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 RH, the balance between a premium valuation and weak operating resilience is noticeably tilted toward risk. On valuation multiples, the company looks expensive on P/E, P/S, and especially P/B, which indicates high market expectations and limits re-rating potential. At the same time, P/FCF is below the industry median, which partially supports the valuation, but this advantage does not offset the weakness in earnings and balance sheet quality. Revenue trends over the recent periods are rather negative: sales declined from around 899 million to 800 million, suggesting pressure on demand or pricing realization. Gross margin remains high and stable, and operating margin is even above the industry median, which is a strength of the business. However, net margin is below the median, and net income and EPS look volatile, including a negative EPS in the latest TTM, which worsens earnings quality. ROA and ROI are noticeably below the industry, meaning assets and capital are not being used as efficiently as one would like for a company at this valuation. Formally, ROE is very high, but against the backdrop of extremely low equity and a heavy debt burden, this figure looks distorted and should not be seen as a sign of sustainable profitability. Liquidity is weak: the quick ratio is significantly below normal, and the current ratio is only slightly above 1, leaving limited cushion. Long-term debt remains very high, and the debt/equity ratio is extremely large, so financial risk for shareholders is elevated. Shareholders’ equity remains positive after a period of negative values, which is better than before, but its size is still very small relative to assets and liabilities. Overall, the fundamentals present a mixed picture: operating profitability is decent, but revenue growth, earnings quality, liquidity, and leverage do not support the premium valuation. For an investor, this means the current price already reflects much of the business’s strengths, while weaknesses in the balance sheet and earnings may limit upside over a one-year horizon.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Средний индекс, значительно упал. Отток средств из лонгов резко увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased sharply and is at a high level.

RH maintains a strong operating margin, but weak liquidity, high debt burden, and unstable profitability limit valuation potential.

Skip to main content
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.
© 2026, Nasdaq, Inc. All Rights Reserved.
My Quotes

RH (RH) Q2 2026 Earnings Call Transcript

RH (RH) reported $899.15 million in revenue for the quarter ended July 2025, representing a year-over-year increase of 8.4%. EPS of $2.93 for the same period compares to $1.69 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $905.51 million, representing a surprise of -0.7%. The company delivered an EPS surprise of -8.15%, with the consensus EPS estimate being $3.19.
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: 71 versus the three-analyst average estimate of 66.
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: 1,594.00 Ksq ft versus the two-analyst average estimate of 1,541.00 Ksq ft.
Number of locations - RH - Design Galleries: 35 compared to the 35 average estimate based on two analysts.
Number of locations - RH - Baby & Child and Teen Galleries: 1 versus the two-analyst average estimate of 2.
Stores Count - End of period: 86 versus the two-analyst average estimate of 86.
Number of locations - RH - Legacy Galleries: 27 versus the two-analyst average estimate of 27.
Number of locations - Outlets: 43 versus the two-analyst average estimate of 41.
View all Key Company Metrics for RH here>>>
Shares of RH have returned -6.8% over the past month versus the Zacks S&P 500 composite's +2.4% 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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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

RH (RH) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

RH (RH) came out with quarterly earnings of $2.7 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $2.93 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +542.86%. A quarter ago, it was expected that this furniture and housewares company would post a loss of $2.13 per share when it actually produced a loss of $1.97, delivering a surprise of +7.51%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
RH, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $922.15 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.97%. This compares to year-ago revenues of $899.15 million. The company has topped consensus revenue estimates three 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.
RH shares have lost about 22.2% since the beginning of the year versus the S&P 500's gain of 11.6%.
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 $2.89 on $964 million in revenues for the coming quarter and $4.66 on $3.62 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 24% 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, Constellation Brands (STZ), is yet to report results for the quarter ended August 2026.
This wine, liquor and beer company is expected to post quarterly earnings of $3.63 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Constellation Brands' revenues are expected to be $2.57 billion, up 3.8% from the year-ago quarter.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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
Constellation Brands Inc (STZ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

