<div id="readability-page-1">Guidance boost: RH now expects 2026 revenue growth of 4.5%-8% and $300M-$400M free cash flow, citing stronger-than-expected Q1 performance. Growth drivers: Second-half acceleration is tied to backlog reduction, new store growth, and the RH Estates luxury concept rollout across all galleries. Margin pressures: International expansion preopening costs will cut margins by up to 270 basis points for the year, with Q2 margins also under pressure.</div>

<p>RH raised its 2026 outlook, projecting revenue growth of 4.5%-8% and $300M-$400M free cash flow, driven by stronger-than-expected Q1 results. Growth is expected to accelerate in the second half due to backlog reduction, new store openings, and the RH Estates luxury concept rollout. However, international expansion preopening costs are anticipated to reduce margins by up to 270 basis points for the year, with Q2 margins also facing pressure.</p>

RH lifts 2026 outlook despite Q1 loss and margin pressure