Companies /Consumer Cyclical

RH - Class A

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

Q1 2026 Earnings

Reported Jun 12, 2025, 4:19pm ET · SEC source
$0.13
Beat +290.62%
EPS · est. $-0.07
$814.0M
Miss −0.56%
Revenue · est. $818.6M
−1.2%
Trailing market
RH vs S&P since report
3 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−12%−6%0+6%Jun 12Jun 13report 4:19pm ETearnings−1.0%−7.4%
−12%−6%0+6%Jun 12Jun 13earnings−1.0%−7.4%
RH −7.4%S&P 500 −1.0%
−12%−6%0+6%Jun 12Jun 13report 4:19pm ETearnings−1.2%−7.1%
−12%−6%0+6%Jun 12Jun 13earnings−1.2%−7.1%
RH −7.1%NASDAQ −1.2%
−18%−12%−6%0Jun 11Jun 20report 4:19pm ETearnings−1.3%−10.3%
−18%−12%−6%0Jun 11Jun 20earnings−1.3%−10.3%
RH −10.3%S&P 500 −1.3%
−18%−12%−6%0Jun 11Jun 20report 4:19pm ETearnings−1.0%−10.3%
−18%−12%−6%0Jun 11Jun 20earnings−1.0%−10.3%
RH −10.3%NASDAQ −1.0%
+6.93%
Day of report
+0.09%
Next session
−1.53%
One week
+4.04%
30 days

S&P 500 over the same 30 days: +5.20%.

Did RH Beat Earnings? Q1 2026 Results

RH posted a stronger-than-expected first-quarter profit despite falling just short on revenue, as the luxury home furnishings retailer demonstrated resilience against what management described as a deeply challenged housing backdrop. Adjusted diluted EPS came in at $0.13, well ahead of the consensus estimate of negative $0.07, while revenue of $813.95 million grew 12% year over year but trailed the $818.57 million analyst target by 0.56%. The earnings recovery was driven in part by meaningful margin expansion, with adjusted operating margin widening to 7.0% from 6.5% and free cash flow turning positive at $34.08 million versus negative $10.13 million a year ago. European momentum added a compelling growth dimension, with comparable Gallery demand rising 60% in Munich and Dusseldorf and RH England's Gallery demand climbing 47%. Looking ahead, the company maintained full-year fiscal 2025 guidance for revenue growth of 10% to 13% and free cash flow of $250 million to $350 million, though Liberation Day tariffs are expected to weigh on second-quarter revenues by roughly 6 points before a second-half recovery takes hold.

Key Takeaways
  • 12% revenue growth in Q1 despite worst housing market in nearly 50 years
  • European demand growth of 60% across comparable Galleries in Munich and Dusseldorf
  • RH England Gallery demand up 47% and online demand up 44% in Q1
  • Positive free cash flow of $34 million in the quarter
  • Adjusted operating margin of 7.0% and adjusted EBITDA margin of 13.1% at the high end of expectations
  • Increased RH Membership discount from 25% to 30% to capture market share

“Our industry leading growth continued into fiscal 2025 as revenue increased 12% in the first quarter despite the polarizing impact of tariff uncertainty and the worst housing market in almost 50 years. Both adjusted operating margin of 7.0% and adjusted EBITDA margin of 13.1% were at the high end of our expectations, and we achieved positive free cash flow of $34 million in the quarter.”

RH CEO, on the earnings call

Forward Guidance & Outlook

RH maintained its fiscal 2025 guidance assuming existing tariffs remain unchanged: Revenue growth of 10% to 13%, adjusted operating margin of 14% to 15%, adjusted EBITDA margin of 20% to 21%, and free cash flow of $250M to $350M. For Q2 2025, the company guided revenue growth of 8% to 10%, adjusted operating margin of 15.0% to 16.0%, and adjusted EBITDA margin of 20.5% to 21.5%, including an approximate negative 180 basis point operating margin impact from international expansion investments. Liberation Day tariffs are expected to negatively impact Q2 revenues by approximately 6 points, with recovery in the second half. A new brand extension planned for Fall 2025 has been delayed to Spring 2026. Adjusted capital expenditures are expected to decrease to $200M-$250M in 2026 and $150M-$200M in 2027 and beyond.

RH YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$300.0M$600.0M$726.9M$814.0MRevenue$316.0M$355.3MGross Profit$63.5M$55.9MOperating Income$1.9M$8.0MNet Income
$0$300.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

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