NYSE:RH

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RH Stock Jumps 9% Premarket as Q2 Revenue Beats Guidance and Outlook Points to Stronger Growth

RH shares jumped 9% in premarket trading Friday after the luxury home furnishings company reported second-quarter revenue above its guidance and projected a significant acceleration in growth later this year.

Q2 net revenue reached $922.2 million, up 2.6% year-over-year and 4.2 percentage points faster than the first quarter. Normalized adjusted EBITDA margin came in at 13.4%, also above the high end of the company’s guidance. RH generated $72.3 million of cash during the quarter, including free cash flow and a $42 million distribution from its Aspen joint ventures.

RH maintained an ambitious FY2026 outlook, expecting revenue growth of 5.5% to 7.0% and adjusted EBITDA margin of 15.0% to 16.2%. Growth is expected to accelerate sharply in Q4 to 16.1%–21.2%, supported by backlog reduction, new Galleries and the rollout of RH Estates.

The company sees RH Estates as a major long-term growth driver, saying the new collection could potentially double its addressable market. RH plans to significantly expand the assortment and distribution in November, while the collection’s average price point is currently about 45% above its existing assortment.

The strong premarket reaction suggests investors are focusing on the better-than-guided Q2 performance and expectations for accelerating revenue and margins in the second half.
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Author
European Investor 09-11-26