RH Stock Surges On Q1 Earnings Beat Despite 'Worst Housing Market' In 50 Years

RH RH reported first-quarter financial results after the market close on Thursday that included a surprise earnings beat, sending shares higher.

Q1 Earnings: RH reported first-quarter revenue of $813.95 million, missing the consensus estimate of $818.12 million, according to Benzinga Pro. The luxury retailer reported first-quarter adjusted earnings of 13 cents per share, surpassing analyst estimates calling for a loss of nine cents per share.

Total revenue was up 12% on a year-over-year basis despite the “polarizing impact” of tariff uncertainty and “the worst housing market in almost 50 years.” RH noted its substantial investments aimed at elevating and expanding the company’s product and platform resulted in significant share gains and strategic separation.

“While we expect a higher risk business environment this year due to the uncertainty caused by tariffs, market volatility, inflation risk, and an increasing level of global discord, we believe it's important to separate the signal from the noise,” the company said in a letter to shareholders.

“Despite that fact, we are performing at a level most would expect in a robust housing market.”

Outlook: RH anticipates second-quarter revenue growth of 8% to 10%, and full-year 2025 revenue growth of 10% to 13%.

RH expects to generate $250 to $350 million of free cash flow in 2025. The company estimated that its adjusted capital expenditures will decrease to a range of $200 million to $250 million in 2026, and $150 to $200 million in 2027 and beyond.

“Due to the significant and unexpected Liberation Day Tariffs announced on April 2nd, shipments and resourcing efforts were disrupted globally. We believe the disruption will negatively impact revenues by approximately 6 points in the second quarter and will be recovered in the second half, which is reflected in our outlook,” the company said.

RH’s management team will further discuss the quarter on a conference call with investors and analysts at 5 p.m. ET.

RH Price Action: RH shares were up 19.41% in after-hours, trading at $211.20 at the time of publication on Thursday, according to Benzinga Pro.

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