RH (RH) Q2 Earnings and Revenues Top Estimates

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in RH (Symbol: RH), where a total volume of 8,543 contracts has been traded thus far today, a contract volume which is representative of approximately 854,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 136.4% of RH's average daily trading volume over the past month, of 626,205 shares. Particularly high volume was seen for the $130 strike put option expiring September 11, 2026, with 568 contracts trading so far today, representing approximately 56,800 underlying shares of RH. Below is a chart showing RH's trailing twelve month trading history, with the $130 strike highlighted in orange:
Vertiv Holdings Co (Symbol: VRT) options are showing a volume of 59,283 contracts thus far today. That number of contracts represents approximately 5.9 million underlying shares, working out to a sizeable 135% of VRT's average daily trading volume over the past month, of 4.4 million shares. Especially high volume was seen for the $195 strike put option expiring October 16, 2026, with 6,074 contracts trading so far today, representing approximately 607,400 underlying shares of VRT. Below is a chart showing VRT's trailing twelve month trading history, with the $195 strike highlighted in orange:
And Priority Technology Holdings Inc (Symbol: PRTH) saw options trading volume of 4,153 contracts, representing approximately 415,300 underlying shares or approximately 98.8% of PRTH's average daily trading volume over the past month, of 420,180 shares. Especially high volume was seen for the $7.50 strike call option expiring October 16, 2026, with 3,914 contracts trading so far today, representing approximately 391,400 underlying shares of PRTH. Below is a chart showing PRTH's trailing twelve month trading history, with the $7.50 strike highlighted in orange:
For the various different available expirations for RH options, VRT options, or PRTH options, visit StockOptionsChannel.com.
Further RH Research:

Noteworthy Thursday Option Activity: RH, VRT, PRTH

The following companies are expected to report earnings after hours on 09/10/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
Oracle Corporation (ORCL)is reporting for the quarter ending August 31, 2026. The computer software company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.39. This value represents a 15.83% increase compared to the same quarter last year. In the past year ORCL has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 13.29%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for ORCL is 24.83 vs. an industry ratio of 21.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Adobe Inc. (ADBE)is reporting for the quarter ending August 31, 2026. The computer software company's consensus earnings per share forecast from the 12 analysts that follow the stock is $4.86. This value represents a 13.29% increase compared to the same quarter last year. The last two quarters ADBE had negative earnings surprises; the latest report they missed by -3.38%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ADBE is 12.85 vs. an industry ratio of 21.30.
Copart, Inc. (CPRT)is reporting for the quarter ending July 31, 2026. The auction company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.39. This value represents a 4.88% decrease compared to the same quarter last year. CPRT missed the consensus earnings per share in the 1st calendar quarter of 2026 by -10%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for CPRT is 20.27 vs. an industry ratio of 3.90, implying that they will have a higher earnings growth than their competitors in the same industry.
The Descartes Systems Group Inc. (DSGX)is reporting for the quarter ending July 31, 2026. The computer software company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.57. This value represents a 32.56% increase compared to the same quarter last year. DSGX missed the consensus earnings per share in the 3rd calendar quarter of 2025 by -12.24%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for DSGX is 31.38 vs. an industry ratio of 21.30, implying that they will have a higher earnings growth than their competitors in the same industry.
RH (RH)is reporting for the quarter ending July 31, 2026. The consumer company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.42. This value represents a 85.67% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2027 Price to Earnings ratio for RH is 33.18 vs. an industry ratio of 18.10, implying that they will have a higher earnings growth than their competitors in the same industry.
LightPath Technologies, Inc. (LPTH)is reporting for the quarter ending June 30, 2026. The electrical instrument company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.02. This value represents a 71.43% increase compared to the same quarter last year. LPTH missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -133.33%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for LPTH is -101.40 vs. an industry ratio of 32.80.
Zumiez Inc. (ZUMZ)is reporting for the quarter ending July 31, 2026. The retail (shoe) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.14. This value represents a 133.33% decrease compared to the same quarter last year. ZUMZ missed the consensus earnings per share in the 2nd calendar quarter of 2026 by -1.23%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for ZUMZ is 20.17 vs. an industry ratio of 10.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Alliance Entertainment Holding Corporation (AENT)is reporting for the quarter ending June 30, 2026. The media company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.02. This value represents a 81.82% decrease compared to the same quarter last year. AENT missed the consensus earnings per share in the 4th calendar quarter of 2025 by -41.94%. The "days to cover" for this stock exceeds 28 days. Zacks Investment Research reports that the 2026 Price to Earnings ratio for AENT is 15.14 vs. an industry ratio of 12.00, implying that they will have a higher earnings growth than their competitors in the same industry.

