From Yahoo Finance: 2025-06-12 17:11:00

RH’s sales growth fell short of expectations, but the retailer still made money in Q1 2025, with adjusted earnings of $0.13 per share. Free cash flow soared to $34.1 million, impressing investors. Despite industry challenges, RH’s success led to a 19% stock surge in after-hours trading.

RH CEO Gary Friedman credited the company’s success to efforts to build a luxury brand across industries and geographies. Despite a challenging housing market, RH outperformed expectations. The company’s positive financial results led to a stock price increase and maintained guidance for revenue growth in 2025.

RH CEO Friedman highlighted the company’s strategic vision, mentioning shifts to less tariff-sensitive production sources. Despite stock declines, investors are optimistic about RH’s future success in the luxury retail market. RH’s focus on maintaining costs and pricing discipline led to a surprise profit in Q1 2025.

Read more: RH Defies Tariffs, Earns Surprise Profit