RH (NYSE:RH) Announces Earnings Results

Key Points

• RH beat quarterly expectations, reporting adjusted earnings of $1.97 per share versus consensus of $2.07 in losses expected, while revenue came in at $800.33 million, slightly above forecasts of $792.55 million.
• The stock rose on the news, trading up $11.13 to $159.82 during the session, with volume above its average as investors reacted to the earnings release.
• Analyst sentiment remains mixed, with the stock carrying an average Hold rating and a consensus price target of $174.80, despite several firms maintaining buy or overweight ratings.

RH (NYSE:RH - Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($1.97) earnings per share for the quarter, beating analysts' consensus estimates of ($2.07) by $0.10, FiscalAI reports. RH had a negative return on equity of 567.82% and a net margin of 3.63%.The company had revenue of $800.33 million for the quarter, compared to analysts' expectations of $792.55 million.

RH Stock Performance

Shares of NYSE RH traded up $11.13 during midday trading on Thursday, reaching $159.82. 1,561,591 shares of the company were exchanged, compared to its average volume of 1,143,460. The company has a current ratio of 1.19, a quick ratio of 0.31 and a debt-to-equity ratio of 51.28. RH has a 1 year low of $106.30 and a 1 year high of $257.00. The stock has a fifty day simple moving average of $134.02 and a 200 day simple moving average of $162.81. The stock has a market cap of $3.02 billion, a P/E ratio of 25.33, a PEG ratio of 2.68 and a beta of 1.91.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on RH. Guggenheim restated a "buy" rating and issued a $200.00 price target on shares of RH in a research note on Monday, April 27th. Morgan Stanley restated an "overweight" rating and issued a $240.00 price target on shares of RH in a research note on Monday, May 11th. TD Cowen dropped their price objective on RH from $265.00 to $200.00 and set a "buy" rating on the stock in a report on Monday, March 30th. The Goldman Sachs Group dropped their price objective on RH from $101.00 to $88.00 and set a "sell" rating on the stock in a report on Tuesday, April 7th. Finally, Weiss Ratings lowered RH from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, April 29th. Seven investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and five have given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $174.80.

RH News Roundup

Here are the key news stories impacting RH this week:

• Positive Sentiment: Prediction markets are assigning very high odds that RH will beat Q1 earnings, boosting optimism ahead of the report. Live: Will RH Crush Q1 Earnings After the Market Closes Tonight?
• Positive Sentiment: Investor-focused articles are revisiting RH as a potential buy, which can add to pre-earnings momentum. Is RH (RH) A Good Stock To Buy Now?
• Positive Sentiment: Sector commentary on home-furnishing stocks suggests the industry could outperform even with macroeconomic pressure, indirectly supporting RH sentiment. 3 Home Furnishing Stocks Poised to Thrive Against the Odds

Insider Activity

In related news, insider Eri Chaya sold 11,000 shares of the firm's stock in a transaction dated Tuesday, March 31st. The stock was sold at an average price of $137.92, for a total transaction of $1,517,120.00. The transaction was disclosed in a document filed with the SEC, which is available at this link. Insiders sold a total of 25,000 shares of company stock worth $3,370,440 over the last 90 days. Company insiders own 26.90% of the company's stock.

Institutional Investors Weigh In On RH

A number of institutional investors have recently added to or reduced their stakes in RH. Durable Capital Partners LP boosted its holdings in RH by 125.1% in the 2nd quarter. Durable Capital Partners LP now owns 646,097 shares of the company's stock valued at $122,119,000 after purchasing an additional 359,101 shares in the last quarter. Jacobs Levy Equity Management Inc. boosted its holdings in RH by 1,797.7% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 246,355 shares of the company's stock valued at $44,134,000 after purchasing an additional 233,373 shares in the last quarter. Alliancebernstein L.P. boosted its holdings in RH by 66.1% in the 3rd quarter. Alliancebernstein L.P. now owns 573,666 shares of the company's stock valued at $116,546,000 after purchasing an additional 228,229 shares in the last quarter. Alyeska Investment Group L.P. boosted its holdings in RH by 200.5% in the 3rd quarter. Alyeska Investment Group L.P. now owns 297,694 shares of the company's stock valued at $60,480,000 after purchasing an additional 198,615 shares in the last quarter. Finally, Senvest Management LLC boosted its holdings in RH by 30.1% in the 4th quarter. Senvest Management LLC now owns 842,577 shares of the company's stock valued at $150,948,000 after purchasing an additional 194,773 shares in the last quarter. Hedge funds and other institutional investors own 90.17% of the company's stock.

RH Company Profile

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH's product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.

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