Business
RH Misses Q3 Earnings Estimates Despite Revenue Growth
RH, the luxury home furnishings retailer, released its Q3 2025 earnings report on December 12, 2024, which showed mixed results. The company missed its estimated earnings per share (EPS) by 6.0%, reporting an EPS of $2.48 compared to the consensus estimate of $2.64.
Despite the earnings miss, RH reported a revenue increase of $60.51 million from the same period last year. The actual revenue for the quarter was $811.73 million, which was in line with expectations.
In the previous quarter, RH had beaten EPS estimates by $0.13, leading to a significant 25.0% increase in share price the following day. However, the current quarter’s results did not replicate this success.
Despite operating in what is described as the worst housing market in 30 years, RH managed to defy expectations and maintain its revenue growth. This resilience has been noted positively by market analysts.
Following the earnings report, several analysts have adjusted their price targets for RH. Bank of America raised its price target to $435 from $384, while Telsey Advisory increased its target to $330 from $290.