Key Stats for RH Stock
- Pre-market price change for RH stock: -18%
- $RH Stock Price as of Mar. 31: $140
- 52-Week High: $257
- $RH Stock Price Target: $200
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What Happened?
RH (RH) stock fell sharply after the luxury home furnishings retailer reported Q4 results that missed on both revenue and earnings — and offered cautious guidance for the year ahead.
- Revenue came in at $842.6 million, below the $873.5 million expected by analysts.
- Earnings per share landed at $1.53, well short of the $2.22 forecast.
- That’s a 31% earnings miss, which is hard to overlook.
Full-year 2026 revenue guidance came in at 4% to 8% growth — conservative given the scale of investments the company is making —, and the estimate was 8.8%.
That soft outlook is what’s really weighing on RH stock.
As a result, the stock lost almost 20% in post-market trading on Tuesday.
But one can hope that Investors are willing to look past the near-term pain and focus on what CEO Gary Friedman is building.
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What the Market Is Telling Us About RH Stock
RH stock has already been hit hard, down 40% over the past year. So some investors may see this as a chance to buy at a lower price.
The full-year results weren’t all bad. In 2025,
- RH grew revenue by 8% and outpaced peers in the furniture industry.
- Adjusted EBITDA rose to $597 million.
- Free cash flow swung from negative $214 million in 2024 to positive $252 million in 2025.
- Those are meaningful improvements.
The bigger story is what’s coming.
- RH is launching RH Estates this spring — a new brand targeting the traditional luxury home market, which represents 60% of luxury home architecture.
- The debut takes place at the opening of RH Milan, a 70,000-square-foot gallery in a former palace.
Friedman is betting that this will become the company’s largest and highest-margin brand extension.
The risks are real, though.
- Tariffs are disrupting supply chains for furniture, lighting, and rugs — the core of the business.
- The housing market remains near a 40-year low.
- And the company is in a peak investment cycle, spending heavily on global expansion before the returns fully show up.
Friedman addressed the uncertainty directly on the earnings call, calling this “the most important period in our history.”
He also noted he personally bought $10 million of RH stock near recent lows — a sign of conviction, even if the timing hasn’t paid off yet.
For patient investors, RH stock could be interesting at these levels. But the turnaround requires both execution and a bit of luck on the macro side.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
