RH is a leading retailer and luxury lifestyle brand primarily operating in the home furnishings market. The company offers curated and fully integrated assortments across multiple categories, including furniture, lighting, textiles, bathware, décor, and outdoor and garden products. RH integrates hospitality experiences into its operations, enhancing its brand presence and customer engagement.
- Furniture - Offers a wide range of indoor and outdoor furniture collections, including RH Interiors, RH Contemporary, RH Modern, RH Outdoor, RH Baby & Child, and RH TEEN, focusing on unmatched design and quality.
- Non-Furniture - Provides lighting, textiles, fittings, fixtures, surfaces, accessories, home décor, and hospitality operations, enhancing the overall lifestyle experience.
- Waterworks - Specializes in luxury bath, kitchen, and lighting products, contributing to the company's diverse product offerings.
You might also like
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Gary Friedman ExecutiveBoard | Chairman and Chief Executive Officer | None | Gary Friedman joined RH in April 2001 and transformed it into a leading luxury brand with revenues exceeding $3 billion. He has held various leadership roles within RH. | |
Edward Lee Executive | Chief Legal & Compliance Officer | None | Edward Lee joined RH in October 2012 and became Chief Legal & Compliance Officer in March 2019. He previously worked at MGM Resorts International. | |
Eri Chaya Executive | President, Chief Creative and Merchandising Officer | None | Eri Chaya joined RH in July 2006 and has held various creative leadership roles, currently overseeing product curation and brand creative. | |
Jack Preston Executive | Chief Financial Officer | None | Jack Preston has been the CFO since March 2019, overseeing financial functions and other teams at RH. He previously worked at Bank of America Merrill Lynch. | |
Stefan Duban Executive | Chief Gallery & Customer Officer | None | Stefan Duban has been with RH for 24 years, starting as a sales associate and rising to Chief Gallery & Customer Officer. | |
Ali Rowghani Board | Director | Managing Director at YCombinator Continuity Fund | Ali Rowghani has been a director since January 2015, with experience in scaling companies like Twitter and Pixar. | |
Hilary Krane Board | Director | Chief Legal Officer at Creative Artists Agency, Director at Federal Reserve Bank of San Francisco, Portland Branch | Hilary Krane has been a director since June 2016, with extensive experience in legal and business roles at Nike and Levi Strauss. | |
Katie Mitic Board | Director | CEO and Co-Founder of SomethingElse, Inc., Board Member at TCV Acquisition Corp. | Katie Mitic has been a director since October 2013, with a background in leadership and entrepreneurship in technology companies. | |
Leonard Schlesinger Board | Director, Chairman of the Compensation Committee | Director at DataPoint Capital Acquisition Corporation, Director at View Point Holdings | Leonard Schlesinger has been a director since April 2014, with leadership experience at L Brands and Babson College. | |
Mark Demilio Board | Lead Independent Director | SCP Health (Board Member), Spinnaker Medical (Consultant) | Mark Demilio has been on RH's Board since September 2009, bringing expertise in accounting, finance, and strategic planning. |
- Given that your significant investments have depressed margins and you're now saying most of these investments are behind you, can you provide more clarity on the timeline for margin recovery and what level of operating margins we should expect in the next few years?
- With the new product transformations driving substantial demand growth despite a depressed housing market, how confident are you that this momentum is sustainable, and what strategies do you have to maintain growth when the housing market recovers and competitors may respond?
- You've mentioned a significant brand extension worth over $1 billion that addresses the biggest part of the market; can you elaborate on this initiative, including which categories it will cover and how it fits within your current brand positioning?
- Clearance activity has been elevated due to your product transformation, impacting margins; how do you plan to manage markdowns going forward, and when do you expect clearance levels and margins to normalize?
- You've decided not to renew leases in Germany, resulting in non-cash charges; can you explain the strategic rationale behind exiting these locations now, and how does this decision impact your broader international expansion strategy in Europe?
Research analysts who have asked questions during RH earnings calls.
Jonathan Matuszewski
Jefferies Financial Group Inc.
4 questions for RH
Michael Lasser
UBS
4 questions for RH
Steven Forbes
Guggenheim Securities, LLC
4 questions for RH
W. Andrew Carter
Stifel
4 questions for RH
Brian Nagel
Oppenheimer & Co. Inc.
3 questions for RH
Seth Basham
Wedbush Securities
3 questions for RH
Simeon Gutman
Morgan Stanley
3 questions for RH
Bradley Thomas
KeyBanc Capital Markets Inc.
2 questions for RH
Cristina Fernandez
Telsey Advisory Group
2 questions for RH
Curtis Nagle
Bank of America
2 questions for RH
Maksim Rakhlenko
Cowen and Company
2 questions for RH
Steven Zaccone
Citigroup
2 questions for RH
Ariana Warden
Citi
1 question for RH
Christopher Horvers
JPMorgan Chase & Co.
