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RH
(NYSE:RH)
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Rating:54Neutral
Price Target:
$137.00
▼(-7.79% Downside)
Action:Reiterated
Date:09/15/26
RH scores in the mid-range primarily due to improving operations and a strong, growth-oriented earnings outlook, offset by substantial balance-sheet leverage and still-compressed profitability. Technically, the stock is in a clear downtrend (below key moving averages with negative MACD), which further limits the overall score despite oversold signals.
Positive Factors
Revenue Recovery and Outlook
TTM revenue rebounded 67.1%, while fiscal 2026 guidance calls for 5.5%-7% growth. This combination indicates recovering demand and a visible expansion path, supporting scale across RH’s direct channels, Galleries and design ecosystem over coming quarters.
Negative Factors
Very High Leverage
RH’s high debt relative to its very small equity base materially limits financial flexibility. It increases sensitivity to refinancing and interest costs, leaving less capacity to absorb weaker demand or fund Gallery and international expansion without relying on cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery and Outlook
TTM revenue rebounded 67.1%, while fiscal 2026 guidance calls for 5.5%-7% growth. This combination indicates recovering demand and a visible expansion path, supporting scale across RH’s direct channels, Galleries and design ecosystem over coming quarters.
Read all positive factors
RH Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows profitability for each business line (for example galleries, online, membership services or commercial/design projects), revealing which parts of RH generate healthy margins and which are loss-making. Useful for spotting whether growth comes from high-margin areas or from investments that could pressure the bottom line.
Shows profitability for each business line (for example galleries, online, membership services or commercial/design projects), revealing which parts of RH generate healthy margins and which are loss-making. Useful for spotting whether growth comes from high-margin areas or from investments that could pressure the bottom line.
Data provided by:
The Fly
The FlyRH (RH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.31B
Dividend YieldN/A
Average Volume (3M)805.22K
Price to Earnings (P/E)20.4
Beta (1Y)2.58
Revenue Growth3.35%
EPS Growth3.38%
CountryUS
Employees6,870
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)5.91
Shares Outstanding18,933,159
10 Day Avg. Volume721,309
30 Day Avg. Volume805,220
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)61.53
Price to Sales (P/S)1.08
P/FCF Ratio14.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$166.50Price Target Upside12.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)5.14
Revenue Forecast (FY)$3.64B
RH Business Overview & Revenue Model
Company Description
RH, along with its various associated businesses, functions as a prominent retailer specializing in home furnishings. Its extensive product portfolio spans categories such as furniture, lighting, textiles, bathware, decor, outdoor and garden essen...
How the Company Makes Money
RH primarily makes money by selling luxury home furnishings and related products directly to consumers. Its revenue is generated through (1) product sales across core categories such as furniture, lighting, textiles, rugs, and décor, sold via its ...
RH Earnings Call Summary
Earnings Call Date:Sep 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 03, 2026
Earnings Call Sentiment Positive
The call was strongly positive. RH exceeded second-quarter revenue and adjusted EBITDA margin guidance, generated cash, raised or reaffirmed a growth-oriented fiscal 2026 outlook, and expressed high confidence in the incremental potential of RH Estates, RH London, new gallery formats and the trade program. The main challenges were the prolonged housing downturn, promotional conditions, international opening complexity and $50 million of unplanned supply chain costs caused by higher oil prices, but management stated that tariff benefits would offset those costs and that international and capital investment drags are expected to decline.Positive Updates
Second-Quarter Revenue Exceeded Guidance
GAAP net revenues were $922.2 million, exceeding the high end of guidance and increasing 2.6% versus last year. Momentum accelerated 4.2 points over the first quarter.
Negative Updates
Supply Chain Cost Increases from Oil Prices
RH expects $50 million of unplanned cost increases across its supply chain due to a significant and sustained spike in oil prices related to the continued conflict in the Middle East. Management said the company expects to remain in a higher-cost world for probably at least the next six to 12 months.
Read all updates
Q2-2026 Updates
Positive
Negative
Second-Quarter Revenue Exceeded Guidance
GAAP net revenues were $922.2 million, exceeding the high end of guidance and increasing 2.6% versus last year. Momentum accelerated 4.2 points over the first quarter.
