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Aug 02, 2025
RH Q2 2025 Earnings Report
RH delivered strong Q2 2025 results, with revenue up 8.4% and net income nearly doubling year over year.
Key Takeaways
RH posted a solid quarter with notable growth in revenue, net income, and profitability margins, supported by strong demand trends and improved operating efficiency.
Revenue increased 8.4% to $899.2M despite macroeconomic pressures.
Net income surged 79% to $51.7M, reflecting margin expansion.
Adjusted EBITDA margin improved to 20.6%, up from 17.2% a year ago.
Free cash flow reached $80.7M, driven by strong operational performance.
Revenue by Geographic Location
Forward Guidance
RH revised its FY25 guidance due to tariff uncertainty and delayed product launches but expects continued growth and margin strength.
Positive Outlook
- FY25 revenue growth expected between 9% and 11%
- FY25 adjusted EBITDA margin forecasted at 19% to 20%
- Q3 revenue growth guidance of 8% to 10%
- Reduced China sourcing, increasing U.S. production share
- Robust early performance of RH Paris, boosting European expansion outlook
Challenges Ahead
- $30M expected cost impact from new tariffs in H2
- Delayed new brand extension launch to Spring 2026
- Fall Interiors Sourcebook release delayed by 8 weeks
- 28% of Sourcebooks in-home by end of Q2 vs. 100% last year
- Outlook excludes impact of newly announced furniture tariff investigation
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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