Q1 27 EPS
$-1.97
Q1 27 Revenue
$800.3M
Did RH Beat Earnings? Q1 2027 Results
RH posted a narrower-than-feared first quarter for fiscal 2026, with results coming in ahead of management's own internal expectations even as the luxury home furnishings retailer swung to an adjusted net loss of $37.20 million, or $1.97 per diluted … Read more RH posted a narrower-than-feared first quarter for fiscal 2026, with results coming in ahead of management's own internal expectations even as the luxury home furnishings retailer swung to an adjusted net loss of $37.20 million, or $1.97 per diluted share, against adjusted net income of $2.59 million a year ago. Revenue slipped 1.7% year-over-year to $800.33 million, with management pointing to roughly $45.00 million in delayed revenue tied to elevated backorder and special order balances, which ran approximately $75.00 million above prior-year levels due to tariff-driven supply chain resourcing. Gross margin contracted to 41.4% from 43.7%, and operating income fell to $34.24 million from $55.91 million. Despite the soft headline numbers, RH raised its full-year fiscal 2026 outlook, guiding for revenue growth of 4.5% to 8.0% and adjusted EBITDA margin of 14.2% to 16.0%, as the company anticipates roughly $75.00 million in deferred revenue flowing back in the second half, amplified by new store openings and the launch of its RH Estates concept.
Key Takeaways
- • Q1 revenues negatively impacted by approximately $45 million due to tariff-related resourcing elevating backorder and special order balances by ~$75 million vs. prior year
- • GAAP gross margin contracted to 41.4% from 43.7% year-over-year
- • Favorable legal settlement of $31.7 million related to credit card interchange fees
- • Results exceeded the high end of management's expectations
RH Forward Guidance & Outlook
RH raised its fiscal year 2026 outlook following better-than-expected Q1 results. Full year: Revenue growth of 4.5% to 8.0%, Adjusted EBITDA margin of 14.2% to 16.0%, Adjusted free cash flow of $300M to $400M (includes ~270 bps negative EBITDA margin impact from international pre-opening costs). Q2 2026: Revenue growth of 0.5% to 2.5%, Adjusted EBITDA margin of 11.5% to 13.0% (includes ~380 bps negative EBITDA margin impact from international pre-opening costs). The company expects backorder/special order balances to remain elevated in Q2 before normalizing by year-end, resulting in approximately $75 million revenue pickup in H2. Management outlined a bridge from flat H1 to ~12% H2 growth via backlog reduction (+4.5 pts), new store growth (+2.5 pts), and RH Estates new concept growth (+5.0 pts).
RH YoY Financials
Q1 2027 vs Q1 2026, source: SEC Filings
“First quarter revenues of $800.3M, and adjusted EBITDA margin of 7.1% exceeded the high end of our expectations in the first quarter despite back order and special order balances approximately $75 million higher than a year ago, primarily due to tariff related resourcing.”
— Gary Friedman, Q1 2027 Earnings Press Release
RH Earnings Trends
RH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
RH EPS Trend
Earnings per share: estimate vs actual
RH Revenue Trend
Quarterly revenue: estimate vs actual
RH Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 27 | — | $-1.97 | — | $800.3M | — |
| Q4 26 MISS FY | $2.20 | $1.53 | -30.58% | $842.6M | -3.51% |
| FY Full Year | — | $6.29 | — | $3.44B | — |
| Q3 26 MISS | $2.16 | $1.71 | -20.90% | $883.8M | +0.02% |
| Q2 26 MISS | $3.22 | $2.93 | -8.91% | $899.2M | -0.69% |
| Q1 26 BEAT | $-0.07 | $0.13 | +290.62% | $814.0M | -0.56% |
| Q4 25 MISS FY | $1.91 | $1.58 | -17.17% | $812.4M | -2.06% |
| FY Full Year | — | $5.39 | — | $3.18B | — |