RH (RH) Q3 Earnings: What To Expect

Max Juang /
2023/12/06 2:01 am EST

Luxury furniture retailer RH (NYSE:RH) will be announcing earnings results tomorrow after market hours. Here's what you need to know.

Last quarter RH reported revenues of $800.5 million, down 19.3% year on year, beating analyst revenue expectations by 1.8%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates but revenue guidance for next quarter missing analysts' expectations.

Is RH buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting RH's revenue to decline 12.8% year on year to $757.9 million, a further deceleration on the 13.6% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.09 per share.

RH Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at RH's peers in the home furniture retailer segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Williams-Sonoma's revenues decreased 15.5% year on year, missing analyst estimates by 4.5% and Arhaus reported revenues up 1.9% year on year, exceeding estimates by 2.6%. Both stocks (Williams-Sonoma and Arhaus) traded flat on the results.

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 the stocks up on average 9.5% over the last month. RH is up 18.6% during the same time, and is heading into the earnings with analyst price target of $322.5, compared to share price of $280.05.

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The author has no position in any of the stocks mentioned.