Financial Performance - Q2 2025 revenues increased by 8.4% to $899.2 million, with net income rising 79% to $51.7 million[3] - Net revenues for Q2 2025 reached $899,151,000, a 8.4% increase from $829,655,000 in Q2 2024[55] - Net income for Q2 2025 was $51,708,000, up 78.6% from $28,952,000 in Q2 2024[55] - Operating income for the six months ended August 2, 2025, was $184,787,000, representing a 22.5% increase from $150,790,000 in the same period last year[55] - Adjusted net income for the three months ended August 2, 2025, was $57,812,000, up from $33,468,000 in the prior year, reflecting a growth of 72.5%[64] - EBITDA for the three months ended August 2, 2025, was $162,727 thousand, an increase from $124,188 thousand in the same quarter of 2024, marking a rise of 31.0%[84] - Adjusted EBITDA for the trailing twelve months ending August 2, 2025, was $598,920 thousand, compared to $231,737 thousand for the same period in 2024, showing a significant increase of 158.5%[88] Cash Flow and Margins - Free cash flow for Q2 2025 was $81 million, with an adjusted operating margin of 15.1% and adjusted EBITDA margin of 20.6%[6] - Free cash flow for the six months ended August 2, 2025, was $114,754,000, compared to a negative $48,034,000 in the same period last year[59] - The adjusted EBITDA margin is forecasted to be 20% in a robust housing market, indicating potential for increased margins and cash flow[40] - Adjusted operating margin for the three months ended August 2, 2025, was 15.1%, compared to 11.7% in the prior year, reflecting an improvement of 29.1%[84] Growth and Expansion - Demand increased by 13.7% in Q2 2025, with a two-year revenue growth of 12% and demand growth of 21%[4][5] - The company plans to open 4 additional Design Galleries in 2025 and anticipates significant growth in Europe following the openings in Paris, London, and Milan[35][36] - The company is focused on global expansion, with plans to open Galleries in Europe and the UK in 2025 and 2026, including locations in RH England, RH Madrid, RH Paris, RH London, and RH Milan[51] - The company aims to create a new market for luxury travel in the $200 billion North American hotel industry through its hospitality initiatives, including RH Guesthouses and luxury yacht offerings[51] Guidance and Projections - Fiscal Year 2025 revenue growth is projected at 9% to 11%, with adjusted operating margin guidance of 13.0% to 14.0%[32] - The company expects a revenue shift of approximately $40 million from Q3 2025 to Q4 2025 and Q1 2026 due to delays in the Fall Interiors Sourcebook[29] - The company forecasts generating $250 to $300 million of free cash flow in 2025, with adjusted capital expenditures expected to decrease to $200 to $250 million in 2026 and $150 to $200 million in 2027 and beyond[41] Risks and Challenges - The company acknowledges risks related to economic conditions, consumer demand, and supply chain uncertainties that could impact future performance[53] - The company is revising its guidance for fiscal 2025 to account for an estimated $30 million cost of incremental tariffs in the second half[27] Inventory and Assets - Total assets increased to $4,697,021,000 as of August 2, 2025, from $4,554,689,000 on February 1, 2025[57] - The company reported a decrease in merchandise inventories to $956,947,000 from $1,019,591,000[57] Shareholder Value - The company repurchased 60% of its outstanding shares post Warren Buffett's 2016 letter and 30% during the housing downturn in 2022-2023, reflecting a strong commitment to long-term shareholder value[42] Product and Market Transformation - The company believes its product transformation plans represent the most significant transformation in the industry, creating a multi-billion dollar opportunity[51] - The company is implementing a Sourcebook mailing strategy to elevate its brand and capitalize on demand trends[51]

CORTE MADERA, Calif.--(BUSINESS WIRE)--RH (NYSE: RH) has released its financial results for the second quarter ended August 2, 2025, in a shareholder letter from Chairman and Chief Executive Officer Gary Friedman, available on the Investor Relations section of its website at ir.rh.com. As previously announced, RH leadership will host a live conference call and audio webcast at 2:00 pm Pacific Time (5:00 pm Eastern Time) today. The live conference call may be accessed by dialing 800.715.9871 or. ...

