RH, together with its subsidiaries, is a retailer and lifestyle brand in the home furnishings market, operating in the United States, Canada, the United Kingdom, Germany, Belgium, and Spain. It reports in three segments: RH Segment, Waterworks, and Real Estate. Its merchandise includes furniture, lighting, textiles, bath ware, décor, outdoor and garden furnishings, and baby, child, and teen furnishings. The company also operates galleries, interior design studios, outlets, guesthouses, and showrooms, and sells through hospitality, websites, sourcebooks, trade and contract channels, and retail locations and outlets. It was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was founded in 1980 and is headquartered in Corte Madera, California.
RH Q2 Net Revenues Rise 2.6% to $922.2 Million, Beating Guidance
RH reported second-quarter GAAP net revenues of $922.2 million, up 2.6% year over year and above the high end of its guidance, with a normalized adjusted EBITDA margin of 13.4% that also exceeded the high end of guidance. The company generated $72.3 million in cash for the quarter, including free cash flow and a $42 million distribution from Aspen joint ventures, and recognized a $55.1 million tariff benefit in Q2 with an additional $13.9 million expected in the second half. For fiscal 2026, RH guided to revenue growth of 5.5% to 7%, an adjusted EBITDA margin of 15% to 16.2%, and free cash flow, asset sales, and distributions of $300 million to $400 million, while Q3 revenue growth is expected at 5% to 6% and Q4 growth at 16.1% to 21.2%. The company said its international expansion drag should fall from 450 basis points in the first half of 2026 to 250 basis points in the second half, or 340 basis points for the full year, before dropping to 150 basis points in 2027. RH also highlighted the launch of RH Estates, whose average price point is 45% higher than the existing assortment and which is expected to represent 50% of the offering within five years, and said its London design pipeline reached almost $7 million in the first eight weeks. Adjusted capex is expected to decline from $240 million to $260 million in 2026 to $175 million to $200 million in 2027, while new gallery opening costs fall from $48 million in 2026 to $18 million in 2027.
Kroger Cuts Annual Sales Guidance as Oracle and RH Post Strong Results
Kroger trimmed its annual sales guidance amid fierce competition for grocery spending. Oracle shares moved higher after the software company's results featured better-than-expected cloud revenue on strong AI demand. Restoration Hardware shares were also on the move after the home furnishing retailer's quarterly earnings beat despite a weaker housing market and consumer spending environment.
RH Projects Fiscal 2026 Revenue Growth of 5.5%-7% as RH Estates Targets Half of Offering
RH reported GAAP net revenues of $922.2 million for its second quarter, exceeding the high end of its guidance with growth of 2.6% versus last year, and issued an updated fiscal 2026 outlook calling for revenue growth of 5.5% to 7% and an adjusted EBITDA margin of 15% to 16.2%. Chairman and CEO Gary Friedman said the company recognized a tariff benefit of $55.1 million in the second quarter and expects an additional $13.9 million in the second half, which it plans to use to offset $50 million of unplanned supply chain cost increases tied to a sustained spike in oil prices from the conflict in the Middle East. For the third quarter, RH guided to revenue growth of 5% to 6% and an adjusted EBITDA margin of 12.5% to 13.5%, while the fourth quarter outlook calls for revenue growth of 16.1% to 21.2% and an adjusted EBITDA margin of 19.7% to 22.9%, including an approximate negative 340 basis point adjusted EBITDA margin impact from preopening and start-up costs for international expansion. Friedman said the introduction of RH Estates has the potential to double the total addressable market of the RH brand, and that the company predicts it will represent 50% of its offering at that time. Chief Financial Officer Jack Preston said demand is in excess of revenue growth as the Estates business builds and ramps, and that RH has no more European openings in 2027.
