Companies /Consumer Cyclical

RH - Class A

NYSE: RH Specialty Retail
$144.80
▼ $3.77 (−2.54%) today
Markets closed · 9:55pm ET

Q4 2025 Earnings

Reported Apr 2, 2025, 4:22pm ET · SEC source
$1.58
Miss −17.17%
EPS · est. $1.91
$812.4M
Miss −2.06%
Revenue · est. $829.5M
+18.3%
Beating market
RH vs S&P since report
3 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−20%0+20%Apr 2Apr 3report 4:22pm ETearnings−5.6%−26.6%
−20%0+20%Apr 2Apr 3earnings−5.6%−26.6%
RH −26.6%S&P 500 −5.6%
−20%0+20%Apr 2Apr 3report 4:22pm ETearnings−6.4%−26.6%
−20%0+20%Apr 2Apr 3earnings−6.4%−26.6%
RH −26.6%NASDAQ −6.4%
−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 2025 Results

RH delivered a disappointing fourth quarter, missing Wall Street expectations on both the top and bottom lines as the luxury home furnishings retailer navigated what CEO Gary Friedman described as the worst housing market in nearly 50 years. Adjusted diluted EPS came in at $1.58, falling short of the $1.91 consensus estimate by 17.17%, while revenue of $812.41 million trailed the $829.53 million analyst forecast by 2.06%, despite growing 10% year over year against a prior-year period that included an extra week. The revenue shortfall was partly attributed to mortgage rates spiking in mid-December, which softened demand heading into the new year, though RH Brand demand stabilized at up 19% in January. Shares suffered their largest single-day decline around the report amid broader market turbulence and a Citi downgrade tied to tariff concerns. Looking ahead, RH guided fiscal 2025 revenue growth of 10% to 13% and adjusted EBITDA margin of 20% to 21%, with international expansion, including a planned Paris gallery on the Champs-Élysées, expected to weigh on near-term operating margins by 160 to 200 basis points.

Key Takeaways
  • Product transformation driving RH Brand demand up 21% in Q4 on comparable 13-week basis
  • Revenue growth of 18% on comparable 13-week basis outperforming home furnishing peers
  • Adjusted operating income growth of 57% on comparable 13-week basis
  • Total demand increased 17% and RH Brand demand increased 21% on comparable 13-week basis in Q4

“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

For fiscal year 2025, RH guides revenue growth of 10% to 13%, adjusted operating margin of 14% to 15%, and adjusted EBITDA margin of 20% to 21%. For the first quarter of fiscal 2025, the company expects revenue growth of 12.5% to 13.5%, adjusted operating margin of 6.5% to 7.0%, and adjusted EBITDA margin of 12.5% to 13.0%. The outlook includes a negative 160 to 200 basis point operating margin impact from investments and startup costs to support international expansion. The company does not expect a negative impact from previously announced tariffs on products from China, Canada, or Mexico. RH plans to open 7 Design Galleries, 2 Outdoor Galleries, and 2 New Concept Galleries in fiscal 2025.

RH YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$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.