RH (RH) Q2 2025 earnings

Shares of RH fell slightly Friday after the luxury furniture retailer significantly missed revenue expectations in its fiscal second-quarter earnings report and slashed its full-year revenue outlook.

The chain said Thursday that it will take another $30 million hit to its forecast because of tariffs, even though the retailer stood by its full-year projection three months ago in its fiscal first-quarter earnings report.

It now sees full-year revenue up 9% to 11%, compared with a prior outlook of 10% to 13%, and adjusted earnings before interest, taxes, depreciation and amortization margins of 19% to 20% compared with previous estimates of 20% to 21%.

RH reported revenue of $899 million compared with Wall Street estimates of $905 million. The company also delayed the introduction of its Fall Interiors Sourcebook by roughly two months as it waited to finalize pricing depending on tariff announcements.

“We now expect approximately $40 million in revenues to shift out of Q3 and into Q4 and Q1 2026,” CEO Gary Friedman wrote in a letter to shareholders.

The company is also facing uncertainty as President Donald Trump has threatened to put new tariffs on imported furniture.

In late August, the president said his administration was conducting a 50-day investigation to establish a yet-to-be-determined tariff rate on imported furniture. The move is meant to “bring the furniture business back” to the U.S., Trump added at the time.

“Just when you might have thought the tariff conversation was complete, the announcement of a new furniture investigation and the possibility for additional furniture tariffs, on top of existing furniture tariffs, and incremental steel and aluminum tariffs were introduced with the goal of returning furniture manufacturing back to America,” Friedman wrote. “We believe most in our industry hope that this investigation surfaces the difficulty of that task, as current manufacturing for high quality wood or metal furniture does not exist at scale in America.”

RH’s fiscal second-quarter earnings report, including its significant global tariffs hit, did not include any estimates of what changes the company might see if Trump follows through with the furniture tariff. The company is continuing to shift operations out of China and searching for alternatives to its India manufacturing.

“While there remains uncertainty until tariff investigations are complete, we have proven we are well positioned to compete favorably in any market condition,” Friedman wrote.