RH reported quarterly earnings of $2.7 per share, beating the Zacks Consensus Estimate of $0.42 per share, though that compares to earnings of $2.93 per share a year ago. The result marked an earnings surprise of +542.86%, and the furniture and housewares company posted revenues of $922.15 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.97% and up from year-ago revenues of $899.15 million. RH has now topped consensus revenue estimates three times over the last four quarters and surpassed consensus EPS estimates two times over that same span. Ahead of the release, the estimate revisions trend for RH was mixed, translating into a Zacks Rank #3 (Hold), and the current consensus stands at $2.89 per share on $964 million in revenues for the coming quarter and $4.66 on $3.62 billion in revenues for the current fiscal year. RH shares have lost about 22.2% since the beginning of the year versus the S&P 500's gain of 11.6%.
Wayfair reported second-quarter net revenue of $3.5 billion, up 7.5% from a year earlier, while U.S. revenue jumped 8.7%, even as the broader furniture industry barely returned to growth. Orders increased 6%, active customers rose 3.3%, and the online furniture retailer generated $301 million in free cash flow. CEO Niraj Shah said the company has maintained a high-single-digit spread between its U.S. growth and the broader category since last fall, with demand disproportionately coming from higher-income consumers. Bank of America raised its price target on Wayfair to $140 from $105 and increased its estimated 2027 revenue to $14.8 billion from $14.2 billion. Meanwhile, luxury home-furnishings retailer RH reported first-quarter revenue fell 1.7% to $800.3 million, while Williams-Sonoma's comparable brand revenue increased 4.8% in its first quarter.
RH Promotes Sandy Pilon to Chief Customer Experience and Values Officer
RH has promoted Sandy Pilon to the newly created role of Chief Customer Experience and Values Officer. In this position, she will lead the company's Gallery, Hospitality, Interior Design, Trade, Contract, Delight, People and Optimization teams across every touchpoint of the RH brand globally. Pilon has been with RH for 18 years, most recently serving as Chief People Officer, and previously held roles including Senior Vice President of Delight and Customer Service Operations and Field Leader of Northern and Southern California Galleries. Chairman and CEO Gary Friedman expressed confidence in her ability to build one of the most admired brands in the world.
RH Appoints Ryan Hassanein as Chief Legal and Compliance Officer
RH has appointed Ryan Hassanein as its new Chief Legal and Compliance Officer. He will oversee all legal and compliance functions, including product safety and vendor compliance, and will report to Chairman and CEO Gary Friedman as a member of the Executive Leadership Team. Hassanein joins from McKesson Corporation, where he spent over ten years and served on the Chief Legal Officer's leadership team, handling litigation, regulatory, compliance, government relations, supply chain, and technology matters. Friedman stated that Hassanein's experience at one of the world's largest and most sophisticated companies from a legal and compliance perspective makes him an outstanding addition as RH continues to optimize its business and expand internationally.
Williams-Sonoma Outperforms RH on Margins, but RH's Growth Outlook May Make It the Better Buy
Williams-Sonoma has outperformed RH in converting revenue to profit amid a tough home-goods market, but analysts see stronger earnings growth ahead for RH. Williams-Sonoma posted a net income margin of about 13% for the quarter ended May 3, 2026, while RH reported an EBIT margin of roughly 4% for the quarter ended May 2, 2026. Williams-Sonoma's comparable store sales grew 4.8% year over year last quarter, and its quarterly revenue has ranged from $1.7 billion to $2.5 billion over the past two years, compared with RH's range of $800.3 million to $899.2 million. RH expects full-year revenue growth of 4.5% to 8% and an adjusted EBITDA margin in the mid-teens, and analysts forecast annualized earnings growth of about 16% over the next two years versus 7% for Williams-Sonoma. Both stocks trade at a forward price-to-earnings multiple of about 24, but RH's higher projected growth and international expansion could make it the better buy.
