RH
RH Inc. (Restoration Hardware)
Is RH Halal?
Luxury home furnishings are generally permissible, but finance debt and leases fail the latest total-assets screens.
What You Should Know
RH's May 2, 2026 filing reports 64.25% interest-bearing debt/assets, 1.09% identifiable liquidity/assets and 2.55% receivables-plus-cash/assets. Interest income is not separately disclosed. Furniture and décor are generally permissible, while hospitality operations and the highly leveraged financing structure require continuing qualitative review.
⚠️ Concerns
- •Debt/assets is 64.25%, above the examined limits
- •Finance lease liabilities are included in interest-bearing debt
- •Hospitality and restaurant activity requires location-level review
- •Interest income is not separately disclosed
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-05-02; calculated 2026-07-14.
3,178.917 / 4,947.677
53.803 / 4,947.677
126.238 / 4,947.677
- Financial
- Fails
- Overall
- Fails
Debt/assets is 64.25%, above the examined FTSE 33.333% limit; liquidity/assets is 1.09% and receivables plus cash/assets is 2.55%, while interest income remains unavailable.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 64.25%, above the examined MSCI total-assets limit; liquidity/assets is 1.09% and receivables plus cash/assets is 2.55%. This is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 64.25%, above the examined Malaysia SAC 33% financial limit; identifiable liquidity/assets is 1.09%. This is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed reproducible 24- or 36-month market-cap history is not stored; a spot estimate is not substituted.
Business-activity disclosure
RH designs and sells luxury furniture, lighting and home décor, with hospitality and restaurant activities in selected galleries. Household goods are generally permissible, while hospitality operations and financing require qualitative review.
Limitation: The filing does not allocate hospitality or product revenue under a universal Sharia taxonomy and does not separately disclose interest income.
Purification
Interest income is not separately disclosed in the current filing. ZakatInvest does not prescribe a fixed scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from RH's May 2, 2026 Form 10-Q.
- Interest-bearing debt includes the asset-based facility, term loans, real-estate loan and current and non-current finance lease liabilities (3,178.917); operating lease liabilities are excluded.
- Cash is 53.803 and accounts receivable is 72.435; no separate interest-bearing securities are reported.
- Quarterly net revenue is 800.328.
- Interest income is not separately disclosed; the filing reports net interest expense of 52.663 and does not quantify a universal prohibited-revenue numerator.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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