RH (NYSE: RH) Navigates Challenging Market Ahead of Q1 Earnings

Font: Financial Modeling Prep  • Jun 11, 2026

• Market Headwinds: High mortgage rates and a slow housing market are significantly impacting demand for luxury home furnishings.
• Weak Q1 Outlook: Analysts anticipate a loss for RH's first quarter, with an estimated earnings per share (EPS) of -$2.07 and a 2.7% decrease in quarterly revenue to $792.55 million.
• Profitability Concerns: Significant expansion costs for new international galleries are projected to reduce the company's EBITDA margin to between 5.5% and 6.5%.

RH (NYSE: RH) is a luxury home furnishings company that operates in a difficult market. The home furnishings industry faces challenges from high mortgage rates and slow housing market activity, which reduces demand for furniture sales. As highlighted by Zacks Investment Research, these factors lead to customers being more selective with their spending, causing softer sales performance for companies like RH.

On June 11, 2026, RH is scheduled to report its first-quarter financial results after the market closes. Wall Street analysts estimate the company will report a loss, with an earnings per share (EPS) of -$2.07. The quarterly revenue for the quarter is expected to be around $792.55 million, which would be a 2.7% decrease from the previous year.

This anticipated weak financial performance is linked to several issues. The ongoing weakness in the housing market, combined with high mortgage rates and tariffs, continues to affect the company. Additionally, RH faces significant costs from its expansion efforts, particularly for building out new galleries in international locations like Milan and London, which impacts its profitability.

These large startup costs are projected to reduce the company's EBITDA margin, a key measure of profitability, by 420 basis points. The overall margin is now forecast to be between 5.5% and 6.5%. This follows a previous quarter where RH's adjusted earnings of $1.53 per share and net revenues of $842.6 million both missed analyst estimates.

Looking at its financial health, RH has a Debt-to-Equity ratio of 65.50, which shows its reliance on debt to finance its assets. The company's current ratio is 1.19. This liquidity metric measures its ability to pay its short-term obligations, with a value over 1 suggesting it has enough resources to do so.