RH (RH) Q1 2026 Earnings
Adjusted EPS excludes a $31.668 million favorable legal settlement (net) associated with credit card interchange fees, and includes income tax and equity method investment adjustments. GAAP EPS of ($0.73) benefited from this settlement.
How Did RH Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: +1.21%.
Did RH Beat Earnings? Q1 2026 Results
Yes. RH reported Q1 2026 earnings of $-1.97 a share on Jun 11, 2026, beating the $-2.07 consensus estimate by 4.9%. Revenue was $800.3M against a $792.4M estimate.
RH managed a modest beat against muted expectations in its fiscal first quarter of 2026, with the luxury home furnishings retailer posting adjusted diluted EPS of $-1.97, edging past the $-2.071 consensus estimate by 4.88%, while revenue of $800.33 million topped forecasts by 1.00% despite slipping 1.7% year over year. The headline numbers, however, masked meaningful operational pressure: tariff-related supply chain disruptions pushed backorder and special order balances roughly $75 million above year-ago levels, dragging an estimated $45 million in revenue out of the quarter and compressing adjusted EBITDA margin to 7.1% from 13.1% a year earlier. Analysts have remained divided on whether tariff headwinds or the soft housing market pose the greater near-term risk, and the quarter did little to fully resolve that debate. Still, CEO Gary Friedman raised full-year fiscal 2026 guidance to revenue growth of 4.5% to 8.0% and adjusted EBITDA margin of 14.2% to 16.0%, banking on backlog normalization and the launch of the new ultra-luxury RH Estates concept to drive a sharp second-half recovery.
- Revenue negatively impacted by approximately $45 million due to elevated backorder and special order balances approximately $75 million higher than prior year, primarily from tariff-related resourcing
- Gross margin declined to 41.4% from 43.7% year-over-year
- EBITDA margin of 9.0% and adjusted EBITDA margin of 7.1% versus 12.7% and 13.1% in prior year
- Net interest expense of $52.7 million reflecting high leverage
- Favorable legal settlement of $31.7 million (net) related to credit card interchange fees
“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
What Was RH's Outlook in Q1 2026?
RH raised its full-year fiscal 2026 outlook: revenue growth of 4.5% to 8.0%, adjusted EBITDA margin of 14.2% to 16.0%, and adjusted free cash flow of $300M to $400M. Full-year outlook includes approximately negative 270 basis point adjusted EBITDA margin impact from pre-opening and startup costs for international expansion. Q2 2026 outlook: revenue growth of 0.5% to 2.5%, adjusted EBITDA margin of 11.5% to 13.0%, including approximately negative 380 basis point adjusted EBITDA margin impact from pre-opening and startup costs. The company expects H2 acceleration driven by backlog reduction (+4.5 points), new store growth (+2.5 points), and RH Estates new concept growth (+5.0 points). Backorder and special order balances expected to remain elevated in Q2 and normalize by year-end, resulting in approximately $75 million revenue pickup in H2.
RH YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $800.3M | $813.9M | −1.7% |
| Gross Profit | $331.3M | $355.4M | −6.8% |
| Operating Income | $34.2M | $54.7M | −37.4% |
Figures from SEC filings and company reports. Not investment advice.