1 question for RH
Marius Morar
Zelman & Associates
1 question for RH
Max Rakhlenko
TD Cowen
1 question for RH
Zachary Fadem
Wells Fargo
1 question for RH
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Dmitriy & Co | 2022 | Acquisition Purpose: Dmitriy & Co, a To-the-Trade custom upholstery atelier, was acquired to launch RH Couture Upholstery, aligning with RH’s strategy to enhance its luxury offerings; founders Donna and David Feldman were hired to lead the initiative. |
Jeup, Inc. | 2022 | Deal Details: Jeup, Inc., a To-the-Trade custom bespoke furniture workroom, was acquired on December 8, 2022 to support RH’s transformation in the luxury home furnishings market, with founder Joseph Jeup brought on board to establish RH Bespoke Furniture. |
Recent press releases and 8-K filings for RH.
- Luxury furniture retailer RH reported Q2 2025 revenue of approximately $899 million, an 8.4% year-over-year increase, which was slightly below analyst expectations, and non-GAAP profit of $2.93 per share, 8.9% below consensus estimates.
- The company revised its full-year revenue growth outlook downward to 9% to 11% from an earlier forecast of 10% to 13%, with current guidance for the next quarter also falling short of estimates.
- Despite the revenue miss and lowered guidance, RH's operating margin improved to 14.3% in Q2 2025, and free cash flow turned positive at $80.68 million, a significant improvement from the prior year.
- Financial metrics reveal some concerns, including a low Altman Z-Score of 1.41 and a quick ratio of 0.29, suggesting potential bankruptcy risk and liquidity pressures, despite a strong gross margin of 44.5%.
- RH reported strong Q2 2026 financial performance, with revenue increasing 8.4% and demand up 13.7%, contributing to a 79% increase in net income and $81 million in free cash flow.
- The company revised its fiscal year 2025 outlook, now expecting revenue growth of 9%-11% and adjusted operating margin of 13%-14%, with free cash flow projected between $250 million-$300 million. This guidance incorporates a $30 million cost from incremental tariffs and a $40 million revenue shift from Q3 to Q4 2025 and Q1 2026 due to delayed source book distribution.
- RH is expanding its global presence, highlighted by the successful September 5th opening of RH Paris, which has seen traffic surpass RH New York, and plans for additional galleries in London and Milan in spring 2026, with the European expansion potentially doubling RH's size in 5-7 years.
- To address tariff challenges, RH is significantly shifting its supply chain, aiming to reduce receipts from China to 2% by Q4 from 16% in Q1, and increasing US production of upholstered furniture to 52% by the end of fiscal 2025.
- RH reported strong financial performance for Q2 2026, with revenue increasing 8.4% and demand up 13.7%. The company also saw significant margin expansion, with adjusted operating margin reaching 15.1% and adjusted EBITDA at 20.6%.
- The company revised its fiscal year 2025 outlook, now projecting revenue growth of 9% to 11%, adjusted operating margin of 13% to 14%, adjusted EBITDA margin of 19% to 20%, and free cash flow between $250 million and $300 million. This outlook incorporates an approximate 200 basis point operating margin impact from international expansion investments and a 90 basis point impact from tariffs.
- Tariff uncertainty has led to a $30 million cost of incremental tariffs net of mitigation in the second half of 2025 and the delay of a new brand extension launch to spring 2026. RH is actively shifting sourcing out of China and India, and projects 52% of its upholstered furniture will be produced in the United States by the end of fiscal year 2025.
- International expansion continues with the September 5th opening of RH Paris, which has shown a strong start, and plans to open galleries in London and Milan in spring 2026. RH anticipates its European and Middle Eastern operations could double the size of the company over the next five to seven years.
- RH expects adjusted capital expenditures to decrease to a range of $200 million to $250 million in 2026 and $150 million to $200 million in 2027 and beyond. The company also plans to monetize approximately $500 million in real estate assets and convert $300 million in excess inventory into cash over the next 12 to 18 months.
- RH reported strong Q2 2026 results, with revenue increasing 8.4% and demand up 13.7%. Adjusted operating margin reached 15.1% and net income increased 79%. The company provided revised fiscal year 2025 guidance, expecting revenue growth of 9% to 11% and adjusted operating margin of 13% to 14%, with free cash flow between $250 million and $300 million.
- The company is actively managing tariff impacts, anticipating a $30 million cost of incremental tariffs net of mitigation in the second half of fiscal 2025. Sourcing from China is expected to decrease from 16% in Q1 to 2% in Q4, and RH is addressing 50% tariffs imposed on India, which affects 7% of its business.
