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RH Grows Revenue and Reaffirms Outlook
RH (NYSE:RH) reported Q1 2025 results on June 12, 2025, with revenue up 12% year over year, adjusted operating margin of 7%, adjusted EBITDA of 13.1%, and free cash flow of $34 million. The company maintained full-year guidance for revenue growth of 10%-13%, adjusted operating margin of 14%-15%, adjusted EBITDA margin of 20%-21%, and free cash flow of $250 million-$350 million, despite significant tariff-driven disruptions and an exceptionally depressed U.S. housing market. This summary dissects key strategic advances in global expansion, pricing and membership strategy, and balance sheet optimization, linking each to explicit management commentary and situational context from this quarter's call.Despite volatile macroeconomic and supply chain conditions, RH's international galleries posted robust demand growth, with RH England's gallery and online business up 47% and 44%, respectively, year over year, and continental European galleries RH Munich and RH Dusseldorf up 60% across two comparables. Management emphasized initial challenges optimizing inventory and assortments for European markets, where five-month lead times on special orders and earlier product localization missteps presented execution friction.Continue reading
RH (NYSE:RH) reported Q1 2025 results on June 12, 2025, with revenue up 12% year over year, adjusted operating margin of 7%, adjusted EBITDA of 13.1%, and free cash flow of $34 million. The company maintained full-year guidance for revenue growth of 10%-13%, adjusted operating margin of 14%-15%, adjusted EBITDA margin of 20%-21%, and free cash flow of $250 million-$350 million, despite significant tariff-driven disruptions and an exceptionally depressed U.S. housing market.
This summary dissects key strategic advances in global expansion, pricing and membership strategy, and balance sheet optimization, linking each to explicit management commentary and situational context from this quarter's call.
Despite volatile macroeconomic and supply chain conditions, RH's international galleries posted robust demand growth, with RH England's gallery and online business up 47% and 44%, respectively, year over year, and continental European galleries RH Munich and RH Dusseldorf up 60% across two comparables. Management emphasized initial challenges optimizing inventory and assortments for European markets, where five-month lead times on special orders and earlier product localization missteps presented execution friction.
