RH, together with its subsidiaries, operates as a retailer in the home furnishings and operates under RH Galleries and RH brand names in the District of Columbia and Canada, as well as Waterworks showrooms throughout the United States and the United Kingdom. It offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, and child and teen furnishings. The company provides its products through its retail galleries; online through rh.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com, and Source Books, a series of catalogs. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.

For the quarter ended October 2025, RH (RH) reported revenue of $883.81 million, up 8.9% over the same period last year. EPS came in at $1.71, compared to $2.48 in the year-ago quarter.
The reported revenue represents a surprise of +0.1% over the Zacks Consensus Estimate of $882.95 million. With the consensus EPS estimate being $2.13, the EPS surprise was -19.72%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how RH performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Number of locations - RH - Total Galleries: 73 versus 68 estimated by three analysts on average.
Number of locations - RH - Modern Gallery: 1 versus 1 estimated by two analysts on average.
Number of locations - Waterworks Showrooms: 14 compared to the 14 average estimate based on two analysts.
Total leased selling square footage - End of period: 1,639.00 Ksq ft versus the two-analyst average estimate of 1,594.30 Ksq ft.
Number of locations - RH - Design Galleries: 37 versus 37 estimated by two analysts on average.
Number of locations - RH - Baby & Child and Teen Galleries: 1 versus 1 estimated by two analysts on average.
Stores Count - End of period: 88 compared to the 88 average estimate based on two analysts.
Number of locations - RH - Legacy Galleries: 26 compared to the 27 average estimate based on two analysts.
Number of locations - Outlets: 43 versus the two-analyst average estimate of 43.
Shares of RH have returned -2.4% over the past month versus the Zacks S&P 500 composite's +0.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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RH (RH) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Compared to Estimates, RH (RH) Q3 Earnings: A Look at Key Metrics

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RH (RH) Q3 2025 Earnings Call Transcript

RH (RH) came out with quarterly earnings of $1.71 per share, missing the Zacks Consensus Estimate of $2.13 per share. This compares to earnings of $2.48 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -19.72%. A quarter ago, it was expected that this furniture and housewares company would post earnings of $3.19 per share when it actually produced earnings of $2.93, delivering a surprise of -8.15%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
RH, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $883.81 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 0.10%. This compares to year-ago revenues of $811.73 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
RH shares have lost about 60.1% since the beginning of the year versus the S&P 500's gain of 17.1%.
What's Next for RH?
While RH has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for RH was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.93 on $902.86 million in revenues for the coming quarter and $9.08 on $3.5 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Consumer Staples sector, Scholastic (SCHL), is yet to report results for the quarter ended November 2025. The results are expected to be released on December 18.
This publishing, education and media company is expected to post quarterly earnings of $2.07 per share in its upcoming report, which represents a year-over-year change of +13.7%. The consensus EPS estimate for the quarter has been revised 7.8% lower over the last 30 days to the current level.
Scholastic's revenues are expected to be $556.73 million, up 2.2% from the year-ago quarter.
Should You Invest in RH (RH)?
Before you invest in RH (RH), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

RH (RH) Misses Q3 Earnings Estimates

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in UnitedHealth Group Inc (Symbol: UNH), where a total volume of 145,115 contracts has been traded thus far today, a contract volume which is representative of approximately 14.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 200.8% of UNH's average daily trading volume over the past month, of 7.2 million shares. Especially high volume was seen for the $420 strike put option expiring December 19, 2025, with 7,298 contracts trading so far today, representing approximately 729,800 underlying shares of UNH. Below is a chart showing UNH's trailing twelve month trading history, with the $420 strike highlighted in orange:
Par Technology Corp. (Symbol: PAR) saw options trading volume of 11,693 contracts, representing approximately 1.2 million underlying shares or approximately 177.3% of PAR's average daily trading volume over the past month, of 659,505 shares. Especially high volume was seen for the $70 strike call option expiring April 17, 2026, with 3,530 contracts trading so far today, representing approximately 353,000 underlying shares of PAR. Below is a chart showing PAR's trailing twelve month trading history, with the $70 strike highlighted in orange:
And RH (Symbol: RH) saw options trading volume of 13,949 contracts, representing approximately 1.4 million underlying shares or approximately 157.9% of RH's average daily trading volume over the past month, of 883,285 shares. Especially high volume was seen for the $112 strike put option expiring December 12, 2025, with 822 contracts trading so far today, representing approximately 82,200 underlying shares of RH. Below is a chart showing RH's trailing twelve month trading history, with the $112 strike highlighted in orange:
For the various different available expirations for UNH options, PAR options, or RH options, visit StockOptionsChannel.com.
Also see:
Top Ten Hedge Funds Holding KMX
CPSS Insider Buying
GRTX Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Thursday Option Activity: UNH, PAR, RH

