RH shares rally as the luxury retailer beats Q2 earnings estimates and boosts its fiscal 2026 outlook, driven by the successful launch of its high-margin RH Estates collection.
RH reported strong Q2 earnings and raised fiscal 2026 guidance, driven by new collections and international expansion.
RH exceeded Q2 expectations with $922.2 million in revenue and a 13.4% adjusted EBITDA margin. The luxury retailer raised its fiscal 2026 outlook, citing strong momentum from its new RH Estates collection and international expansion efforts. Management expects the Estates line to eventually represent half of its total assortment, significantly expanding the company's addressable market.
RH Estates targets luxury homes with traditional architecture, which management believes could double the company's addressable market and eventually account for 50% of its total product assortment.