RH Earnings Recaps
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.