- RH‘s adjusted earnings per share (EPS) for Q4 came in at $1.58, falling short of the estimated $1.93.
- Compared to the previous year, the adjusted EPS increased from 72 cents.
- Net revenue for Q4 was $812.4 million, showing a 10% increase year over year, but it missed the $831.7 million estimate.
- The adjusted gross margin improved to 44.7%, surpassing the previous year’s 43.5% and beating the estimate of 44.4%.
- The adjusted operating margin for the quarter was 11.3%, which was below the expected 12.8%.
- For 2026, RH forecasts an adjusted operating margin between 14% and 15%, slightly below the 14.9% estimate.
- The company projects a revenue increase of 10% to 13% for 2026.
- RH expects first-quarter revenue growth between 12.5% and 13.5%.
- The forecast for first-quarter adjusted EBITDA margin is between 12.5% and 13%.
- The current analyst recommendations for RH include 15 buy ratings, 7 hold ratings, and 1 sell rating.
RH on Smartkarma
Analyst coverage on RH on Smartkarma highlights positive sentiments from Baptista Research. In the report, “Restoration Hardware (RH): These Are The 5 Biggest Factors Influencing Its Stock Price In 2025 & Beyond!”, the high-end furniture and home décor retailer, RH, displayed optimism despite challenges in the housing market. With a 13% growth in demand during the third quarter and an acceleration to 18% in November, driven by new product lines like the RH Modern Sourcebook, RH seems to be on a positive trajectory.
In another report by Baptista Research titled “RH: Leveraging Brand & Taste Platform To Possibly Disrupt the Market! – Major Drivers”, RH showed resilience in navigating economic challenges while highlighting future opportunities. Despite a tough housing market environment, RH reported a significant 13% year-over-year demand increase in the third quarter, showcasing its potential to disrupt the market with its brand and taste platform. Overall, analyst coverage on RH underscores bullish sentiments and potential for growth.
A look at RH Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analyzing RH‘s long-term outlook using Smartkarma Smart Scores reveals a mixed bag. While the company excels in resilience with a perfect score of 5, indicating a strong ability to weather economic storms, other areas show room for improvement. RH scores moderately in growth with a score of 2, suggesting potential for expansion but not at a rapid pace. Momentum scores at 3, indicating a decent level of market momentum. However, there is work to be done in terms of value and dividend scores, which are at 0 and 1 respectively. This implies that investors might not currently see RH as an attractive option in terms of value or dividend payouts.
Despite facing challenges in value and dividend attractiveness, RH‘s strong resilience score bodes well for its long-term viability. With a diverse product offering that includes furniture, lighting, textiles, and more, RH is positioned to cater to various home furnishing needs. By leveraging its distribution channels through retail stores, catalogs, and websites, RH has the potential to capitalize on its market momentum and drive growth over time. Overall, while there are areas for improvement, RH‘s solid foundation in resilience and product diversification could support its long-term success in the home furnishing industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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