After-Hours Earnings Report for September 10, 2026 : ORCL, ADBE, CPRT, DSGX, RH, LPTH, ZUMZ, AENT

RH RH is scheduled to report second-quarter fiscal 2026 (ended Aug. 1, 2026) results on Sept. 10, after the closing bell.
In the last reported quarter, the company’s adjusted loss per share of $1.97 was narrower than the Zacks Consensus Estimate of a loss of $2.13 by 7.5%. In the year-ago quarter, RH reported adjusted earnings of 13 cents per share. Net revenues of $800.3 million topped the consensus estimate by 1.1% but declined 1.7% year over year.
RH’s earnings surpassed estimates in only one of the trailing four quarters and missed on the other three occasions, but the average surprise was negative 12.8%.
How Are Estimates Placed for RH Stock?
The Zacks Consensus Estimate for the fiscal second quarter indicates earnings of 42 cents per share, which has declined from 79 cents over the past 30 days. In the year-ago period, the company reported earnings of $2.93 per share.
The consensus estimate for revenues is pegged at $914.2 million, indicating a 1.7% year-over-year growth.
RH Price and EPS Surprise
Factors Likely to Have Shaped RH’s Q2 Performance
Assessing the Sales Environment: RH’s fiscal second-quarter revenue performance is likely to have remained constrained by a difficult housing backdrop, tariff-related sourcing disruptions and elevated backorder and special-order balances. Management expects these balances to remain unusually high in the fiscal second quarter before normalizing later in fiscal 2026. Accordingly, RH guided for fiscal second-quarter revenue growth of 0.5% to 2.5%, suggesting only modest top-line improvement during the period.
Despite these pressures, RH’s luxury positioning, international expansion and broader product transformation may have supported demand. The company has been building its presence across key European luxury markets, with Paris and Milan ramping up and London viewed by management as a potential accelerator for the international business. RH also continued expanding its trade platform and introducing higher-end customization through RH Bespoke Furniture and RH Couture Upholstery.
However, the larger benefits from RH Estates, backlog conversion and new-store growth are expected to be weighted toward the second half of fiscal 2026 rather than the fiscal second quarter. Management expects these initiatives to collectively drive a meaningful acceleration later in the year.
Factors Affecting Profitability: Profitability is likely to have remained under pressure from RH’s elevated investment cycle. Management guided for a fiscal second-quarter adjusted EBITDA margin of 11.5% to 13%, including an estimated 380-basis-point negative impact from pre-opening and startup expenses related to international expansion. Management indicated that a meaningful portion of these opening-related costs is transitory and should ease in the second half.
Overall, RH’s second-quarter results are expected to reflect modest revenue growth alongside continued near-term margin pressure from international investments and sourcing disruptions.
What the Zacks Model Says for RH
Our proven model predicts an earnings beat for RH this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of +127.49%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Williams-Sonoma, Inc. WSM posted second-quarter fiscal 2026 adjusted earnings of $2.10 per share, up 5% year over year and came in above the Zacks Consensus Estimate of $2.05 by 2.4%. Net revenues rose 6.7% to $1.96 billion and beat the consensus mark of $1.91 billion by 2.5%.
Williams-Sonoma raised fiscal 2026 guidance after strong year-to-date performance. The company now expects annual net revenues to increase 4.7% to 7.2%, with comparable brand revenue growth of 4.0% to 6.5%. Non-GAAP operating margin is projected to be between 17.8% and 18.2%.
The Home Depot, Inc. HD has delivered solid second-quarter fiscal 2026 results, with the top and bottom lines surpassing the Zacks Consensus Estimate. Adjusted earnings were $4.92 per share, up 5.1% year over year from $4.68. The figure topped the Zacks Consensus Estimate of $4.71.
Home Depot reaffirmed its fiscal 2026 outlook, calling for total sales growth of 2.5-4.5% and comps growth of flat to 2%. The company anticipates earnings per share to be flat to up 4% from $14.23 in the year-ago quarter. Meanwhile, adjusted earnings per share are also projected to be flat to up 4% from the $14.69 reported in the year-ago quarter.
Lowe’s Companies, Inc. LOW reported second-quarter fiscal 2026 adjusted earnings of $4.40 per share, up 1.6% year over year, surpassing the Zacks Consensus Estimate of $4.22. Revenues rose 8.3% to $25,956 million but missed the consensus estimate of $26,135 million.
Lowe’s expects fiscal 2026 total sales of $92 billion compared with its prior range of $92-$94 billion. Comparable sales are projected to be flat, versus the previous expectation of flat to up 2%. The revision reflects first-half operating results and current demand trends.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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
This article originally published on Zacks Investment Research (zacks.com).

