RHRH shows mixed signals. Strong profitability and market position are offset by recent revenue declines and high valuation. Technicals suggest potential short-term weakness. A hold recommendation with careful monitoring of earnings and industry trends.
RH operates in the home furnishings sector, which is sensitive to economic cycles and consumer discretionary spending. Emerging trends like sustainable design and smart home integration present opportunities, but market saturation and competition are notable risks.
RH demonstrates strong historical profitability and a solid balance sheet, but recent performance shows revenue contraction and declining margins. The valuation remains a key concern. Future growth relies on product innovation and market recovery.
The stock is experiencing a significant downtrend, trading well below its 50-day and 200-day moving averages. Momentum indicators are mixed, with some suggesting oversold conditions, but the overall trend remains bearish.
| Factor | Score |
|---|---|
| Home Furnishings Market Trends | 70 |
| Luxury & Premium Branding | 80 |
| E-commerce and Omnichannel Strategy | 65 |
| International Expansion | 50 |
| Supply Chain and Logistics | 40 |
| Factor | Score |
|---|---|
| Valuation | 35 |
| Profitability | 40 |
| Growth | 20 |
| Balance Sheet Health | 10 |
| Cash Flow | 15 |
| Factor | Score |
|---|---|
| Trend Analysis | 20 |
| Momentum | 50 |
| Volume Confirmation | 60 |
| Support & Resistance | 70 |
| Short-term Oscillators | 40 |
Positive EPS Surprises
The company has demonstrated a history of beating EPS estimates, with 7 out of the last 12 reported quarters showing positive surprises, indicating operational efficiency and reliable forecasting.
Improving Cash Flow
Free cash flow has turned positive in the latest reported quarter, a significant improvement from negative levels in previous periods, signaling enhanced operational cash generation.
Inconsistent EPS Performance
Several recent quarters have shown negative EPS surprises, with one quarter reporting a significant negative surprise of -225.2%, indicating potential challenges in meeting earnings expectations.
High P/E Ratio and Recent Volatility
The TTM P/E ratio of 47.4 is high, and recent quarterly P/E ratios have shown extreme volatility, including a negative P/E in Q2 2024, suggesting a premium valuation that may be susceptible to sharp corrections.
September 2025
12
Next Earnings Date
H: $3.57
A: $3.22
L: $2.97
H: 914.00M
A: 904.61M
L: 896.00M
RH, together with its subsidiaries, operates as a retailer and lifestyle brand in the home furnishings market in the United States, Canada, the United Kingdom, Germany, Belgium, and Spain. It operates through three segments: RH Segment, Waterworks, and Real Estate. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It sells its products through hospitality, websites, sourcebooks, and trade and contract channels, as well as operates RH galleries, RH outlet stores, RH guesthouses, RH Interior design office, and waterworks showrooms. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was founded in 1980 and is headquartered in Corte Madera, California.
257.24 USD
The 39 analysts offering 1 year price forecasts for RH have a max estimate of 436.00 and a min estimate of 179.00.