RHNews Brief
By Basis Report Editorial · Updated April 1, 2026

RH Shares Sink 19.5% After Q4 Earnings and Revenue Miss, Weak Q1 Outlook

NEW YORK, April 1 —

RH (RH) shares plunged 19.5% after the luxury home-furnishings retailer missed Q4 FY2025 earnings by $0.71 per share and revenue by roughly $31mn.

Key numbers
  • Q4 adjusted EPS of $1.53 vs. the $2.24 consensus, a 32% miss; revenue of $842.6mn vs. the $873.5mn estimate.
  • Stock fell to $114.07 in extended trading, valuing the company at roughly 14.0x forward earnings on $3.4bn in TTM revenue.
  • Q1 FY2026 revenue guidance of roughly $789.5mn at the midpoint, 10% below the $879.5mn Street estimate, with EBITDA margin of just 5.5%-6.5%.

Why It Matters

The double miss breaks a recovery narrative that had lifted RH shares through much of FY2025 on 8% full-year revenue growth. Management blamed $30mn in tariff-related backorder delays and $10mn in weather disruptions for the Q4 shortfall. The Q1 guide is the bigger concern: a 2%-4% revenue decline signals that demand among high-end housing consumers is cooling faster than analysts expected.

Tariffs hit Q4 gross margins by an estimated 190bps, and the pain is not fading. RH's FY2026 outlook already embeds a 2.7 percentage-point drag on full-year adjusted EBITDA margin from pre-opening costs tied to its international gallery expansion, ballooning to a 4.2-point hit in Q1 alone.

For the full year, management maintained 4%-8% revenue growth guidance and projected $300-400mn in adjusted free cash flow. That back-half optimism depends on tariff disruptions clearing and new galleries ramping — neither of which is guaranteed.

The Risk

If housing turnover stabilizes and RH's new gallery openings drive outsized traffic, the sell-off could prove a buying opportunity. Watch Q1 demand trends alongside May's Case-Shiller data for signs the luxury housing customer is re-engaging. A Q1 revenue print above the guided range would challenge the bear case quickly.

For a full financial breakdown and valuation model on RH, generate your Basis Report here.

Basis Report does not hold positions in securities discussed. This is not investment advice.