AI-extracted from the 10-Q filed 2026-09-10 — Q2 FY2026 (quarter ended August 1, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
RH's Q2 net revenues rose 2.6% to $922.2M, and gross margin expanded 270 bps to 48.2% largely on $55M of IEEPA tariff refunds, while SG&A surged 20% to 36.5% of revenue.
Biggest Revenue Drivers
RH Segment$867.3M+2.4% YoY
Increase in hospitality revenue as a result of new Gallery openings as well as higher revenue in core business driven by product transformation and platform expansion
Waterworks$54.9M+4.6% YoY
Waterworks net revenues increased compared to prior year quarter
Biggest Revenue Drivers
Total revenue: $922.2M+2.6% YoY
RH Segment$867.3M+2.4% YoY
Increase in hospitality revenue as a result of new Gallery openings as well as higher revenue in core business driven by product transformation and platform expansion
Waterworks$54.9M+4.6% YoY
Waterworks net revenues increased compared to prior year quarter
Largest Expense Items
Selling, general and administrative expenses$337.3M+20.3% YoY
Driven by advertising costs from RH Estates launch, compensation, pre-opening and corporate costs related to new Gallery openings, and $14M expense from VIE restructuring
Cost of goods sold$477.3M-2.6% YoY
Reduced by $55M of IEEPA tariff refunds recognized in cost of goods sold, partially offset by decreased product margins and higher occupancy costs
Interest expense—net$51.0M-11.1% YoY
Lower term loan interest expense and asset based credit facility interest, partially offset by higher finance lease interest expense
Margins: Consolidated gross margin rose 270 bps to 48.2%, primarily from tariff refunds; excluding refunds, core RH product margins decreased. Operating margin fell to 11.7% from 14.3% as SG&A deleveraged sharply.
Watch Items from the Filing
Operating income declined to $107.6M from $128.9M (-16.5%) despite higher revenue, as SG&A growth outpaced gross profit gains.
Q2 net income includes $20M equity method income from the May 2026 Aspen LLC restructuring and $18M non-recurring net benefit from tariff refunds, flattering reported results.
Total net debt of $2.26B and finance lease liabilities grew to $837M non-current, with $256M of signed-but-uncommenced lease commitments ahead.
Adjusted EBITDA was $178.5M versus $185.1M a year earlier, and adjusted operating income fell 10.7%, indicating underlying profitability pressure.
Effective tariff regime remains uncertain; new tariffs are scheduled to expire after 150 days absent Congressional authorization, creating ongoing cost risk.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Rowghani AliReporting ownerGrant or award · Jun 18, 2026
Krane Hilary KReporting ownerGrant or award · Jun 18, 2026
Schlesinger Leonard AReporting ownerGrant or award · Jun 18, 2026
Belling KeithReporting ownerGrant or award · Jun 18, 2026
Mitic Kathleen C.Reporting ownerGrant or award · Jun 18, 2026
Preston Jack MCHIEF FINANCIAL OFFICERGrant or award · Apr 14, 2026
Hargarten ChristinaCHIEF ACCOUNTING OFFICERGrant or award · Apr 14, 2026
Congress trading in RH
7 transactions in RH reported by 4 members of Congress under the STOCK Act, most recent trade Sep 24, 2026. Reported transactions, not recommendations.
About RH (RH): stock profile, AI score and financials
RH (RH) stock profile, AI quality score, and SEC EDGAR financial data, a Consumer Discretionary sector company. 13F Pro's AI-powered ranking engine scores RH at 56.3/100 on a composite quality score built from its SEC filings, placing it at rank #1,166 of 2,925 stocks — the top half of the AI-ranked universe. RH scores in the top quartile across earnings quality (84.8). Areas of concern include institutional flow (34.9), which score below median versus the broader universe. Shareholder dilution risk is elevated at 49.3/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2027), RH reports quarterly revenue of $922.1M, net income of $60.2M, an operating margin of 11.7%. Top institutional holders of RH by reported 13-F value include FMR, BlackRock, Alyeska Investment Group, L.P., based on the most recent SEC filings. RH trades on the NYSE exchange and files with the SEC under CIK 1528849. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate RH daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for RH directly from SEC EDGAR.