RH (NYSE:RH) Reaches New 12-Month Low After Earnings Miss

Key Points

• Q4 earnings miss: RH reported EPS of $1.53 vs. $2.21 expected and revenue of $842.6M vs. $873.5M expected, sending the stock to a new 52-week low around $108 and driving a roughly 19.7% drop.
• Near-term headwinds and guidance: Management guided Q1 revenue down 2%–4% and cited tariff pressure of about 190 basis points compressing margins, while also outlining a longer-term target of 4%–8% revenue growth in 2026 and $5.4B–$5.8B by 2030.
• Analyst and insider activity: Analysts have lowered targets (e.g., TD Cowen cut its target to $200; consensus target ~$207) and ratings are mixed, while insiders sold ~18,254 shares (~$2.79M) last quarter amid heavy institutional ownership (~90%).

RH (NYSE:RH - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $108.00 and last traded at $111.51, with a volume of 387845 shares changing hands. The stock had previously closed at $139.82.

The company reported $1.53 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.21 by ($0.68). The firm had revenue of $842.62 million during the quarter, compared to the consensus estimate of $873.48 million. RH had a negative return on equity of 161.72% and a net margin of 3.22%.The company's revenue for the quarter was up 3.7% on a year-over-year basis. During the same period in the previous year, the company posted $1.58 earnings per share.

Key Headlines Impacting RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: Management outlined 2026 revenue growth of 4%–8% and a longer-term target of $5.4B–$5.8B by 2030, signaling a clear growth target that could support valuation if execution improves. RH outlines 2026 revenue growth
• Positive Sentiment: RH announced leadership appointments to expand its global strategy and manufacturing focus — a potential positive for long-term execution and margin improvement if these hires accelerate supply-chain or product initiatives. RH builds out global strategy
• Neutral Sentiment: TD Cowen reduced its price target (from $265 to $200) but kept a Buy rating, showing some analyst conviction remains despite weaker near-term results. TD Cowen price target update
• Neutral Sentiment: The company posted its Q4 earnings release and made the earnings-call transcript / presentation available for investors to review management commentary and detail on headwinds. RH Q4 results press release
• Negative Sentiment: Core driver of the decline: RH missed Q4 consensus (reported EPS $1.53 vs. ~ $2.21 expected) and revenue also missed estimates — a clear near-term earnings disappointment. Earnings miss and weak guidance
• Negative Sentiment: Management guided Q1 revenue to decline 2%–4% and cited tariff headwinds that compressed gross margins (management quantified tariff pressure at roughly 190 basis points), intensifying concerns about near-term margin recovery. Tariff and guidance details
• Negative Sentiment: Market reaction: multiple outlets report the stock "tumbled" or "cratered" after results — indicating selling pressure as investors reprice near-term growth and margin risk. Market reaction coverage

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of RH in a research report on Monday, March 23rd. TD Cowen reduced their price target on shares of RH from $265.00 to $200.00 and set a "buy" rating for the company in a research report on Monday. Stifel Nicolaus restated a "hold" rating and set a $165.00 price objective (down from $320.00) on shares of RH in a report on Friday, December 12th. Bank of America lowered their price objective on shares of RH from $200.00 to $170.00 and set an "underperform" rating on the stock in a research report on Friday, December 12th. Finally, Zacks Research raised shares of RH from a "strong sell" rating to a "hold" rating in a research report on Friday, February 13th. Seven research analysts have rated the stock with a Buy rating, ten have given a Hold rating and three 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 $207.07.

Insider Buying and Selling at RH

In related news, Director Mark S. Demilio sold 2,254 shares of RH stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $220.00, for a total value of $495,880.00. Following the completion of the sale, the director owned 19,962 shares of the company's stock, valued at approximately $4,391,640. This trade represents a 10.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Eri Chaya sold 7,000 shares of the company's stock in a transaction dated Tuesday, March 24th. The shares were sold at an average price of $129.42, for a total transaction of $905,940.00. The SEC filing for this sale provides additional information. Insiders have sold a total of 18,254 shares of company stock valued at $2,789,400 in the last quarter. 27.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the business. Clearstead Advisors LLC boosted its holdings in shares of RH by 713.3% in the third quarter. Clearstead Advisors LLC now owns 122 shares of the company's stock worth $25,000 after acquiring an additional 107 shares during the period. Huntington National Bank grew its holdings in RH by 87.8% during the 3rd quarter. Huntington National Bank now owns 139 shares of the company's stock valued at $28,000 after buying an additional 65 shares in the last quarter. Harvest Fund Management Co. Ltd purchased a new position in RH during the 3rd quarter valued at about $30,000. Advisory Services Network LLC bought a new stake in shares of RH during the third quarter valued at about $31,000. Finally, Wilmington Savings Fund Society FSB lifted its holdings in shares of RH by 200.0% in the fourth quarter. Wilmington Savings Fund Society FSB now owns 174 shares of the company's stock worth $31,000 after buying an additional 116 shares in the last quarter. 90.17% of the stock is owned by institutional investors.

RH Stock Down 19.7%

The firm has a market capitalization of $2.11 billion, a PE ratio of 20.36, a PEG ratio of 0.55 and a beta of 2.14. The company has a debt-to-equity ratio of 944.39, a quick ratio of 0.26 and a current ratio of 1.19. The company's 50 day simple moving average is $174.82 and its 200-day simple moving average is $180.43.

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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