The following companies are expected to report earnings after hours on 12/11/2025. Visit our Earnings Calendar for a full list of expected earnings releases.
Broadcom Inc. (AVGO)is reporting for the quarter ending October 31, 2025. The electric company company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.49. This value represents a 19.20% increase compared to the same quarter last year. The last two quarters AVGO had negative earnings surprises; the latest report they missed by -6.67%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for AVGO is 76.19 vs. an industry ratio of 21.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Costco Wholesale Corporation (COST)is reporting for the quarter ending November 30, 2025. The discount retail company's consensus earnings per share forecast from the 12 analysts that follow the stock is $4.26. This value represents a 11.52% increase compared to the same quarter last year. COST missed the consensus earnings per share in the 1st calendar quarter of 2025 by -1.71%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for COST is 43.72 vs. an industry ratio of 26.70, implying that they will have a higher earnings growth than their competitors in the same industry.
lululemon athletica inc. (LULU)is reporting for the quarter ending October 31, 2025. The textile company's consensus earnings per share forecast from the 12 analysts that follow the stock is $2.22. This value represents a 22.65% decrease compared to the same quarter last year. In the past year LULU has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 9.15%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for LULU is 14.53 vs. an industry ratio of 35.70.
RH (RH)is reporting for the quarter ending October 31, 2025. The consumer company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.13. This value represents a 14.11% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for RH is 19.10 vs. an industry ratio of 25.10.
Quanex Building Products Corporation (NX)is reporting for the quarter ending October 31, 2025. The building company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.50. This value represents a 18.03% decrease compared to the same quarter last year. NX missed the consensus earnings per share in the 3rd calendar quarter of 2025 by -18.82%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for NX is 7.32 vs. an industry ratio of 18.70.
Mitek Systems, Inc. (MITK)is reporting for the quarter ending September 30, 2025. The computer company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.12. This value represents a 60.00% decrease compared to the same quarter last year. MITK missed the consensus earnings per share in the 4th calendar quarter of 2024 by -14.29%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for MITK is 13.98 vs. an industry ratio of 14.10.
Comtech Telecommunications Corp. (CMTL)is reporting for the quarter ending October 31, 2025. The wireless equipment company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.43. This value represents a 66.14% increase compared to the same quarter last year. The days to cover, as reported in the 11/28/2025 short interest update, increased 188.32% from previous report on 11/14/2025. Zacks Investment Research reports that the 2026 Price to Earnings ratio for CMTL is -2.30 vs. an industry ratio of -20.10, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After-Hours Earnings Report for December 11, 2025 : AVGO, COST, LULU, RH, NX, MITK, CMTL

Ollie's Bargain Outlet (OLLI) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.63%. A quarter ago, it was expected that this retailer would post earnings of $0.91 per share when it actually produced earnings of $0.99, delivering a surprise of +8.79%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Ollie's Bargain Outlet, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $613.62 million for the quarter ended October 2025, missing the Zacks Consensus Estimate by 0.33%. This compares to year-ago revenues of $517.43 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Ollie's Bargain Outlet shares have added about 8.3% since the beginning of the year versus the S&P 500's gain of 16.4%.
What's Next for Ollie's Bargain Outlet?
While Ollie's Bargain Outlet has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ollie's Bargain Outlet was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.37 on $772.62 million in revenues for the coming quarter and $3.82 on $2.64 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, RH (RH), has yet to report results for the quarter ended October 2025. The results are expected to be released on December 11.
This furniture and housewares company is expected to post quarterly earnings of $2.13 per share in its upcoming report, which represents a year-over-year change of -14.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
RH's revenues are expected to be $882.95 million, up 8.8% from the year-ago quarter.
Should You Invest in Ollie's Bargain Outlet Holdings, Inc. (OLLI)?
Before you invest in Ollie's Bargain Outlet Holdings, Inc. (OLLI), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
RH (RH) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ollie's Bargain Outlet (OLLI) Beats Q3 Earnings Estimates

