News
Earnings Miss · Luxury Retail · Revenue Guidance · Stock Decline
Luxury furniture retailer RH reported a significant miss on Q4 CY2025 revenue and profit estimates, with sales of $842.6 million falling short of analyst expectations, leading to a sharp 19.5% drop in its stock price immediately after the announcement, according to StockStory.
The company's Q4 revenue grew 3.7% year-on-year but missed analyst estimates of $873.7 million by 3.6%. Adjusted EPS came in at $1.53, a substantial 30.6% miss compared to analyst expectations of $2.20.
Adjusted EBITDA also fell short at $149.1 million, missing estimates by 8.9%. Furthermore, RH's Q1 CY2026 revenue guidance of $789.5 million underwhelmed, coming in 10.2% below analyst estimates of $879.5 million and projecting a 3% year-on-year decline.
Despite these misses, the operating margin improved to 11.5% from 8.7% last year, and free cash flow turned positive at $54.61 million, up from -$69.67 million. While RH's sales declined 1.4% annually over the last three years, analysts project revenue to grow 9.7% over the next 12 months.