Home Depot Q1 revenue rises 4.8% to $41.77 billion, in line with estimates
Home Depot reported first-quarter revenues of $41.77 billion, up 4.8% year on year and in line with analysts' expectations. The quarter was mixed, with a narrow beat on earnings per share but a slight miss on gross margin estimates. CEO Ted Decker noted underlying demand was similar to fiscal 2025 despite consumer uncertainty and housing affordability pressure. The stock has risen 14.6% since the report and currently trades at $343.70. Among the six home furnishing and improvement retailers tracked, RH posted the best results relative to estimates with revenues of $800.3 million, while Floor And Decor had the weakest quarter with revenues of $1.15 billion missing expectations by 2.8%.
RH Stock Could Be 12% Above Fair Value Following RH Estates Launch
RH stock appears overvalued by about 12.4% relative to its discounted cash flow intrinsic value of roughly $145.95 per share, even after the launch of RH Estates. The company's price-to-earnings ratio of about 30.1x also sits above a tailored fair P/E of 26.9x and the specialty retail industry average of 19.7x. Both metrics suggest the current share price already reflects optimistic expectations for the luxury home furnishings brand's expansion. RH has declined 76.8% over the past five years, yet valuation checks indicate the stock trades at a premium rather than a bargain.
Wall Street Issues Rare Downbeat Forecasts on RH and Myriad Genetics, While Coca-Cola Draws Interest
Wall Street has issued rare downbeat forecasts on RH and Myriad Genetics, while Coca-Cola is highlighted as a stock worth watching. RH, formerly Restoration Hardware, faces flat sales and a 39.2% annual decline in earnings per share over three years, along with a high net-debt-to-EBITDA ratio of 7 times. Myriad Genetics has seen annual revenue growth of just 3.5% over two years and negative returns on capital. In contrast, Coca-Cola benefits from a 61.4% gross margin, a 27% operating margin, and a 27.5 percentage point increase in free cash flow margin over the past year.
StockStory identifies three consumer stocks it is passing on: RH, Genuine Parts, and Petco. RH, formerly Restoration Hardware, saw flat sales over three years and a 39.2% annual earnings-per-share contraction, with a high net-debt-to-EBITDA ratio of 7 times. Genuine Parts posted 3.1% annual sales growth over three years, lagging peers, and its 4.5% operating margin trails the industry average. Petco experienced flat revenue and a 34.5% annual EPS decline over three years, alongside a 6 times net-debt-to-EBITDA ratio that may pressure capital access.
The RealReal Is a Better Buy Than RH in 2026, Analyst Says
The RealReal seems to be a better choice today due to its improving financial performance and growing customer base, according to an analysis comparing the luxury resale platform with home furnishings retailer RH. The RealReal reported fiscal 2025 revenue of nearly $692.8 million, a growth rate of roughly 15.4%, while RH posted revenue of approximately $3.4 billion, up about 8.1%. The RealReal operates an online marketplace for authenticated luxury goods on consignment and has a member base of over 40 million, capitalizing on demand for pre-owned designer items among younger consumers. RH is expanding internationally and into hospitality but faces headwinds from a soft housing market and tariffs. The analysis notes that while both target affluent customers, The RealReal's improving operating efficiency and revenue growth make it the preferred pick for 2026.
RH, Sprouts, and Dollar General Shares Fall After Fed Signals Rate Hikes
Shares of RH, Sprouts Farmers Market, and Dollar General declined in afternoon trading after the Federal Reserve held its benchmark rate at 3.5% to 3.75% and revised its dot plot to show a median year-end rate estimate of 3.8%, up from 3.4%. The move suggests that rate cuts delivered in late 2025 may be partially reversed, disappointing retailers that had been counting on lower rates to boost consumer confidence and household budgets. The FOMC noted that inflation at 4.2% remains too high to justify relief, while rising rate expectations increase the cost of debt refinancing for leveraged retailers and dampen mortgage activity, which in turn reduces spending on home-related goods. RH fell 3.8%, Sprouts fell 3.9%, and Dollar General fell 4%. Dollar General's decline is part of a broader downturn, with the stock down 20.1% year-to-date and trading 30% below its 52-week high of $156.24 from February 2026.
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