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RH

RH

RH
$187.88USD↓-0.70%-1.33 today

MARKET CAP

3.6B

P/E (TTM)

44.7x

FWD P/E

29.4x

DAY RANGE

$182 – $192

52W RANGE

$106
$257

AI Summary

Stalk
Buy NowMedium

RH remains in a Stage 2 advancing trend with strong higher highs and higher lows and an active Lockout Rally pattern denoting continuation momentum. Despite extreme overbought conditions, the Lockout Rally override supports immediate participation. Medium-term bias is bullish given the constructive Stage 2 structure and pattern support. We will Buy Now to capture continuation, focusing on shallow pullbacks to rising short-term EMAs for execution.

  • ↑Q3 2025 revenue rose 9% YoY despite housing slump
  • ↑Free cash flow of $252M in FY25 funds growth initiatives
  • ↓$30M in incremental tariffs pressures adjusted operating margin to 11.6–11.9%
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The case for & against

Bull & Bear analysis

Bullish

RH (NYSE: RH), formerly known as Restoration Hardware, is a premium luxury home furnishings retailer deeply embedded in the design and lifestyle segment. The company is renowned for its innovative retail formats and immersive customer experiences, strategically placing itself within a high-end market on the rise. RH is actively pursuing international expansion and brand evolution, particularly through its new offerings like RH Estates, which targets the burgeoning sector of luxury and custom home furnishings.

Bull says

  • ↑Q3 2025 revenue rose 9% YoY despite housing slump
  • ↑Free cash flow of $252M in FY25 funds growth initiatives
  • ↑RH Paris opening drives international traction; Milan and London planned
  • ↑Insider buys of 11K+ shares signal management confidence
  • ↑High earnings yield and positive analyst revisions underscore financial quality
  • ↑Robust liquidity supports expansion, though leverage remains elevated

Bear says

  • ↓$30M in incremental tariffs pressures adjusted operating margin to 11.6–11.9%
  • ↓High leverage increases interest-rate sensitivity amid tightening cycles
  • ↓Worst housing market in 50 years may curb core demand
  • ↓Aggressive international expansion risks execution under economic and geopolitical stress
  • ↓Weak profitability factors may impair revenue-to-profit conversion
  • ↓Elevated volatility and high short interest reflect investor skepticism

Investment themes with RH

Home Furnishings↑ +0.71%

WSM · W · HNI
Most Shorted Stocks↑ +0.54%

Stocks with highest short interest

LITE · FSLY · SPHR

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 07-03-2026neutral

Transcript signals

Bull points

  • RH continued to generate industry-leading growth in the second quarter as revenue increased 8.4% and demand increased 13.7%, despite the polarizing impact of tariff uncertainty and the worst housing market in almost 50 years.
  • On a two-year basis, revenues increased 12% and demand increased 21%, resulting in significant share gains and strategic separation.
  • Net income increased 79%, and we generated 81 million of free cash flow in the quarter.

Bear points

  • Just when you might have thought the tariff conversation was complete, the announcement of a new furniture investigation and the possibility for additional furniture tariffs on top of existing furniture tariffs and incremental steel and aluminum tariffs were introduced with the goal of returning furniture manufacturing back to America.
  • While we continue negotiations with our manufacturing partners, our updated outlook reflects a $30 million cost of incremental tariffs net of mitigation in the second half.
  • due to the uncertainty related to tariffs, we delayed the launch of the new brand extension that was planned for the second half of 2025 to the spring of 2026.
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