RH lowers FY25 revenue growth forecast to 9%-11% from previous estimate of 10%-13%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 12 2025
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Revised Financial Outlook: RH has lowered its FY25 adjusted operating margin and EBITDA margin forecasts, now expecting 13%-14% and 19%-20% respectively, while narrowing free cash flow expectations to $250M-$300M.
Impact of Tariffs and Delays: The company cited a $30 million cost from tariffs as a reason for the revised guidance, leading to delays in launching a new brand extension and the Fall Interiors Sourcebook, with expected revenue shifts from Q3 to Q4 and Q1 2026.
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Analyst Views on RH
Wall Street analysts forecast RH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RH is 203.45 USD with a low forecast of 144.00 USD and a high forecast of 283.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 204.550
Low
144.00
Averages
203.45
High
283.00
Current: 204.550
Low
144.00
Averages
203.45
High
283.00
About RH
RH is a retailer and luxury lifestyle brand operating primarily in the home furnishings market. The Company offers collections through its retail galleries, sourcebooks, and online at RH.com, RHModern.RH.com, RHBabyandChild.RH.com, RHTEEN.RH.com and Waterworks.com. The Company offers merchandise assortments across a number of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, and baby, child and teen furnishings. Its segments include RH Segment, Waterworks and Real Estate. The RH Segment and Waterworks segments include all sales channels accessed by its customers, including sales through retail locations and outlets, including hospitality, websites, sourcebooks, and the trade and contract channels. The Real Estate segment represents operations associated with certain of its equity method investments and consolidated variable interest entities that are non-wholly owned subsidiaries and have operations that are not directly related to its segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Greatmark Increases RH Stake to 2.07% Amid Market Recovery Signs
- Share Increase: Greatmark Investment Partners increased its RH shares by 16,560 during Q4 2025, with an estimated trade value of $2.83 million, indicating confidence in the company's growth potential.
- Asset Management Proportion: Following this acquisition, RH now represents 2.07% of Greatmark's AUM, highlighting its significance in the investment portfolio despite not being among the top five holdings.
- Market Performance: As of January 26, 2026, RH shares were priced at $219.09, down 46.7% over the past year, yet the stock rebounded by 13.5% at the start of 2026, reflecting growing market recognition of the company's prospects.
- Industry Outlook: Despite cost pressures from tariffs, RH achieved a 9% revenue increase in Q3, demonstrating resilience in a challenging market, with signs of a housing recovery likely to further boost stock prices.
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RH Reports $884 Million Q3 Revenue Amid Market Challenges
- Revenue Growth: RH achieved $884 million in revenue for Q3, marking a 9% increase despite facing the worst housing market in nearly 50 years and tariff pressures, demonstrating resilience and profitability in adversity.
- Market Expansion: The company launched its brand in Europe and opened lavish galleries in cities like Paris, London, and Milan, significantly increasing its addressable market and expected to drive future revenue growth.
- Management Strategy: CEO Gary Friedman successfully implemented a membership model that initially faced backlash but ultimately locked in customers and boosted sales, showcasing the management's foresight and adaptability.
- Share Buyback Program: RH repurchased approximately 25% of its outstanding shares in 2023, aiming to enhance earnings per share and lay the groundwork for recovery, with profit margins expected to rebound to as high as 20% in a healthy housing market.
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