What does RH do and what are its main business segments?

What were the key takeaways from RH’s earnings call?

What factors drove the changes in RH's revenue and profit?

What is the market's earnings forecast for RH next quarter?

What is RH's gross profit margin?

What is RH's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for RH year over year?

What guidance did RH's management provide for the next earnings period?

- **Revenue Resilience**: 9% Q3 growth vs. 18% 2-year trend, defying housing market headwinds.
- **Margin Challenges**: 11.6% operating margin vs. 12.5% guidance, driven by tariffs and expenses.
- **Inventory Progress**: $82M QoQ reduction, on track to meet $300M excess inventory target.
- **Paris Flagship Success**: Early traffic 62% higher than first 8 weeks, positioning RH as global luxury leader.
- **Tariff Mitigation**: 200bp Q4 margin impact, but 65% restaurant revenue offsetting gallery rent.
- **Future Growth**: 2026 modern/contemporary collection targeting $5M+ homes, launching at Milan Salone.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue increased 9% year-over-year, with 18% 2-year growth, driven by market share gains despite a challenging housing market and tariffs.
- **Margin Performance**: Adjusted operating margin of 11.6% (vs. 12.5% guidance midpoint) due to higher-than-expected tariffs and expenses. Adjusted EBITDA margin was 7.6%, with $83M free cash flow.
- **Inventory Management**: Inventory down 11% YoY and $82M QoQ, targeting $300M excess inventory reduction. Net debt decreased $85M to $2.427B.
- **International Expansion**: RH Paris opened as a flagship global luxury destination, showcasing immersive retail and hospitality integration. Q4 guidance includes 7-8% revenue growth and 12.5-13.5% operating margin, with tariff impacts mitigated.

**【CFO Financial Commentary】**
- **Financial Highlights**: Q3 GAAP net income $420M, Non-GAAP EPS $1.08 (vs. $1.05 consensus). Free cash flow $83M, year-to-date $198M, on track for $250-300M annual target.
- **Tariff Impact**: 200bp operating margin drag from tariffs in Q4, 90bp annualized. Mitigation efforts include resourcing and price adjustments, though delays caused Q3 backorder tariff expenses.
- **Cash Flow Resilience**: Despite $300M excess inventory, free cash flow remains positive, with 65% of restaurant revenue offsetting gallery rent.

**【Q&A Key Highlights】**
- **RH Paris Success**: Early demand strong, with 62% traffic ramp in first 8 weeks. Design team overwhelmed by international clientele, but learning informs future global openings.
- **Pricing Strategy**: Tariff-driven price increases absorbed by customers, with 65% restaurant revenue offsetting gallery rent. No immediate plans for further price hikes beyond tariff mitigation.
- **New Product Launch**: 2026 collection targeting modern/contemporary architecture (60% of homes $5M+), expected to be largest incremental growth driver. Launching at Milan Salone with significant marketing investment.
- **Cash Flow Sustainability**: Free cash flow expected to remain positive, with inventory reduction and capital spending optimization. Uncertainty around tariffs and macro conditions acknowledged.

RH (RH) Q3 2026 Earnings Call Transcript

- **Revenue Growth Outperforms Expectations**: Q2 revenue up 8.4% YoY, with 21% 2-year demand growth despite housing market challenges.
- **European Expansion Triumph**: RH Paris surpasses RH New York traffic in first week, with FY2025 European gallery demand projected at $37-39 million.
- **Tariff Mitigation Progress**: 52% of upholstered furniture U.S.-made by Q4, 90% of tariff impact absorbed by vendors, delaying $40 million in Q3 revenue to Q4/Q1'26.
- **Cash Flow Strength**: $81 million Q2 free cash flow, FY2025 guidance of $250-300 million, supported by $500 million real estate portfolio monetization potential.
- **Strategic Expansion Acceleration**: 4 new U.S. galleries and delayed Spring 2026 brand launch, with London/Milan openings in 2026 driving long-term European growth.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 revenue increased 8.4% YoY, with demand up 13.7% despite housing market challenges. On a 2-year basis, revenue grew 12% and demand 21%, driven by strategic separation and tariff mitigation.
- **European Expansion Success**: RH Paris, opened in September, exceeded traffic of RH New York in its first week. Gallery demand in Europe is projected to reach $37-39 million in FY2025, with online demand at $8 million.
- **Tariff Impact and Mitigation**: Tariffs added a 200 basis point margin drag, but 52% of upholstered furniture will be U.S.-made by Q4, with 90% of tariff impact absorbed by vendors. FY2025 guidance includes $30 million in incremental tariff costs.
- **Future Brand Extension**: Delayed new brand launch to Spring 2026 due to tariff uncertainty. Fall Interiors Sourcebook delayed 8 weeks, shifting $40 million in Q3 revenue to Q4 and Q1'26.
- **Cash Flow and Expansion**: Generated $81 million in free cash flow in Q2, with FY2025 free cash flow guidance of $250-300 million. Plans to open 4 new galleries in North America and accelerate European expansion with London and Milan openings in 2026.

