At a glance
RH is worth $2.75B, about 23 times its fiscal 2026 earnings. Revenue grew 8.1% to $3.44B in fiscal 2026, with 3.6% kept as profit; over 5 years it has grown 3.8% a year. It pays no dividend; it spent $2.26B buying back its shares over FY2022–FY2026. The stock returned −24.9% over the past year with dividends reinvested and −26.1% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 67.8% in the 2020 crash (S&P 500: 33.7%) and 60.6% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
RH, formerly Restoration Hardware Holdings, is a luxury home furnishings retailer. It sells furniture, lighting, textiles, bathware, décor, outdoor and garden pieces, and baby, child and teen furnishings under brand names such as RH Interiors, RH Modern, RH Baby & Child and Waterworks. RH develops its own designs and has them made by a global network of artisans and specialty vendors, and it places its stores near affluent shoppers.
Its stores, called Galleries, are showrooms laid out as fully furnished rooms to encourage customers to buy whole collections. Websites and printed catalogs called Sourcebooks extend those spaces, alongside Trade, Contract and Outlet sales. As of January 31, 2026, RH had 89 retail locations: 69 RH locations in North America, including 39 Design Galleries and 25 smaller Legacy Galleries; 6 Design Galleries in Europe; and 14 Waterworks Showrooms. Twenty-five Design Galleries include restaurants or wine bars, which RH says lift furniture sales. It also runs a Guesthouse hotel in New York, with a second under construction in Aspen.
Revenue was $3.44 billion in the fiscal year ended January 31, 2026, up 8.1%, with a 44.1% gross margin (the share of sales left after product costs). Most locations are in North America. Europe is the newest push, with Paris opened in September 2025 and Milan and London planned next.
Price history
The interactive chart needs JavaScript.
RH -24.9% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2027 (ended Aug 1, 2026), revenue was $922.1M, up 2.6% from a year earlier, and net income was $60.2M (+16.4%).
- For fiscal 2026, revenue was $3.44B (+8.1% year over year; +3.8% a year from FY2021 to FY2026) with a 3.6% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +3.8% watch |
|---|---|
| Operating margin | 11.3% watch |
| Free cash flow margin | 7.3% watch |
| Return on equity (FY2026) | 205.9% (lifted by a small equity base, often the result of years of buybacks) good |
| Return on assets (FY2026) | 2.6% weak |
| Net cash (cash minus debt) | $-2.24B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $2.85B | $271.8M | $389.6M |
| FY2022 | $3.76B | $688.5M | $476.7M |
| FY2023 | $3.59B | $528.6M | $230.0M |
| FY2024 | $3.03B | $127.6M | $-67.1M |
| FY2025 | $3.18B | $72.4M | $-213.7M |
| FY2026 | $3.44B | $124.8M | $252.4M |
Valuation snapshot
| Market value | $2.75B |
|---|---|
| P/E ratio | 23 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
RH’s market value went from $1.25B at the end of 2016 to $2.75B on Oct 28, 2026, about 2.2 times as much; since the end of 2025 it is down 18%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.75B | -18.4% |
| 2025 | $3.36B | -54.1% |
| 2024 | $7.32B | +37.9% |
| 2023 | $5.31B | -15.8% |
| 2022 | $6.31B | -45.2% |
| 2021 | $11.51B | +26.0% |
| 2020 | $9.13B | +125.1% |
| 2019 | $4.06B | +59.5% |
| 2018 | $2.54B | +38.4% |
| 2017 | $1.84B | +46.7% |
| 2016 | $1.25B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| RH price data to Oct 28, 2026 | -19.0% | -24.9% | -12.0% | -26.1% | +17.5% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -19.0% |
| 2025 | -54.5% |
| 2024 | +35.0% |
| 2023 | +9.1% |
| 2022 | -50.1% |
| 2021 | +19.8% |
| 2020 | +109.6% |
| 2019 | +78.2% |
| 2018 | +39.0% |
| 2017 | +180.8% |
| 2016 | -61.4% |
| 2015 | -17.3% |
| 2014 | +42.7% |
| 2013 | +99.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 67.8% over that stretch · deepest drop along the way 67.8%, back to its old high 2.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 54.1% over that stretch · deepest drop along the way 60.6%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (24 read): 3 open-market purchases ($1.8M) and 33 sales ($26.5M), 13 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Jul 6, 2026 | Gary G Friedman CHAIRMAN & CEO, Director, 10% owner | sell | $6.6M |
| Jul 6, 2026 | Gary G Friedman CHAIRMAN & CEO, Director, 10% owner | sell | $5.1M |
| Jul 8, 2026 | Gary G Friedman CHAIRMAN & CEO, Director, 10% owner | sell | $3.9M |
| Jul 7, 2026 | Gary G Friedman CHAIRMAN & CEO, Director, 10% owner | sell | $1.2M |
| Jul 8, 2026 | Gary G Friedman CHAIRMAN & CEO, Director, 10% owner | sell | $1.1M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 9.9% | Jun 30, 2026 |
| Alyeska Investment Group, L.P. | 8.69% | Mar 31, 2026 |
| G1 Execution Services, LLC | 5.3% | Sep 30, 2025 |
| Citadel Securities GP LLC | 3.6% | Jun 30, 2026 |
ETFs with the most weight in RH
| LGRO Level Four Large Cap Growth Active ETF | 3.72% |
| CBSE Clough Select Equity ETF | 2.14% |
| HOMZ Hoya Capital Housing ETF | 0.4% |
| ETHO Amplify Etho Climate Leadership U.S. ETF | 0.23% |
| FFLG Fidelity Fundamental Large Cap Growth ETF | 0.19% |
| FBCG Fidelity Blue Chip Growth ETF | 0.19% |
| TMFX Motley Fool Next Index ETF | 0.18% |
| VBK Vanguard Small Cap Growth ETF | 0.18% |
What could go wrong
- Many costly projects running at once. RH is expanding into Europe, building Guesthouses, adding restaurants and developing real estate simultaneously. These projects often need heavy upfront spending before any revenue, and the company warns some may not pay back their costs.
