Overview
- RH posted Q3 EPS of $1.71 versus $2.16 expected on revenue of $883.81 million, a slight beat with sales up 9% year over year and 18% on a two‑year basis.
- Operating margin was about 12.0% (11.6% adjusted) as management cited tariff costs and expenses tied to the RH Paris opening.
- Q4 revenue guidance of $869.27 million to $877.4 million trailed the $896.97 million consensus, and full‑year outlook narrowed to 9.0%–9.2% sales growth with 11.6%–11.9% operating margin.
- Liquidity improved with $83 million in free cash flow for the quarter and $198 million year to date, net debt reduced to roughly $2.427 billion, and inventory lowered.
- Shares rose in after‑hours trading and on Friday despite analyst cuts to price targets, as investors weighed expansion plans including an RH Antiques launch targeted for spring 2026 alongside the RH Milan opening in April.