Company Overview - RH, formerly known as Restoration Hardware, is set to report its earnings after the market closes today, with expectations for an EPS of $3.20 on revenue of $95.51 million, reflecting a 9% year-over-year increase [2][3] - The company anticipates a revenue growth of 8 to 10% year-over-year, driven by investments aimed at expanding product offerings and favorable market trends in the home furnishing sector [3][4] Market Trends - There has been increased demand for home furnishings internationally, particularly in Europe, contributing to additional revenue streams for RH [4] - The high-end retail segment, including RH, has seen positive sentiment among investors, with share prices in the home furnishing retailer segment up about 8% on average over the last month, and RH shares up 9% leading into earnings [10] Competitive Landscape - Peers in the industry, such as Wayfair and Williams Sonoma, have reported strong performance, with Wayfair's stock up 110% year-over-year, indicating a robust consumer demand for furniture [9][12] - Analysts are closely monitoring RH's strategies regarding tariff impacts and sourcing adjustments, as the company has been shifting its sourcing out of China to mitigate potential adverse effects [7][13] Future Outlook - RH plans to enhance its online experience and upgrade its website through 2025, with expectations that this will positively impact future performance [5] - The company is also focused on addressing inflationary pressures and consumer sentiment, which could influence spending patterns in the high-end market [6][8]

Core Insights - RH is set to release its second-quarter earnings results on September 11, with analysts expecting earnings of $3.22 per share, a significant increase from $1.69 per share in the same quarter last year [1] - Projected quarterly revenue for RH is $905.36 million, up from $829.65 million a year earlier [1] Earnings Performance - In the first quarter, RH reported better-than-expected adjusted EPS results and maintained its FY25 guidance despite uncertainties related to tariffs and macroeconomic events [2] - Following the first-quarter report, RH shares fell by 1.7%, closing at $228.93 [2] Analyst Ratings and Price Targets - Wells Fargo analyst Zachary Fadem maintained an Overweight rating and raised the price target from $275 to $295 [5] - Telsey Advisory Group analyst Cristina Fernandez maintained an Outperform rating with a price target of $255 [5] - Citigroup analyst Steven Zaccone maintained a Neutral rating and increased the price target from $200 to $233 [5] - Guggenheim analyst Steven Forbes reiterated a Buy rating with a price target of $300 [5] - Goldman Sachs analyst Kate McShane downgraded the stock from Neutral to Sell, reducing the price target from $199 to $179 [5]

Earnings Results - RH is set to release its second-quarter earnings results on September 11, with analysts expecting earnings of $3.22 per share, an increase from $1.69 per share in the same period last year [1] - Projected quarterly revenue for RH is $905.36 million, compared to $829.65 million a year earlier [1] First Quarter Performance - On June 12, RH reported better-than-expected first-quarter adjusted EPS results and maintained its FY25 guidance despite uncertainties related to tariffs and macroeconomic events [2] - Following this announcement, RH shares fell by 1.7%, closing at $228.93 [2] Analyst Ratings and Price Targets - Wells Fargo analyst Zachary Fadem maintained an Overweight rating and raised the price target from $275 to $295 [5] - Telsey Advisory Group analyst Cristina Fernandez maintained an Outperform rating with a price target of $255 [5] - Citigroup analyst Steven Zaccone maintained a Neutral rating and increased the price target from $200 to $233 [5] - Guggenheim analyst Steven Forbes reiterated a Buy rating with a price target of $300 [5] - Goldman Sachs analyst Kate McShane downgraded the stock from Neutral to Sell, reducing the price target from $199 to $179 [5]

