RH Stock: Is This Russell 2000 Retailer a Buy Ahead of Q1 Earnings?

RH (RH), a high-end home furnishings retailer and a Russell 2000 constituent, is set to report its first-quarter earnings on June 12. With the stock trading well below its 52-week high and investors eyeing signs of a demand rebound in the luxury housing and renovation market, the upcoming results could be a key inflection point. Overall, Wall Street analysts remain cautiously optimistic about RH stock ahead of the earnings release, though several have lowered their price targets.

For context, the Russell 2000 Index (IWM) is a stock market index that tracks the performance of 2,000 small-cap U.S. companies.

What to Expect from RH’s Q1 Earnings

Wall Street expects RH, formerly known as Restoration Hardware, to report a Q1 loss of $0.09 per share on revenue of $818.5 million. While still in the red, this would represent an improvement from the same quarter last year, when RH posted a loss of $0.40 per share on $727 million in revenue.

RH stock has taken a hit from Trump’s tariffs, which continue to weigh on investor sentiment. In the upcoming earnings, investors will be closely watching for any signals that RH can mitigate tariff-related pressures or improve margins, easing concerns around long-term profitability.

For context, RH stock took a major hit following Trump’s ‘Liberation Day’ announcements, plunging 40% in a single day back in April. With a significant portion of its goods sourced from Asia, RH remains exposed to import tariffs. In response, the company has emphasized efforts to diversify its supply chain.

Analysts Cut Price Targets on RH Stock

Yesterday, Telsey Advisory Group’s Cristina Fernandez reduced RH’s price target from $280 to $255 while maintaining a Buy rating. Ahead of RH’s Q1 earnings, Fernandez flagged ongoing market volatility and tariff-related pressures as key uncertainties. Nonetheless, she remains optimistic about the company’s outlook, citing solid demand trends, resilience against tariff headwinds, and expected improvements in RH’s balance sheet as inventory levels decline.

Before this, UBS’ five-star-rated analyst Michael Lasser also reduced his price target from $235 to $215 last week while keeping his Hold rating. Meanwhile, Citi reiterated its Hold rating on RH stock.

What Is the Price Target for RH?

Overall, analysts have a Moderate Buy consensus rating on RH stock based on 10 Buys, six Holds, and one Sell assigned in the last three months. The average RH stock price target of $273.47 implies a 48% upside potential on current levels.

See more RH analyst ratings