RH Earnings Recaps
Q2 2026
Sep 12, 2026
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.
Key takeaways
- 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.
Q1 2026
Jun 13, 2026
RH’s shares rose modestly by 2.9% following Q1 fiscal 26 results that were generally in line with expectations, reflecting cautious investor reception despite an upwardly revised full-year outlook and better-than-expected margin performance.
Key takeaways
- Q1 revenue reached $800.3 million, and adjusted EBITDA margin stood at 7.1%, surpassing the high end of internal expectations.
- The company raised its fiscal 26 revenue growth guidance to 4.5%-8%, with adjusted EBITDA margins expected between 14.2%-16%, despite headwinds from tariff-related costs and international expansion pre-opening expenses.
- Second quarter revenue growth is projected at 0.5%-2.5% with margins between 11.5%-13%, impacted by approximately 380 basis points of startup costs.
- The outlook relies on a second-half acceleration driven by backlog reduction, new store growth, and the rollout of the RH Estates concept—a strategic initiative targeting the global luxury market through a combination of scale and bespoke craftsmanship.
- Management’s ambition to reshape luxury home furnishing by broadening access and customization options underscores the long-term vision but raises near-term execution risks given the capital intensity and timing of international expansion efforts.
Q3 2025
Dec 12, 2025
RH reported a solid 9% revenue growth in Q3 2025 despite headwinds from the housing market and rising tariffs, reinforcing its position in the luxury furniture sector.
Key takeaways
- Revenue increased 9% YoY and 18% on a two-year basis, underscoring the brand's resilience and market share gains.
- Adjusted operating margin at 11.6% and adjusted EBITDA margin at 17.6%, slightly below guidance due to higher tariff expenses.
- Generated $83 million in free cash flow for the quarter, totaling $198 million year-to-date, on track to meet full-year targets of $250 to $300 million.
- Ongoing international expansion and product innovations are expected to drive future growth, despite current market uncertainties.
- Inventory reduced by 11% YoY, with significant progress on targeted reductions, positioning the company for improved operational efficiency.