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RH
$2.5B
Market Cap
32.4
P/E
0.92
PEG
7.3%
ROCE
N/M
ROE
62.92
D/E
11.3%
OPM
-42.6%
% from 52W High
18
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for RH including FX impact
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📈 Price History
Ratio Health
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About

RH, together with its subsidiaries, operates as a retailer and lifestyle brand in the home furnishings market in the United States, Canada, the United Kingdom, Germany, Belgium, and Spain. The company operates in three segments: RH Segment, Waterworks, and Real Estate. It offers merchandise in various categories, including furniture, lighting, textiles, bath ware, décor, and outdoor and garden furnishings, as well as baby, child, and teen furnishings. The company also operates galleries, interior design studios, outlets, guesthouses, and showrooms. It sells its products through hospitality, websites, sourcebooks, and trade and contract channels, as well as retail locations and outlets. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was founded in 1980 and is headquartered in Corte Madera, California.

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📈 Growth Pattern
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⭐ Superinvestors Holding RH
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 641.6K $89.7M 0.11% Mar 2026
Jim Simons Renaissance Technologies LLC 99.8K $14.0M 0.02% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →
📊 MIXED Luxury home brand RH targets $5.4-$5.8B revenue by 2030 with 25-28% margins.
Revenue & Profitability
In 2025, RH achieved revenue growth of 8% and two-year growth of 15%. Adjusted EBITDA was $597 million (17.3% of revenues) versus $539 million (16.9%) in 2024. Free cash flow improved to $252 million from negative $214 million in 2024, an increase of $466 million year-over-year. For 2026, management expects revenue growth of 4%-8%, adjusted EBITDA margin of 14%-16%, and cash flow of $300-$400 million (including $200-$250 million of asset sales per year). The 2030 targets include revenue of $5.4-$5.8 billion, adjusted EBITDA margins of 25%-28%, cumulative cash flow of $3 billion (inclusive of asset sales), and being debt-free by 2029.
Outlook
Management views the current environment as 'the most dire housing market in decades' combined with tariff clutter and global discord. However, they see two structural tailwinds: 1) exponential spending by high and ultra-high net worth consumers (ultra-high net worth consumers spend 6.4x more on home furnishings than a single-primary-residence consumer) and 2) an estimated $30-$38 trillion wealth transfer over the next 10 years (more than double the prior decade). Management believes the housing market is at a trough and expects eventual recovery, though they have not embedded a significant housing rebound in their near-term plans.
Growth Drivers
Key growth levers include: 1) the launch of RH Estates (spring 2026), a new brand extension targeting the traditional/classic market, which represents 60% of luxury homes and is currently under-penetrated by RH; 2) international expansion with flagship galleries in Paris, Milan (70,000 sq ft palace opening during Salone), and London, followed by expansion into suburbs and second-home markets; 3) new capital-efficient gallery concepts—Design Compounds, ecosystems, and secondary-market galleries (15,000-20,000 sq ft); 4) hospitality expansion to 40 restaurants by end 2027; 5) product expansion across RH Estates, RH Interiors, and RH Modern. Management sees a $2 billion opportunity in North America alone from 27 existing markets and 48 new markets.
Balance Sheet & CapEx
2025 was the peak investment year with adjusted CapEx of $289 million to support global expansion, plus $37 million to acquire the Michael Taylor, Formations, and Dennis & Leen brands for the RH Estates launch. Management expects CapEx to decline from this peak to $250-$260 million, then to $150-$170 million annually. They also plan $200-$250 million of asset sales each year in 2026 and 2027 from a $0.5 billion real estate portfolio. New gallery concepts (Design Compounds, ecosystems, secondary markets) are designed to be significantly faster and more capital-efficient than prior design galleries.
Margins
In 2025, adjusted EBITDA margin was 17.3%. For 2026, management guided adjusted EBITDA margin in the 14%-16% range, reflecting the peak investment cycle (global expansion, RH Estates launch costs, European drag) and tariff impacts. Longer term, management targets adjusted EBITDA margins of 25%-28% by 2030, driven by the moderation of investment spending, operating leverage from the growing platform, and margin accretion from new concepts and manufacturing initiatives. Tariffs had a 190 basis point drag in Q4 2025, fully baked into the prior regime; first half 2026 may see some relief from Section 122 tariffs but uncertainty remains.
Key Risks
Key risks flagged include: 1) tariffs—the company faces uncertainty from tariff regime changes, having resourced 40% of its core assortment, with particular disruption in furniture, lighting, and rugs; 2) the housing market—currently in its worst downturn in 40-50 years, with no quick recovery expected; 3) the peak investment cycle coinciding with a trough economic cycle, creating timing dislocations in earnings; 4) geopolitical uncertainty (war, global discord); 5) interest rate volatility—potential hikes could further pressure housing; 6) execution risk in ramping international operations and new concepts.
Generated by AI · Q4 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q1 2027 Q1 2027 2026-06-11
Q1 revenue and margins exceeded expectations, prompting a raised FY26 outlook. Growth will be driven by backlog reduction, new galleries, and the launch of RH Estates, with significant investments in international expansion and a new trade program to boost market reach.
Q4 2026 Q4 2026 2026-03-31
Revenue grew 8% in 2025 with strong EBITDA and a major swing to positive free cash flow, despite peak investments and macro headwinds. New brand launches, global expansion, and asset monetization are set to drive accelerated growth and margin expansion through 2030.
Q3 2026 Q3 2026 2025-12-11
Q3 saw 9% revenue growth and strong free cash flow despite tariff and housing market headwinds. Guidance for FY25 remains robust, with continued market share gains, new product launches, and global expansion, while navigating significant risks from tariffs and macro uncertainty.
Q2 2026 Q2 2026 2025-09-11
Q2 saw 8.4% revenue growth, 79% net income increase, and strong free cash flow, with RH Paris opening to record traffic. Fiscal 2025 guidance was revised for tariff impacts, but global expansion and margin improvement remain on track.
Q1 2026 Q1 2026 2025-06-12
Revenue grew 12% year-over-year in Q1, with adjusted margins at the high end of expectations and strong free cash flow. Guidance for fiscal 2025 remains robust despite tariff disruptions, with strategic investments and international expansion driving future growth.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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