RH Q3 Earnings: Revenue, EPS Miss Estimates, Shares Soar On Strong Guidance, Accelerating Demand

RH RH reported financial results for the third quarter Thursday after the bell. Here’s a rundown of the report.

Q3 Earnings: RH reported third-quarter revenue of $811.73 million, missing the consensus estimate of $812.16 million, according to Benzinga Pro. The luxury retailer reported third-quarter adjusted earnings of $2.48 per share, missing analyst estimates of $2.65 per share.

Despite reporting headline numbers that fell short of analyst estimates, RH shares are soaring after hours on what appears to be a reaction to strong guidance.

RH raised revenue guidance across the board based on current trends. The company expects fourth-quarter demand growth of 20% to 22%, and fourth-quarter revenue growth of 18% to 20%.

RH also raised its full-year outlook. The company now expects full-year demand to grow between 9.9% and 10.4%. RH expects full-year revenue growth of 6.8% to 7.2%.

“The positive inflection of our business continued to gain momentum with third-quarter demand increasing 13% despite operating in the worst housing market in 30 years. Our vector is increasing in both magnitude and direction with November demand up 18%, as the most prolific product transformation and platform expansion in the history of our industry continues to unfold,” the company said in a letter to shareholders.

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RH said demand jumped 24% in November and has continued to accelerate in December with demand up 30% month-to-date. The company also provided positive commentary on the impacts of potential tariffs as it continues to move operations out of China.

“We do not expect a negative impact to margins as a result of the most recent communications regarding the potential for increased tariffs in 2025. We have been proactively moving sourcing away from China over the past several years with the expectation of fully exiting the country by the end of the second quarter,” the company said.

RH Price Action: RH shares were up 16.68% in after-hours, trading at $445 at the time of publication Thursday, according to Benzinga Pro.

Photo: Jesse Bridgewater from Pixabay.