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RH RH

RH scores weak on business quality (3.8 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$116.99Oct 10, 2026
Business qualityWeak
Next earningsDec 9, 2026
Insiders, 90 daysSelling

Why it matters

  1. What RH does

    RH sells luxury home furnishings through its massive physical galleries and source books, charging affluent consumers premium prices for curated, high-end interior design products.

  2. What it does best

    RH builds immersive physical galleries that command a gross margin of 42.7%, beating Wayfair's 30.1% by a wide margin. This experiential model creates high barriers to entry since replicating these massive, multi-level design showrooms requires immense capital and prime real estate.

  3. The main risk

    A heavy debt load threatens stability as net debt sits at $3.1B against just $41M in cash. With an interest coverage ratio of 1.4x, any prolonged downturn in luxury housing demand leaves little room to service obligations without straining liquidity.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margin stands at 8.7% with a net margin of 3.3%. Profitability contracted significantly from peak historical levels, showing that higher scale is currently failing to drive efficient margin expansion.

MoatFair

The brand locks in affluent consumers through its gallery experience and exclusive aesthetic, reflected in a gross margin ranking in the middle of its sector at the 56th percentile.

GrowthSlow

Revenue grew 8.1% to reach $3.4B, showing a rebound from prior annual declines. This marks a positive acceleration compared to the multi-year history where top-line figures hovered below pandemic-era peaks.

Financial healthWeak

Total debt of $3.2B eclipses cash holdings of $41M, while interest coverage of 1.4x leaves the balance sheet exceptionally vulnerable. Free cash flow recovered to $251M, but overall financial footing remains weak.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $544K outside pre-planned sales.

Our sealed record on RH

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is RH a good business?

RH scores weak on the Cluenex quality check (3.8 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health weak.

Are insiders buying RH?

In the last 90 days of SEC Form 4 filings: 1 sold $544K outside pre-planned sales.

When does RH report earnings?

Dec 9, 2026.

For members

See RH today

  • Today's verdict on RH, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “RH (RH)”, https://cluenex.com/stocks/rh/, data as of Oct 10, 2026.