RH (RH) AI Stock Analysis

RH, formerly Restoration Hardware Holdings, is a luxury home furnishings retailer founded in 2011 and headquartered in Corte Madera, California. The company designs and sells furniture, lighting, textiles, bathware, decor, outdoor furnishings, and child and teen collections. It distributes products through 67 RH Galleries, 38 RH outlet stores, and 14 Waterworks showrooms across the United States, the District of Columbia, Canada, and the United Kingdom. In addition to physical galleries, RH reaches customers through its Source Books catalogs and e-commerce websites including rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com.

RH grew revenue at a 5-year CAGR of 3.8% from FY2021 to FY2026. Annual revenue rose 8.1% to $3.44B in FY2026, rebounding from $3.03B in FY2024 and $3.18B in FY2025, though remaining below the FY2022 peak of $3.76B. Operating margin was 11.3% in FY2026, down from 24.8% in FY2022, while net income recovered to $124.8M compared to $72.4M in FY2025. Over the trailing twelve months, revenue reached $3.45B with an operating margin of 7.2% and a profit margin of 3.2%. For the latest quarter ended July 31, 2026, quarterly revenue increased 2.6% year-over-year and quarterly earnings grew 16.8%.

As of July 31, 2026, RH held $125.5M in cash and short-term investments against $4.11B in total debt, resulting in net debt of $3.98B and a debt-to-equity ratio of 34.14. Shareholders' equity stood at $120.3M out of $5.13B in total assets, with a current ratio of 1.12. In FY2026, operating cash flow recovered to $452.2M, supporting $199.8M in capital expenditures and generating $252.4M in free cash flow, following negative free cash flow of -$213.7M in FY2025. Over the past 5 years, share count was reduced by 37.1%.

RH trades at a trailing P/E of 20.0x and a forward P/E of 22.7x, both above the US-listed Consumer Cyclical peer group medians of 18.0x and 14.1x. Its EV/EBITDA multiple is 12.5x compared to the peer median of 11.1x, while its price-to-sales of 0.6x sits below the peer median of 0.7x. The company's enterprise value of $6.34B reflects its debt load alongside a market cap of $2.14B. RH shares dropped 35.9% over the past 1 year and 82.9% over 5 years, underperforming the S&P 500, which gained 16.8% and 83.0% respectively.

Wall Street sentiment reflects 4 Strong Buy, 3 Buy, 11 Hold, and 2 Sell ratings. The mean price target of $165.82 implies a 46.8% premium over the last close of $112.99 on October 16, 2026. For the current fiscal year ending January 31, 2027, analysts project revenue of $3.64B and EPS of $5.36, representing an EPS decline of 14.8%. For the next fiscal year, 20 analysts expect EPS to rise 59.1% to $8.52 on revenue of $3.97B. RH has beaten EPS estimates in 2 of the last 4 quarters, with its next earnings date scheduled for December 10, 2026.

This page is an AI-written research summary of RH (RH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: RH income statement, RH balance sheet, RH key metrics, RH analyst forecast, RH chart. See the RH stock overview for the latest quote and news.