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.
RHRH beat Q2 revenue and EBITDA guidance and guided to fiscal 2026 growth with strong free cash flow.
