RH (NYSE:RH) Stock Surges on Q3 Results Despite Revenue and EPS Misses

RH (NYSE:RH) has released its financial results for the third quarter of fiscal 2025, delivering a performance that has elicited a notably positive market reaction despite a mixed report relative to Wall Street's expectations. The luxury home furnishings retailer's stock surged in after-hours trading following the announcement, indicating investor focus may be shifting beyond the immediate quarterly figures.

Third Quarter Fiscal 2025 Results

The company reported revenue of $883.8 million for the quarter ended November 1, 2025. This represents a year-over-year increase of 8.9%. However, this figure came in slightly below the analyst consensus estimate of approximately $910.2 million.

On the profitability front, the earnings picture was more challenging. RH posted non-GAAP earnings per share (EPS) of $1.71. This result fell significantly short of the $2.23 per share that analysts had projected, marking a miss of roughly 20.9%.

The key reported figures versus estimates are summarized below:

• Reported Revenue: $883.8 million
  • Vs. Estimate: ~$910.2 million
  • Performance: Miss
• Reported Non-GAAP EPS: $1.71
  • Vs. Estimate: $2.23
  • Performance: Miss

Market Reaction and Forward Guidance

Despite the dual misses on the top and bottom lines, RH's stock experienced a substantial after-hours gain of approximately 10.9%. This positive price action suggests the market had potentially anticipated worse results or is placing greater weight on the company's forward-looking commentary and broader strategic positioning.

A likely contributor to the bullish sentiment is management's revenue guidance for the upcoming fourth quarter. The company projected Q4 revenue of approximately $873.3 million. While this outlook is 2.5% below the current analyst consensus estimate of $895.5 million, it provides a concrete forecast that may have alleviated investor concerns about demand in the high-end home sector. The market's reaction indicates that this guidance, even if slightly conservative, was received as a sign of stability.

Press Release Summary

The earnings results were communicated through a shareholder letter from Chairman and CEO Gary Friedman, published on the company's investor relations website. The release emphasized RH's identity as a global curator in the luxury lifestyle market, operating through its distinctive retail galleries, sourcebooks, and an array of dedicated websites including RH Modern, RH Baby & Child, and Waterworks. The company also highlighted its integrated hospitality experiences within its galleries. Beyond the financial numbers, the release served as a reminder of the brand's strategic focus on controlling its distribution and elevating its customer experience.

Analyst Estimates and Future Periods

Looking ahead, Wall Street's expectations for RH provide context for the company's upcoming challenges. For the current fiscal year 2026, analysts are estimating sales of approximately $3.60 billion. For the crucial fourth quarter (Q4 2026), the consensus revenue estimate stands at about $923.9 million, against which RH has issued its $873.3 million guidance.

For a detailed breakdown of historical earnings, future estimates, and analyst revisions, readers can review the data available on the RH earnings estimates page.

Conclusion

RH's third-quarter report presents a dichotomy: financial results that missed analyst targets paired with a sharply positive market response. The substantial after-hours stock gain implies that investors are interpreting the figures through a lens that prioritizes revenue growth and manageable guidance over the quarterly EPS shortfall. The focus now turns to the company's ability to navigate the luxury market environment and execute on its long-term brand and real estate strategy, as it works to align its profitability more closely with Wall Street's expectations in the coming quarters.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.