RH Q1 2026 Earnings Recap

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.