RH Stock Surges 18% on Strong Q1 Profit, Maintains 2025 Growth Outlook

Shares of luxury home furnishings retailer RH surged between 14% and 20% following a strong first-quarter profit report and reaffirmation of its fiscal 2025 outlook despite ongoing challenges from tariffs and a weak housing market. The company reported adjusted earnings per share of $0.13, beating analyst expectations of a loss, while revenue grew 12% year-over-year to $814 million, slightly missing estimates. RH experienced notable demand increases in Europe, with RH England up 47% and combined growth of 60% in RH Munich and Düsseldorf, and plans to open new galleries in Paris, London, and Milan. CEO Gary Friedman highlighted efforts to mitigate tariff impacts by shifting sourcing away from China and increasing domestic production, even as the company delayed some expansion plans to 2026 due to tariff uncertainties. Despite the positive earnings and growth outlook, RH's stock remains down significantly over the year, reflecting broader market challenges. The consensus among brokerage firms rates RH as an outperform with an average price target suggesting further upside potential.