Here's What to Expect Ahead of RH's Q2 Earnings Release

Ollie's Bargain Outlet (OLLI) came out with quarterly earnings of $1.42 per share, beating the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $0.99 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +24.56%. A quarter ago, it was expected that this retailer would post earnings of $0.87 per share when it actually produced earnings of $0.91, delivering a surprise of +4.6%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Ollie's Bargain Outlet, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $741.31 million for the quarter ended July 2026, missing the Zacks Consensus Estimate by 1.54%. This compares to year-ago revenues of $679.56 million. The company has not been able to beat consensus revenue estimates 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 lost about 34% since the beginning of the year versus the S&P 500's gain of 11.5%.
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 unfavorable. 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 #4 (Sell) for the stock. So, the shares are expected to underperform 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 $0.83 on $682.41 million in revenues for the coming quarter and $4.44 on $2.97 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 29% 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 July 2026.
This furniture and housewares company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -85.7%. The consensus EPS estimate for the quarter has been revised 3.9% lower over the last 30 days to the current level.
RH's revenues are expected to be $914.18 million, up 1.7% 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
This article originally published on Zacks Investment Research (zacks.com).

Ollie's Bargain Outlet (OLLI) Q2 Earnings Top Estimates

BBB Foods (TBBB) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to a loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -5.56%. A quarter ago, it was expected that this discount retailer would post a loss of $0.19 per share when it actually produced a loss of $0.27, delivering a surprise of -42.11%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
BBB Foods, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $1.5 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.46%. This compares to year-ago revenues of $963 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.
BBB Foods shares have added about 24.1% since the beginning of the year versus the S&P 500's gain of 12.9%.
What's Next for BBB Foods?
While BBB Foods has outperformed 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 BBB Foods 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 -$0.13 on $1.53 billion in revenues for the coming quarter and -$0.61 on $5.91 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 14% 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.
RH (RH), another stock in the same industry, has yet to report results for the quarter ended July 2026.
This furniture and housewares company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -90.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
RH's revenues are expected to be $913.96 million, up 1.7% from the year-ago quarter.
Should You Invest in BBB Foods Inc. (TBBB)?
Before you invest in BBB Foods Inc. (TBBB), 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.

