RH keeps margin targets steady despite tariff risks, betting on global expansion and U.S. production shift to cushion the impact.
RH eyes 20-21% EBITDA margin in FY25 as global growth, sourcing shifts and pricing moves offset housing headwinds.
RH's stock slids 23%, but rising EPS estimates and global expansion hint at long-term growth potential ahead.
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Despite recent volatility and high leverage, I remain confident in RH's long-term growth potential, supported by strong Q1 earnings and resilient revenue growth. RH's brand transformation is driven by international expansion, domestic capital-light models, and ecosystem enhancements, positioning the company for future cash flow growth. My projections show RH can meaningfully deleverage over the next 3-5 years as free cash flow increases and capital expenditures decline.
RH jumps 20.3% post-earnings as upbeat guidance, margin gains and strong global demand offset a slight Q1 revenue miss.
Note: RH FY'24 ended on February 1, 2025
RH (NYSE:RH) shares surged almost 20% premarket after the luxury furniture store's first quarter earnings impressed investors and it reaffirmed its full-year outlook despite challenges in the housing market and tariff uncertainty. The company posted earnings per share of $0.13 for the quarter, an improvement from a loss per share of $0.40 and significantly beating estimates of a loss per share of $0.07.
RH (NYSE:RH ) Q1 2025 Earnings Conference Call June 12, 2025 5:00 PM ET Company Participants Eri Chaya - President, Co-Chief Merchandising & Creative Officer and Director Gary G. Friedman - Chairman & CEO Jack M.
RH shares jumped as the company said it is taking steps to offset the effects of tariffs. The company topped Wall Street's first-quarter earnings expectations but missed sales estimates.
RH's fiscal first-quarter results are likely to reflect revenue growth, driven by product expansion and global rollout, despite margin headwinds.
Get a deeper insight into the potential performance of RH (RH) for the quarter ended April 2025 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.