Companies /Consumer Cyclical

RH - Class A

NYSE: RH Specialty Retail
$118.05
▼ $2.41 (−2.00%) today
Markets open · 10:06am ET

Q4 2024 Earnings

Reported Apr 2, 2025, 4:22pm ET · SEC source
$1.58
Miss −17.17%
EPS · est. $1.91 Adjusted

Includes $16.5M pre-tax asset impairments for Galleries under construction, $4.4M reorganization costs, $0.9M non-cash compensation adjustment, and $2.7M share of equity method investments loss — all added back to arrive at adjusted diluted EPS

$812.4M
Miss −2.06%
Revenue · est. $829.5M
+18.3%
Beating market
RH vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−20%0+20%Apr 2Apr 3report 4:22pm ETearnings−5.6%−26.8%
−20%0+20%Apr 2Apr 3earnings−5.6%−26.8%
RH −26.8%S&P 500 −5.6%
−20%0+20%Apr 2Apr 3report 4:22pm ETearnings−6.3%−26.8%
−20%0+20%Apr 2Apr 3earnings−6.3%−26.8%
RH −26.8%NASDAQ −6.3%
−20%0+20%+40%Apr 1Apr 10report 4:22pm ETearnings−5.0%−7.3%
−20%0+20%+40%Apr 1Apr 10earnings−5.0%−7.3%
RH −7.3%S&P 500 −5.0%
−20%0+20%+40%Apr 1Apr 10report 4:22pm ETearnings−3.4%−7.3%
−20%0+20%+40%Apr 1Apr 10earnings−3.4%−7.3%
RH −7.3%NASDAQ −3.4%
−40.09%
Day of report
−2.50%
Next session
+15.19%
One week
+22.41%
30 days

S&P 500 over the same 30 days: +4.12%.

Did RH Beat Earnings? Q4 2024 Results

RH delivered a disappointing fourth quarter, missing on both the top and bottom lines as a stubbornly weak housing market and a mid-December spike in mortgage rates weighed on demand. Adjusted diluted EPS came in at $1.58, falling short of the $1.91 consensus by 17.17%, while revenue of $812.41 million trailed estimates of $829.53 million by 2.06%, even as the top line grew 10.00% year over year. CEO Gary Friedman attributed the softness to what he called the worst housing market in nearly 50 years, with mortgage applications dropping 22% during the holiday stretch before demand stabilized in January. The results triggered a sharp single-day selloff in RH shares and a subsequent analyst downgrade, underscoring investor unease. Still, management sounded a constructive note on the road ahead, guiding for fiscal 2025 revenue growth of 10% to 13% and adjusted operating margins of 14% to 15%, with the planned opening of RH Paris on the Champs-Élysées and a significant new brand extension slated for Fall 2025 anchoring the growth story.

Key Takeaways
  • RH Brand demand increased 21% on a comparable 13-week basis in Q4
  • Total demand increased 17% on a comparable 13-week basis in Q4
  • Product transformation driving industry-leading growth
  • On comparable 13-week basis, net revenues increased 18% and adjusted operating income increased 57%

“The important work and substantial investments we've made over the past two years are now resulting in meaningful share gains and significant strategic separation, positioning the RH brand to expand its leadership position across the luxury home market over the next decade.”

RH CEO, on the earnings call

Forward Guidance & Outlook

Fiscal Year 2025: Revenue growth of 10% to 13%, adjusted operating margin of 14% to 15%, adjusted EBITDA margin of 20% to 21%. First Quarter 2025: Revenue growth of 12.5% to 13.5%, adjusted operating margin of 6.5% to 7.0%, adjusted EBITDA margin of 12.5% to 13.0%. Outlook includes a negative 160 to 200 basis point operating margin impact from investments and startup costs to support international expansion. Company does not expect negative impact from previously announced tariffs on products from China, Canada or Mexico. Plans to open 7 Design Galleries, 2 Outdoor Galleries, and 2 New Concept Galleries in fiscal 2025, including RH Paris on the Champs-Élysées. A significant new brand extension planned for Fall 2025.

RH YoY Financials

Q4 2024 vs Q4 2023 · SEC filings Q4 2023 Q4 2024
$0$300.0M$600.0M$738.3M$812.4MRevenue$320.9M$362.8MGross Profit$63.6M$70.3MOperating Income$11.4M$13.9MNet Income
$0$300.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

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