Read all positive updates
Company Guidance
RH’s updated fiscal year 2026 outlook calls for revenue growth of 5.5% to 7%, adjusted EBITDA margin of 15% to 16.2%, and free cash flow, asset sales and distribution of equity method investments of $300 million to $400 million, including an approximate negative 340 basis point adjusted EBITDA margin impact from preopening and start-up costs to support our international expansion; third quarter 2026 outlook is revenue growth of 5% to 6%, inclusive of backlog reduction of 2.5 points, RH Estates of 2 points, New Galleries and other, 1 point, and adjusted EBITDA margin of 12.5% to 13.5%, including an approximate negative 310 basis point impact; fourth quarter 2026 outlook is revenue growth of 16.1% to 21.2%, inclusive of backlog reduction of 6.5 points, RH Estates growth of 8 points, new Galleries and other of 4 points, and adjusted EBITDA margin of 19.7% to 22.9%, including an approximately negative 190 basis points impact. RH expects the drag from International to decrease from 340 basis points in 2026 to 150 basis points in 2027, adjusted capital expenditures to decrease from $240 million to $260 million in 2026 to $175 million to $200 million in 2027, new gallery opening costs to decrease from $48 million in 2026 to $18 million in 2027, and RH Estates to represent 50% of the offering over the next 5 years; RH Compounds are projected to have a payback in the 12- to 18-month range.RH Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
24
Negative
Cash Flow
61
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.45B | 3.44B | 3.18B | 3.03B | 3.59B | 3.76B |
| Gross Profit | 1.53B | 1.52B | 1.41B | 1.39B | 1.81B | 1.86B |
| EBITDA | 508.43M | 540.82M | 453.28M | 523.59M | 774.84M | 1.07B |
| Net Income | 111.51M | 124.79M | 72.41M | 127.56M | 528.64M | 688.55M |
Balance Sheet | ||||||
| Total Assets | 5.13B | 4.84B | 4.55B | 4.14B | 5.31B | 5.54B |
| Cash, Cash Equivalents and Short-Term Investments | 125.49M | 41.19M | 30.41M | 123.69M | 1.51B | 2.18B |
| Total Debt | 4.11B | 3.97B | 3.94B | 3.72B | 3.75B | 3.43B |
| Total Liabilities | 5.01B | 4.78B | 4.72B | 4.44B | 4.52B | 4.37B |
| Stockholders Equity | 120.35M | 60.60M | -163.59M | -297.39M | 784.66M | 1.17B |
Cash Flow | ||||||
| Free Cash Flow | 247.73M | 252.40M | -213.69M | -67.14M | 230.04M | 476.73M |
| Operating Cash Flow | 425.64M | 452.24M | 17.09M | 202.21M | 403.69M | 662.11M |
| Investing Cash Flow | -132.45M | -223.69M | -240.41M | -307.43M | -171.07M | -194.35M |
| Financing Cash Flow | -202.31M | -219.40M | 130.59M | -1.28B | -902.48M | 1.61B |
RH Technical Analysis
Negative
148.57
Price Trends
152.05
Negative
153.03
Negative
159.96
Negative
Market Momentum
-8.46
Negative
30.65
Neutral
14.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RH, the sentiment is Negative. The current price of 148.57 is above the 20-day moving average (MA) of 128.58, below the 50-day MA of 152.05, and below the 200-day MA of 159.96, indicating a bearish trend. The MACD of -8.46 indicates Negative momentum. The RSI at 30.65 is Neutral, neither overbought nor oversold. The STOCH value of 14.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RH.
RH Risk Analysis
RH disclosed 35 risk factors in its most recent earnings report. RH reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RH Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $169.51M | 6.12 | 49.13% | 3.51% | ― | ― | |
75 Outperform | $26.85B | 23.44 | 57.79% | 1.22% | 2.24% | 7.35% | |
63 Neutral | $1.34B | 19.98 | 17.23% | 4.92% | 5.44% | -3.28% | |
62 Neutral | $14.05B | -41.20 | 11.48% | ― | 7.46% | -2.70% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $2.31B | 20.40 | 184.91% | ― | 3.35% | 3.38% | |
54 Neutral | $134.46M | -17.91 | -8.97% | ― | 2.26% | 61.28% |
* Consumer Cyclical Sector Average
RH
RH
120.46
-87.04
-41.95%
WSM
Williams-Sonoma
232.30
35.64
18.12%
W
Wayfair
101.25
12.72
14.37%
DIBS
1stdibs.com
4.02
1.41
54.02%
ARHS
Arhaus
10.24
-0.27
-2.58%
HTLM
HomesToLife Ltd
1.90
-1.39
-42.23%
RH Corporate Events
Business Operations and StrategyExecutive/Board Changes
RH Appoints Chief Customer Experience & Values Officer
Positive
Jul 23, 2026
On July 23, 2026, RH announced internal leadership changes, promoting longtime executive Sandy Pilon to the newly defined role of Chief Customer Experience Values Officer. Pilon, who has spent 18 years at RH in senior roles including Chief People...
Regulatory Filings and Compliance
RH CEO Gary Friedman Sells Shares, Retains Large Stake
Neutral
Jul 8, 2026
On July 8, 2026, RH disclosed that Chairman and Chief Executive Officer Gary Friedman sold a total of 125,000 shares of RH common stock between July 6 and July 8, 2026. Following these transactions, he continues to hold beneficial ownership of 4,9...
Executive/Board ChangesShareholder Meetings
RH Shareholders Approve Directors, Pay Plan, Auditor
Positive
Jun 25, 2026
At its annual meeting of shareholders held on June 18, 2026, RH investors elected three Class II directors—Hilary Krane, Katie Mitic, and Ali Rowghani—to serve three-year terms extending to the 2029 shareholders’ meeting. Shareho...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.