RH (NYSE:RH) Sets New 12-Month Low After Earnings Miss

RH (NYSE:RH)’s share price reached a new 52-week low during mid-day trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $108.00 and last traded at $111.51, with a volume of 387845 shares. The stock had previously closed at $139.82.

The company reported $1.53 earnings per share for the quarter, missing analysts’ consensus estimates of $2.21 by ($0.68). The firm had revenue of $842.62 million during the quarter, compared to the consensus estimate of $873.48 million. RH had a net margin of 3.63% and a negative return on equity of 567.82%. The firm’s revenue was up 3.7% compared to the same quarter last year. During the same period in the prior year, the company posted $1.58 EPS.

Key Headlines Impacting RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: Some large brokers still see meaningful upside after the pullback — Guggenheim and other firms kept bullish/overweight views (albeit with lower targets), which supports short-term buying interest. Guggenheim Lowers Price Target on RH
• Positive Sentiment: Several value/“buy-the-dip” commentaries argue RH’s sell-off creates a long-term entry opportunity given brand strength and long-term revenue goals — this can attract opportunistic investors. Not April Fool’s, RH Is Too Cheap To Ignore
• Positive Sentiment: Broader market strength and risk-off de-escalation headlines have helped short-term sentiment, providing a lift after the prior day’s heavy selling. Nasdaq Gains Over 1% On War De-Escalation Hopes
• Neutral Sentiment: Citigroup lowered its price target to $150 and set a neutral rating — this trims upside expectations but isn’t a sell call, so it can stabilize trading rather than force further liquidation. Citigroup Lowers RH Price Target
• Neutral Sentiment: RH reiterated its longer-term growth targets and emphasized investment in global expansion and new gallery openings; that strategy explains elevated near-term spending and pre-opening costs (uncertain timing of payback). RH Press Release / Earnings Materials
• Negative Sentiment: Q4 double miss: RH reported adjusted EPS $1.53 vs. ~ $2.2 expected and revenue $842.6M vs. ~$873.5M — management cited ~$30M tariff/resourcing impact and ~$10M weather headwind. That miss sparked analyst cuts and the sharp prior-day decline. RH stock tanks as fourth quarter results miss
• Negative Sentiment: FY2026 outlook is cautious: RH guided revenue growth ~4%–8% and adjusted EBITDA margin ~14%–16%, signaling margin compression as the company funds expansion and pre-opening costs — a clear near-term headwind to profitability. RH stock tumbles on disappointing Q4 and guidance
• Negative Sentiment: Insider selling and shareholder legal activity add downside risk — a recent disclosure shows an insider sale (Eri Chaya) and a law firm (Johnson Fistel) has announced an investigation into potential claims. SEC Form 4 — Eri Chaya Johnson Fistel Announces Investigation

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on RH shares. UBS Group reduced their target price on shares of RH from $188.00 to $160.00 and set a “neutral” rating for the company in a report on Tuesday, March 17th. Guggenheim dropped their price target on shares of RH from $275.00 to $200.00 and set a “buy” rating for the company in a research report on Wednesday. Weiss Ratings reissued a “sell (d+)” rating on shares of RH in a research note on Monday, March 23rd. Jefferies Financial Group restated a “hold” rating on shares of RH in a research report on Tuesday, January 27th. Finally, Zelman & Associates reaffirmed an “outperform” rating on shares of RH in a report on Thursday, January 29th. Seven investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $180.81.

Insider Buying and Selling at RH

In other news, Director Mark S. Demilio sold 2,254 shares of the stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $220.00, for a total transaction of $495,880.00. Following the completion of the transaction, the director directly owned 19,962 shares in the company, valued at approximately $4,391,640. This represents a 10.15% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Eri Chaya sold 11,000 shares of the business’s stock in a transaction on Tuesday, March 31st. The stock was sold at an average price of $137.92, for a total transaction of $1,517,120.00. The disclosure for this sale is available in the SEC filing. Insiders have sold 29,254 shares of company stock valued at $4,306,520 over the last ninety days. 27.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On RH

Large investors have recently made changes to their positions in the company. Clearstead Advisors LLC raised its stake in shares of RH by 713.3% during the third quarter. Clearstead Advisors LLC now owns 122 shares of the company’s stock valued at $25,000 after acquiring an additional 107 shares in the last quarter. Huntington National Bank grew its stake in RH by 87.8% in the third quarter. Huntington National Bank now owns 139 shares of the company’s stock worth $28,000 after purchasing an additional 65 shares in the last quarter. Harvest Fund Management Co. Ltd purchased a new position in RH during the 3rd quarter worth $30,000. Wilmington Savings Fund Society FSB raised its position in RH by 200.0% during the 4th quarter. Wilmington Savings Fund Society FSB now owns 174 shares of the company’s stock valued at $31,000 after purchasing an additional 116 shares in the last quarter. Finally, Advisory Services Network LLC bought a new stake in RH during the 3rd quarter valued at $31,000. 90.17% of the stock is owned by hedge funds and other institutional investors.

RH Stock Up 0.6%

The firm has a market capitalization of $2.13 billion, a PE ratio of 17.99, a PEG ratio of 0.47 and a beta of 2.10. The company has a fifty day simple moving average of $170.14 and a two-hundred day simple moving average of $179.49. The company has a debt-to-equity ratio of 51.28, a quick ratio of 0.26 and a current ratio of 1.19.

About RH

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.