Companies /Consumer Cyclical

RH - Class A

NYSE: RH Specialty Retail
$144.80
▼ $3.77 (−2.54%) today
Markets closed · 9:45pm ET

Q1 2027 Earnings

Reported Jun 11, 2026, 4:10pm ET · SEC source
$-1.97
Miss +0.00%
EPS · est. $0.00
$800.3M
Miss +0.00%
Revenue · est. $0
+17.1%
Beating market
RH vs S&P since report
3 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−10%−5%0Jun 11Jun 12report 4:10pm ETearnings+0.5%−10.4%
−10%−5%0Jun 11Jun 12earnings+0.5%−10.4%
RH −10.4%S&P 500 +0.5%
−10%−5%0Jun 11Jun 12report 4:10pm ETearnings+0.6%−10.4%
−10%−5%0Jun 11Jun 12earnings+0.6%−10.4%
RH −10.4%NASDAQ +0.6%
−10%−5%0Jun 10Jun 18report 4:10pm ETearnings+1.3%−5.7%
−10%−5%0Jun 10Jun 18earnings+1.3%−5.7%
RH −5.7%S&P 500 +1.3%
−12%−6%0Jun 10Jun 18report 4:10pm ETearnings+3.4%−5.7%
−12%−6%0Jun 10Jun 18earnings+3.4%−5.7%
RH −5.7%NASDAQ +3.4%
+7.15%
Day of report
−3.94%
Next session
−7.05%
One week
+19.42%
30 days

S&P 500 over the same 30 days: +2.31%.

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 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

“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.”

RH CEO, on the earnings call

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

Revenue$800.3M
Gross Profit$331.3M
Operating Income$34.2M
Net Income$-13,697,000

Figures from SEC filings and company reports. Not investment advice.