RH Earnings: Mixed Results, Bullish Outlook

0:00RH just dropped their latest earnings and it's a tale of two vibes. Fourth quarter revenue climbed 3.7% to $842.6 million with net income more than doubling to $28.8 million. Full year they hit $3.44 billion in sales. Up 8.1% and profits jumped 72% to $100.24.8 million plus $252.4 million in free cashflow. Balance sheets shining to inventory dropped to $818.6 million from over $1 billion cash bumped up to $41.2 million. But the guidance flipped the script. They're calling for first quarter fiscal 2026 revenue to dip 2-4% with full year growth at 4-8%. Wall Street zeroed in on that week outlook, ignoring the solid quarter. First tank hard after missing estimates, adjusted earnings per share at $1.53 versus $2.22

1:00expected. Revenue short of 873.5 million, investors see tariffs, bad weather, and supply hiccups as real drags, not just noise. RH is pushing back, saying their two year 15% growth beats rivals like Wayfair and Pottery Barn. International expansion, eyeing 5-6 billion in North America, and 20-25 billion worldwide long-term, housing markets still brutal, the worst in nearly 50 years per the CEO, so near-term pains pricing in, even as the luxury vision holds steady. You've been listening to Durham News today, AI-powered local news.