By Dean Seal

RH swung to a profit in its fiscal first quarter despite the impact of tariffs on spending and the shakiest housing market in decades, pushing its shares higher after hours.

The furniture retailer posted a profit of $8 million, or 40 cents a share, for the quarter ended May 3. That stacks against a loss of $3.6 million, or 20 cents a share, in the comparable quarter a year earlier. Analysts polled by FactSet had been expecting another loss.

Adjusted earnings, which strip out one-time items, were 13 cents a share. Analysts had been bracing for an adjusted loss of 9 cents a share.

RH's stock surged 19% to $211 in late trading. Shares had fallen 55% year-to-date through Thursday's close.

Revenue for the quarter was up 12% at $814 million, missing analyst forecasts for $818.6 million, according to FactSet.

The company said its investments in elevating and expanding its products delivered market share gains during the quarter.

RH warned that tariffs, market volatility, inflation risk and a rise in global discord have made for a risky business environment ahead. There were also fewer homes sold in the U.S. last year than there were in 1978, despite a big jump in population, Chief Executive Gary Friedman said.

"The fact is, we've been operating in the worst housing market in almost 50 years," Friedman said.

The company is sticking by its guidance for revenue to grow 10% to 13% this year, with an assumption that current tariff rates won't change. It has been shifting its sourcing away from China and expects its vendors to absorb a meaningful portion of the new levies.

RH has also delayed the launch of a new store from the second half of the year to the spring of 2026, "when there is more certainty regarding tariffs," the CEO said.

Friedman also said that President Trump's Liberation Day tariffs disrupted shipments and resourcing efforts globally and will likely hurt revenue by about 6 percentage points in the current quarter. That revenue should be recovered in the second half of the year, he said.

RH is guiding for revenue to be up 8% to 10% in the current quarter.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

June 12, 2025 16:57 ET (20:57 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.