RH (RH) Q2 2026 Earnings
Includes $13.6M pre-tax charge for variable interest entities restructuring (including $11M non-cash loss); excludes $17.98M of equity method investment income (including $20M related to VIE restructuring); adjusted at 26.2% non-GAAP tax rate
How Did RH Stock React to Q2 2026 Earnings?
Did RH Beat Earnings? Q2 2026 Results
Yes. RH reported Q2 2026 earnings of $2.70 a share on Sep 10, 2026, beating the $0.46 consensus estimate by 483.3%. Revenue was $922.2M against a $916.2M estimate.
RH delivered a strong second quarter as <a href="https://247wallst.com/investing/2026/09/10/live-will-rh-smash-q2-earnings-tonight-after-the-market-closes/">investors had been watching closely</a>, with the luxury home furnishings retailer reporting adjusted diluted EPS of $2.70 against a Wall Street consensus of just $0.46, a gap so wide it defies simple comparison. Revenue rose 2.6% year-over-year to $922.15 million, edging past the $916.25 million consensus by roughly 0.64% and exceeding the high end of the company's own guidance, with management noting that growth accelerated meaningfully relative to Q1. A significant tailwind came from $55.09 million in IEEPA tariff refunds recognized during the quarter, though approximately $50 million of those proceeds are earmarked to offset supply chain cost pressures tied to elevated oil prices. Looking ahead, RH projects full-year revenue growth of 5.5% to 7.0%, with a notably aggressive Q4 outlook of 16.1% to 21.2% growth, fueled by the ramp-up of RH Estates, a new traditional and classic furniture line management believes could substantially expand the company's addressable market.
- Revenue growth accelerated 4.2 points over Q1 driven by recent growth strategies
- IEEPA tariff refunds of $55.1M (600 bps) positively impacted Q2 gross margins
- Gross margin expanded to 48.2% from 45.5% year-over-year
- RH Estates Sourcebook mailed in late June through mid-July generating initial demand
- RH London design pipeline reached almost $7M in first 8 weeks
“GAAP net revenues of $922.2 million exceeded the high end of our guidance increasing 2.6% versus last year and accelerating 4.2 points over the first quarter as our momentum begins to build from the significant growth strategies we have recently put into motion.”
RH CEO, on the earnings call
What Is RH's Outlook?
Updated Fiscal Year 2026: Revenue growth of 5.5% to 7.0%; Adjusted EBITDA margin of 15.0% to 16.2%; Free cash flow, asset sales and distribution of equity method investments of $300M to $400M; includes approximately negative 340 basis point adjusted EBITDA margin impact from pre-opening and startup costs for international expansion. Q3 2026: Revenue growth of 5.0% to 6.0% (inclusive of backlog reduction +2.5pts, RH Estates +2.0pts, new galleries and other +1.0pts); Adjusted EBITDA margin of 12.5% to 13.5%; includes approximately negative 310 bps international expansion drag. Q4 2026: Revenue growth of 16.1% to 21.2% (inclusive of backlog reduction +6.5pts, RH Estates +8.0pts, new galleries and other +4.0pts); Adjusted EBITDA margin of 19.7% to 22.9%; includes approximately negative 190 bps international expansion drag. International drag expected to decrease from 340 bps in 2026 to 150 bps in 2027. Adjusted capital expenditures expected to decrease from $240M-$260M in 2026 to $175M-$200M in 2027. Gallery opening costs expected to decrease from $48M in 2026 to $18M in 2027.
RH YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $922.2M | $899.1M | +2.6% |
| Gross Profit | $444.9M | $409.2M | +8.7% |
| Operating Income | $107.6M | $134.4M | −20.0% |
| Net Income | $60.2M | $51.7M | +16.4% |
When Does RH Report Next?
Figures from SEC filings and company reports. Not investment advice.