RH (RH) Q1 2025 earnings

Shares of RH jumped more than 15% in extended trading Thursday, as the company stuck by its sales forecast and said it is taking steps to offset higher costs from tariffs.

The luxury furniture retailer said it expects full-year revenue to grow by 10% to 13%.

Here’s how the company did for the three-month period that ended May 3, compared with Wall Street’s estimates, according to a survey of analysts by LSEG:

• Earnings per share: 13 cents adjusted vs. a loss of 9 cents expected
• Revenue: $814 million vs. $818 expected

RH reported net income in the fiscal first quarter of $8.04 million, or 40 cents per share, compared with a loss of $3.63 million, or 20 cents per share, in the year-ago period.

RH, formerly known as Restoration Hardware, is contending with two major challenges to its business: A sluggish real estate market and higher tariffs. CEO Gary Friedman has described the housing market as the toughest in almost 50 years.

Tariffs, in particular, put the company in a spotlight: Its previous quarterly report coincided with President Donald Trump‘s announcement of sharp tariff increases on China, Vietnam and other countries. Trump has paused and rolled back some of those duties.

Those tariff announcements — along with RH’s weak performance in that quarter — caused the company’s stock to fall by about 40% in April. It also led to some colorful commentary by Friedman on its previous earnings call.

In a letter to shareholders Thursday, Friedman laid out some steps the company is taking to blunt the impact of tariffs. He said the luxury retailer is moving more production out of China and expects its receipts from the country to drop from 16% in the first quarter to 2% in the fourth quarter.

On the company’s earnings call, Friedman said the company expects 52% of its upholstered furniture to be produced in the United States and 21% to be made in Italy by the end of this fiscal year

In the letter, he said the luxury retailer will delay the launch of a new concept until spring 2026, when it hopes to have more certainty about tariffs. It had previously planned the launch for the second half of this year.

Friedman said on the call that RH has pressed ahead with plans to open stores in other countries, including one of the most exclusive retail addresses: Paris’ Champs Élysées. It plans to open the RH Paris store in early September.

So far this year, shares of RH have fallen nearly 55%. That trails behind the roughly 3% gains of the S&P 500 during the same period.