.2%.
RH Estates could expand the addressable market and support Q4 growth of 16.1%-21.2%, but that outlook depends on an unproven launch, backlog fulfillment, and tariff relief while oil-driven supply-chain costs, a four-year housing downturn, and international losses remain material.
Themes
- Rh Estates
- International Expansion
- Supply Chain Costs
- Tariff Benefits
- Gallery Returns
- Housing Downturn
Near term
RH Estates is expected to contribute 2 points to Q3 growth and 8 points to Q4 growth as gallery presentation and in-stock availability improve.
Q4 guidance relies on 6.5 points of backlog reduction in addition to Estates and new-gallery contributions, creating delivery and timing risk.
The company expects $13.9 million of additional tariff benefit in the second half, partly offsetting $50 million of unplanned supply-chain costs from higher oil prices.
Longer term
Management targets RH Estates at 50% of the offering within five years, with an average price point 45% above the existing assortment.
International margin drag is expected to fall from 340 basis points in FY2026 to 150 basis points in FY2027 as Paris, Milan, and London investment cycles mature.
RH Compounds and single-story Design Galleries are projected to deliver 12-18 month paybacks and could improve returns on invested capital versus legacy multi-story galleries.
Red flags
The headline growth acceleration is largely management's forecast: current Q2 revenue growth was only 2.6%, and Estates demand is not yet fully observable because much of the product is not in stock or in galleries.
The $50 million oil-related cost increase is not fully structurally mitigated; tariff benefits provide temporary relief and management expects a higher-cost environment for at least six to twelve months.
International expansion remains a 340-basis-point FY2026 adjusted EBITDA margin drag, while management gave no quantified 2027 revenue outlook.
Management's claims that Estates could double TAM and that new formats will restore peak returns are strategic assertions rather than demonstrated results.
Forward outlook
ebitda
15–16.2 pct
FY 2026
official guidance
revenue growth
5–6 pct
Q3 2026
official guidance
ebitda
12.5–13.5 pct
Q3 2026
official guidance
revenue growth
16.1–21.2 pct
Q4 2026
official guidance
ebitda
19.7–22.9 pct
Q4 2026
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
9:00 PM UTC+1
Period
Oct 2026
Est. EPS
$0.71
Est. revenue
933.0M
Earnings transcripts
Documents
FormReporting forFiledFlags