RH narrows fiscal 2026 sales guidance

RH (NYSE: RH ) stock rose in premarket trading Friday after the luxury home furnishings retailer reported second-quarter fiscal 2026 results that beat Wall Street earnings expectations despite a revenue miss. RH Estates Could Double Addressable Market The company said its new Estates collection could potentially double its total addressable market. The company launched RH Estates from late June through mid-July. The collection focuses on traditional and classic styles found in more than 60% of luxury homes in North America.

Those styles are even more prevalent in Europe. RH expects the aesthetic to drive a major industry trend for more than 20 years. The company expects Estates to account for 50% of its offering within five years. Expands Galleries And Hospitality The company is also developing RH Compounds.

The company plans a multi-building shopping destination in Naples, Florida, with garden courtyards and a central atrium restaurant. It expects the location to open in late 2026 or early 2027. Another RH Compound in Aventura, Florida, is expected to begin construction soon and open in 2027. RH expects its growth projects to deliver payback periods of 12 to 18 months.

The company said returns on capital should eventually return to pre-pandemic levels. It also sees 12-to-18-month payback periods for single-story Design Galleries with integrated restaurants. Its restaurants generate significant traffic and brand awareness. On average, they generate revenue equal to 65% of aggregate gallery rent at locations where they operate.

Meanwhile, the company is developing a residential interior design business. The initiative would expand the company beyond selling products to designing and selling complete spaces. 78 Street estimate. 25 million analyst consensus estimate.

1 million tariff benefit during the quarter. 9 million benefit in the second half. Those benefits will offset $50 million in unplanned supply-chain costs tied to higher oil prices amid the Middle East conflict. The company expects the remaining $19 million to benefit earnings.

3 million in cash, including free cash flow and a $42 million distribution from its Aspen joint venture. 2 million in tariff refunds. 715 billion. 631 billion.

207 million estimate. It expects third-quarter revenue growth of 5% to 6%. That includes contributions from backlog reduction, RH Estates, new galleries and other initiatives. 021 billion.

946 million estimate. 2%, helped by RH Estates, backlog reduction and new galleries. Meanwhile, the drag from RH's international business is expected to ease. The company expects the impact to fall from 450 basis points in the first half to 250 basis points in the second half.

It expects a 340-basis-point drag for the full year and 150 basis points in 2027 as it cycles investments in Paris, Milan and London. 00 during premarket trading on Friday, according to Pro data. Photo via Shutterstock Read Also: RH Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call