Restoration Hardware (NYSE: RH) announced its fourth‑quarter and full‑year 2025 financial results on April 1, 2026. The company reported fourth‑quarter revenue of $842.6 million, up 3.7% year‑over‑year, and adjusted earnings per share of $1.53, missing the consensus estimate of $2.22. Net revenues were negatively impacted by approximately $30 million due to higher‑than‑anticipated backorder and special‑order balances tied to tariff‑related resourcing, and an additional $10 million related to adverse weather conditions.
RH’s full‑year 2025 revenue totaled $2.45 billion, a 9.9% increase from the prior year, while adjusted operating income declined 18.2% to $97.15 million, reflecting deliberate investments in global expansion and tariff mitigation. The company’s adjusted EBITDA margin for the quarter was 17.7%, and free cash flow reached $55 million. Management highlighted the impact of tariff‑related costs and weather on revenue, and noted ongoing efforts to reduce inventory and improve supply‑chain resilience.
Looking ahead, RH provided guidance for fiscal year 2026, projecting revenue of $3.58 billion to $3.72 billion and an adjusted EBITDA margin of 14% to 16%. The company also forecast first‑quarter revenue of $781.4 million to $797.7 million, below analyst estimates. These figures illustrate the company’s focus on navigating tariff headwinds while positioning for long‑term growth in a challenging housing market.
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