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First-quarter fiscal 2026 revenue was $800.3 million, and adjusted EBITDA margin was 7.1%; management said both exceeded the high end of expectations. The quarter included about $75 million of back order and special order balances above last year, mainly tied to tariff-related resourcing. For fiscal 2026, RH raised guidance to revenue growth of 4.5%-8%, adjusted EBITDA margin of 14.2%-16%, and adjusted free cash flow of $300 million-$400 million, including an approximate -270 bps adjusted EBITDA margin impact from pre-opening and start-up costs for international expansion. Second-quarter guidance is for revenue growth of 0.5%-2.5% and adjusted EBITDA margin of 11.5%-13%, including an approximate -380 bps impact from pre-opening and start-up costs.

Gary Friedman framed the quarter as validation of RH’s long-term investment cycle, saying the company is building a global luxury platform around three pillars: international flagships, RH Estates, and a new trade-oriented customization program. He argued RH Estates opens a large, underpenetrated part of the luxury home market and that the company is bringing previously trade-only design and quality to a broader customer base. His tone was highly confident and expansive, emphasizing that the brand is “just getting started” and that the new concept could be the company’s biggest move ever.

Jack Preston focused on the math behind the outlook and capital plan. He said the year’s adjusted EBITDA margin includes about -270 bps from pre-opening/start-up costs, and Q2 includes about -380 bps, with the difference versus the annual rate largely transitory in the back half. On cash, he said the guidance does not include any further tariff refunds, and on the balance sheet management reiterated that asset sales of $200 million-$250 million a year over the next two years remain part of the path toward being debt-free by 2029.

Analysts pressed on whether RH Estates’ back-half sales contribution and margin profile were realistic, and management pointed to the already-existing $75 million of backlog/special orders that should “flop over” into the second half. Questions also focused on whether RH needs to change its customer-acquisition model; Friedman said the company’s physical platform still works better than heavy reliance on influencers or digital tactics, and that RH has outperformed peers using its current playbook. On balance sheet and deleveraging, management reiterated debt-free by 2029 is still a priority, supported by asset sales, lower spending, and business growth.