Shares of luxury furniture retailer RH (NYSE: RH) soared 19.86% in after-hours trading on Thursday following the release of its first-quarter fiscal 2025 results, which significantly surpassed analysts' expectations despite ongoing challenges in the retail sector.

RH reported adjusted earnings of $0.13 per share for Q1, beating the analyst consensus estimate of a $0.09 loss and marking a substantial improvement from the $0.40 per share loss reported in the same period last year. While quarterly sales of $813.95 million slightly missed the estimated $818.12 million, it still represented an impressive 12% increase year-over-year.

Investors were particularly encouraged by RH's decision to maintain its full-year 2025 guidance, projecting revenue growth of 10-13% despite headwinds from tariffs and what CEO Gary Friedman described as "the worst housing market in almost 50 years." The company also provided a positive outlook for Q2, forecasting revenue growth of 8-10%. RH's resilience in the face of global supply chain disruptions was further demonstrated by its efforts to shift sourcing away from China, with the company expecting to reduce its receipts from China from 16% in Q1 to just 2% by Q4, mitigating potential tariff impacts.