RH (NYSE:RH) shares surged more than 22% intra-day today after the upscale furniture brand defied expectations with an unexpected first-quarter profit, signaling resilience amid economic headwinds.
The company earned 13 cents per share, surprising analysts who had anticipated a loss of 9 cents per share. While quarterly revenue came in slightly below forecasts at $814 million versus the expected $818.1 million, investors were clearly more impressed by RH’s bottom-line performance.
The stronger-than-expected earnings reinforced investor confidence in the company’s ability to navigate a tough retail landscape while preserving profitability. Despite falling short on revenue, RH kept its full-year guidance unchanged, reflecting management’s steady hand and belief in long-term momentum.
However, not all plans are moving forward on schedule. The launch of a new business concept has been postponed to spring of fiscal 2026, pushed back from the originally planned debut in the latter half of fiscal 2025. The delay stems from uncertainty around tariffs, with the company citing the potential for shifting costs as the main reason for holding off.
The stock’s rally underscores the market’s focus on operational strength and cost management, rewarding RH for beating expectations where it mattered most—even as some topline pressures persist.