RH (NYSE:RH) stock fell more than 6% on Friday after the luxury home furnishings retailer issued weaker-than-expected second-quarter revenue guidance, overshadowing first-quarter results that topped Wall Street estimates and a higher full-year sales outlook.



<h2>Earnings Top Expectations</h2>



RH reported a first-quarter loss of $1.97 per share, beating analysts’ estimates for a loss of $2.11 per share. Revenue rose to $800.3 million, ahead of the consensus estimate of $792.8 million.



RH projected second-quarter revenue of $903.6 million to $921.6 million, below the Wall Street consensus estimate of $937.8 million.



Despite the softer quarterly outlook, RH raised its fiscal 2026 revenue guidance. The company now expects full-year sales of $3.594 billion to $3.715 billion, up from its prior forecast of $3.577 billion to $3.715 billion. The updated range compares with the analyst estimate of $3.619 billion.



<h2>RH Analysts Raise Price Forecasts</h2>



Following the results, several analysts increased their price forecasts on the stock.



<ul>
<li>Baird analyst Peter Benedict maintained a Neutral rating and raised his price forecast to $150 from $125.</li>



<li>Wells Fargo analyst Zachary Fadem reiterated an Overweight rating and increased his price forecast to $175 from $160.</li>



<li>Stifel analyst W. Andrew Carter maintained a Hold rating and lifted his price forecast to $130 from $110.</li>
</ul>



<h2>Guggenheim Sees Margin Expansion Ahead</h2>



Guggenheim analyst Steven Forbes reiterated a Buy rating on the stock with a $200 price forecast.



Forbes said RH’s first-quarter performance exceeded expectations and marked the first time since the second quarter of 2023 that results reached the high end of management’s guidance range. He also noted adjusted EBITDA came in about 30% above expectations.



The analyst said RH’s second-quarter guidance and implied second-half outlook support expectations for accelerating market share gains and improving profitability.



Forbes added that RH is nearing the end of a major product refresh cycle, including the upcoming RH Estates launch, while international expansion efforts, including the planned opening of RH London in Mayfair, could serve as important catalysts. As a result, he said the next 12 months “could reshape the consensus investment narrative” around the company.



Photo via Shutterstock

RH stock fell over 6% due to weak Q2 revenue guidance, despite beating Q1 earnings and raising full-year sales outlook. Analysts raised price targets, with Guggenheim highlighting margin expansion and upcoming catalysts like the RH Estates launch and London opening as potential drivers to reshape the investment narrative over the next year.

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Stifel Financial

WELLS FARGO & COMPANY DP SHS REP 1/1000TH INT NCUM PFD CL A DD

WELLS FARGO & COMPANY 7.5% PERP CONV PRF CLS 'A' SERIES 'L'

WELLS FARGO & COMPANY DEP SHS REP 1/1000 INT PER PFD SER Y A

WELLS FARGO & COMPANY DP SHS REP 1/1000TH INT NCUM PFD CL A CC

WELLS FARGO & COMPANY 4.75% DEP SHS 1/1000 NCUM PFD CL A SR Z

WELLS FARGO & COMPANY DEP SHS REP 1/1000TH INT PFD SR AA (CLA)

STIFEL FINANCIAL CORP 6.125% DEP SHS REP 1/1000 NON CU PF SR C

Stifel Financial Pref Share SFB 5.2 10/15/47

STIFEL FINANCIAL CORP 6.25%NON CUM DEP SHS REP 1/1000TH SER B

STIFEL FINANCIAL CORP 4.50% DEP SHS REP 1/1000TH PREF SHS SR D

RH Could Rewrite Its Investment Narrative Over The Next Year, Analyst Says