RH (NYSE:RH) Shares Gap Down After Earnings Miss

RH (NYSE:RH)’s stock price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $228.12, but opened at $218.18. RH shares last traded at $225.10, with a volume of 1,352,052 shares changing hands.

The company reported $2.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.22 by ($0.29). The firm had revenue of $899.15 million for the quarter, compared to analyst estimates of $906.58 million. RH had a negative return on equity of 92.81% and a net margin of 3.20%.The business’s revenue was up 8.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.69 EPS. RH has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Citigroup increased their price target on shares of RH from $200.00 to $233.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 3rd. UBS Group dropped their price target on shares of RH from $235.00 to $215.00 and set a “neutral” rating for the company in a research note on Thursday, June 5th. Barclays lowered their target price on shares of RH from $436.00 to $385.00 and set an “overweight” rating for the company in a research note on Friday. Wall Street Zen raised shares of RH from a “sell” rating to a “hold” rating in a research note on Thursday, May 22nd. Finally, Robert W. Baird raised their price target on shares of RH from $215.00 to $230.00 and gave the stock a “neutral” rating in a report on Monday, June 16th. Nine investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $259.29.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Durable Capital Partners LP increased its stake in shares of RH by 125.1% in the 2nd quarter. Durable Capital Partners LP now owns 646,097 shares of the company’s stock worth $122,119,000 after acquiring an additional 359,101 shares in the last quarter. Senvest Management LLC increased its stake in shares of RH by 54.6% in the 2nd quarter. Senvest Management LLC now owns 733,894 shares of the company’s stock worth $138,713,000 after acquiring an additional 259,200 shares in the last quarter. Atreides Management LP increased its stake in shares of RH by 69.1% in the 1st quarter. Atreides Management LP now owns 473,321 shares of the company’s stock worth $110,951,000 after acquiring an additional 193,404 shares in the last quarter. Scopus Asset Management L.P. bought a new position in shares of RH in the 2nd quarter worth about $30,457,000. Finally, Norges Bank bought a new position in shares of RH in the 2nd quarter worth about $29,083,000. 90.17% of the stock is currently owned by institutional investors.

RH Trading Down 4.2%

The company’s 50 day moving average is $218.37 and its 200-day moving average is $209.15. The company has a market capitalization of $4.10 billion, a P/E ratio of 40.71, a price-to-earnings-growth ratio of 2.18 and a beta of 2.15.

About RH

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany.