Core Insights - RH is set to report its fourth-quarter fiscal 2025 results on March 31, 2026, after market close, with previous earnings missing estimates by 19.7% and declining 31% year over year, while net revenues slightly exceeded expectations by 0.1% and grew 8.9% year over year [1] Earnings Estimates - The Zacks Consensus Estimate for RH's earnings per share (EPS) for the fiscal fourth quarter has decreased to $2.21 from $2.24, representing a 39.9% increase from $1.58 reported in the same quarter last year [2] - The consensus estimate for net revenues stands at $872.4 million, indicating a growth of 7.4% from the previous year's figure of $812.4 million [3] Revenue Drivers - RH's revenue growth is anticipated to be driven by product transformation and platform expansion, with new collections and concepts likely enhancing demand [4] - The company's international expansion, particularly new galleries in key locations like Paris, is expected to contribute to revenue growth and brand awareness [5] - Expansion into hospitality and interior design services is likely to create additional revenue streams, with the integration of various services strengthening the overall business model [6] Margin Expectations - RH expects EPS of $2.21 for the fiscal fourth quarter, reflecting a 39.9% year-over-year increase, despite a slight dip in estimates [9] - Projected revenue growth of 7-8% is supported by new collections and global expansion, although elevated tariffs are expected to pressure margins, with a projected 170 basis points impact on operating margin [9][12] - The company anticipates adjusted operating margins between 12.5% and 13.5%, up from 11.3% in the previous year, and expects adjusted EBITDA margins to range from 18.7% to 19.6%, indicating year-over-year growth from 17.1% [11] Earnings Prediction Model - The current model does not predict an earnings beat for RH, as it has a Zacks Rank of 4 (Sell) despite having a positive Earnings ESP of +1.42% [13]
RH Set to Report Q4 Earnings: Here's What Investors Must Know