RHCAUTIOUS

RH Gross Margin Analysis

41.4%

Higher than 58% of Consumer Cyclical sector peers

Updated 275h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after covering the direct costs of making its products, so 41.4% means RH retains $0.414 on every dollar of sales before other expenses.

Sector Performance

58th percentile

41.4%

Sector Median

34.2%

Sector Avg

27.7%

Prior Period

42.9%(May 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after covering the direct costs of making its products, so 41.4% means RH retains $0.414 on every dollar of sales before other expenses.

That figure is above the sector median of 33.8%, placing RH in the 59th percentile among its consumer cyclical peers. The trend cannot be assessed because both the year-over-year and quarter-over-quarter changes are N/A, leaving no recent trajectory to confirm whether this margin level is improving or eroding. With a margin that is healthy relative to peers but no trend data to show stability, the investment risk is elevated: current profitability looks solid, but its durability is unverified. This metric does not directly contradict the overall CAUTIOUS verdict, but it also does not provide evidence to move away from caution, as the missing trend leaves a material gap in assessing future earnings power.

Frequently Asked Questions

What does the Gross Margin tell investors about RH?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does RH's Gross Margin compare to its sector?

RH's Gross Margin of 41.4% compares to a Consumer Cyclical sector median of 34.2%, placing it in the 58th percentile.

Who are RH's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: CHWY (30.1%), W (30.0%), JACK (29.9%), ROST (29.6%), CAVA (25.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.