EarningsQ2 2026 Earnings Report
MX:RH Q2 2026 EPS Results
Actual EPS$49.04
Consensus EPS$6.88
Beat/MissBeat by +$42.15
One Year Ago EPS$53.21
MX:RH Q2 2026 Revenue Results
Actual Revenue$16.75B
Expected Revenue$16.62B
Beat/MissBeat by +$128.18M
YoY Revenue Growth+2.56%
Earnings Announcement Details
QuarterQ2 2026
Date09/10/2026
TimeAfter Close
Conference CallThursday, September 10, 2026
MX:RH Upcoming Earnings
RH's next earnings date is estimated for December 3, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:RH Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Q2 2026
Earnings Call Date:Sep 10, 2026|
% Change Since:
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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.Company Guidance
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.
Adjusted EBITDA Margin Beat Guidance
Normalized adjusted EBITDA margin was 13.4%, exceeding the high end of the company's guidance.
Cash Generation and Aspen Distribution
RH generated $72.3 million of cash in the quarter, inclusive of free cash flow and a $42 million distribution from its Aspen joint ventures, excluding tariff refunds of $69.2 million.
Fiscal 2026 Outlook
RH updated its fiscal 2026 outlook to revenue growth of 5.5% to 7% and an adjusted EBITDA margin of 15% to 16.2%. Free cash flow, asset sales and distribution of equity method investments are expected to total $300 million to $400 million.
Second-Half Revenue and Margin Guidance
Third-quarter revenue growth is expected to be 5% to 6%, with an adjusted EBITDA margin of 12.5% to 13.5%. Fourth-quarter revenue growth is expected to be 16.1% to 21.2%, with an adjusted EBITDA margin of 19.7% to 22.9%.
RH Estates Expansion Opportunity
RH stated that RH Estates, launched with a 268-page Sourcebook, has the potential to double the total addressable market of the RH brand. The company expects Estates to represent 50% of its offering over the next 5 years.
RH Estates Pricing and Margin Potential
The RH Estates assortment currently has an average price point 45% higher than the existing assortment. RH stated that the collection is expected to be margin accretive because of its design, quality and exclusivity, as well as the higher average price point.
RH Estates Demand and Customer Acquisition
Management said early entrants are almost entirely new customers, including customers who had never previously bought from RH. The company cited a recent customer whose more than $1 million design project expanded from approximately $50,000 to $80,000 of RH purchases to approximately $1.1 million after visiting RH London.
RH Estates Fourth-Quarter Contribution
Fourth-quarter guidance includes an 8-point contribution from RH Estates, alongside a 6.5-point backlog reduction and 4 points from new galleries and other factors. Management said demand is in excess of reported revenue growth as the business builds, in-stocks improve and products are presented in galleries.
RH Estates Gallery Rollout
RH plans to expand the Estates assortment in November, place Estates on the main floor of galleries representing 80% of the business, and have adequate in-stocks to meet and fill demand. The company expects galleries representing 75% to 85% of volume to transition around mid-November, with the remaining galleries expected to transition by December.
International Brand Expansion
RH opened global flagships in Paris, Milan and London over a 10-month period from September 2025 to July 2026. Management expects the international adjusted EBITDA drag to decrease from 450 basis points in the first half of the year to 250 basis points in the second half, and from 340 basis points in 2026 to 150 basis points in 2027.
Strong Early Response to RH London
RH London opened on June 27 in Mayfair, and its design pipeline reached almost $7 million in the first 8 weeks, rivaling the pipelines of RH Newport and RH New York. Management described the response as spectacular and said the gallery is attracting high-caliber, million-dollar-range design projects.
International Revenue Ramp Potential
Management said London benefited from English-language customers, a larger expat population, an existing customer base and three years of awareness from RH England, which ramped to approximately $38 million in demand. Management also said it would not be surprising if London became the company's number-one RH gallery within 2 to 3 years, while identifying Dubai as a potential future number-one gallery.
Capital Spending Expected to Decline
RH expects 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 are expected to decline from $48 million in 2026 to $18 million in 2027.
New Real Estate Formats and Expected Payback
RH is developing RH Compounds in Naples and Aventura, Florida, and single-story RH Design Galleries with integrated restaurants. The Naples project is scheduled to open at the end of 2026 or the beginning of 2027, and both compounds are projected to have a 12- to 18-month payback. The company said the new formats are expected to increase return on invested capital and reduce construction timelines.
Trade Program Re-Engagement
Management said the revamped trade program has led to meaningful business acceleration, with volume levels already offsetting the discount. The trade pipeline is building, firms are re-engaging RH, and the company is expanding bespoke, couture and custom-size furniture offerings.
Hospitality and Design Ecosystem
RH said its restaurants generate, on average, 65% of the aggregate galleries' rent in which they reside. The company also highlighted its interior design services, including floor plans, renderings, delivery coordination and installation support.
Intellectual Property Protection
Almost the entirety of the RH Estates Collection is protected by trade dress or has design patents pending. RH said it has filed for design patents on almost everything in the Estates collection and is preparing to pursue intellectual property protection offensively.
MX:RH Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed