RH Short Interest Hits 35.3% of Shares as EPS Forecast Jumps 39.9%
Short interest in RH surged 28.3% to represent 35.3% of shares sold short, pushing days-to-cover to 3.9. RH forecasts a 39.9% year-over-year EPS gain to $2.21 on $873.2 million revenue, despite a 170-basis-point tariffs headwind and recent insider sales.
1. Short Interest Surge
RH's short interest rose 28.3% to 4.8 million shares by March 13, representing 35.3% of float and a days-to-cover ratio of 3.9 days, highlighting significant bearish positioning.
2. Earnings Forecast
The company projects fourth-quarter fiscal 2025 EPS of $2.21, a 39.9% increase year over year, on estimated revenue of $873.2 million, while expecting tariffs to reduce operating margin by 170 basis points.
3. Insider Selling
Director Mark S. Demilio sold 2,254 shares at $220 each, reducing his stake by 10.15%, and insider Eri Chaya offloaded 7,000 shares in March, signaling potential concerns from within.
4. Prior Quarter Performance
In the prior quarter, RH reported $884 million in revenue, $390 million gross profit, $104.7 million operating income and net income of $36.3 million, resulting in $1.93 EPS despite net revenues just 0.1% above expectations and a 19.7% earnings shortfall.