Rh

0KTF.L

Specialty Retail · Consumer Cyclical

Price

155.95 GBp

+0.34 (+0.22%)

Market Cap

£2.93B

Exchange

London Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Apr 30, 2026

How the score breaks down

Quality

Good

Growth

Good

Cash Flow

Strong

Stability

Weak

Valuation

Strong

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Share count falling — buybacks

−36.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 31.1M (2022) → 19.8M (2026)

Winston Score History

The full picture

RH (formerly Restoration Hardware) sells high-end furniture, lighting, textiles, and home décor. Its customers are wealthy adults furnishing their homes, and it sells through large showrooms it calls "Galleries," as well as through thick printed catalogs and its website. RH operates in the luxury home furnishings market in the United States and Canada, with a small presence in Europe.

The company makes money by selling products directly to customers, both in stores and online, and charges an annual membership fee that gives members access to discounted prices. RH has built a moat around its brand by targeting affluent shoppers and creating large, design-focused showrooms that feel more like museums than furniture stores. However, the business is sensitive to the housing market — when people buy and sell fewer homes, they spend less on furniture — and rising interest rates in recent years have slowed housing activity, which remains a key risk to revenue growth.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-269.8% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

26.4%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$173M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Rh's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

41.4%

Healthy — 41.4% gross margin

Profit after running costs

Operating Margin

8.1%

Modest — 8.1% operating margin

Return on the money invested

ROCE

15.3%

Strong — 15.3% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+4.8%

Slow sales growth (+4.8% YoY)

Profit growth

EPS YoY

+20.9%

Earnings growing fast (+20.9% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

406%

Turns 406% of profit into real cash

Spare cash per sale

FCF Margin

6.8%

Modest free cash flow (6.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

44.82

Heavy debt load (44.82)

Covers its interest

Interest Cover

1.79x

Dangerous — barely covers interest (1.8x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

27.9x

Growth-priced — P/E 27.9

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+14.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (27.9 → 13.5)

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Dividends

Not applicable for this business.

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