RH Defies Tariffs, Earns Surprise Profit
Here's our initial take on RH's (NYSE: RH) fiscal 2025 first-quarter financial report.It's been a tough environment for retailers across the industry in 2025, given all the pressures they've seen. Between macroeconomic weakness and industry-specific tariff issues, RH investors were simply hoping to see some signs of recovery from the luxury home furnishings retailer.Instead, what they got was a blowout quarter. Sales growth of 12% was respectable, even though it fell slightly short of what most analysts following RH had expected to see. But the big news was RH's adjusted net income of $2.6 million, which worked out to $0.13 per share. Most investors believed that RH would lose money, so the success in keeping costs under control and maintaining pricing discipline was particularly significant.Continue reading

Here's our initial take on RH's (NYSE: RH) fiscal 2025 first-quarter financial report.
It's been a tough environment for retailers across the industry in 2025, given all the pressures they've seen. Between macroeconomic weakness and industry-specific tariff issues, RH investors were simply hoping to see some signs of recovery from the luxury home furnishings retailer.
Instead, what they got was a blowout quarter. Sales growth of 12% was respectable, even though it fell slightly short of what most analysts following RH had expected to see. But the big news was RH's adjusted net income of $2.6 million, which worked out to $0.13 per share. Most investors believed that RH would lose money, so the success in keeping costs under control and maintaining pricing discipline was particularly significant.