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Get filing alertsRH reports Q1 revenue down 1.7% to $800M, raises full-year outlook on new Estates line
Filed June 11, 2026 · Period ending June 11, 2026 · ~1 min read
Key Changes
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Q1 revenues fell 1.7% to $800.3M with a GAAP net loss of $13.7M, driven by ~$75M in elevated backorders from tariff-related resourcing that the company expects to normalize by year-end.
Exhibit 99.2 view on EDGAR → -
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RH raised full-year guidance to 4.5%–8.0% revenue growth and 14.2%–16.0% adjusted EBITDA margin, expecting acceleration in H2 from backlog reduction and the new RH Estates concept.
Exhibit 99.2 view on EDGAR → -
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Launched RH Estates, bringing trade-only luxury furniture brands to the public market with custom sizing options; management expects it to contribute 5 percentage points to second-half revenue growth.
Exhibit 99.2 view on EDGAR → -
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Recorded a $31.7M favorable legal settlement related to credit card interchange fees, a non-recurring item excluded from adjusted earnings.
Exhibit 99.2 view on EDGAR → -
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Q2 outlook calls for 0.5%–2.5% revenue growth and 11.5%–13.0% adjusted EBITDA margin, with a 380 basis point headwind from international expansion costs.
Exhibit 99.2 view on EDGAR →
Summary
RH reported a challenging first quarter with revenues down 1.7% to $800.3 million and a GAAP net loss of $13.7 million, but management raised full-year guidance on confidence in a second-half rebound. The revenue decline stemmed from approximately $75 million in elevated backorders tied to tariff-driven supply chain resourcing, which the company expects to clear by year-end.
A $31.7 million legal settlement related to credit card interchange fees provided a one-time boost to results. The raised outlook—now 4.5% to 8.0% revenue growth and 14.2% to 16.0% adjusted EBITDA margin for fiscal 2026—hinges on the launch of RH Estates, a new line that brings previously trade-only luxury furniture to the public market with custom sizing.
Management projects Estates will add 5 percentage points to second-half revenue growth. International expansion continues to weigh on margins (270 basis points for the full year, 380 basis points in Q2), but the company generated $13.3 million in free cash flow despite the loss. Retail holders should watch whether backlog normalization and Estates adoption materialize as planned in the second half, as the guidance assumes a sharp inflection from the weak Q1 start.
Section-by-Section Diff
Event · Exhibit 99.1
RH released Q1 fiscal 2026 financial results via shareholder letter and scheduled earnings conference call for June 11, 2026.
Added in current filing · view on EDGAR →
RH (NYSE: RH) has released its financial results for the first quarter ended May 2, 2026, in a shareholder letter from Chairman and Chief Executive Officer Gary Friedman, available on the Investor Relations section of its website at ir.rh.com.
RH disclosed first quarter fiscal 2026 financial results for the period ended May 2, 2026. The results were published in a shareholder letter from CEO Gary Friedman and made available on the company's investor relations website. The 8-K filing itself does not contain the actual financial figures or performance metrics.
Added in current filing · view on EDGAR →
RH leadership will host a live conference call and audio webcast at 2:00 pm Pacific Time (5:00 pm Eastern Time) today. The live conference call may be accessed by dialing 800.715.9871 or 646.307.1963 for international callers (conference ID: 7345752). The call and replay can also be accessed via audio webcast at ir.rh.com.
RH scheduled a conference call and webcast for June 11, 2026 at 2:00 pm Pacific Time to discuss the quarterly results. Management will provide commentary and take questions from analysts and investors. Dial-in and webcast access details were provided for participation.
Event · Exhibit 99.2
Added in current filing · view on EDGAR →
GAAP Net Revenues Decreased 1.7% to $800.3M
GAAP Net Loss of $13.7M
EBITDA of $71.8M and EBITDA Margin of 9.0%
Adjusted EBITDA of $56.9M and Adjusted EBITDA Margin of 7.1%
Free Cash Flow of $13.3M
RH reported first quarter 2026 net revenues of $800.3 million, down 1.7% year-over-year, with a GAAP net loss of $13.7 million. Adjusted EBITDA margin was 7.1%, and the company generated $13.3 million in free cash flow. The revenue decline was primarily driven by approximately $75 million in elevated backorder and special order balances due to tariff-related resourcing, which the company expects to normalize by year-end.
Added in current filing · view on EDGAR →
FISCAL YEAR 2026 OUTLOOK | Revenue Growth of 4.5% to 8.0% | Adjusted EBITDA Margin of 14.2% to 16.0%
Adjusted Free Cash Flow of $300M to $400M
The above outlook includes an approximate negative 270 basis point Adjusted EBITDA margin impact from pre-opening and startup costs to support our international expansion.
RH raised its full-year fiscal 2026 guidance, now expecting revenue growth of 4.5% to 8.0%, adjusted EBITDA margin of 14.2% to 16.0%, and adjusted free cash flow of $300 million to $400 million. The outlook includes a 270 basis point headwind to adjusted EBITDA margin from international expansion costs. The company expects business to accelerate in the second half, driven by backlog reduction, new store growth, and the new RH Estates concept.
Added in current filing · view on EDGAR →
With the launch of RH Estates, we are removing the barriers that have segregated taste from scale. We are amplifying the work of the world's most elite designers, artisans and manufactures on our global platform. This is not a compromise of quality; it is a liberation of mastery. By uniting these legendary ateliers and elevating their work in architecturally significant spaces, we are providing access to some of the most beautifully designed, highest quality classic, contemporary and modern furniture in the world.
RH announced the launch of RH Estates, a new product line that brings trade-only luxury furniture brands to the public market. The initiative includes RH Bespoke Furniture (custom-sized case goods) and RH Couture Upholstery (custom-sized upholstery with customer-supplied fabrics). The company is also introducing an exclusive program for interior designers, architects, and trade members to ensure professionals are compensated for their work. Management expects RH Estates to contribute 5 percentage points to second-half revenue growth.
Event · Item 2.02 — Results of Operations and Financial Condition
RH released Q1 FY2026 financial results via shareholder letter on June 11, 2026.
Added in current filing · verify on EDGAR →
RH is also disclosing that it may use the rh.com, restorationhardware.com, and ir.rh.com websites as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
RH formally notified investors that it may use its corporate websites (rh.com, restorationhardware.com, and ir.rh.com) to disclose material non-public information and satisfy Regulation FD requirements. This establishes these websites as official channels for material company disclosures.
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