RH (NYSE: RH) shares skyrocketed 19.83% in after-hours trading on Thursday following the release of its first-quarter fiscal 2025 results, which surpassed analysts' expectations despite ongoing challenges in the retail sector.
The luxury home furnishings company reported adjusted earnings of $0.13 per share for Q1, significantly beating the analyst consensus estimate of a $0.09 loss. This marked 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 11.97% 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 a challenging housing market. 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, demonstrated by its efforts to shift sourcing away from China, further bolstered investor confidence. The company expects to reduce its receipts from China from 16% in Q1 to just 2% by Q4, mitigating potential tariff impacts.
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