RH - Class A
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +10.81%.
Did RH Beat Earnings? Q4 2026 Results
RH delivered a disappointing fourth quarter for fiscal 2025, missing Wall Street on both the top and bottom lines as a combination of tariff-driven supply chain disruptions and adverse weather weighed on results. Adjusted diluted EPS came in at $1.53, falling 30.58% short of the $2.20 consensus estimate, while revenue of $842.62 million grew 3.7% year-over-year but missed expectations by 3.51%. The company pointed to roughly $30 million in lost revenue tied to higher-than-expected backorder and special order balances from tariff-related resourcing, plus another $10 million hit from late-quarter weather disruptions, as the key drivers of the shortfall. Despite the revenue miss, GAAP operating margin expanded to 11.5% from 8.7% a year ago on meaningful SG&A leverage, and full-year free cash flow swung to $252.40 million from negative $213.69 million. The miss has drawn scrutiny from investor law firms probing potential securities claims. Looking ahead, RH guided fiscal 2026 revenue growth of 4% to 8%, though a soft Q1 outlook, including a 2% to 4% revenue decline and elevated international expansion costs, signals continued near-term pressure.
- SG&A leverage with expenses declining from 36.0% to 31.4% of revenues in Q4
- 2-year revenue growth of 15% outpacing industry peers
- Gross margin of 42.9% in Q4 vs 44.7% prior year
- Improved operating margin to 11.5% from 8.7% in Q4
Forward Guidance & Outlook
For fiscal year 2026, RH expects revenue growth of 4% to 8%, adjusted EBITDA margin of 14% to 16%, and adjusted free cash flow of $300M to $400M. The full-year outlook includes an approximately 270 basis point negative adjusted EBITDA margin impact from pre-opening and startup costs to support international expansion. For Q1 fiscal 2026, the company expects revenue to decline 2% to 4% with adjusted EBITDA margin of 5.5% to 6.5%, including approximately 420 basis points of negative adjusted EBITDA margin impact from international expansion pre-opening and startup costs.
RH YoY Financials
Figures from SEC filings and company reports. Not investment advice.