RH

RH Q2 2026 Earnings

Reported Sep 11, 2025 at 4:18 PM ET · SEC Source

Q2 26 EPS

$2.93

MISS 8.91%

Est. $3.22

Q2 26 Revenue

$899.2M

MISS 0.69%

Est. $905.4M

vs S&P Since Q2 26

-37.9%

TRAILING MARKET

RH -26.3% vs S&P +11.5%

Market Reaction

Did RH Beat Earnings? Q2 2026 Results

RH came up short of Wall Street's expectations in its fiscal second quarter, posting adjusted earnings of $2.93 per diluted share against a consensus estimate of $3.22, a miss of 8.91%, while revenue of $899.15 million trailed the $905.36 million est… Read more RH came up short of Wall Street's expectations in its fiscal second quarter, posting adjusted earnings of $2.93 per diluted share against a consensus estimate of $3.22, a miss of 8.91%, while revenue of $899.15 million trailed the $905.36 million estimate by 0.69%, even as the top line grew 8.4% year over year. The shortfall arrived in a challenging environment that management characterized as the worst housing market in nearly 50 years, with tariff headwinds adding further pressure; RH absorbed roughly 170 basis points of margin drag from its European expansion and is now absorbing an estimated $30 million in incremental tariff costs in the back half of the year as it rapidly shifts sourcing away from China. Adjusted operating margin nonetheless expanded 340 basis points to 15.1%, reflecting meaningful operating leverage despite the headwinds. Looking ahead, RH guided full-year revenue growth of 9% to 11% with adjusted operating margin of 13% to 14% and free cash flow of $250 million to $300 million, as the company navigates tariff disruptions and the delayed rollout of a new brand extension now pushed to Spring 2026.

Key Takeaways

  • Demand increased 13.7% in Q2 despite tariff uncertainty and depressed housing market
  • Two-year demand growth of 21% indicating significant market share gains
  • Adjusted operating margin expanded 340 basis points year-over-year
  • RH England Gallery demand up 76% in Q2
  • RH Paris early reads showing traffic exceeding RH New York
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RH YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

“RH continued to generate industry leading growth in the second quarter as revenue increased 8.4%, and demand increased 13.7% despite the polarizing impact of tariff uncertainty and the worst housing market in almost 50 years.”

— Gary Friedman, Q2 2026 Earnings Press Release