| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 74 | 23.9x | 17.8x | Top tier | |
Growth | 46 | 3.3% | 7.1% | Around median | |
Quality | 84 | 10.8% | 4.5% | Top tier | |
Safety | 30 | 4.6x | 2.6x | Bottom tier | |
Capital Return | 94 | — | 2.12% | Top tier | |
Momentum | 28 | -21.9% | 2.9% | Bottom tier | |
Sentiment | 75 | 12 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
RH operates in the luxury home furnishings and design market, selling its products through a network of architectural galleries and its direct platform, with significant reliance on the in-person product experience; according to management on the June 11, 2026 call, approximately 95% of luxury furniture purchases take place in stores. Its model combines the sale of high-value furniture, interior design services, and service for designers and architects, increasing average order value and giving the company operating leverage on incremental sales.
RH is seeking to expand its reach through three aesthetic directions: Estates, Interiors, and Modern. RH Estates represents a move into higher-priced, higher-quality classic and traditional products, supported by brands and artisans such as Dmitriy & Co., Joseph Jeup, Dennis & Leen, Formations, Waterworks, and Michael Taylor, alongside RH Bespoke Furniture for custom dimensions and RH Couture Upholstery for customer-selected sizes and fabrics.
In Q1 of fiscal 2026, revenue reached $800.3 million and adjusted EBITDA margin was 7.1%, both exceeding the high end of the company's guidance despite backorder and special-order balances being approximately $75 million higher than the prior year. The results reflect a mix that remains dependent on RH's core business, while management expected RH Estates, new stores, and the fulfillment of accumulated orders to begin driving revenue acceleration during the second half of fiscal 2026.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus rates RH stock a “Buy,” with an average price target of $167.5, compared with a wide target range of between $130 and $240. The average target lies between the 52-week range limits of $106.3 and $257, while the highest target approaches the annual high; the wide gap between the lowest and highest targets reflects substantial disagreement over the success of RH Estates, margin improvement, and the path to debt reduction.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
RH generated revenue of $800.3 million and an adjusted EBITDA margin of 7.1% in Q1 of fiscal 2026, exceeding the high end of its guidance. This came despite backorder and special-order balances being approximately $75 million higher than the prior year due to tariff-related resourcing and transportation effects. The result prompted the company to raise its fiscal 2026 guidance to revenue growth of between 4.5% and 8% and an adjusted EBITDA margin of between 14.2% and 16%.
Management expects RH Estates to add five percentage points to revenue growth in the second half of fiscal 2026, making it the largest single contribution within the announced growth bridge. The company aims to roll out the assortment to galleries representing 60% to 65% of the business by the end of September 2026, followed by all galleries by December 2026. The offering includes products from Dmitriy & Co., Joseph Jeup, Formations, and Michael Taylor, in addition to RH Bespoke Furniture and RH Couture Upholstery.
Management divided the growth bridge into 4.5 percentage points from fulfilling accumulated orders, 2.5 points from new stores, and 5 points from RH Estates. The accumulated-order component is tied to an unusual increase of approximately $75 million, for which management said demand had already materialized. The rest of the plan depends on the rollout of RH Estates according to the September and December 2026 timetable and on contributions from new galleries.
Fiscal 2026 guidance includes an approximately 270-basis-point negative impact on adjusted EBITDA margin from pre-opening and startup costs related to international expansion. This impact rises to approximately 380 basis points in Q2 of fiscal 2026, for which the company is targeting revenue growth of between 0.5% and 2.5% and an adjusted EBITDA margin of between 11.5% and 13%. The international platform is centered on the Madrid, Milan, and London galleries, with management expecting London to help expand brand awareness across Europe and the UK.
On the June 11, 2026 call, management maintained its goal of achieving a debt-free position by 2029 while emphasizing that the exact timing is not guaranteed. The plan includes selling between $200 million and $250 million of assets annually over two years, and RH now independently controls eight properties associated with Aspen assets to facilitate their monetization. The company also expects adjusted free cash flow of between $300 million and $400 million in fiscal 2026, supported by lower spending and higher sales following the peak of the investment cycle.
The guidance depends on growth moving from nearly flat in the first half to approximately 12% in the second half of fiscal 2026, increasing the sensitivity of results to shipment timing and the RH Estates rollout. The company also faces a housing market that has entered its fourth year of decline, alongside international expansion costs that reduce expected adjusted EBITDA margin by approximately 270 basis points during the year. Tariff-related resourcing, the asset-sale plan, and the goal of reducing debt by 2029 add execution and financing risks to the expected trajectory.
