By Kelly Cloonan

RH bumped up its revenue and margin forecast for the year as it expects a boost from a new venture focused on luxury home furnishings.

The furniture retailer said Thursday it now expects revenue growth of 4.5% to 8% for the fiscal year, raising the lower end of its prior range of 4% to 8%. The company now expects an adjusted earnings before interest, taxes, depreciation and amortization margin of 14.2% to 16%, compared with 14% to 16% previously.

For the current quarter, RH forecast revenue growth of 0.5% to 2.5%, compared with analyst expectations for 4.6% growth.

The company said it expects the business to accelerate in the second half of the fiscal year given a boost from backlog reduction, new stores and the growth of its new concept RH Estates, a venture focused on luxury products.

The guidance comes as RH reported lower revenue for its latest quarter, dented by higher backorder and special order balances as a result of tariff-related resourcing.

The company said it expects a similar elevated balance in the current quarter, with balances returning to normalized levels by the end of the year.

RH's fiscal first-quarter loss came in at $13.7 million, or 73 cents a share, compared with a profit of $8 million, or 40 cents a share, a year earlier.

Adjusted loss per share was $1.97. Analysts polled by FactSet forecast an adjusted loss of $2.12 a share.

Revenue fell 1.7% to $800.3 million, compared with analyst estimates of $792.6 million.

RH said revenue was hurt by about $45 million tied to higher backorder and special order balances, which were about $75 million higher than the year-ago period due to tariff-related resourcing.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

June 11, 2026 16:48 ET (20:48 GMT)

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