RH Reports Q2 Revenue Below Estimates, Lowers Full-Year Sales Guidance

Luxury furniture retailer RH reported second-quarter 2025 revenue of approximately $899 million, showing year-over-year growth of about 8.4%, though slightly below analyst expectations. Despite improving operating margins and positive free cash flow, the company revised its full-year revenue growth outlook downward to 9% to 11%, from an earlier forecast of 10% to 13%, leading to a drop in its stock price. RH operates in the $136 billion domestic furniture and home furnishing market with a diversified portfolio including high-end furniture, home decor, and hospitality ventures like restaurants. Financial metrics reveal some concerns, including a low Altman Z-Score of 1.41 suggesting bankruptcy risk and liquidity pressures reflected in a quick ratio of 0.29, despite a strong gross margin of 44.5%. Analysts expect revenue growth to accelerate over the next 12 months, though current guidance for the next quarter falls short of estimates. The company is also focused on expanding its global reach and brand extensions to broaden its addressable market.