Luxury furniture retailer RH (NYSE: RH) will be announcing earnings results this Thursday after market hours. Here’s what you need to know.
RH beat analysts’ revenue expectations last quarter, reporting revenues of $800.3 million, down 1.7% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter missing analysts’ expectations.
Is RH a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting RH’s revenue to grow 1.9% year on year, slowing from the 8.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. RH has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at RH’s peers in the home furnishing and improvement retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Arhaus delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 4.9%, and Williams-Sonoma reported revenues up 6.7%, topping estimates by 1.6%. Arhaus traded up 16.6% following the results while Williams-Sonoma was also up 1.6%.
Read our full analysis of Arhaus’s results here and Williams-Sonoma’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the home furnishing and improvement retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.6% on average over the last month. RH is down 22.4% during the same time and is heading into earnings with an average analyst price target of $178.06 (compared to the current share price of $142.39).
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