RH’s Q2 revenue and normalized adjusted EBITDA margin exceeded the high end of company guidance, but the stock was flat after earnings. The outlook points to a pronounced Q4 acceleration, while international preopening costs and supply-chain inflation remain meaningful margin pressures.
- GAAP net revenue was $922.2 million, up 2.6% year over year; management said growth accelerated 4.2 points from Q1.
- Normalized adjusted EBITDA margin was 13.4%, above the high end of guidance. The company reported $72.3 million of cash generated in the quarter, including a $42 million distribution from Aspen joint ventures and excluding $69.2 million of tariff refunds.
- Fiscal 2026 outlook is revenue growth of 5.5%–7% and adjusted EBITDA margin of 15%–16.2%. Management said the outlook includes an approximately 340-basis-point margin impact from international preopening and startup costs.
- Q3 revenue growth guidance is 5%–6%, with adjusted EBITDA margin of 12.5%–13.5%; Q4 guidance steps up to 16.1%–21.2% revenue growth and 19.7%–22.9% margin.
- RH cited $50 million of unplanned supply-chain cost increases tied to higher oil prices amid the Middle East conflict. Management expects $13.9 million of additional tariff benefits in the second half, with $19 million of tariff proceeds included in its updated FY26 margin outlook.
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