RH (NYSE:RH) Posts Quarterly Earnings Results, Misses Estimates By $0.71 EPS

RH (NYSE:RH) announced its quarterly earnings data on Tuesday. The company reported $1.53 earnings per share for the quarter, missing the consensus estimate of $2.24 by ($0.71), Briefing.com reports. RH had a negative return on equity of 161.72% and a net margin of 3.22%.During the same period in the previous year, the business posted $1.58 earnings per share. The company’s revenue for the quarter was up 3.7% on a year-over-year basis.

Here are the key takeaways from RH’s conference call:

• FY2025 results beat peers with 8% revenue growth (two‑year +15%), $597M adjusted EBITDA (17.3% margin) and $252M free cash flow versus negative in 2024.
• Management says 2025 was a peak investment year (≈$289M adjusted CapEx plus $37M in brand acquisitions), producing near‑term margin pressure and a conservative 2026 revenue guide of 4%–8% and adj. EBITDA 14%–16%.
• RH is launching RH Estates (mid‑May source book) with RH Bespoke and RH Couture after acquiring Michael Taylor, Formations and Dennis & Leen, targeting traditional luxury homes and an initial roll‑out into ~30–40 flagship galleries.
• The company is doubling down on a physical‑first global strategy—flagship openings in Paris, Milan and London, immersive galleries and restaurants (26 today, 40 by 2027), plus new lower‑capex formats (Design Compounds, ecosystems) to scale toward a ~$2B North American expansion opportunity.
• Tariffs and supply‑chain resourcing have meaningfully pressured margins and caused back‑order drag (notably metal outdoor, lighting, rugs and furniture); Q4 tariff impact was ~190bp and near‑term tariff uncertainty remains.

RH Price Performance

Shares of RH stock traded up $7.96 during trading hours on Tuesday, reaching $139.98. The stock had a trading volume of 2,903,385 shares, compared to its average volume of 1,122,319. The stock’s fifty day simple moving average is $174.82 and its 200 day simple moving average is $180.43. The company has a current ratio of 1.19, a quick ratio of 0.26 and a debt-to-equity ratio of 944.39. RH has a 12 month low of $123.03 and a 12 month high of $257.00. The firm has a market capitalization of $2.63 billion, a PE ratio of 25.27, a PEG ratio of 0.54 and a beta of 2.14.

Key Headlines Impacting RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: TD Cowen kept a “buy” rating on RH while lowering its price target from $265 to $200, signaling continued analyst conviction in RH’s longer-term upside even after the recent weakness. TD Cowen Price Target Note
• Positive Sentiment: Market commentary suggests month‑end/quarter‑start buying lifted stocks, which likely helped RH today as some investors stepped in ahead of the new quarter. Month of March Goes Out Like a Bull
• Neutral Sentiment: RH posted its official fourth-quarter and FY2025 results and released an investor presentation and CEO video; the filing/webcast provides management commentary and the full financial detail investors will parse for guidance and margins. RH Reports Fourth Quarter and Fiscal Year 2025 Results
• Neutral Sentiment: Coverage on RH leadership changes frames shifts toward manufacturing and real‑estate strategy — these are strategic factors that affect longer‑term margins and valuation but are less likely to move the stock intraday than earnings/guidance. RH Leadership Changes Highlight Manufacturing, Real Estate And Valuation Story
• Negative Sentiment: RH missed Q4 earnings estimates: EPS $1.53 vs. the Zacks consensus $2.21, a clear earnings shortfall that weighs on near‑term sentiment and valuation expectations. RH (RH) Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: Media coverage emphasizes the earnings miss and the stock’s sharp reaction; Benzinga details the Q4 shortfall and market reaction, which can drive additional selling pressure or volatility. RH Stock Tanks After Q4 Results Miss Estimates: Details
• Negative Sentiment: Management cited tariff and weather impacts and now expects first‑quarter revenue to decline 2%–4%, a near‑term revenue headwind that increases downside risk for the upcoming quarter. RH Reports Tariff, Weather Impacts in Fourth Quarter, Projects First-Quarter Revenue Decline
• Negative Sentiment: Short interest in RH rose ~28% in March, which can exacerbate moves in either direction (covering can fuel rallies; sustained pressure can signal bearish positioning). RH (NYSE:RH) Short Interest Up 28.3% in March

Analyst Ratings Changes

A number of brokerages have weighed in on RH. Weiss Ratings reiterated a “sell (d+)” rating on shares of RH in a research report on Monday, March 23rd. Stifel Nicolaus reissued a “hold” rating and issued a $165.00 price target (down from $320.00) on shares of RH in a research report on Friday, December 12th. Zacks Research raised shares of RH from a “strong sell” rating to a “hold” rating in a report on Friday, February 13th. UBS Group reduced their price objective on shares of RH from $188.00 to $160.00 and set a “neutral” rating for the company in a research note on Tuesday, March 17th. Finally, Zelman & Associates reissued an “outperform” rating on shares of RH in a report on Thursday, January 29th. Seven research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $211.07.

Insider Buying and Selling

In related news, insider Eri Chaya sold 7,000 shares of the firm’s stock in a transaction that occurred on Tuesday, March 24th. The shares were sold at an average price of $129.42, for a total value of $905,940.00. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Mark S. Demilio sold 2,254 shares of RH stock in a transaction that occurred on Wednesday, January 14th. The shares were sold at an average price of $220.00, for a total transaction of $495,880.00. Following the sale, the director owned 19,962 shares of the company’s stock, valued at approximately $4,391,640. The trade was a 10.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 18,654 shares of company stock worth $2,861,468 in the last ninety days. 27.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Durable Capital Partners LP grew its holdings in shares of RH by 125.1% in the second quarter. Durable Capital Partners LP now owns 646,097 shares of the company’s stock worth $122,119,000 after purchasing an additional 359,101 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its holdings in RH by 1,797.7% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 246,355 shares of the company’s stock valued at $44,134,000 after buying an additional 233,373 shares during the last quarter. Alliancebernstein L.P. boosted its position in RH by 66.1% during the 3rd quarter. Alliancebernstein L.P. now owns 573,666 shares of the company’s stock valued at $116,546,000 after buying an additional 228,229 shares during the period. Alyeska Investment Group L.P. boosted its position in RH by 200.5% during the 3rd quarter. Alyeska Investment Group L.P. now owns 297,694 shares of the company’s stock valued at $60,480,000 after buying an additional 198,615 shares during the period. Finally, Senvest Management LLC grew its holdings in RH by 30.1% in the 4th quarter. Senvest Management LLC now owns 842,577 shares of the company’s stock worth $150,948,000 after acquiring an additional 194,773 shares during the last quarter. 90.17% of the stock is currently owned by institutional investors.

About RH

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.