RH: Promotional Email March Madness

   04 Apr 2026

Restoration Hardware (RH) reported worse than expected sales, earnings and provided a tepid outlook.

Since our system uncovered and alerted investors to the inflection in late January, shares have collapsed 50%.

Most aligned with our process, RH guided Q1 revenues nearly $90 mm below consensus. Our promotional ensemble revealed a reversal in the controlled promotional volumes we tracked late last year. This Spring, we uncovered rapidly ramping campaign volumes and discounting language. Instead of 1-2 campaigns a week, in March we tracked near daily push offers.

Intensity also ramped, with our systems capturing escalating language with more 70% discounts, culminating in near daily offers the past 14 days.