RH (RH) Q4 2025 earnings summary

Executive summary

• Achieved 18% revenue growth and 57% increase in adjusted operating income in Q4 year-over-year, driven by significant product transformation and platform expansion.

• Outperformed peers despite operating in the most depressed U.S. housing market in nearly 50 years.

• Strategic investments in design services, immersive galleries, and hospitality experiences are fueling brand momentum and customer acquisition.

• Ended the year with meaningful debt due to $2.2 billion in stock repurchases, but also with strong business momentum and valuable assets.

Financial highlights

• Q4 revenue up 18% and adjusted operating income up 57% year-over-year on a comparable 13-week basis.

• Q4 demand increased 21%, stabilizing at 19% in January despite market headwinds.

• Excess inventory valued at $200-$300 million at cost, positioned as a strategic advantage.

Outlook and guidance

• Fiscal 2025 revenue growth forecasted at 10%-13%, adjusted operating margin at 14%-15%, and adjusted EBITDA margin at 20%-21%.

• Q1 2025 guidance: revenue growth of 12.5%-13.5%, adjusted operating margin of 6.5%-7%, and adjusted EBITDA margin of 12.5%-13%.

• Guidance includes a 160-200 basis point margin impact from international expansion investments.