Earnings Reports - Kroger Co. is expected to report quarterly earnings of $0.99 per share on revenue of $34.10 billion [2] - Aviat Networks Inc. reported quarterly earnings of $0.83 per share, exceeding the analyst consensus estimate of $0.47 per share, with quarterly sales of $115.340 million, surpassing the estimate of $114.667 million [2] - RH is anticipated to post quarterly earnings of $3.20 per share on revenue of $904.64 million [2] - Oxford Industries Inc. reported quarterly earnings of $1.26 per share, beating the estimate of $1.18, but quarterly revenue of $403.14 million fell short of the consensus estimate of $410.850 million [2] - Adobe Inc. is expected to report quarterly earnings of $5.18 per share on revenue of $5.91 billion [2] Stock Performance - Kroger shares increased by 0.7% to $67.51 in after-hours trading [2] - Aviat Networks shares rose by 4.7% to $23.75 in after-hours trading [2] - RH shares gained 0.4% to $229.90 in after-hours trading [2] - Oxford Industries shares jumped 16.7% to $47.16 in after-hours trading [2] - Adobe shares increased by 0.4% to $351.45 in after-hours trading [2]

Key Takeaways RH's Q2 EPS estimate is $3.19, up 88.8% year over year, while revenues are seen rising 9.1% to $905.5M.Investments in new products and European demand are expected to fuel top-line growth this quarter for RH.Margin expansion is projected, with operating margin at 15-16% and EBITDA margin at 20.5-21.5%.RH (RH) , formerly Restoration Hardware, is scheduled to report its second-quarter fiscal 2025 (ended Aug. 2) results on Sept. 11, after market close.In the last reported quarter, the company’s e ...

Core Insights - The Retail & Hospitality Information Sharing and Analysis Center (RH-ISAC) and Target organized the Fraud Defense Forum to address rising fraud pressures in the retail and hospitality sectors [1][3] - A significant outcome of the forum is the development of a Fraud Intelligence Sharing Playbook, aimed at standardizing the collection, analysis, and sharing of fraud intelligence among companies [2][3] Group 1: Forum Outcomes - The Fraud Intelligence Sharing Playbook will provide a common framework for breaking down silos and aligning reporting templates, facilitating the flow of actionable insights [2] - The forum highlighted the increasing sophistication of fraud attacks, emphasizing the need for coordinated defense strategies across the industry [3][4] Group 2: Collaboration and Engagement - Discussions at the forum included legal considerations for data exchange and the importance of Chief Information Security Officers (CISOs) in securing executive support for fraud prevention initiatives [4] - RH-ISAC is positioned as a trusted hub for collaboration, helping members enhance resilience and shape future fraud defense strategies across the retail and hospitality sectors [4][5]

Company Announcement - RH will report its financial results for the second quarter ended August 2, 2025, on September 11, 2025, after market close [1] - The financial results will include a shareholder letter from Chairman and CEO Gary Friedman, highlighting the company's continued evolution and recent performance [1] - The shareholder letter and financial results will be available on the company's investor relations website [1] Conference Call Details - RH leadership will host a live conference call and audio webcast on September 11, 2025, at 2:00 pm Pacific Time (5:00 pm Eastern Time) [2] - Access to the live conference call can be made by dialing 800.715.9871 or 646.307.1963 for international callers, with a conference ID of 8284432 [2] - The call and its replay will also be accessible via audio webcast on the investor relations website [2] Company Overview - RH is a curator of design, taste, and style in the luxury lifestyle market, offering collections through retail galleries, sourcebooks, and online platforms [3]

Group 1 - The core point of the article is that Citigroup's report indicates a 2.0% average increase in store traffic for the rated retailers in August, which is a slowdown from July's 3.3% growth, while the two-year cumulative growth rate remains stable at +5.9% for August compared to +5.8% for July [1][3][5] Group 2 - In August, the absolute growth was led by Ollie's Bargain Outlet (+19.8%), Boot Barn (+10.9%), and RH (+5.9%), while Advance Auto Parts experienced the largest decline at -7.9% [3][4] - Best Buy (+120 basis points), RH (+62 basis points), Costco, and BJ's Wholesale Club showed month-over-month growth, while Ollie's Bargain Outlet experienced the largest deceleration despite maintaining a +20% absolute growth [4] - Looking ahead to September, the performance comparisons will generally be easier than in August, except for BJ's Wholesale Club, which faces a tougher comparison due to last year's traffic advantage from a strike at East Coast ports [5]