BBB Foods (TBBB) Reports Q2 Loss, Beats Revenue Estimates

Key Points
SoundHound has a big opportunity if it can convert LivePerson's customers to its platform.
With the luxury furniture market potentially set to rebound, RH could be a great way to play this turnaround.
Supermicro is a stock I'd continue to avoid given its low margins and its continual run-ins with regulators.
When a stock is heavily shorted, it can be a warning sign for investors. However, if these stocks defy expectations, short covering can be the launching pad for a strong run.
Let's look at two stocks with heavy short interest I'd consider buying: artificial intelligence (AI) voice company SoundHound AI (NASDAQ: SOUN) and luxury furniture brand RH (NYSE: RH). One I'd avoid is Super Micro Computer (NASDAQ: SMCI).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Consider buying SoundHound AI stock
With over 40% short interest, SoundHound AI is one of the most heavily shorted stocks in the market. Valuation could be one reason why, with the stock trading at a forward price-to-sales (P/S) multiple of 10 times 2027 analyst estimates. However, the bigger reason is likely its pending merger with LivePerson.
LivePerson is a distressed company with heavy debt, so the deal carries significant risks. However, SoundHound isn't paying a hefty price tag, and it could be a calculated risk worth taking. Meanwhile, it will seek to quickly retire LivePerson's discounted debt at deal close through a mix of cash and equity.
LivePerson will give SoundHound a large, established customer base to which it can upsell a more comprehensive solution based on its AI voice technology and agentic AI platform. Essentially, SoundHound is buying customer relationships and looking to incorporate its technology to enter the lucrative call center and customer service spaces.
While the shorts are eyeing a potential equity raise to pay off LivePerson's debt as a catalyst for the stock to decline, if SoundHound can stabilize churn and convert enterprises to its platform, the deal could become a home run that sends the stock significantly higher.
Consider buying RH stock
The home furnishing industry has struggled since the pandemic, and with RH aggressively expanding in Europe with lavish, expensive new stores, it is easy to see why RH is a popular short. However, the company's more than 30% short interest could be the rocket fuel to take this stock higher.
RH's CEO Gary Friedman is one of the most respected executives in the home furnishings industry. In addition to his bold bet on Europe, he is introducing one of the company's biggest brand extensions ever: RH Estates. This will be a more traditional furniture line, aimed at wealthy homeowners, and will include bespoke, custom-made collections for the ultra-wealthy and design professionals. This will be a high-margin business that Friedman believes could become RH's biggest growth driver in the coming years.
While investors are betting against RH, commentary from online furniture retailer Wayfair could be a good omen for the company. Wayfair recently came out and said its luxury furniture segment was booming, with its high-end Perigold brand seeing 35% revenue growth in the second quarter. If the high end of the furniture market is rebounding, RH could be a great way to play it, especially given its high short interest.
You may want to avoid Super Micro Computer
With a 15% short interest, Super Micro Computer is another heavily shorted stock, and it is one I would continue to avoid on the long side. The company actually gave a very strong update for its fiscal Q4, with its gross margins of 15% to 17% now projected to be much higher than its guidance of 8.2% to 8.4%. At the same time, revenue is soaring as it benefits from the AI infrastructure build-out.
However, at the end of the day, Supermicro is a low-margin middleman that continues to be clouded in controversy. With Nvidia and AMD moving more toward providing complete end-to-end servers, the little proprietary value that it gives should start to fade. Meanwhile, the company has a history of questionable accounting and run-ins with regulators. There are just better ways to play the AI infrastructure build-out, which is why I'd avoid the stock.
Should you buy stock in SoundHound AI right now?
Before you buy stock in SoundHound AI, 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 SoundHound AI 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 $396,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,300,820!*
Now, it’s worth noting Stock Advisor’s total average return is 939% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 5, 2026.
Geoffrey Seiler has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and SoundHound AI. The Motley Fool recommends RH and Wayfair. 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.

