Retail Operations - As of November 1, 2025, the company operated a total of 74 retail locations globally, including 68 in North America and 6 in Europe[139]. - The company plans to incorporate hospitality experiences into new Design Galleries, enhancing the retail experience and driving incremental sales[148]. - The company has invested significant capital in developing new Design Galleries, with adjusted capital expenditures of $223 million for the nine months ended November 1, 2025[230]. Financial Performance - Net revenues for the three months ended November 1, 2025, were $883,810,000, representing a 8.9% increase from $811,732,000 for the same period in 2024[152]. - Gross profit for the three months ended November 1, 2025, was $389,736,000, with a gross margin of 44.1%, compared to $361,340,000 and 44.5% in the prior year[152]. - Operating income for the three months ended November 1, 2025, was $105,930,000, or 12.0% of net revenues, compared to $101,468,000, or 12.5% in the same period last year[152]. - Net income for the three months ended November 1, 2025, was $36,265,000, a 6.3% increase from $33,168,000 in the prior year[158]. - Adjusted operating income for the three months ended November 1, 2025, was $102,555,000, compared to $121,874,000 for the same period in 2024[158]. - EBITDA for the three months ended November 1, 2025, was $143,418,000, compared to $133,012,000 in the same period last year[166]. - Adjusted EBITDA for the three months ended November 1, 2025, was $155,810,000, down from $168,547,000 in the prior year[166]. - Consolidated net revenues increased by $72 million, or 8.9%, to $884 million for the three months ended November 1, 2025, compared to $812 million for the same period in 2024[176]. - RH Segment net revenues rose by $68 million, or 8.8%, to $836 million for the three months ended November 1, 2025, compared to $768 million in the prior year[177]. - Consolidated net revenues increased by $229 million, or 9.7%, to $2,597 million for the nine months ended November 1, 2025, compared to $2,368 million for the same period in 2024[199]. - RH Segment net revenues rose by $221 million, or 9.9%, to $2,448 million for the nine months ended November 1, 2025, driven by higher core business revenue and increased hospitality revenue from new Gallery openings[200][201]. - Consolidated gross profit grew by $102 million, or 9.7%, to $1,154 million for the nine months ended November 1, 2025, with a gross margin of 44.5%[203]. - RH Segment gross profit increased by $97 million, or 9.9%, to $1,074 million, maintaining a gross margin of 43.9%[204]. Expenses and Taxation - Selling, general and administrative expenses rose by $24 million, or 9.2%, to $284 million for the three months ended November 1, 2025, compared to $260 million in the same period in 2024[185]. - Selling, general and administrative expenses rose by $64 million, or 8.0%, to $864 million for the nine months ended November 1, 2025[207]. - Income tax expense for the three months ended November 1, 2025, was $11,625,000, compared to $9,256,000 in the prior year[158]. - Income tax expense increased to $33.8 million with an effective tax rate of 26.0% for the nine months ended November 1, 2025, compared to 15.7% in the previous year[217]. - The effective tax rate increased to 24.3% for the three months ended November 1, 2025, compared to 21.8% for the same period in 2024[193]. Capital Expenditures and Financing - Adjusted capital expenditures for the nine months ended November 1, 2025, were $223,078 thousand, compared to $212,929 thousand for the same period in 2024[169]. - The company anticipates adjusted capital expenditures of $275 million to $325 million in fiscal 2025, mainly for growth and expansion initiatives[230]. - The company has a total authorized share repurchase program of $2,450 million, with $201 million remaining available for future repurchases as of November 1, 2025[246]. - The company entered into a $2,000 million term debt financing in October 2021, with a maturity date of October 20, 2028, requiring quarterly principal payments of $5 million[227]. - For the nine months ended November 1, 2025, net cash used in financing activities was $163 million, primarily due to net repayments under the asset-based credit facility of $135 million[238]. - The company amended the ABL Credit Agreement in July 2025, providing an asset-based credit facility with an initial availability of up to $600 million, expandable to $900 million under certain conditions[226]. Market Conditions and Strategic Initiatives - The company is facing challenges due to macroeconomic conditions, including high interest rates and inflation, which have negatively impacted the luxury home market[140]. - The company is adapting its supply chain to mitigate risks related to tariffs and trade policies, which may affect product costs[141]. - The company is focused on digital reimagination, enhancing its online presence through The World of RH portal and plans to upgrade its website throughout 2025[151]. - The company is committed to elevating its brand by conceptualizing and selling spaces, creating an ecosystem of products and experiences[149]. - The company is exploring new real estate models, including transitioning from leasing to development, which may require different levels of capital investment[231]. - The company expects to continue taking an opportunistic approach regarding capital allocation and may pursue additional debt financing for investments[224]. - The company is implementing significant business initiatives that may lead to variability in financial performance and results of operations[145].

