RH Q4 Adjusted EPS $1.53 Misses by $0.69, Q1 Revenue to Fall 2%–4%
RH posted Q4 adjusted EPS of $1.53, missing estimates by $0.69, and generated $842.6 million in revenue, below the $873.5 million consensus despite 3.7% year-over-year growth. The company cited a combined $40 million impact from tariff backorders and weather and sees Q1 revenue down 2%–4% with 5.5%–6.5% EBITDA margins.
1. Q4 Earnings and Revenue Miss
RH reported Q4 adjusted EPS of $1.53, missing estimates by $0.69, and generated $842.6 million in revenue, falling short of the $873.5 million consensus despite a 3.7% year-over-year increase.
2. Tariff and Weather Headwinds
The company attributed a combined $40 million impact from $30 million in tariff-related sourcing backorders and special orders, plus $10 million in weather-related disruptions late in the quarter.
3. First-Quarter Guidance
RH forecasts fiscal Q1 revenue to decline 2%–4% and adjusted EBITDA margins of 5.5%–6.5%, signaling a cautious near-term outlook amid ongoing supply-chain and seasonal pressures.
4. Full-Year Performance and Fiscal 2026 Forecast
In fiscal 2025, RH achieved 8.1% net revenue growth to $3.44 billion, 72% GAAP net income growth to $125 million and $252 million in free cash flow. For fiscal 2026, the company expects 4%–8% revenue growth, 14%–16% EBITDA margins and $300–$400 million in free cash flow, with a 270 basis-point margin headwind from international store pre-openings.