2 Heavily Shorted Stocks to Buy and 1 to Avoid

Key Points
Mark S. Demilio disposed of 2,445 shares for $412,000 on July 10, 2026.
The transaction reduced the total equity position by 4%.
The disposal was executed indirectly through The Mark S. Demilio Revocable Trust.
The sale occurred as shares of the home furnishings retailer recorded a -23% one-year return as of the transaction date.
Director Mark S. Demilio reported a sale of 2,445 shares of RH (NYSE:RH) on July 10, 2026, according to an SEC Form 4 filing.
Transaction summary
Shares sold (indirectly held)
2,445
Transaction value
~$412,000
Post-transaction shares
57,698
Post-transaction shares (directly held)
12,593
Post-transaction shares (indirectly held)
45,105
Post-transaction value
$9.54 million
Key questions
What was the impact of this transaction on the director's total equity exposure?
The sale of 2,445 shares represented 5% of the indirect holdings and 4% of the total equity position. Following the transaction, the aggregate stake decreased from 60,143 shares to 57,698 shares.
How is the remaining ownership structured across different entities?
The current position is divided between 12,593 shares held directly and 45,105 shares held indirectly. The indirect holdings are distributed between The Mark S. Demilio Revocable Trust, which holds 25,680 shares, and The Theresa E. Demilio 2012 Family Trust, which holds 19,425 shares.
How did the execution price compare to the market valuation on the date of the trade?
The transaction was executed at a weighted average price of $168.44 per share, which was a premium to the $165.35 market close recorded on the July 10, 2026 transaction date.
What is the company's current market scale and recent financial profile?
As of the July 10 market close, the company had a market capitalization of $3.1 billion. In the trailing 12 months, the firm generated $3.4 billion in revenue and $103.1 million in net income.
Company Overview
Share Price (as of market close 2026-07-10)
$165.35
Market Capitalization
$3.1 billion
Revenue (TTM)
$3.4 billion
Net Income (TTM)
$103.1 million
Company Snapshot
RH operates as a specialized home furnishings retailer offering an extensive portfolio that includes furniture, lighting, textiles, bathware, decor, outdoor and garden essentials, and specialized furnishings for children and teens.
The company generates revenue through a diversified omnichannel distribution model encompassing distinctive retail galleries, curated Source Books catalogs, and a comprehensive digital platform.
RH targets affluent consumers seeking premium home furnishings and design solutions, positioning itself as a curator of high-end residential and lifestyle products.
RH is a prominent specialty retailer in the consumer cyclical sector with a market capitalization of $3.1 billion. The company has generated $3.4 billion in TTM revenue with net income of $103.1 million, reflecting its position as a significant player in the premium home furnishings market. RH's competitive advantage derives from its curated product selection, distinctive retail experience across multiple channels, and strong brand positioning in the high-end home furnishings segment.
What this transaction means for investors
Demilio trimmed a small block from his indirect holdings and still controls 57,698 shares split across a revocable trust, a family trust, and a direct stake. A long-tenured director shaving 4% off a position mostly held in trust vehicles is the kind of estate-planning move that says nothing about where RH is headed. Worth a small note, though: there's no 10b5-1 plan mentioned, so the timing was discretionary, and he did sell at $168.44, a premium to that day's close.
Coincidentally enough, CEO Gary Friedman reported the sale of “a small portion” of his common stock — 24% of his holdings — earlier this month, prompting a release from the company, which said the move was to help fund improvements to personal residences and the repayment of debt. Shares surged nearly 8% on Tuesday (just four days after the transaction), so it’s clear the stock is in a volatile position, with shares still down about 14% in the year ending Tuesday.
The business is in a similarly tricky but improving spot. Fiscal first-quarter revenue slipped 1.7% to $800.3 million, hurt by roughly $45 million in tariff-related backorders, but RH raised its full-year outlook to 4.5% to 8% revenue growth. Friedman told investors he expects growth to accelerate from roughly flat in the first half to around 12% in the second half as backlog clears. For long-term investors, the insider sale is minor. The real questions are whether that second-half acceleration shows up, and whether RH's debt-heavy balance sheet can carry its costly international expansion.
Should you buy stock 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 $398,160!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,249,202!*
Now, it’s worth noting Stock Advisor’s total average return is 918% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 14, 2026.
Jonathan Ponciano 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.

Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	RH	Industry	RH	Industry	Volume, $
Yesterday 131.5 - 143.0	-1.29	6.23	3.79	1.23	193.42M
Week 131.4 - 149.7	-7.56	5.22	6.59	3.35	468.85M
Month 131.4 - 186.8	-26.79	10.03	14.58	8.31	1.36B
3 Months 131.4 - 201.0	-15.92	5.70	26.40	11.69	4.99B
6 Months 106.3 - 201.0	1.80	8.06	40.18	18.78	10.77B
Year 106.3 - 248.4	-38.60	16.65	60.27	29.84	25.16B
3 years 106.3 - 457.3	-56.10	48.74	118.00	59.78	86.16B
5 years 106.3 - 708.6	-80.65	63.09	139.15	88.23	154.38B
All time 24.4 - 744.6	946.40	396.53	—	—	162.67B

RH

Price and volatility history

Risk ratios