RH reported second quarter 2026 net revenues of $922.2 million, surpassing the high end of its guidance and accelerating 4.2 percentage points over the first quarter. While the luxury housing market remains challenging, management noted building momentum from recent growth strategies, specifically the launch of the RH Estates collection and the opening of the RH London flagship gallery.
Key Highlights
- Revenue Growth: Net revenues increased 2.6% year-over-year to $922.2 million, exceeding analyst estimates of $915.41 million.
- Profitability and One-time Gains: GAAP diluted EPS reached $3.06, significantly boosted by the recognition of $55.1 million in tariff refunds and $18.0 million in equity method investment income.
- Operational Performance: Normalized adjusted EBITDA margin was 13.4%, excluding the tariff benefit, which also exceeded the high end of internal guidance.
- Expansion Momentum: The RH London gallery design pipeline reached approximately $7 million in its first eight weeks, while the RH Estates collection is expected to drive 16.1% to 21.2% revenue growth in the fourth quarter as assortment expands.