RH’s Q2 2018 Revenue Fails to Meet Analysts’ Expectations

RH (RH) earns its revenue from both direct sales and store sales. During the second quarter, direct sales generated 44% of its total revenue, while store sales generated 56%. During the quarter, the company posted adjusted revenue of $642.7 million, which fell short of analysts’ expectation of $661.0 million. During the quarter, the revenue from the RH segment increased by 4.1% to $607.6 million driven by the introduction of new product categories, the timing of sourcebook mailings, and strong sales from the RH Outdoor product line.