RH (NYSE:RH) Announces Quarterly Earnings Results

RH (NYSE:RH) announced its quarterly earnings results on Tuesday. The company reported $1.53 EPS for the quarter, missing the consensus estimate of $2.21 by ($0.68), Briefing.com reports. The firm had revenue of $842.62 million during the quarter, compared to the consensus estimate of $873.48 million. RH had a net margin of 3.22% and a negative return on equity of 161.72%. The firm’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same period in the previous year, the business earned $1.58 earnings per share.

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 Performance

NYSE RH opened at $139.98 on Wednesday. RH has a 52-week low of $123.03 and a 52-week high of $257.00. The company has a fifty day moving average of $174.82 and a 200-day moving average of $180.43. The company has a market capitalization of $2.63 billion, a P/E ratio of 25.27, a P/E/G ratio of 0.55 and a beta of 2.14. The company has a debt-to-equity ratio of 944.39, a quick ratio of 0.26 and a current ratio of 1.19.

Wall Street Analyst Weigh In

RH has been the topic of a number of recent analyst reports. Morgan Stanley increased their price objective on RH from $250.00 to $275.00 and gave the stock an “overweight” rating in a research report on Thursday, January 15th. TD Cowen decreased their target price on RH from $265.00 to $200.00 and set a “buy” rating on the stock in a research note on Monday. Barclays lowered their price target on RH from $385.00 to $283.00 and set an “overweight” rating on the stock in a report on Monday, December 15th. Wells Fargo & Company dropped their price target on RH from $250.00 to $225.00 and set an “overweight” rating for the company in a research report on Friday, March 13th. Finally, JPMorgan Chase & Co. cut their price objective on RH from $275.00 to $225.00 and set an “overweight” rating for the company in a report on Friday, December 19th. Seven equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, RH currently has a consensus rating of “Hold” and an average target price of $211.07.

Insiders Place Their Bets

In other news, insider Eri Chaya sold 7,000 shares of the company’s stock in a transaction dated 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 available through this hyperlink. Also, Director Mark S. Demilio sold 2,254 shares of the stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $220.00, for a total value of $495,880.00. Following the transaction, the director owned 19,962 shares in the company, valued at $4,391,640. This trade represents a 10.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 18,254 shares of company stock worth $2,789,400. 27.00% of the stock is owned by insiders.

Institutional Trading of RH

A number of hedge funds have recently bought and sold shares of RH. Harvest Fund Management Co. Ltd bought a new stake in RH in the third quarter valued at approximately $30,000. Advisory Services Network LLC bought a new position in shares of RH in the third quarter worth approximately $31,000. Wilmington Savings Fund Society FSB increased its stake in shares of 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 buying an additional 116 shares during the period. Federation des caisses Desjardins du Quebec raised its holdings in RH by 3,800.0% during 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 during the last quarter. Finally, Quadrant Capital Group LLC bought a new stake in RH during the 3rd quarter valued at $77,000. Institutional investors own 90.17% of the company’s stock.

Trending Headlines about RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: Broader market tailwind: US futures rose on easing geopolitical concerns, which helped limit RH’s decline amid the earnings news. Stock Market Today: Dow Jones, S&P 500 Futures Rise
• Positive Sentiment: Analyst positioning: TD Cowen trimmed RH’s price target (from $265 to $200) but kept a “buy” stance, suggesting some sell-side faith in RH’s longer-term recovery potential. TD Cowen Lowers Price Target
• Neutral Sentiment: Corporate moves: RH announced leadership hires to build its global strategy—this signals management is focusing on execution and international growth but is unlikely to move the stock near-term. RH builds out global strategy with leadership appointments
• Neutral Sentiment: Longer-term targets: RH reiterated a medium-term growth ambition (FY2026 revenue guide 4%–8% and $5.4B–$5.8B revenue target by 2030), which supports a recovery narrative but doesn’t offset near-term headwinds. RH outlines 2026 revenue growth of 4% to 8%
• Negative Sentiment: Earnings and guidance miss: RH reported Q4 EPS $1.53 vs. consensus ~ $2.2 and revenue below estimates; management flagged tariff and weather impacts and forecast first-quarter revenue down 2%–4%, driving the sharp sell-off. RH tumbles on earnings miss and weak Q1 outlook
• Negative Sentiment: Market reaction: Coverage and headlines note RH “cratered” after the results and guidance, reflecting investor concern about profitability (net margin compression) and high leverage metrics. RH shares crater on missed Q4 results

RH Company Profile

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.