- New Galleries can run late or over budget. RH's growth plan depends on opening large Design Galleries, some in redeveloped historic buildings. Many factors outside its control can delay openings or push costs above target, which could slow that strategy.
- Heavy debt after large buybacks. RH spent about $2.26 billion on buybacks over five fiscal years. As of August 1, 2026, it owed $2.37 billion against $125 million in cash, leaving little cushion if sales weaken.
- Depends on affluent shoppers' big-ticket spending. Luxury furniture is an easy purchase to postpone. RH says shifts in spending by its target customers can significantly hurt results; annual revenue fell from $3.76 billion to $3.03 billion within two fiscal years.
- Reliance on imports and artisan suppliers. Much of RH's merchandise is made overseas, often by artisans and specialty vendors. Tariffs, trade restrictions, currency swings, shipping costs or supplier disruptions could raise costs or leave it short of products.
- Dependence on key leaders. RH says losing key people could harm the business. Gary Friedman is chairman, CEO and a 10% owner, so much of the company's direction rests on one leader.
Recent events
- Quarterly results released
- Investor presentation or announcement
- Investor presentation or announcement
- Shareholder vote results
- Quarterly results released
- Quarterly results released
- Executive or board change
- Quarterly results released
For income and retirement investors
RH pays no dividend, and its annual report says it does not expect to pay cash dividends for the foreseeable future. For an income investor, that means no cash from holding the shares: any return comes only from the share price, and spending money means selling shares. Instead, RH returned cash through buybacks, about $2.26 billion over the five fiscal years ended January 2026, mostly in the years ended January 2023 and 2024. The share count fell 11.8%, from about 21.5 million in December 2021 to 18.9 million in September 2026.
The shares have fallen hard in downturns. They dropped 67.8% in the 2020 COVID crash but regained their prior peak by June 3, 2020. In the 2022 bear market they fell 60.6% from January 3 to June 30, 2022, and had not regained that peak as of October 28, 2026, when the shares were down 78% over five years. Single stocks carry more risk than diversified funds.
Questions investors ask
How does RH make money?
RH makes money mainly by selling luxury home furnishings, including furniture, lighting, textiles, bathware, décor and outdoor pieces. It sells through its Galleries, websites, printed Sourcebook catalogs, Trade and Contract channels and Outlets. Revenue was $3.44 billion in the fiscal year ended January 31, 2026, with an 11.3% operating margin (profit from operations as a share of sales). RH also runs restaurants and wine bars in 25 Design Galleries and a Guesthouse hotel in New York, and it says hospitality drives extra furniture sales.
Does RH pay a dividend?
No. RH does not pay a dividend, and its annual report says it does not expect to pay cash dividends for the foreseeable future. Instead, it has returned cash through share buybacks, spending about $2.26 billion over the five fiscal years ended January 2026. The share count fell 11.8% between December 2021 and September 2026. The stock may not suit investors who need regular income, since any return depends entirely on the share price.
Why has RH stock dropped so much?
The decline has tracked a sharp fall in profits. Diluted earnings per share (profit per share) dropped from $22.13 in the fiscal year ended January 2022 to $3.62 in the year ended January 2025, before recovering to $6.31. Over the five years to October 28, 2026, the share price fell 78%, with losses of about 50% in 2022 and 54% in 2025. Heavy debt, $2.37 billion as of August 1, 2026, adds risk when sales slow.
How much debt does RH have?
A lot for its size. As of August 1, 2026, RH had about $2.37 billion of total debt and $125 million of cash and investments, or roughly $2.24 billion of net debt. That is close to its $2.75 billion stock market value as of October 28, 2026. Shareholders' equity (assets minus liabilities) was just $120 million, partly because buybacks reduce equity. That small base makes return on equity (profit divided by equity) look like 205.9%, which says more about the balance sheet than profitability.
Are RH insiders buying or selling the stock?
Mostly selling. Between October 29, 2025 and October 29, 2026, insider filings showed 33 sales worth about $26.5 million and 3 purchases worth about $1.8 million. Thirteen sales were made under pre-arranged trading plans. The largest came from Chairman and CEO Gary Friedman, a 10% owner, including sales of about $6.6 million and $5.1 million on July 6, 2026, outside a trading plan. Insiders sell for many reasons, such as taxes or diversification, so sales alone don't reveal their outlook.