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.
RHRH beat Q2 revenue guidance and raised fiscal 2026 revenue growth outlook to 5.5%-7% with 15%-16.2% EBITDA margin.
