On February 13, 2026, Kettle Hill Capital Management, LLC disclosed a new position in RH (RH 6.24%).
What happened
According to an SEC filing dated February 13, 2026, Kettle Hill Capital Management, LLC reported acquiring 161,122 shares of RH as a new position. The estimated transaction value for the quarter was $28.87 million, based on the average share price over the period. The quarter-end value of the position was also $28.87 million, reflecting both the new shares and any price movement during the fourth quarter.
What else to know
- This new position represents 6.4% of Kettle Hill Capital Management’s reportable U.S. equity assets as of December 31, 2025.
- Top holdings after the filing include:
- NYSE: ESTC: $29.69 million (6.6% of AUM)
- NYSE: U: $29.06 million (6.5% of AUM)
- NYSE: RH: $28.87 million (6.4% of AUM)
- NASDAQ:PENN: $26.16 million (5.8% of AUM)
- NASDAQ:WYNN: $25.89 million (5.8% of AUM)
- As of February 13, 2026, RH shares were priced at $205.06, down 46.1% over the past year and underperforming the S&P 500 by 57.9 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close February 13, 2026) | $205.06 |
| Market capitalization | $3.85 billion |
| Revenue (TTM) | $3.41 billion |
| Net income (TTM) | $109.93 million |
Company snapshot
- Offers a broad range of home furnishings, including furniture, lighting, textiles, bathware, décor, outdoor and garden products, and specialty lines for children and teens.
- Generates revenue primarily through direct-to-consumer sales via retail galleries, catalogs (Source Books), and multiple branded e-commerce platforms.
- Targets affluent residential customers seeking premium home furnishings and design-driven products in the United States, Canada, and the United Kingdom.
RH is a leading specialty retailer in the home furnishings sector, operating a multi-channel platform that combines luxury retail galleries, curated catalogs, and digital commerce. The company leverages a differentiated product assortment and immersive showroom experiences to drive customer engagement and brand loyalty.
What this transaction means for investors
Kettle Hill took a relatively aggressive position when it bought RH. The fund did not hold a position in the upscale home furnishing retailer in Q3, making it notable that it is now the fund’s third-largest position.
However, the company, formerly known as Restoration Hardware, experienced a sharp decline in its stock price after the 2021 bear market ended. Also, rather than bottoming in 2022, it traded in a range until it took another sharp turn downward in early 2025 before resuming its range-bound trading.
NYSE: RH
Key Data Points
Fortunately for Kettle Hill, conditions are such that this stock may have become a buying opportunity. In the first nine months of fiscal 2025 (ended Nov. 1), its revenue rose by 10%. Moreover, the net income of $96 million increased by 64% yearly as it kept its cost and expense growth in check.
Additionally, while its P/E ratio of 37 might still seem high, its forward P/E of 20 increases the likelihood that the declines will stop soon, possibly pointing to a long-awaited recovery in this retail stock.
