RH reports fiscal second-quarter earnings after today’s close, with shares already under significant pressure heading into the announcement. Wall Street expects earnings of $0.46 per share on $916.5 million in revenue, setting up a steep year-over-year decline in profitability.
The bigger question is whether management can show that the company’s expected second-half acceleration is taking shape. Investors should be watching the normalization of backordered shipments, early traction from RH Estates, and the impact of international expansion and associated pre-opening costs.
If those catalysts get pushed further out while costs remain elevated, investors will likely focus even more on RH’s balance sheet and deleveraging timeline.
RH currently trades at roughly 22x forward earnings with a market capitalization of around $2.59 billion, while prediction markets put the odds of an earnings beat at essentially 50/50.
This article is updated throughout the trading day. Check back for more.
RH (NYSE:RH | RH Price Prediction), the luxury home furnishings retailer, is expected to report Q2 fiscal 2027 results after the bell at 4:10 PM ET on Thursday, September 10, 2026. Shares are down 25.39% over the past month, making tonight a credibility test for the company’s second-half-of-the-year acceleration story.
Last quarter, RH delivered revenue of $800.33M, down 1.7% YoY, with an adjusted EBITDA margin of 7.1% that “exceeded the high end of our expectations.” Gross margin compressed to 41.4% from 43.7%, and the company posted an adjusted loss of $(1.97) per diluted share.
Management raised the full-year outlook anyway, guiding to 4.5% to 8.0% revenue growth and $300-400M in adjusted free cash flow. The bridge from flat first half to roughly 12% second-half growth rests on backlog reduction, new stores, and RH Estates. Shares have not cooperated, sliding 23.54% year to date.
| Metric | Q2 FY27 Estimate | YoY Change | FY27 Estimate | FY28 Estimate |
|---|---|---|---|---|
| Revenue | $916.5M | +1.9% | $3.63B | $3.94B |
| EPS (Normalized) | $0.4629 | -84.2% | $4.7616 | $9.0827 |
The revenue line matches RH’s own 0.5% to 2.5% growth guide, but the EPS reset is the story. Analysts have taken the Q2 bar down from $2.1140 ninety days ago, a re-rating that reflects 380 bps of pre-opening cost drag and margin compression. Full-year EPS estimates still imply a sharp back-half snapback.
Tonight, I’ll be watching the $75M backorder release most closely. CEO Gary Friedman said last quarter that, “There’s a pretty big number that we don’t have to drive demand to hit it. It’s we’ve already driven that demand.” Any evidence that shipments are flowing on schedule validates the H2 bridge.
RH Estates is the second lever. Management pegged its H2 contribution at five points of growth and called it “one of the most incremental things I think we’ve ever done.” Investors will focus on early gallery attach rates and any commentary on the trade program pipeline.
Third, international. RH Paris opened last fall, with London and Milan following. Pre-opening costs are the reason the Q2 EBITDA guide sits at 11.5% to 13.0%, a 380 basis point headwind.
Fourth, the balance sheet. Debt sits at $2.4B against 4.3x net debt to TTM adjusted EBITDA, with interest expense of $52.7M in Q1. Progress on the debt-free by 2029 target matters as much as the P&L. Finally, CEO Gary Friedman has previously called this the “worst housing market in almost 50 years” yet said, “I don’t need a big move in the housing market to grow.”
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 30-Day Move |
|---|---|---|---|---|
| Q1 FY27 | n/a | -3.94% | -7.05% | +19.42% |
| Q4 FY26 | -30.58% | -19.29% | -14.18% | -7.04% |
| Q3 FY26 | -20.90% | +1.02% | +5.54% | +38.00% |
| Q2 FY26 | -8.91% | +2.39% | +3.25% | -15.84% |
On average, RH shares moved 0.2% seven days after earnings across the reported history.
Contact [email protected] for any questions or corrections.
Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 250 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
He specializes in breaking down complex companies into clear, actionable insights for everyday investors, with a focus on fundamentals-driven research.
His work has also been featured on platforms including Seeking Alpha and Sure Dividend.
Outside of work, Thomas enjoys weight lifting and soccer.
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