RHNEUTRAL

Gross Margin

41.4%

Higher than 55% of Consumer Cyclical sector peers

Updated 166h ago

Sector Performance

55th percentile

41.4%

Sector Median

36.3%

Sector Avg

30.6%

📊

Deep Analysis

RH’s gross margin of 41.4% means the company keeps $0.414 of every dollar of revenue after covering the direct costs of producing its goods, a key measure of pricing power and cost efficiency.

This figure sits above the Consumer Cyclical sector median of 36.6%, placing RH in the 53rd percentile among its peers—slightly above average but not a standout. The trend is not available because the year-over-year change and quarter-over-quarter change are both listed as N/A, and no historical data beyond the current value of 41.4% is provided. A single data point with no direction makes it impossible to judge whether margin is improving or deteriorating, adding uncertainty to any investment thesis. Given the lack of trend, the current level alone offers a moderate competitive edge over the sector median but does not signal a clear opportunity or red flag. This neutral positioning aligns with the overall NEUTRAL verdict on the stock, as the metric neither strongly supports a bullish nor a bearish case without trend information.

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 36.3%, placing it in the 55th percentile.

Who are RH's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BBY (23.5%), BROS (23.1%), TSLA (21.1%), XPEV (20.6%), BWA (19.2%).

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.