Luxury furniture retailer RH (NYSE:RH) will report earnings tomorrow after the market closes. Here’s what you need to know:

RH beat analysts’ revenue expectations by 0.6% last quarter, reporting revenue of $829.7 million, up 3.6% year-over-year. It was a strong quarter for the company, which impressively beat analysts’ EBITDA estimates and significantly exceeded analysts’ gross margin estimates.

Is RH a buy or sell that affects profits? Read our full analysis here, it’s free.

This quarter, analysts expect RH’s revenue to rise 8.1% year-over-year to $811.8 million, a reversal from the 13.6% decline in the year-ago quarter. Adjusted earnings are expected to be $2.65 per share.

Analysts covering the company have generally reaffirmed their estimates over the past 30 days and expect the company to remain on track toward earnings. RH has missed Wall Street revenue estimates three times in the last two years.

If we look at RH’s competitors in the home furniture retailer segment, some have already reported their third quarter results, which gives us an indication of what we can expect. Williams-Sonoma’s revenue fell 2.8% year-over-year, beating analysts’ expectations by 0.9%, and Sleep Number reported a 9.7% decline in sales, falling 4.3% short of estimates back. Williams-Sonoma rose 25.7% following the results, while Sleep Number also rose 3.5%.

Read our full analysis of the Williams-Sonoma results here and Sleep Number’s results here.

There was positive sentiment among investors in the home furniture retail sector, with share prices rising an average of 8% over the last month. RH is up 15.5% over the same period and is heading towards profitability with an average analyst price target of $339.38 (compared to the current share price of $384.99).

Here at StockStory, we are keenly aware of the potential of thematic investing. Various winners from Microsoft (MSFT) to Alphabet (GOOG) to Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving growth. With that in mind, we’ve identified a relatively unknown, profitable growth stock that’s benefiting from the rise of AI, available to you for FREE via this link.