Rh, Inc.

RH has a $3.2 billion debt stack against a roughly $3 billion market cap, and the stock still trades at 22.5 times earnings.

If you own RH, you own a luxury furniture brand with real demand and very little room for mistakes.

rh

consumer mid cap updated mar 13, 2026
$157.33
market cap ~$3B · 52-week range $123–$239
xvary composite: 40 / 100 · below average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
RH sells high-end home furnishings through dramatic showroom-like stores, then asks investors to trust the brand can outrun the balance sheet.
how it gets paid
Last year Rh made $40M in revenue. furniture was the main engine at $16.0M, or 40% of sales.
what just happened
RH's last reported quarter missed expectations, with EPS of $1.71 versus a $2.40 estimate, a 28.75% shortfall.
At a glance
B balance sheet — gets the job done, barely
40/100 earnings predictability — expect surprises
22.5x trailing p/e — priced about right
12.5% return on capital — nothing to write home about
xvary composite: 40/100 — below average
What they do
RH sells high-end home furnishings through dramatic showroom-like stores, then asks investors to trust the brand can outrun the balance sheet.
RH wins with brand theater. You walk into a gallery, not a regular furniture store, and 68 of its 83 locations are galleries. That physical scale matters because luxury furniture is a trust purchase. You want to see the room, touch the fabric, and imagine your house looking richer than your neighbor's.
consumer mid-cap retail luxury-housing brand
How they make money
$40M annual revenue
furniture
$16.0M
lighting
$6.0M
textiles and bath
$6.0M
outdoor and garden
$8.0M
tableware and children's furnishings
$4.0M
The products that matter
premium furniture retail
Furniture & Home Furnishings
$3.0B · 79% of revenue
it's the core business. It declined 5%, so this is where any turnaround has to show up first.
core demand
decor and finishing categories
Lighting & Textiles
$0.5B · 13% of revenue
this is a meaningful side business, but it also declined 3%. You're not getting a hidden growth engine here.
margin support
outdoor living assortment
Outdoor & Garden
$0.3B · 8% of revenue
flat revenue is better than a decline, but at just 8% of sales it cannot offset weakness in the larger indoor categories on its own.
watch segment
Key numbers
$3.2B
long-term debt
This is the core fact. Your company is worth about $3B in the market, and the debt stack is even larger. Plain English: lenders sit very close to shareholders.
22.5x
trailing p/e
P/E → price divided by past earnings → so what: you are paying a premium multiple for a retailer with past earnings growth of negative 14.0%.
$185
18-month target
That is about 18% above $157.33. Plain English: near-term upside exists, but it is not huge relative to the stock's $97 to $273 range.
12.5%
return on capital
Return on capital → profit generated from the money used in the business → so what: RH is profitable, but not at a level that makes the debt easy to ignore.
Financial health
B
strength
  • balance sheet grade B — adequate — nothing special
  • risk rank 4 — safer than 20% of stocks
  • price stability 10 / 100
  • long-term debt $3.2B (51% of capital)
  • net profit margin 8.1% — keeps 8 cents of every dollar in revenue
  • return on equity 34% — $0.34 profit for every $1 investors have put in
B — return on equity looks solid but long-term debt needs watching.
Total return vs. market

You invested $10,000 in RH 3 years ago → it's now worth $5,370.

The index would have given you $14,540.

same period. same starting point. RH trailed the market by $9,170.

source: institutional data · total return
What just happened
missed estimates
RH's last reported quarter missed expectations, with EPS of $1.71 versus a $2.40 estimate, a 28.75% shortfall.
Quarterly results have still been moving up vs. prior year, with fiscal 2025 EPS at $7.00 versus $5.35 in 2024. The setup now is simple: the business is recovering, but the market wants cleaner execution than RH has delivered.
$1.71
last reported eps
28.75%
earnings surprise
$7.00
fy2025 eps
the number that mattered
The key number was the 28.75% earnings miss because heavily leveraged stocks lose patience fast when execution slips.
source: company earnings report, 2026

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What could go wrong

the #1 risk is tariff exposure on furniture sourcing from vietnam and china.

!
high
tariffs could hit the core $3.0B furniture business
Furniture & home furnishings is 79% of revenue. If sourcing costs rise on imports from vietnam and china, RH either eats the margin hit or asks customers to pay even more for already expensive products.
exposes the largest revenue segment and threatens the 18% operating margin
!
high
$3.2B of debt reduces room for mistakes
Long-term debt equals 51% of capital. That is workable in good periods. In a softer housing or consumer backdrop, leverage turns a demand slowdown into a balance-sheet problem.
limits flexibility if sales stay weak or margins compress
∘
med
the expansion story still needs proof
Milan, London, and the spring collection launch are promising. They are not results yet. If europe disappoints, investors are left owning a retailer with shrinking core category sales and a premium valuation framework.
puts pressure on the long-dated growth narrative behind the stock
∘
med
this stock moves like a high-beta consumer name
Price stability is just 10 / 100, and beta is 1.85 based on the current page copy. Translation: when sentiment turns, RH usually does not move politely.
raises drawdown risk even when the long-term thesis is unchanged
Tariffs threaten the biggest $3.0B segment, and $3.2B of debt means you do not need a disaster for the equity story to get messy.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
operating margin vs. 18%
This is the cleanest health check in the story. If RH keeps premium-brand margins, the leverage looks survivable. If that margin slips, the whole risk profile changes fast.
calendar
milan launch and london gallery follow-through
These are not cosmetic openings. They are the next test of management's claim that europe can meaningfully expand the business.
risk
tariff policy on vietnam and china sourcing
RH's premium positioning helps, but even premium brands cannot ignore input-cost shocks forever. Watch policy here before you watch the marketing copy.
trend
whether the $3.0B core furniture segment stops shrinking
A 5% decline in the largest category is the number to beat. If that stabilizes, the story gets cleaner. If it worsens, everything else is decoration.
Analyst rankings
earnings predictability
40 / 100
A 40 / 100 score means forecasts here are less reliable than average. in human-speak, analysts do not trust the quarter-to-quarter cadence.
risk rank
4
This sits on the riskier side of the scale. The mix of housing sensitivity, leverage, and volatile trading behavior is why.
source: institutional data
Institutional activity

141 buyers vs. 144 sellers in 4q2025. total institutional holdings: 16.4M shares.

source: institutional data · 2q2025-4q2025
source: institutional data
Price targets
3-5 year target range
$97 $273
$157 current price
$185 target midpoint · +18% from current · 3-5yr high: $550 (+250% · 37% ann'l return)
source: institutional data · analyst targets

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