RH reported better-than-expected second-quarter revenue of $922.2 million, up 2.6% year on year and 0.7% above analyst estimates of $915.6 million, while adjusted earnings of $2.70 per share far exceeded the $0.46 consensus. The luxury furniture retailer's adjusted EBITDA came in at $178.5 million, a 55.3% beat on a 19.4% margin, though operating margin slipped to 11.7% from 14.3% a year earlier and same-store sales fell 1.2%. Guidance for the third quarter of $932.4 million at the midpoint landed 3.6% below analyst estimates of $967.3 million, as CFO Jack Preston warned that international expansion and elevated supply chain costs, including a $50 million spike tied to oil prices, will keep weighing on margins. CEO Gary Friedman credited early momentum from the new RH Estates collection, which carries a 45% higher average price point and is drawing almost entirely new customers, and said the company expects Estates to reach 50% of the product portfolio within five years. RH ended the quarter with 138 locations, up from 130 a year earlier, and a market capitalization of $2.54 billion.
RHQ2 revenue beat estimates and adjusted EPS of $2.70 far exceeded the $0.46 consensus, with EBITDA a 55.3% beat.
