RH (NYSE:RH) shares rose 7.9% in premarket trading after the luxury home-furnishings company reported fiscal second-quarter 2026 adjusted earnings and revenue above analyst expectations.
Adjusted earnings per share were $2.70, compared with Wall Street consensus estimates cited in the source of approximately $0.39 to $0.46 per share.
Revenue reached $922.2 million and exceeded analyst estimates. The result was also above RH’s guidance for year-on-year revenue growth of between 0.5% and 2.5%.
Normalised adjusted EBITDA margin was 13.4%, above the upper end of the company’s guidance.
RH also recognised a $55.1 million tariff refund benefit during the quarter.
RH Narrows Full-Year Revenue Outlook
The company narrowed its fiscal 2026 revenue forecast to between $3.63 billion and $3.68 billion.
During the earnings call, CEO Gary Friedman said demand for the recently launched RH Estates collection had come “almost entirely” from new customers.
Management described its fourth-quarter guidance as conservative, citing expected contributions from reducing its backlog, opening new galleries and the performance of RH Estates. These statements represent management’s expectations rather than confirmed future results.
Following the earnings release, Telsey Advisory Group raised its price target for RH to $155 from $140 while maintaining a Market Perform rating. According to the source, the firm applied a higher earnings multiple to its revised 2027 earnings-per-share estimate.
RH Shares Recover Following Recent Decline
The premarket increase followed a decline of approximately 22% in RH shares over the preceding month, according to the source.
Broader US equity markets were also higher, with the S&P 500, Dow Jones and Nasdaq each gaining around 0.6%.
Investors were awaiting the August US Consumer Price Index report, scheduled for release at 8:30 a.m. ET, for further information on inflation ahead of future Federal Reserve policy decisions.
RH stock price
