RH Beats Profit Forecasts, Unveils Estates Collection to Expand Market

RH, the luxury home furnishings retailer, reported second-quarter fiscal 2026 results that significantly exceeded profit expectations but fell slightly short of revenue forecasts, sending its stock higher in premarket trading. The company also unveiled a new product line it believes can dramatically expand its market. The company's adjusted earnings per share were $2.70, substantially beating the analyst consensus of $1.78. Quarterly revenue increased 2.6% from the prior year to $922.2 million, which was marginally below the $936.25 million forecast. Following the announcement, shares climbed nearly 9% in premarket trading, touching $146.00. The most significant development was the introduction of the RH Estates collection, a traditional and classic furniture line launched between late June and mid-July. Management believes this collection has the potential to double the company's total addressable market, noting that more than 60% of luxury homes in North America feature traditional or classic architecture. The company projects the Estates line will account for half of its complete product portfolio within five years. The quarter also included a $55.