For Immediate Release
Chicago, IL – December 9, 2025 – Today, Zacks Investment Ideas feature highlights Costco COST, Walmart WMT, Nike NKE, Lululemon LULU and Restoration Hardware RH.
"Liberation Day" Tariffs: Panic, Recovery & What Comes Next
Throughout his third campaign for the US Presidency, Donald Trump consistently described what he saw as the benefits of tariffs, even calling them his favorite word (only behind God and family). With almost all countries levying tariffs on the United States, Trump and his team saw a ‘reciprocal’ tariff policy as the way to reduce trade deficits, bring back US manufacturing jobs, and raise much-needed revenue for the US government. Trump would go on to win the presidency and, surprisingly, become the first Republican president to win the popular vote since George W. Bush in 2004.
Nevertheless, President Trump’s April ‘Liberation Day’ tariff rollout started as a disaster. First, the S&P 500 instantly plunged more than 10% as most Wall Street investors expected a slower, more gradual tariff policy.
Second, the United States became embroiled in several trade disputes, most prominently with the second-largest economy, China.
Trump Tariffs: A "Shock & Bore Approach”
The primary reason for the stock market plunge was added uncertainty. Would tariffs remain at sky-high levels? Would China come to the negotiating table? Would tariffs cause inflation? As investors contemplated what would happen next, most decided to sell first and ask questions later.
As is often the case on Wall Street, panic translated to opportunity. After more than $8 trillion was wiped out of the US stock market in a matter of days, President Trump and his economic team began pausing tariffs on countries willing to negotiate. Although some countries held out at first, most of the United States’ largest trading partners ultimately came to the table. Since then, the market has climbed the proverbial ‘Wall of Worry’ and is trading at all-time highs.
Have Tariffs Caused Inflation?
“Words talk, numbers scream.”
Whenever debating a politically hot-button topic like inflation, it’s critical that investors rely on data over opinions and forecasts to eliminate bias. From 1970 to 2025, the average consumer price index (CPI) inflation ratewas 3.93%. Currently, according to the Bureau of Labor Statistics (BLS) CPI is 3%.
Despite the normal inflation readings, many Americans are still struggling to get by financially after the 2022 inflation spike to 9%. In other words, many consumers are still facing the hangover of the post-COVID price spike, although the rate of inflation has reverted to the mean. Meanwhile, although some tariffs have undeniably impacted the price of certain products, rampant tariff-induced inflation has simply not shown up yet. A combination of lower energy prices and import costs of many goods has helped to offset tariffs.
Will Tariff-Induced Inflation Appear Later?
“The only function of economic forecasting is to make astrology look respectable.”
As we have learned this year, economic predictions are difficult. Treasury Secretary Scott Bessent argues that tariffs cause a one-time “price-adjustment” rather than the persistent 2022-esque inflation the US experienced. Additionally, Bessent suggests that lower interest rates and energy costs will help to offset any impacts from tariffs.
Not Everyone Is Happy About Trump Tariffs
Not all companies are happy about tariffs. For instance, Costco recently sued the Trump Administration over tariffs. Meanwhile, other retailers such as Walmart, Nike, Lululemon and Restoration Hardware have cited tariffs as a challenge during their earnings calls. Finally, and most importantly, the US Supreme Court is due to make a decision any day now on whether the Trump Tariffs are constitutional.
Bottom Line
While the initial shock of the tariff rollout rattled markets and stirred economic fear, history shows that panic often fades as cooler heads prevail. Inflation has stayed surprisingly tame, but the long-term effects of tariffs remain a story still unfolding. As investors look ahead, the Supreme Court’s upcoming decision could determine the fate of the Trump tariffs.
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Media Contact
Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks Investment Ideas feature highlights: Costco, Walmart, Nike, Lululemon and Restoration Hardware

