RH Defies Tariffs, Earns Surprise Profit

Here's our initial take on RH's (RH -1.25%) fiscal 2025 first-quarter financial report.Key MetricsMetricQ1 2024Q1 2025Changevs. ExpectationsTotal revenue$727 million$814 million+12%MissedAdjusted earnings per share($0.40)$0.13n/mBeatFree cash flow($10.1 million)$34.1 millionn/mn/aGross margin43.5%43.7%+20 bpsn/aBack in the BlackIt's been a tough environment for retailers across the industry in 2025, given all the pressures they've seen. Between macroeconomic weakness and industry-specific tariff issues, RH ...