RH (NYSE:RH) Hits New 1-Year Low Following Weak Earnings

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

The company reported $1.53 earnings per share for the quarter, missing the consensus estimate of $2.21 by ($0.68). RH had a negative return on equity of 251.87% and a net margin of 3.63%.The business had revenue of $842.62 million for the quarter, compared to analyst estimates of $873.48 million. During the same quarter last year, the company posted $1.58 EPS. RH’s quarterly revenue was up 3.7% on a year-over-year basis.

RH News Summary

Here are the key news stories impacting RH this week:

• Positive Sentiment: Some sell-side supporters remain constructive on RH’s long-term opportunity — several firms kept buy/overweight ratings even after lowering targets (Guggenheim kept a Buy while cutting its target to $200; Morgan Stanley remains overweight with a $240 target). Guggenheim Lowers Price Target
• Positive Sentiment: Management reiterated multi-year growth ambitions (targeting roughly $5.4B–$5.8B revenue by 2030), signaling a strategic plan for scale that some investors view as a reason to buy the dip. Long-Term Revenue Target
• Neutral Sentiment: Company posted full Q4 results and held an earnings call; investors can review the release and transcript for management’s color on sourcing, store openings and margin drivers. RH Q4 Press Release
• Negative Sentiment: Q4 adjusted EPS of $1.53 missed consensus (~$2.21) and revenue of $842.6M missed estimates, triggering the initial selloff. Q4 Results Miss
• Negative Sentiment: Guidance and margin pressure: RH signaled FY26 revenue growth of ~4%–8% and adjusted EBITDA margin of ~14%–16%, and flagged a Q1 revenue decline (~2%–4%) as it funds expansion — a softer near-term outlook that disappointed the street. Guidance Reaction
• Negative Sentiment: Tariffs and weather hit margins — management said sourcing/tariff-related disruptions reduced Q4 revenue by roughly $30M and adverse weather another ~$10M; gross margin contracted ~180–190 bps. Tariff & Weather Impact
• Negative Sentiment: Analysts rapidly cut targets and trimmed forecasts after the print, amplifying selling pressure (multiple notes and target downgrades reported across outlets). Analyst Cuts
• Negative Sentiment: Heightened legal and balance-sheet risk: a shareholder law firm announced an inquiry into potential claims, and RH’s reported leverage and negative return-on-equity figures increase financial risk perception. Shareholder Inquiry

Analyst Upgrades and Downgrades

Several research analysts have weighed in on RH shares. Zelman & Associates reiterated an “outperform” rating on shares of RH in a research note on Thursday, January 29th. Robert W. Baird cut their price target on RH from $235.00 to $180.00 and set a “neutral” rating for the company in a research note on Friday, December 12th. TD Cowen decreased their price target on RH from $265.00 to $200.00 and set a “buy” rating for the company in a report on Monday. Stifel Nicolaus reiterated a “hold” rating and issued a $165.00 price objective (down from $320.00) on shares of RH in a research report on Friday, December 12th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of RH from $275.00 to $225.00 and set an “overweight” rating on the stock in a research note on Friday, December 19th. Seven investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $191.06.

Insider Buying and Selling

In other RH news, insider Eri Chaya sold 7,000 shares of the business’s stock in a transaction on Tuesday, March 24th. The stock was sold at an average price of $129.42, for a total transaction of $905,940.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Mark S. Demilio sold 2,254 shares of the company’s stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $220.00, for a total value of $495,880.00. Following the completion of the sale, the director directly owned 19,962 shares in the company, valued at $4,391,640. This trade represents a 10.15% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 18,254 shares of company stock worth $2,789,400. Insiders own 27.00% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Arizona State Retirement System grew its stake in RH by 1.4% in the 3rd quarter. Arizona State Retirement System now owns 4,434 shares of the company’s stock valued at $901,000 after acquiring an additional 62 shares during the last quarter. Steward Partners Investment Advisory LLC raised its position in RH by 12.0% during the second quarter. Steward Partners Investment Advisory LLC now owns 605 shares of the company’s stock worth $114,000 after acquiring an additional 65 shares during the last quarter. Davidson Kahn Capital Management LLC lifted its holdings in shares of RH by 0.5% in the third quarter. Davidson Kahn Capital Management LLC now owns 12,437 shares of the company’s stock valued at $2,531,000 after purchasing an additional 65 shares in the last quarter. Huntington National Bank lifted its holdings in shares of RH by 87.8% in the third quarter. Huntington National Bank now owns 139 shares of the company’s stock valued at $28,000 after purchasing an additional 65 shares in the last quarter. Finally, Farther Finance Advisors LLC grew its position in shares of RH by 45.0% in the fourth quarter. Farther Finance Advisors LLC now owns 248 shares of the company’s stock valued at $44,000 after purchasing an additional 77 shares during the last quarter. Institutional investors and hedge funds own 90.17% of the company’s stock.

RH Stock Down 19.3%

The company has a debt-to-equity ratio of 944.39, a current ratio of 1.19 and a quick ratio of 0.26. The firm’s 50-day moving average price is $172.49 and its 200 day moving average price is $179.95. The firm has a market capitalization of $2.12 billion, a price-to-earnings ratio of 17.87, a price-to-earnings-growth ratio of 0.58 and a beta of 2.10.

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.