RH (RH)

Over the last six months, RH's stock price has decreased significantly. As of March 6, 2026, the stock had decreased by 43.4% over the past six months. The share price as of February 27, 2026, was $165.71, a decline of 46.06% from March 3, 2025. In the past month alone, the stock decreased by 32.61%. Despite the stock slump, RH reported revenue growth in its third quarter of fiscal year 2025, with sales up 8.9% year-on-year to $883.8 million. However, its non-GAAP profit of $1.71 per share was 20.9% below analysts' consensus estimates, and its revenue guidance for Q4 FY2025 was also below estimates. In December 2025, RH reported 9% revenue growth for the last quarter, outpacing competitors, but its shares had trailed rival stocks significantly that year. The company has resorted to increased promotional sales and deeper discounts through its RH Members program to drive revenue amidst a slow housing market.

Historically, RH's business was highly seasonal, with the fourth quarter being its only profitable quarter. However, with its transformation into a luxury lifestyle brand and the introduction of its membership program, RH has aimed to even out sales and order fulfillment. While the company has been impacted by a weak housing market, demand for its core RH brand and total demand have shown signs of acceleration in late 2024. Strategic initiatives like sourcebook mailings and gallery openings can significantly impact demand.

RH is an upscale American home-furnishings company operating as a retailer and luxury lifestyle brand, curating design, taste, and style. It operates in the Consumer Discretionary sector, specifically Specialty Retail or Home Furnishings Retailers. RH offers a wide range of merchandise, including furniture, lighting, textiles, decor, and outdoor furnishings, through retail galleries, sourcebooks, and online platforms. The company's aesthetic is characterized by simple lines, neutral colors, and natural materials, often incorporating antique and vintage elements, with larger furniture catering to spacious homes.

RH operates in the United States and Canada, with 84 locations as of 2024, including galleries and outlet stores. The company has been expanding internationally, opening its first location outside North America in Europe in June 2023. Recent international gallery openings include Paris, France, with plans for London and Brussels. RH also has a presence in the United Kingdom, Germany, and Belgium. In July 2025, RH Montreal opened, marking its debut in Quebec, Canada, and its second flagship store in Canada after RH Toronto. Another new location, RH Oklahoma City, also opened in July 2025.

RH has cultivated a reputation as a luxury lifestyle brand, known for its high-end home furnishings and immersive gallery experiences. The company's branding emphasizes sophistication and style, appealing to affluent consumers. RH's strategy involves elevating product design and maintaining craftsmanship standards to distinguish itself from mass-market retailers. The company's membership program, RH Members, accounts for 95% of total sales volume, indicating strong customer loyalty among its members. RH has continued its strategy of opening large, architecturally inspiring galleries. However, the company has also faced challenges, including a difficult housing market and the impact of tariffs, which have led to increased promotional activities and deeper discounts.

RH's ownership is highly concentrated, with institutional investors and company insiders controlling the majority of shares. As of early March 2026, RH has 499 institutional owners holding a total of 18,214,168 shares. FMR LLC (Fidelity) is the largest institutional shareholder, holding approximately 13.9% of RH's outstanding stock as of mid-2025. CEO Gary Friedman is the largest individual shareholder, controlling around 12% of the company's voting power through direct holdings. Insider ownership represents about 13% of RH's outstanding common stock.