RH (RH) Q2 results: What to expect

Luxury furniture retailer RH (NYSE:RH) will report earnings tomorrow after the market closes. Here's what investors should know.

RH met analysts' revenue expectations last quarter, reporting revenue of $727 million, down 1.7 percent year over year. It was a weak quarter for the company, which missed analysts' earnings and gross profit estimates.

Is RH a buy or sell given its earnings performance? Read our full analysis for free here.

This quarter, analysts expect RH's revenue to rise 3.7% year over year to $829.8 million, reversing the 19.3% decline from the year-ago quarter. Adjusted earnings are expected to be $1.83 per share.

The majority of analysts covering the company have confirmed their estimates over the past 30 days, indicating that they expect the company to stay on course and remain profitable. RH has missed Wall Street's revenue estimates three times in the past two years.

If we look at RH's competitors in the furniture retail space, some have already reported their second-quarter results, giving us an indication of what to expect. Sleep Number's revenue fell 11% year over year, missing analysts' expectations by 1.9%, and Williams-Sonoma reported a 4% decline in revenue, missing estimates by 1.2%. Sleep Number rose 19.4% after the results were released, while Williams-Sonoma fell 3%.

Read our full analysis of Sleep Number’s results here and Williams-Sonoma’s results here.

Growth stocks have been quite volatile since the start of 2024, and while some furniture retailer stocks have performed a little better, they have not been spared. Share prices have fallen an average of 3% over the past month. RH has lost 6.6% over the same period and is moving into profitability with an average analyst price target of $300.9 (compared to the current share price of $243.1).

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