RH Stock Falls After Q4 Earnings Miss and Weak Outlook

TLDR

• RH reported Q4 EPS of $1.53, missing estimates by $0.71
• Revenue came in at $842.6M, below the $873.48M consensus
• Management flagged tariffs as a ~190bp drag on Q4 margins
• Q1 2026 revenue is expected to decline 2%–4%
• Short interest in RH rose ~28% in March

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RH posted a rough fourth quarter, missing both earnings and revenue targets. The luxury furniture retailer reported EPS of $1.53 against a consensus of $2.24 — a $0.71 shortfall. Revenue came in at $842.6M, below the expected $873.48M.

*RH FALLS 9% AS OUTLOOK DISAPPOINTS$RH Q4 EPS $1.53, consensus $2.20$RH Q4 net revenue. $842.6M, estimate $873.6M

3 certainties: Death, taxes, and $RH wetting the bed pic.twitter.com/Slxtjqwjme

— Negligible Capital (@negligible_cap) March 31, 2026

Despite the miss, the stock edged higher on the day, likely helped by month-end buying as investors stepped in ahead of the new quarter.

For the full year, FY2025 wasn’t all bad. Revenue grew 8% year-over-year on a two-year basis of +15%, with adjusted EBITDA of $597M at a 17.3% margin. Free cash flow came in at $252M, a turn from negative in 2024.

Rh, RH

Still, management framed 2025 as a “peak investment year,” with roughly $289M in adjusted capital expenditure and $37M in brand acquisitions. That spending is pressing on near-term margins.

Tariffs were a clear headwind. Management cited a ~190bp margin drag from tariffs in Q4, with pressure concentrated in metal outdoor furniture, lighting, rugs and furniture categories. Supply chain resourcing added to the pain.

For Q1 2026, RH is guiding for revenue to decline 2%–4%. Full year guidance calls for 4%–8% revenue growth and adjusted EBITDA margins of 14%–16%.

Analyst Reaction

Analysts weren’t thrilled. TD Cowen kept its “buy” rating but cut its price target from $265 to $200. UBS dropped its target from $188 to $160 with a “neutral” rating. Stifel held its “hold” rating with a target of $165, down from $320.

The average analyst rating is currently “Hold” with a consensus price target of $211.07. Seven analysts rate it a buy, ten a hold, and three a sell.

Short interest rose ~28% in March, adding to pressure on the stock.

Expansion Plans

RH is pushing ahead with growth despite the headwinds. The company is launching RH Estates in mid-May with new sub-brands RH Bespoke and RH Couture, following acquisitions of Michael Taylor, Formations, and Dennis & Leen.

International expansion continues with flagship openings planned in Paris, Milan and London. RH currently operates 26 in-gallery restaurants and plans to reach 40 by 2027.

On the insider front, executive Eri Chaya sold 7,000 shares on March 24th at $129.42, totaling $905,940. Director Mark Demilio sold 2,254 shares in January at $220.00. Insiders have collectively sold $2.86M worth of stock in the past 90 days.

RH’s 12-month high sits at $257.00. The stock is down 41.51% over the past year, with a 12-month low of $123.03.

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