Investors tracking RH stock in 2026 should monitor earnings growth targets, store expansion milestones, and macroeconomic indicators affecting luxury home spending. The company’s strategic pivot toward digital integration and international presence may drive long-term value.
- RH targets $3.8 billion in revenue by end of 2026, up from $3.1 billion in 2024
- 15 new flagship stores planned, including 5 in international markets by 2026
- Gross margins expected to reach 58% by 2026, up from 56.3% in 2024
- Net income growth forecasted at 15% annually, supported by $600 million buyback program
- International customer base growing to 180,000 by Q3 2025
- P/E ratio of 28.4 exceeds sector median, signaling potential valuation risk
RH’s performance through 2026 will hinge on several measurable milestones. The company has committed to achieving 12% annual revenue growth from 2024 to 2026, with a target of $3.8 billion in total revenue by year-end 2026. This projection assumes continued strength in direct-to-consumer sales, which accounted for 78% of total revenue in fiscal 2024. A key driver will be the rollout of 15 new flagship stores, including two in Europe and three in Asia, with the first international locations expected to open in Q2 2025. The company’s margin profile remains a focal point. Gross margins are projected to stabilize at 58% in 2026, up from 56.3% in 2024, driven by supply chain optimizations and higher-margin product launches. Operating expenses are anticipated to rise slightly to 22% of revenue, reflecting investments in e-commerce infrastructure and customer experience enhancements. Net income growth is forecasted at 15% annually, supported by ongoing share buybacks totaling $600 million over the next two years. Market dynamics will also influence RH’s trajectory. A 3% rise in U.S. disposable income and stabilization in interest rates below 5.25% could bolster demand for high-end home furnishings. Conversely, a downturn in housing starts—currently projected to decline 5% in 2026—may pressure sales in the premium segment. Institutional investors are closely watching RH’s ability to maintain brand exclusivity while scaling operations, with over 1.2 million active customers in the U.S. and 180,000 in international markets as of Q3 2025. The broader consumer discretionary sector, particularly home goods, is expected to grow at a compound annual rate of 4.7% through 2026. RH’s ability to outperform this average will depend on execution of its omni-channel strategy and product innovation cycles. Investors should remain cautious on valuation, as the current P/E ratio of 28.4 exceeds the sector median of 21.6.