RH Lifts 2026 Outlook, Guides 4.5%-8% Revenue Growth After Q1 Beat
RH•RH reported a Q1 adjusted loss of $1.97 per share versus a $2.09 estimate and $800.3 million in revenue, beating forecasts by $7.7 million despite a $45 million tariff-related headwind. It raised fiscal 2026 revenue growth guidance to 4.5%-8.0%, adjusted EBITDA margins to 14.2%-16.0%, and free cash flow to $300-$400 million.
1. Q1 Results and Operational Drivers
In Q1, RH reported an adjusted loss of $1.97 per share, beating the $2.09 estimate. Revenue was $800.3 million, exceeding consensus by $7.7 million despite a $45 million reduction from elevated backorder and special-order balances tied to tariff-related supply chain disruptions.
2. Raised Fiscal 2026 Guidance
Reflecting stronger-than-expected performance, RH raised its fiscal 2026 outlook to 4.5%-8.0% revenue growth, 14.2%-16.0% adjusted EBITDA margins and $300-$400 million in free cash flow. The company also forecasts 0.5%-2.5% revenue growth and 11.5%-13.0% adjusted EBITDA margins in Q2.
3. Financial Position and Strategic Initiatives
During the quarter, RH generated $13.3 million in free cash flow and ended with $53.8 million in cash and equivalents against $2.37 billion in net debt, or 4.3 times trailing 12-month adjusted EBITDA. Management expects accelerated H2 growth driven by backlog reduction, new store openings and expansion of the RH Estates concept and international flagship locations.