Core Viewpoint - RH reported mixed third-quarter earnings, with a notable revenue beat but earnings per share falling short of analyst expectations [2][3]. Financial Performance - Quarterly earnings were $1.71 per share, missing the analyst estimate of $2.16 by 20.87% [2]. - Quarterly revenue reached $883.81 million, surpassing the Street estimate of $883.69 million [2]. Growth Metrics - Revenue increased by 9% in the third quarter and by 18% on a two-year basis, indicating strong growth despite challenging market conditions [3]. Future Outlook - For the fourth quarter, RH projects revenue between $869.27 million and $877.4 million, which is below the analyst estimate of $896.97 million [4]. - Following the earnings report, RH stock rose by 9.58% to $168 in extended trading [4].

Exhibit 99.2 THIRD QUARTER 2025 FINANCIAL RESULTS AND SHAREHOLDER LETTER RH REPORTS THIRD QUARTER 2025 REVENUES INCREASED 9%, NET INCOME INCREASED 9% AND FREE CASH FLOW OF $83M THIRD QUARTER 2025 HIGHLIGHTS GAAP Net Revenues Increased 9% to $884M GAAP Net Income Increased 9% to $36M GAAP Operating Margin of 12.0%, Adjusted Operating Margin of 11.6% EBITDA Margin of 16.2%, Adjusted EBITDA Margin of 17.6% Free Cash Flow of $83M Please see the tables below for reconciliations of all GAAP to non-GAAP measures r ...

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

CORTE MADERA, Calif.--(BUSINESS WIRE)--RH (NYSE: RH) has released its financial results for the third quarter ended November 1, 2025, in a shareholder letter from Chairman and Chief Executive Officer Gary Friedman, available on the Investor Relations section of its website at ir.rh.com. As previously announced, RH leadership will host a live conference call and audio webcast at 2:00 pm Pacific Time (5:00 pm Eastern Time) today. The live conference call may be accessed by dialing 800.715.9871 or. ...

Economic Outlook - The FOMC raised its 2025 GDP estimate to 1.7% from 1.6% and its 2026 GDP estimate to 2.3% from 1.8% [1] - The FOMC cut its 2025 core PCE price estimate to 3.0% from 3.1% and its 2026 core PCE price estimate to 2.5% from 2.6% [1] Interest Rates - The FOMC cut the fed funds target range by 25 basis points to 3.50%-3.75% in a 9-3 vote, indicating potential future adjustments to interest rates [2] - The median forecast for the fed funds rate is projected at 3.375% for the end of 2026, suggesting one 25 basis point rate cut next year [1] Stock Market Performance - The S&P 500 Index closed up by 0.67%, the Dow Jones Industrial Average up by 1.05%, and the Nasdaq 100 up by 0.42% [5] - Stocks rallied after the Fed's interest rate cut and a more dovish tone from Fed Chair Powell, alongside an increase in the 2025 GDP forecast and a decrease in core PCE price forecast [4] Corporate Earnings - Q3 earnings for S&P 500 companies rose by 14.6%, exceeding expectations of 7.2%, with 83% of reporting companies surpassing forecasts [7] - Photronics reported Q4 adjusted EPS of 60 cents, above the consensus of 45 cents, leading to a stock increase of over 45% [15] Sector Movements - Chip makers saw significant gains, with Micron Technology and Marvell Technology closing up more than 4% [13] - Mobile grocery delivery service companies declined after Amazon expanded its same-day delivery service, with Maplebear and Uber Technologies leading the losses [14]

Market Sentiment - The markets are experiencing jitters ahead of the Federal Reserve's decision, with a mixed performance observed in stocks [1][4] - The VIX index has seen a significant drop from 15.28 to 7.43, indicating increased market volatility [2] - The 10-year yield has risen to 4.2%, suggesting that investors are anticipating a hawkish stance from Jerome Powell [2] Federal Reserve Outlook - There is uncertainty regarding whether Jerome Powell will implement a hawkish cut or focus on inflation and labor market concerns [3][4] - A potential reversal in market sentiment could occur if Powell shifts his tone towards a more dovish approach [4] Fed Chair Speculation - Kevin Hassett is currently viewed as the likely candidate for the next Fed chair, although Kevin Warsh's name is also being discussed due to his innovative views on interest rates [5][6] - Warsh has expressed that inflation is a choice and believes that AI will have a deflationary effect on the economy [7][8] Mortgage Market Insights - Recent data shows that mortgage applications increased by 4.8%, driven by a 14.3% rise in refinances, while purchase applications fell by 2.4% [9][10] - The increase in refinances is attributed to a drop in FHA mortgage rates, highlighting the sensitivity of the mortgage market to interest rate changes [10]

