RH Reports Q2 Earnings Exceeding Guidance Amid New Growth Strategies and Margin Pressures
RH, a home furnishings retailer, reported strong financial performance for the second quarter of fiscal year 2026. GAAP net revenues reached $922.2 million, reflecting 2.6% growth compared to last year and surpassing management's guidance due to new strategies like RH Estates. Normalized adjusted EBITDA margin hit 13.4%, also exceeding expectations as brand extensions gained traction. Despite challenges such as a $50 million increase in supply chain costs from rising oil prices, the company recognized tariff benefits of $55.1 million this quarter and expects an additional $13.9 million later in the year to help offset these pressures. RH raised its full-year revenue guidance to 5.5%–7%, driven by international expansion and new product lines. The firm also outlined plans for future capital expenditures, with gallery investments expected to pay back within 12-18 months. However, margin growth is anticipated to slow in the near term due to preopening costs from global flagships.
Tickers: $RH
Topics: cash_flow ebitda guidance international_expansion revenue