Q1 2026 RH Earnings Call Transcript
Key Points
- RH (RH) exceeded expectations with first quarter revenues of $800.3 million and an adjusted EBITDA of 7.1%, prompting an upward revision of their fiscal year 2026 outlook.
- The company is planning a significant international expansion with the openings of RH Paris, Milan, and London, which are expected to enhance global brand recognition.
- RH (RH) is introducing RH Estates, a new concept aimed at the high-end luxury market, which is expected to contribute significantly to revenue growth in the second half of the year.
- The company is launching RH Bespoke furniture and RH Couture upholstery, offering unprecedented customization options for designers and architects.
- RH (RH) is implementing a new loyalty program to incentivize trade clients, aiming to further strengthen its trade business, which has been outperforming in recent years.
- The company is facing a negative impact on adjusted EBITDA margin due to pre-opening and start-up costs associated with international expansion.
- There are concerns about the economic environment, which could affect RH (RH)'s ability to achieve its growth targets, especially if there are significant external economic disruptions.
- The company is navigating through a challenging housing market, which has been in a downturn for an extended period, potentially impacting sales.
- RH (RH) is making significant investments in new galleries and international markets, which may not yield immediate returns and could pressure short-term financial performance.
- The company acknowledges that there will be some level of cannibalization as they expand their market with new products and concepts.
Hello, and welcome to the RH First Quarter Fiscal 2026 Earnings Call.
All lines have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question-and-answer session.
If you would like to ask a question during this time.
Please press *, then the number one on your telephone keypad.
I would now like to turn the conference over to Allison Mulkin of ICR. Allison, please go ahead.
Thank you. Good afternoon, everyone.
Thank you for joining us for our first quarter fiscal 2026 earnings call. Joining me today are Gary Friedman, Chairman and Chief Executive Officer and Jack Preston, Chief Financial Officer. Before we start, I'd like to remind you of our legal disclaimer that we will make certain statements today that are forward-looking within the meaning of the federal securities laws, including statements about our outlook, our business and other matters referenced in our press release issued today.
These forward
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