Core Viewpoint - RH, a luxury home furnishings company, is focusing on gallery expansion and maintaining a premium market position to drive revenue growth despite challenges in the U.S. housing market [3][6]. Financial Performance - RH is set to release its quarterly earnings on December 11, 2025, with an anticipated earnings per share (EPS) of $2.13 and projected revenue of approximately $884 million [2][6]. - In the previous quarter, RH's adjusted EPS and net revenues fell short of the Zacks Consensus Estimate by 8.2% and 0.7%, respectively, but both metrics showed significant year-over-year growth, with EPS increasing by 73.4% and net revenues by 8.3% [2][4]. Market Position and Strategy - The company is enhancing its international brand presence with successful openings in Europe and plans for further expansion in London and Milan by 2026 [3]. - Maintaining a premium market position is crucial for sustaining growth in a competitive market [3][6]. Challenges - RH faces pressures on its fiscal third-quarter margins due to elevated tariffs, weak housing demand, and increased marketing investments [4][6]. - Historically, RH has exceeded earnings expectations in only one of the last four quarters, indicating challenges in consistently meeting market expectations [4]. Valuation Metrics - RH has a price-to-earnings (P/E) ratio of approximately 27.72, a price-to-sales ratio of about 0.89, and an enterprise value to sales ratio of around 1.25 [5]. - The enterprise value to operating cash flow ratio is approximately 23.97, and the earnings yield is about 3.61% [5]. - The company's debt-to-equity ratio is notably negative at -30.46, and it maintains a current ratio of approximately 1.26, indicating its ability to cover short-term liabilities with short-term assets [5].

Core Insights - RH, formerly known as Restoration Hardware, is set to report its third-quarter fiscal 2025 results on December 11, with previous quarter results showing adjusted EPS and net revenues missed estimates by 8.2% and 0.7%, respectively, but grew year-over-year by 73.4% and 8.3% [1][2] Earnings Performance - RH's earnings have topped consensus estimates in one of the last four quarters, with the average surprise being -0.14 [2][3] - The Zacks Consensus Estimate for fiscal third-quarter EPS is $2.13, indicating a decline from the year-ago EPS of $2.48, while net revenues are expected to reach $883 million, reflecting an 8.8% year-over-year increase [3][4] Revenue and Growth Expectations - For fiscal 2025, RH anticipates a 10% increase in net revenues and a 68.5% growth in its bottom line [4] - The current quarter's revenue growth is expected to be between 8% and 10% year-over-year, with adjusted operating margins projected to decline to 12-13% from 15% in the previous year [15] Market Trends and Expansion - RH operates in the luxury home furnishing market, which is experiencing resilience despite a depressed housing market, driven by demand for high-end furnishings [6][8] - The company is expanding its gallery format and premium positioning, with strong openings in Europe and plans for further expansion in London and Milan by 2026 [7][9] Sourcing and Production Strategy - RH is reducing its reliance on China for sourcing, expecting to decrease receipts from 16% to 2% by the fiscal fourth quarter, while increasing domestic production, particularly in upholstered furniture [11][12] - By the end of fiscal 2025, approximately 52% of upholstery will be produced in North Carolina, with additional production in Italy and Mexico [11] Challenges and Market Conditions - The company faces challenges from tariffs, a weak housing market, and macroeconomic uncertainties, which are impacting demand and increasing costs [13][14] - RH is investing heavily in market-share capture and promotional activities, which are affecting margins, alongside start-up costs from international expansion [14] Valuation and Stock Performance - RH stock is currently trading at a forward P/E ratio of 12.43, which is lower than competitors like Williams-Sonoma and Arhaus [20] - Despite the attractive valuation, RH has underperformed compared to peers in the past three months, reflecting broader market challenges [18][19] Investment Outlook - The company is balancing long-term growth opportunities with near-term pressures, supported by strong demand for luxury home furnishings and international expansion efforts [21] - However, ongoing macroeconomic headwinds and execution risks suggest a cautious approach for new investors, while existing investors may consider retaining their positions [24]

分组1 - Ollie's Bargain Outlet reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.71 per share, and showing an increase from $0.58 per share a year ago, resulting in an earnings surprise of +5.63% [1] - The company posted revenues of $613.62 million for the quarter ended October 2025, which was 0.33% below the Zacks Consensus Estimate, but an increase from $517.43 million year-over-year [2] - Over the last four quarters, Ollie's Bargain Outlet has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] 分组2 - The stock has gained approximately 8.3% since the beginning of the year, while the S&P 500 has increased by 16.4% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates of $1.37 on revenues of $772.62 million for the coming quarter, and $3.82 on revenues of $2.64 billion for the current fiscal year [7] - The Zacks Industry Rank indicates that the Consumer Products - Staples sector is in the bottom 23% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]