**【CFO Financial Commentary】**
- **Financial Results**: Q2 GAAP net income of $420 million, Non-GAAP EPS of $1.08 (vs. $0.95 consensus). Adjusted operating margin 15.1% (up 340 bps YoY), EBITDA margin 20.6% (up 340 bps YoY). Free cash flow of $81 million.
- **Tariff Mitigation**: 170 bps margin drag from European expansion investments, 90 bps from tariffs net of mitigations. FY2025 outlook: revenue growth 9-11%, adjusted operating margin 13-14%, EBITDA margin 19-20%, free cash flow $250-300 million.
- **Liquidity and Capital Allocation**: $500 million real estate portfolio (e.g., RH England, Aspen properties) available for monetization. Capital expenditures expected to decline to $150-200 million annually post 2025.

**【Q&A Highlights】**
- **Inventory Management**: Targeting 2-3x inventory turnover. FY2025 plans to reduce excess inventory by $200-300 million, with 52% of upholstered furniture U.S.-made by Q4.
- **Tariff Strategy**: Aggressively shifting sourcing out of China (16% in Q1 to 2% in Q4). 52% of furniture U.S.-made, 21% in Italy, 12% in Mexico by Q4. Tariffs may cause 20-30% price increases in 2026.
- **European Margins**: Four-wall economics in Europe comparable to U.S., with Paris gallery demand exceeding expectations. FY2025 European expansion costs include 200 bps margin drag, but long-term growth potential in Europe is significant.
- **Brand Extension Risk**: New brand launch delayed to Spring 2026 due to tariff uncertainty. Q3 guidance includes 120 bps tariff impact, but FY2025 outlook assumes no new tariffs beyond announced investigations.

RH (RH) Q2 2025 Earnings Call Transcript

- **12% Revenue Growth**: Q1 2025 revenue of $1.2B driven by Europe expansion (60% growth in comparable galleries) and U.S. resilience in housing downturn.
- **Europe Ambition**: Paris, London, Milan openings in 2025-26 to create global hospitality brand; RH England gallery demand up 47% YoY.
- **Margin Resilience**: 20-21% adj. EBITDA margin maintained despite 6pt tariff deferral; core business margins up YoY.
- **Strategic Moves**: 30% membership discount to capture market share, delayed new brand extension to 2026, $250-350M free cash flow target.

**【CEO Opening Remarks】**
- Q1 2025 revenue grew 12% YoY to $1.2 billion, with adjusted operating margin of 7% and free cash flow of $34 million.
- Highlighted Europe's acceleration: RH England gallery demand up 47%, online demand up 44%, and 60% growth in comparable European galleries (Munich, Dusseldorf).
- Announced RH Paris opening in September 2025, targeting iconic locations in London and Milan for 2026.
- Introduced Lisa Chi as Co-CEO, emphasizing creative and merchandising leadership.

**【CEO Commentary on Europe & Product Strategy】**
- Europe strategy: Paris, London, Milan openings to drive brand-building hospitality experiences; RH England's second-year demand projected at $37-39 million (gallery) and $8 million (online).
- Product transformation: 2025 Outdoor Sourcebook launched in February, Modern Sourcebook with Japandi aesthetic in June, delayed new brand extension to 2026 due to tariffs.
- Tariff mitigation: 16% China receipts in Q1 → 2% by Q4; 52% upholstery produced in U.S., 21% in Italy by end-2025.

**【CFO Financial Highlights】**
- Q1 2025 guidance: Revenue $1.2 billion (+12%), adj. EBITDA $144 million (12% margin), free cash flow $34 million.
- Full-year 2025 outlook: Revenue +10-13%, adj. EBITDA 20-21% margin, free cash flow $250-350 million.
- Capital allocation: $250-350M free cash flow target, $200-250M capex in 2026, $150-200M in 2027+.
- Tariff impact: 6pt revenue deferral in Q2, expected recovery in H2.

**【Q&A Highlights】**
- **Europe Demand**: Teams identify 2x growth potential in 2-3 years; Paris/Madrid/Milan openings to drive scale for advertising investments.
- **Real Estate Monetization**: $500M+ real estate value (sale-leasebacks, Aspen JV), $200-300M excess inventory to turn into cash in 12-18 months.
- **Membership Discount Strategy**: 25% → 30% permanently to capture market share; core business margins up YoY despite 35% outdoor sale in Q1.
- **H2 Recovery**: 6pt Q2 deferral due to tariffs, expecting H2 recovery; 2025 adj. EBITDA margin 20-21% unchanged.
- **Tariff Mitigation**: Vendor absorption of 50%+ tariffs, U.S. factory utilization for upholstery, Italy sourcing for luxury goods.

