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

RH (NYSE:RH) issued its quarterly earnings data on Thursday. The company reported ($1.97) earnings per share for the quarter, beating analysts’ consensus estimates of ($2.13) by $0.16, FiscalAI reports. RH had a return on equity of 1,102.95% and a net margin of 3.01%.The business had revenue of $800.33 million during the quarter, compared to analysts’ expectations of $792.55 million. During the same period in the previous year, the firm posted $0.13 earnings per share. The company’s revenue was down 1.7% on a year-over-year basis.

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 Down 3.8%

RH opened at $153.19 on Friday. RH has a 12 month low of $106.30 and a 12 month high of $257.00. The stock has a market capitalization of $2.90 billion, a price-to-earnings ratio of 29.57, a PEG ratio of 2.92 and a beta of 1.91. The company has a debt-to-equity ratio of 51.28, a current ratio of 1.19 and a quick ratio of 0.31. The business has a fifty day moving average price of $135.22 and a 200 day moving average price of $162.79.

Key Stories Impacting RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: RH posted stronger-than-expected Q1 results, with revenue of $800.3 million and EPS of -$1.97, both ahead of Wall Street estimates, and several analysts responded by raising forecasts or reiterating bullish views. Article Title
• Positive Sentiment: The company raised FY2026 sales guidance to 4.5%–8% growth and now expects $3.6 billion to $3.7 billion in revenue for the year, which supports the longer-term turnaround story. Article Title
• Positive Sentiment: Guggenheim reaffirmed a Buy rating and set a $200 price target, suggesting meaningful upside if RH can execute on its recovery plan. Article Title
• Neutral Sentiment: Robert W. Baird raised its price target to $150 while keeping a Neutral rating, reflecting improved expectations but continued caution on the stock’s valuation and near-term execution. Article Title
• Neutral Sentiment: RH’s Q2 revenue guidance came in below consensus, and management said tariff-related sourcing changes are delaying deliveries into future periods, creating near-term uncertainty. Article Title
• Negative Sentiment: Investors are also weighing a GAAP net loss and ongoing margin pressure, which is overshadowing the better Q1 print and keeping sentiment cautious. Article Title
• Negative Sentiment: Zacks added RH to its Strong Sell list, adding another bearish signal that may be pressuring the shares. Article Title

Analyst Upgrades and Downgrades

RH has been the subject of a number of research reports. Wells Fargo & Company lifted their price objective on RH from $160.00 to $175.00 and gave the company an “overweight” rating in a research note on Friday. Stifel Nicolaus boosted their target price on RH from $110.00 to $130.00 and gave the stock a “hold” rating in a research note on Friday. The Goldman Sachs Group lowered their target price on RH from $101.00 to $88.00 and set a “sell” rating for the company in a research note on Tuesday, April 7th. Robert W. Baird boosted their target price on RH from $125.00 to $150.00 and gave the stock a “neutral” rating in a research note on Friday. Finally, UBS Group lowered their target price on RH from $160.00 to $155.00 and set a “neutral” rating for the company in a research note on Tuesday. Seven analysts have rated the stock with a Buy rating, eight have issued a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $171.47.

Insider Buying and Selling

In related news, insider Eri Chaya sold 11,000 shares of the business’s stock in a transaction on Tuesday, March 31st. The stock was sold at an average price of $137.92, for a total transaction of $1,517,120.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Over the last ninety days, insiders sold 25,000 shares of company stock worth $3,370,440. Insiders own 26.90% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Public Employees Retirement System of Ohio boosted its position in shares of RH by 1.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 5,122 shares of the company’s stock worth $1,041,000 after acquiring an additional 81 shares in the last quarter. US Bancorp DE boosted its position in shares of RH by 30.8% during the 3rd quarter. US Bancorp DE now owns 416 shares of the company’s stock worth $85,000 after acquiring an additional 98 shares in the last quarter. Wilmington Savings Fund Society FSB boosted its position in shares of RH by 200.0% during the 4th quarter. Wilmington Savings Fund Society FSB now owns 174 shares of the company’s stock worth $31,000 after acquiring an additional 116 shares in the last quarter. Harvest Fund Management Co. Ltd acquired a new position in shares of RH during the 3rd quarter worth about $30,000. Finally, IHT Wealth Management LLC boosted its position in shares of RH by 12.2% during the 4th quarter. IHT Wealth Management LLC now owns 1,375 shares of the company’s stock worth $246,000 after acquiring an additional 150 shares in the last quarter. 90.17% of the stock is owned by institutional investors and hedge funds.

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.