RH 3Q Sales Rise as Furniture Company Works Through Tariff Challenges

Dow Jones12-12
 

By Katherine Hamilton

 

RH recorded higher revenue in the fiscal third quarter and narrowed its sales outlook for the year to the lower end of its previously shared range.

The furniture company on Thursday posted a profit of $36.3 million, or $1.83 a share, in the quarter ended Nov. 1, compared with $33.2 million, or $1.66 a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $1.71, behind the $2.16 anticipated by analysts, according to FactSet.

Revenue rose 9%, to $883.8 million. Analysts surveyed by FactSet forecast revenue of $883.3 million.

Shares rose 11%, to $170.01, in after-hours trading Thursday. Through the close, the stock was down 61% this year.

RH said it expects revenue to grow 9% to 9.2% in the full fiscal year, compared with earlier guidance that revenue would increase 9% to 11%.

In the current fiscal fourth quarter, the company sees 7% to 8% growth, compared with the 10% increase Wall Street is projecting.

RH said tariffs lowered its full-year outlook by 0.9 percentage points, which is the same as what it guided for in September.

There have been 16 different tariff announcements over the past 10 months that have affected RH, the Corte Madera, Calif., company said. The announcements have resulted in product delays, items being out of stock and several rounds of price negotiations and increases, it said.

Earlier this year, RH said it expected some revenue to be delayed until next year because it had pushed a launch while waiting for tariff updates. It said in September it expected $40 million in revenue to shift into the third and fourth quarters.

 

Write to Katherine Hamilton at katherine.hamilton@wsj.com

 

(END) Dow Jones Newswires

December 11, 2025 17:47 ET (22:47 GMT)

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