Overview
- Shares dropped roughly 20% to 23% Wednesday after RH posted weaker results and a cautious guide, with several outlets tracking the slide in premarket and early trading.
- Fourth-quarter EPS came in at $1.53 on revenue of $842.6 million, missing analyst estimates that were near $2.22 for EPS and about $873.5 million for sales.
- Management said tariffs cut margins by about 190 basis points and reduced sales by roughly $30 million, with late-quarter weather subtracting another $10 million.
- The company guided first-quarter 2026 revenue down 2% to 4% and full-year growth of 4% to 8%, noting an adjusted EBITDA margin of 14% to 16% that reflects international startup costs.
- RH is pushing ahead with new flagships in Europe and the launch of RH Estates in May, including a Milan opening during Design Week that adds preopening costs before those locations can drive sales.