Shares of Restoration Hardware (RH) soared more than 11% in early trading Friday after the company reported an unexpected profit in the first quarter, easing investor concerns about ongoing tariffs and a sluggish housing market.
The high-end home furnishings retailer posted earnings of $0.13 per share, defying analyst expectations of a $0.05 loss. While revenue came in slightly below forecasts—$814 million versus the $819 million estimate, according to Bloomberg—the stronger-than-expected profit drove investor optimism.
RH also maintained its full-year guidance, projecting net sales growth of 10% to 13%. This steady outlook was welcomed by investors as a sign of confidence, despite ongoing supply chain challenges and delays in product launches linked to tariff uncertainty.
The company noted that tariff-related issues are expected to reduce second-quarter revenue by about 6 percentage points but anticipates a recovery in the second half of the year. As part of its mitigation strategy, RH continues to diversify its supply chain. By year-end, the company expects 52% of its upholstered furniture to be made in the U.S.—primarily at its North Carolina facility—and another 21% in Italy.
The solid results and reassuring forecast signal resilience in RH’s business model, even as macroeconomic headwinds persist.