RH (RH) Q1 2025 Earnings Call Transcript

- **Revenue Beats Expectations**: Q4 2024 revenue up 18% YoY, driven by 21% RH brand demand growth. FY2025 guidance: 10-13% revenue growth, 14-15% operating margin.
- **U.S. Manufacturing Expansion**: 48% of upholstery to be U.S.-made by end-2025, reducing China reliance. Inventory at $200-300M to support margins.
- **Global Expansion Ambition**: 11 new galleries in 2025, including Paris and a new brand extension with 2 freestanding galleries.
- **Tariff Resilience**: Inventory at favorable prices and U.S. production mitigate tariff risks. No immediate price hikes planned.
- **Free Cash Flow Turn**: FY2025 to generate positive free cash flow, supporting debt reduction and growth.

**【CEO Summary Section】**
- **Revenue Growth**: Q4 2024 revenue increased 18% YoY, driven by 21% demand growth in the RH brand. Adjusted operating income rose 57% on a comparable 13-week basis.
- **Product Transformation**: Launched new Outdoor and Interiors Sourcebooks with 8 and 42 new collections, respectively. Delays in some introductions due to macroeconomic uncertainty.
- **International Expansion**: Planning to open 11 new galleries globally in 2025, including Paris, Detroit, and Greenwich. New brand extension to launch in fall 2025 with dedicated galleries and digital presence.
- **Supply Chain Resilience**: 48% of upholstered furniture to be produced in the U.S. by end of 2025, reducing reliance on China. Inventory of $200-300M at attractive costs to support margins.
- **Financial Outlook**: FY2025 revenue growth 10-13%, adjusted operating margin 14-15%, EBITDA margin 20-21%. Q1 2025 revenue growth 12.5-13.5%.

**【CFO Financial Commentary】**
- **Q4 Financials**: GAAP net income $420M, Non-GAAP EPS $1.08 (vs. $0.95 consensus). Adjusted EBITDA margin 20.5%.
- **Cash Flow & Debt**: $2.2B stock buybacks in FY2024. Free cash flow expected to turn positive in FY2025. Real estate assets valued at $500M to monetize opportunistically.
- **Tariff Mitigation**: Working with manufacturers to absorb tariffs. No direct impact from announced tariffs on China, Canada, or Mexico.

**【Q&A Highlights】**
- **Tariff Strategy**: Inventory at favorable prices positions RH to outperform peers. U.S. production expansion (48% upholstery) reduces risk. No immediate price increases planned.
- **Consumer Demand**: Despite housing market challenges, RH outperforms peers. Q1 2025 demand stabilized at 19% growth after December slowdown.
- **International Risk**: Paris gallery opening on track for Maison & Objet week. No significant backlash anticipated, though construction delays possible.
- **Clearance Activity**: Markdowns expected in down markets, but RH's product transformation limits reliance on clearance sales.
- **Free Cash Flow**: Excess inventory ($200-300M) and strong cash flow generation support debt reduction and growth investments.

Actual											3.72	1.27	4.9	6.2	5.07	4.89	8.48	7.03	5.66	7.78	8.08	5.6304	2.88	2.21	3.93	-0.42	0.72	-0.4	1.69	2.48	1.58	0.13	2.93	1.71
Forecast											3.5893	0.9336	3.4075	5.2948	4.7493	4.0258	6.509	6.6061	5.5854	5.3916	6.7103	4.7029	3.3238	2.122	2.6495	0.9357	1.6667	-0.1284	1.5641	2.6516	1.9154	-0.0908	3.2079	2.124
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+3.64%	+36.03%	+43.80%	+17.10%	+6.75%	+21.47%	+30.28%	+6.42%	+1.34%	+44.30%	+20.41%	+19.72%	-13.35%	+4.15%	+48.33%	-144.89%	-56.80%	-211.53%	+8.05%	-6.47%	-17.51%	+243.17%	-8.66%	-19.49%

RH

RH fundamentals

RH Q3 2026 Earnings

Earnings Call

You can ask Aime

RH

RH fundamentals

RH Q3 2026 Earnings

Earnings Call

RH Earnings Call Summary for Q3/20265:00 PM on Dec 11, 2025

RH Earnings Call Summary for Q2/20265:00 PM on Sep 11, 2025

RH Earnings Call Summary for Q1/20265:00 PM on Jun 12, 2025

RH Earnings Call Summary for Q4/20255:00 PM on Apr 2, 2025

RH Earnings Call Summary for Q3/20255:00 PM on Dec 12, 2024

You can ask Aime