RHNot HalalF
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Compliance Status

Not Halal

Screened on Oct 13, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Rh (RH) halal? Not Halal. Based on AAOIFI screening, Rh passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Rh (RH) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 13, 2026. Source: https://halalscreener.app/en/stock/RH

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

109.8% of 30.0% limit
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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding RH

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

Rh

RH: Is Rh Halal?

Rh

NYSEConsumer CyclicalUS

$112.99

Market Cap: 2.1B

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About Rh

RH, along with its various associated businesses, functions as a prominent retailer specializing in home furnishings. Its extensive product portfolio spans categories such as furniture, lighting, textiles, bathware, decor, outdoor and garden essentials, and specialized furnishings for children and teens. The company reaches its clientele through diverse sales channels. These include its distinctive retail galleries, the curated 'Source Books' catalogs, and an extensive online presence via rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com. As of January 29, 2022, RH maintained a significant physical footprint, comprising 67 RH Galleries and 38 RH outlet stores spread across 30 U.S. states, the District of Columbia, and Canada. Furthermore, it managed 14 Waterworks showrooms throughout the United States and the United Kingdom. Historically, the enterprise was known as Restoration Hardware Holdings, Inc. before its rebranding to RH in January 2017. RH was founded in 2011 and its corporate headquarters are situated in Corte Madera, California.

Sector: Consumer Cyclical · Industry: Specialty Retail

Why this does not pass

  • Interest-bearing debt is 109.8% of market cap, over the 30% AAOIFI limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 13, 2026

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Screened according to AAOIFI Standard 21

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR
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Frequently Asked Questions

Is Rh (RH) halal to invest in?
Rh (RH) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Rh get a F compliance rating?
Rh (RH) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 109.8% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Rh's Shariah verdict?
Rh's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Rh re-screened for Shariah compliance?
Rh (RH) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 13, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.