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RH Estates Sparks Buzz: Can Restoration Hardware Crack 60% Of The Luxury Market?

Restoration Hardware, a luxury home furnishings company, reported first-quarter fiscal 2026 revenues of $800.3 million and an adjusted EBITDA margin of 7.1%, both surpassing the upper end of their expectations despite elevated backorder and special order balances largely due to tariff-related resourcing challenges. The company raised its full-year 2026 guidance, projecting revenue growth of 4.5% to 8%, adjusted EBITDA margins between 14.2% and 16%, and adjusted free cash flow ranging from $300 million to $400 million. These figures factor in expected negative impacts from international expansion, including preopening and startup costs estimated to reduce adjusted EBITDA margins by approximately 270 basis points for the full year and 380 basis points in the second quarter. Management outlined a strategic shift focused on expanding within the luxury home furnishings segment by launching RH Estates, a new concept aimed at integrating traditionally trade-only, highly crafted design pieces with the existing RH product suite.