What To Expect From RH’s (RH) Q3 Earnings

Luxury furniture retailer RH (NYSE:RH) will be reporting results this Thursday after the bell. Here’s what to expect.

RH missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $899.2 million, up 8.4% year on year. It was a slower quarter for the company, with a miss of analysts’ EBITDA estimates and revenue guidance for next quarter missing analysts’ expectations.

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

This quarter, analysts are expecting RH’s revenue to grow 8.8% year on year to $883.5 million, in line with the 8.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.16 per share.

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 Q3 results, giving us a hint as to what we can expect. Williams-Sonoma delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 0.6%, and Arhaus reported revenues up 8%, topping estimates by 2%. Williams-Sonoma traded down 4.5% following the results while Arhaus’s stock price was unchanged.

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 10.5% on average over the last month. RH’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $254.12 (compared to the current share price of $159.19).

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