- International expansion is progressing, highlighted by the successful September 5th opening of RH Paris, which has seen traffic exceed RH New York and a strong design pipeline. RH England's demand increased 76% in Q2, and the company plans to open four additional design galleries in North America in 2025, with London and Milan openings slated for spring 2026.
- The launch of a new brand extension, originally planned for the second half of 2025, has been delayed to spring 2026 due to tariff uncertainty, and the fall interior source book was also delayed by eight weeks.
- RH reported strong Q2 2026 results, with revenue increasing 8.4% and demand up 13.7%, alongside a 79% increase in net income and $81 million in free cash flow.
- The company revised its fiscal year 2025 outlook, projecting revenue growth of 9% to 11%, adjusted operating margin of 13% to 14%, and free cash flow between $250 million and $300 million.
- International expansion is progressing with the successful opening of RH Paris on September 5th, which has seen traffic exceed RH New York and a design pipeline greater than the first five European galleries combined in their initial six days. RH expects European expansion to double its size over the next five to seven years.
- Tariffs continue to impact the business, with an estimated $30 million cost of incremental tariffs net of mitigation in the second half of 2025, leading to a delay in the new brand extension launch to spring 2026 and a shift of $40 million in Q3 revenues to Q4 and Q1 2026. The company is shifting sourcing out of China and increasing US upholstered furniture production to 52% by the end of fiscal 2025.
- RH reported strong financial results for Q2 2025, with net income increasing 79% to $51.7 million on net revenues of $899.2 million, an 8.4% increase, and generated $80.7 million in free cash flow.
- Demand for Q2 2025 increased 13.7%, and on a two-year basis, revenues increased 12% and demand increased 21%.
- The company revised its fiscal year 2025 outlook, now expecting revenue growth of 9% to 11%, adjusted operating margin of 13.0% to 14.0%, adjusted EBITDA margin of 19.0% to 20.0%, and free cash flow of $250 million to $300 million. This revision is partly due to a $30 million cost of incremental tariffs and delays in product launches and sourcebook distribution.
- RH continues its global expansion, having opened RH Paris on September 5, 2025, and plans to open four additional Design Galleries in North America for the remainder of 2025.
- RH's wholly-owned subsidiary, Restoration Hardware, Inc., entered into a Second Amendment to its Twelfth Amended and Restated Credit Agreement on July 31, 2025, which extends the maturity date by four years.
- The amended Credit Agreement provides a revolving line of credit of up to $600 million, with sub-limits of $10 million for Restoration Hardware Canada, Inc. and $100 million for RH Geneva Sàrl.
- An accordion feature allows for an additional $300 million, potentially increasing the total revolving line of credit to up to $900 million, and First-Citizens Bank & Trust Company has joined as a new lender.
- A Consolidated Fixed Charge Coverage Ratio (FCCR) Covenant, set at 1.0, applies if unused credit availability falls below the greater of $40 million or 10% of total borrowing availability.
- Q1 fiscal 2025: revenue +12%, adjusted EBITDA margin 13.1%, and positive free cash flow $34 M
- Maintained FY2025 guidance: 10–13% revenue growth, 20–21% adjusted EBITDA margin, $250–$350 M free cash flow; Q2 guidance: 8–10% revenue growth, 20.5–21.5% EBITDA margin
- International demand acceleration: RH England Gallery demand +47%, online demand +44%; Europe comparable Galleries demand +60%; RH Paris opening early September on Champs-Élysées
- Supply‐chain rebalancing to mitigate tariffs: China sourcing down from 16% in Q1 to 2% in Q4; aiming for 52% U.S. and 21% Italy upholstery production by end of FY25
- Strategic capital actions: $2.2 B of share repurchases financed by debt, with $500 M real estate equity and $200–$300 M excess inventory to monetize
- RH has appointed Lisa Chi as President, Co-Chief Merchandising & Creative Officer, effective May 20, 2025.
- Lisa Chi rejoining RH brings extensive merchandising experience, having previously served in senior roles at RH and leading merchandising operations at Arhaus.
- Her compensation package includes a $1,000,000 base salary with guaranteed annual increases, RSU grants of 20,000 shares, and options for 50,000 shares along with participation in a leadership incentive program.
- RH provided clarifications on the reciprocal tariffs announced on April 2, 2025, noting that its sourcing shift to Vietnam and its own North Carolina factory has mitigated the impact of the long-standing 25% tariffs from China.
- The company reported an 18% net revenue increase in the fourth quarter (on a 13‐week comparable basis) and a 19% increase in RH Brand demand in January, reflecting strong market performance despite challenging conditions.
- RH introduced a free cash flow outlook for fiscal 2025 in the range of $250M to $350M, highlighting its positive financial guidance amid market volatility.