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Financial, Retail

RH Reports First Quarter Fiscal 2026 Results

6/11/2026
CORTE MADERA, Calif.-- RH (NYSE: RH) has released its financial results for the first quarter ended May 2, 2026.

In a shareholder letter from Chairman and Chief Executive Officer Gary Friedman, the company stated: 

"First Quarter net revenues were negatively impacted by approximately $45 million due to higher backorder and special order balances that were approximately $75 million higher than the same period a year ago, primarily as a result of tariff related resourcing. The Company expects a similar elevated balance in Q2, with balances returning to normalized levels by the end of 2026, resulting in a revenue pick up of approximately $75 million in the second half of this year.

FIRST QUARTER 2026 HIGHLIGHTS

• GAAP Net Revenues Decreased 1.7% to $800.3M
• GAAP Net Loss of $13.7M
• EBITDA of $71.8M and EBITDA Margin of 9.0%
• Adjusted EBITDA of $56.9M and Adjusted EBITDA Margin of 7.1% Free Cash Flow of $13.3M

First quarter revenues of $800.3M, and adjusted EBITDA margin of 7.1% exceeded the high end of our expectations in the first quarter despite back order and special order balances approximately $75 million higher than a year ago, primarily due to tariff related resourcing.

As a result of our better than expected first quarter results we are raising our outlook for fiscal year 2026 and providing the following outlook for the second quarter:

FISCAL YEAR 2026 OUTLOOK

• Revenue Growth of 4.5% to 8.0%
• Adjusted EBITDA Margin of 14.2% to 16.0%
• Adjusted Free Cash Flow of $300M to $400M

The above outlook includes an approximate negative 270 basis point Adjusted EBITDA margin impact from pre- opening and startup costs to support our international expansion.

We define adjusted free cash flow as free cash flow plus proceeds from asset sales.

SECOND QUARTER 2026 OUTLOOK

• Revenue Growth of 0.5% to 2.5%
• Adjusted EBITDA Margin of 11.5% to 13.0%

The above outlook includes an approximate negative 380 basis point Adjusted EBITDA margin impact from pre- opening and startup costs to support our international expansion."

The entire letter can be read here.

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