Shares of RH (formerly Restoration Hardware) surged 19.83% in after-hours trading on Thursday following the release of its first-quarter fiscal 2025 results. The luxury home furnishings retailer reported a surprise profit and maintained its full-year guidance, despite facing challenges from tariffs and global supply chain disruptions.

RH posted adjusted earnings of $0.13 per share for the quarter, significantly beating analysts' expectations of a $0.09 per share loss. This marks a substantial improvement from the $0.40 per share loss reported in the same period last year. Revenue rose 12% year-over-year to $814 million, slightly below the consensus estimate of $818.12 million.

Despite the ongoing uncertainties in the global trade environment, RH maintained its fiscal year 2025 revenue growth guidance of 10% to 13%. The company also provided Q2 revenue growth guidance of 8% to 10%, demonstrating confidence in its near-term prospects. However, RH announced it would delay the launch of a new concept originally planned for the second half of 2025 to the spring of 2026, citing the need for more certainty regarding tariffs. In response to these challenges, the company is actively shifting its sourcing away from China, projecting that only 2% of its receipts will come from China by Q4, down from 16% in Q1. Additionally, RH is increasing its domestic production, with 52% of upholstered furniture expected to be produced in the United States by the end of fiscal 2025.