RH Earnings Call Transcripts
Fiscal Year 2026
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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.
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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.
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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.
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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.
Fiscal Year 2025
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Q4 saw 18% revenue growth and 57% higher adjusted operating income, outperforming peers despite a weak housing market. Fiscal 2025 guidance calls for 10%-13% revenue growth and continued margin strength, with strategic investments and inventory positioning expected to offset tariff and macro risks.
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Q3 saw double-digit demand growth and significant margin expansion, with the core brand driving market share gains despite a weak housing market. Guidance was raised for Q4 and the full year, and major investments are largely complete, setting the stage for strong free cash flow and continued growth through product and platform innovation.
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Q2 demand rose 7% and revenue grew 3.6% year-over-year, with accelerating momentum into Q3. Strategic investments in product and platform are driving market share gains, though revenue lags demand due to assortment transformation and backlog.
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Q1 2024 saw positive demand trends and $727M in revenue, with adjusted operating margin at 6.5%. Despite macro headwinds and a challenging housing market, major product launches and platform expansion are expected to drive 12%-14% demand growth for FY24. Margin pressure persists due to backlogs and international investments.