‘Liberation Day’ Tariffs Sparked Economic Fear
Throughout his third campaign for the US Presidency, Donald Trump consistently described what he saw as the benefits of tariffs, even calling them his favorite word (only behind God and family). With almost all countries levying tariffs on the United States, Trump and his team saw a ‘reciprocal’ tariff policy as the way to reduce trade deficits, bring back US manufacturing jobs, and raise much-needed revenue for the US government. Trump would go on to win the presidency and, surprisingly, become the first Republican president to win the popular vote since George W. Bush in 2004.
Nevertheless, President Trump’s April ‘Liberation Day’ tariff rollout started as a disaster. First, the S&P 500 instantly plunged more than 10% as most Wall Street investors expected a slower, more gradual tariff policy.
Image Source: TradingView
Second, the United States became embroiled in several trade disputes, most prominently with the second-largest economy, China.
Trump Tariffs: A "Shock & Bore Approach”
The primary reason for the stock market plunge was added uncertainty. Would tariffs remain at sky-high levels? Would China come to the negotiating table? Would tariffs cause inflation? As investors contemplated what would happen next, most decided to sell first and ask questions later.
As is often the case on Wall Street, panic translated to opportunity. After more than $8 trillion was wiped out of the US stock market in a matter of days, President Trump and his economic team began pausing tariffs on countries willing to negotiate. Although some countries held out at first, most of the United States’ largest trading partners ultimately came to the table. Since then, the market has climbed the proverbial ‘Wall of Worry’ and is trading at all-time highs.
Image Source: TradingView
Have Tariffs Caused Inflation?
“Words talk, numbers scream.”
Whenever debating a politically hot-button topic like inflation, it’s critical that investors rely on data over opinions and forecasts to eliminate bias. From 1970 to 2025, the average consumer price index (CPI) inflation ratewas 3.93%. Currently, according to the Bureau of Labor Statistics (BLS) CPI is 3%.
Image Source: US BLS
Despite the normal inflation readings, many Americans are still struggling to get by financially after the 2022 inflation spike to 9%. In other words, many consumers are still facing the hangover of the post-COVID price spike, although the rate of inflation has reverted to the mean. Meanwhile, although some tariffs have undeniably impacted the price of certain products, rampant tariff-induced inflation has simply not shown up yet. A combination of lower energy prices and import costs of many goods has helped to offset tariffs.
Will Tariff-Induced Inflation Appear Later?
“The only function of economic forecasting is to make astrology look respectable.”
As we have learned this year, economic predictions are difficult. Treasury Secretary Scott Bessent argues that tariffs cause a one-time “price-adjustment” rather than the persistent 2022-esque inflation the US experienced. Additionally, Bessent suggests that lower interest rates and energy costs will help to offset any impacts from tariffs.
Not Everyone is Happy About Trump Tariffs
Not all companies are happy about tariffs. For instance, Costco (COST) recently sued the Trump Administration over tariffs. Meanwhile, other retailers such as Walmart (WMT), Nike (NKE), Lululemon (LULU), and Restoration Hardware (RH) have cited tariffs as a challenge during their earnings calls. Finally, and most importantly, the US Supreme Court is due to make a decision any day now on whether the Trump Tariffs are constitutional.
Bottom Line
While the initial shock of the tariff rollout rattled markets and stirred economic fear, history shows that panic often fades as cooler heads prevail. Inflation has stayed surprisingly tame, but the long-term effects of tariffs remain a story still unfolding. As investors look ahead, the Supreme Court’s upcoming decision could determine the fate of the Trump tariffs.
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RH (RH) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Liberation Day Tariffs: Panic, Recovery, & What Comes Next

Key Points
RH stock has lost more than half its value in the last five years, while the S&P 500 rose 87%.
The potential housing recovery and improving profitability could lead to a rebound in the stock.
The stock's valuation could significantly undervalue this luxury retail brand's international growth potential.
RH (formerly Restoration Hardware) (NYSE: RH) is a leading luxury home goods retailer that experienced strong revenue growth until recently. A weak housing market led to a sharp downturn in the company's revenue. As a result, the stock has lost more than half its value over the last five years, while the S&P 500 index has risen 87% at the time of writing.
With the Federal Reserve expected to continue lowering interest rates over the next year, this is a good time to consider investing in stocks that could benefit from a housing recovery, such as RH.
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Here's why RH is particularly attractive right now.
What happened to RH
RH's business is clearly not immune to the cyclical nature of the housing market. The company's revenue peaked at $1 billion in the third quarter of 2021 and fell to a low of $727 million by fiscal Q1 2024. But RH has already begun to see a modest recovery. In the most recent quarter, revenue increased to $899 million.
Still, the recovery hasn't helped the stock, which is down 58% year to date. This can be attributed to uncertainty around tariffs and competition, which reduces future visibility in the company's profits. RH reported an operating profit margin of more than 20% before the downturn; however, its operating margin was just 12% on a trailing-12-month basis through the recent quarter.
Focusing on long-term value
Just because a stock has underperformed doesn't mean it's a bad business that is not worth investing in. In the case of RH, nothing has damaged its brand or ability to profitably grow over the long term. This presents a good buying opportunity for investors who can hold the stock for at least five years.
A key catalyst to watch that could send the stock soaring in the years to come is the company's global expansion. It's expanding in Europe, where demand in England has been robust, up 76% in the recent quarter. International expansion will require high upfront costs but could lead to higher profits in the long run.
Furthermore, RH is actively managing selling prices to offset the higher costs resulting from tariffs, which should firm up its margins in the next year or so. Analysts expect its operating margin to climb back to nearly 20% by fiscal 2030. This could translate to 46% compound annual growth in adjusted earnings per share. With the stock trading at a forward (one-year) price-to-earnings ratio of 12.8, RH could offer incredible returns over the next five years.
Should you invest $1,000 in RH right now?
Before you buy stock in RH, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and RH wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 1, 2025
John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends RH. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How Good Has RH Stock Actually Been?

