Key Takeaways
- RH reported a first-quarter profit, surprising analysts who were anticipating a loss. Revenue also exceeded forecasts.
- The high-end home furnishings retailer also maintained its full-year guidance despite the expected negative impacts of tariffs.
- RH said it was taking steps to offset the tariff effects.
Shares of RH (RH) soared 20% in premarket trading Friday, a day after the high-end home furnishings retailer posted a surprise profit and announced steps to offset the effects of new tariffs.
The company formerly known as Restoration Hardware reported first-quarter adjusted earnings per share of $0.13, while analysts surveyed by Visible Alpha were looking for an adjusted loss of $0.07 per share. Revenue jumped 12% year-over-year to $814.0 million, slightly below estimates.
CEO Gary Friedman wrote in a letter to shareholders that RH was especially pleased with its performance in England and the rest of Europe.
Friedman also said that the company was maintaining its full-year guidance despite “the speculative and uncertain outcome related to tariffs and the macroeconomic environment,” including a weak housing market. Friedman explained that in response, RH was “delaying the launch of the new concept that was planned for the second half of 2025 to the Spring of 2026 when there is more certainty regarding tariffs.” In addition, the company will continue to shift sourcing out of China, and “resourced a significant portion of our upholstered furniture to our own North Carolina factory.”
Friedman noted that because the tariffs have disrupted global shipments and resourcing, it is reducing its revenue outlook by 6 percentage points in the current quarter. However, the company anticipates making that up in the second half of the year. RH sees 2025 revenue up 10% to 13%.
Shares of RH have lost more than half their value this year entering Friday trading.
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