RH (RH) Q2 Earnings call transcript Sep 12, 2025

RH Corporation, a leading home furnishings retailer, recently held its second quarter 2024 earnings call, providing a comprehensive overview of its financial performance and strategic initiatives. The call, led by Chairman and CEO Gary Friedman and CFO Jack Preston, showcased the company's resilience and optimism in the face of challenging market conditions.

Strategic Direction and Market Positioning

RH Corporation reported a 7% increase in demand for the second quarter, with growth continuing into the third quarter, up 12%. Despite the challenging housing market, the company is confident in its ability to capitalize on opportunities as interest rates decline and home prices reset. This positive outlook is supported by the company's significant investments in product transformation and platform expansion, positioning it for long-term global expansion.

Product Transformation and Platform Expansion

RH Corporation's focus on product transformation and platform expansion is a key driver of its growth. The company's strategy involves consolidating product catalogs, launching new collections, and expanding its physical retail presence, particularly with the opening of new galleries in Newport Beach, California, and other strategic locations. These efforts are expected to elevate the brand and drive market share gains.

Financial Performance and Guidance

The company's financial performance for the second quarter reflected its guidance, with revenues of $830 million, up 3.6% year-over-year. Despite aggressive investment in its transformation efforts, RH Corporation maintained a strong financial position, with an adjusted operating margin of 11.7% and adjusted EBITDA margin of 17.2%. For the third quarter, the company expects demand growth of 12-14%, driven by new product launches and improved inventory positioning.

Investor and Analyst Interactions

During the call, investors and analysts raised questions about the company's product margin stability, international expansion plans, and demand trends. RH Corporation addressed these concerns, providing insight into its strategic plans and financial projections. The company's transparency and optimistic outlook were met with positive reception from investors, reflecting confidence in its ability to navigate market challenges and capitalize on growth opportunities.

Conclusion

RH Corporation's second quarter 2024 earnings call highlighted the company's strategic direction, financial performance, and commitment to growth. With a focus on product transformation, platform expansion, and international expansion, RH Corporation is positioning itself for long-term success. Despite challenges in the housing market and broader economic conditions, the company's confidence in its strategic initiatives and financial health bodes well for its future prospects. As RH Corporation continues to innovate and adapt, it remains a key player in the home furnishings industry, demonstrating resilience and a strong focus on growth.