RH (RH) Q2 Earnings: What To Expect

Luxury furniture retailer RH (NYSE:RH) will be announcing earnings results tomorrow after the bell. Here’s what investors should know.

RH met analysts’ revenue expectations last quarter, reporting revenues of $727 million, down 1.7% year on year. It was a weak quarter for the company, with a miss of analysts’ earnings and gross margin estimates.

Is RH a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting RH’s revenue to grow 3.7% year on year to $829.8 million, a reversal from the 19.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.83 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RH has missed Wall Street’s revenue estimates three times over the last two years.

Looking at RH’s peers in the home furniture retailer segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Sleep Number’s revenues decreased 11% year on year, missing analysts’ expectations by 1.9%, and Williams-Sonoma reported a revenue decline of 4%, falling short of estimates by 1.2%. Sleep Number traded up 19.4% following the results while Williams-Sonoma was down 3%.

Read our full analysis of Sleep Number’s results here and Williams-Sonoma’s results here.

Growth stocks have been quite volatile since the start of 2024, and while some of the home furniture retailer stocks have fared somewhat better, they have not been spared, with share prices down 3% on average over the last month. RH is down 6.6% during the same time and is heading into earnings with an average analyst price target of $300.9 (compared to the current share price of $243.1).

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