What To Expect From RH’s (RH) Q1 Earnings

Luxury furniture retailer RH (NYSE:RH) will be reporting results tomorrow after market close. Here’s what investors should know.

RH missed analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $812.4 million, up 10% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ EPS estimates.

Is RH a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting RH’s revenue to grow 12.7% year on year to $819 million, a reversal from the 1.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.

RH Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RH has missed Wall Street’s revenue estimates six times over the last two years.

Looking at RH’s peers in the home furniture retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Williams-Sonoma delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 4%, and Arhaus reported revenues up 5.5%, falling short of estimates by 0.8%. Williams-Sonoma traded down 5.9% following the results while Arhaus was also down 4.9%.

Read our full analysis of Williams-Sonoma’s results here and Arhaus’s results here.

There has been positive sentiment among investors in the home furniture retailer segment, with share prices up 5% on average over the last month. RH is down 14.9% during the same time and is heading into earnings with an average analyst price target of $251.18 (compared to the current share price of $192.62).

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