RH (RH) shares fell more than 6% on Friday, and it's one of those days where the market focused on the near-term miss rather than the bigger picture. The luxury home furnishings retailer reported first-quarter results that actually topped Wall Street estimates and raised its full-year sales outlook, but its second-quarter revenue guidance came in below expectations, and that's what investors latched onto.

Here's the math: RH reported a first-quarter loss of $1.97 per share, better than the $2.11 loss analysts were expecting. Revenue came in at $800.3 million, ahead of the $792.8 million consensus. Not bad. But for the second quarter, RH projected revenue between $903.6 million and $921.6 million, below the $937.8 million analysts had penciled in. That's the headline that drove the 6% selloff.

But here's the twist: RH actually raised its full-year 2026 revenue guidance. The company now expects sales of $3.594 billion to $3.715 billion, up from its prior forecast of $3.577 billion to $3.715 billion. The midpoint of that range is above the analyst estimate of $3.619 billion. So the company is essentially saying, "Q2 might be a bit soft, but we're more confident in the back half of the year."

Analysts seem to be buying that story. Several raised their price targets on the stock after the report. Baird's Peter Benedict kept a Neutral rating but bumped his target to $150 from $125. Wells Fargo's Zachary Fadem reiterated Overweight and raised his target to $175 from $160. Stifel's W. Andrew Carter stayed at Hold but lifted his target to $130 from $110.

The most bullish call came from Guggenheim's Steven Forbes, who kept a Buy rating and a $200 price target. Forbes noted that RH's first-quarter performance was the first time since Q2 2023 that results hit the high end of management's guidance range. He also pointed out that adjusted EBITDA came in about 30% above expectations. That's a big beat.

Forbes said RH's second-quarter guidance and implied second-half outlook support expectations for accelerating market share gains and improving profitability. He also highlighted that RH is nearing the end of a major product refresh cycle, including the upcoming RH Estates launch, and that international expansion—like the planned opening of RH London in Mayfair—could serve as important catalysts. His takeaway: the next 12 months "could reshape the consensus investment narrative" around the company.

So while Friday's selloff stings, the underlying story is about a company that's investing through a cycle, refreshing its product line, and expanding globally. If the second half plays out as management expects, today's dip might look like a buying opportunity in hindsight.