Key Points
RH stock is down nearly 60% this year.
The company has faced a challenging housing market and new tariffs under the Trump administration.
It's making a big push to expand in Europe.
RH (NYSE: RH), the high-end home furnishings company formerly known as Restoration Hardware, is no stranger to volatility.
The stock has been through several boom-and-bust cycles over the last decade, most recently struggling in the post-pandemic era as the housing market has slowed to a 30-year low, dealing a blow to much of the home improvement sector. Additionally, tariffs have been another thorn in RH's side, and as a result, the stock has had a forgettable 2025 as optimism at the end of 2024 around lower interest rates and a housing market rebound has given way to a less favorable reality.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
As the chart below shows, the stock is down nearly 60% this year, with essentially all of those losses coming in the first quarter, partly in response to higher tariffs than expected under President Donald Trump.
Despite the disappointing stock performance, RH has actually delivered solid growth so far this year with revenue up 8.4% in the second quarter, and profitability has spiked as the company controlled overhead costs while doing it.
So what's in store for RH in 2026? Let's take a look at a few key factors to watch.
All eyes on the housing market
RH has managed to deliver growth in spite of a weak housing market, but there's no question that the slowdown has weighed on the business. In fact, CEO Gary Friedman, who's never afraid to share his opinion, has been outspoken on a number of occasions, reminding investors that the company is operating in "the worst housing market in almost 50 years."
No one knows where the housing market will go in 2026, though the lack of rebound thus far seems to be telling, especially as consumers are struggling, inflation remains elevated, and home prices are out of reach for many younger buyers. However, interest rates are expected to come down in December and could fall further in 2026, which would likely bring down mortgage rates.
Still, at this point, it seems risky to bet on a housing recovery in the near term.
European expansion
The biggest initiative happening inside the company right now is its push into Europe. RH has opened several galleries across the pond and has more openings planned for 2026. Additionally, it expects sales at recently opened galleries, including RH Paris, which opened its doors on Sept. 5, to ramp up next year.
Among the openings planned for 2026 are marquee markets like London and Milan, and the company expects its push into Europe and the Middle East to double the size of the business in the next five to seven years.
Other factors to watch next year include tariffs, which continue to fluctuate, though the company has made significant strides in reducing its exposure to China.
After RH's sell-off in 2025, the stock is arguably undervalued. If the company can deliver and the macroeconomic environment cooperates, the stock could see a robust recovery in 2026.
Should you invest $1,000 in RH right now?
Before you buy stock in RH, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and RH wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 1, 2025
Jeremy Bowman has positions in RH. The Motley Fool recommends RH. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	54.67 20.75
Price/Sales	1.41 0.70
P/B	0.00 1.92
P/FCF	0.00 16.34

Indicator	TTM Median
ROE	0.00 14.57
ROA	1.86 5.09
ROI	2.82 8.68
Net Worth	4.59 0.90
Quick Ratio	0.29 0.88
Current Ratio	1.37 1.45

Indicator	TTM Median
Net Profit Margin	2.57 5.81
Operating Margin	9.88 8.49
Gross Margin	44.49 38.39
Return on tangible equity	0.00 21.78

Indicator	TTM Median
EPS	0.13 0.44
EPS Forecast	0.09 0.40
Revenue	814.00M 185.00M
Gross Profit	355.00M —
EBITDA	116.00M —

RH

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue