TLDR
- RH reported Q2 fiscal 2026 adjusted EPS of $2.70, beating the $1.78 Wall Street estimate by $2.31
- Revenue came in at $922.2 million, up 2.6% year over year, slightly missing the $936.25 million consensus
- The new RH Estates collection, launched June through mid-July, could double the company’s total addressable market
- RH narrowed its full-year fiscal 2026 sales guidance to $3.629 billion to $3.681 billion
- RH stock rose nearly 9% in premarket trading Friday, hitting $146.00
RH stock jumped nearly 9% in premarket trading Friday, hitting $146.00, after the luxury home furnishings company posted Q2 fiscal 2026 results that cleared earnings expectations despite coming up short on revenue.
Adjusted EPS came in at $2.70, well above the $1.78 analyst estimate. Revenue rose 2.6% year over year to $922.2 million, missing the $936.25 million consensus.
The stock had closed at $134.02 before the results dropped. RH is still down over 41% in the past 12 months.
JUST IN: $RH +8.2% after hours after Q2 results.
Revenue: $922.2M vs. $916.3M est. 🟢
Revenue +2.6% Y/Y
Adj. EBITDA: $178.5MQ3 revenue growth guide: +5% to +6%
FY revenue growth guide: +5.5% to +7% https://t.co/AYoiHZiM9M— Schaeffer's Investment Research (@schaeffers) September 10, 2026
RH also recorded a $55.1 million tariff benefit during the quarter. It expects an additional $13.9 million benefit in the second half, which should help offset $50 million in unplanned supply-chain costs tied to higher oil prices.
The company generated $72.3 million in cash during the quarter, including free cash flow and a $42 million distribution from its Aspen joint venture, excluding $69.2 million in tariff refunds.
RH Estates Could Double the Market
The headline story here is RH Estates. Launched between late June and mid-July, the collection targets traditional and classic design styles found in more than 60% of luxury homes in North America, with even greater prevalence in Europe.
RH believes Estates could double its total addressable market. The company expects the collection to represent 50% of its overall offering within five years, and sees the aesthetic driving an industry trend for more than two decades.
That is a big claim. But management is backing it with real capital deployment.
Galleries, Compounds, and Restaurants
RH is not stopping at product. The company is building out RH Compounds, multi-building retail destinations designed to pull in foot traffic through experience.
A location in Naples, Florida, featuring garden courtyards and a central atrium restaurant is expected to open in late 2026 or early 2027. Another Compound in Aventura, Florida, is set to begin construction soon, with a 2027 opening target.
RH expects 12 to 18 month payback periods on these growth projects. Restaurants connected to its galleries already generate revenue equal to 65% of aggregate gallery rent at locations where they operate.
The company is also developing a residential interior design service, moving beyond selling furniture into designing and delivering complete spaces.
On guidance, RH narrowed full-year fiscal 2026 sales to a range of $3.629 billion to $3.681 billion, tightening from its prior range of $3.594 billion to $3.715 billion. The analyst consensus sits at $3.631 billion.
Q3 revenue is expected between $928 million and $936.8 million, below the $968.2 million estimate, with growth of 5% to 6%.
Q4 projects to $978.3 million to $1.021 billion, ahead of the $948.9 million estimate, with growth of 16.1% to 21.2% expected from Estates, backlog reduction and new gallery openings.
The drag from RH’s international business is also expected to ease, falling from 450 basis points in the first half to 250 basis points in the second half.
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