How did RH's revenue and expenses shift in Q3 2025 compared to previous quarters?

RH's revenue and expenses in Q3 2025 showed notable shifts compared to the previous quarters, reflecting the company's strategic initiatives and operational changes.

1. Revenue Shift:
   • RH's revenue for Q3 2025 was $811.7 million, marking an 8.1% increase from the same quarter in the previous year. This growth was driven by strategic gallery expansions, product transformations, and improved demand management.
   • RH had forecasted a 10% to 13% revenue growth for fiscal 2025, indicating a positive outlook for the company's performance.
2. Expense Shift:
   • The company's expenses for Q3 2025 were not directly reported, but the overall trend of increasing expenses is evident from the previous quarters.
   • In Q2 2025, RH's expenses were influenced by higher tax professional wages and benefits due to increased company-owned return volume.
   • Moving back to Q1 2025, expenses were primarily driven by investments in European expansion and product transformation, which positioned the company for future growth.
3. Comparative Analysis:
   • RH's revenue growth in Q3 2025 was notable, but the company faced margin pressure due to a substantial investment cycle and the ongoing challenges in the housing market.
   • The company's net income increased significantly, reporting $33.2 million in Q3 2025 compared to a $2.19 million loss in the same quarter of the previous year.

In conclusion, RH's revenue in Q3 2025 demonstrated robust growth, primarily driven by strategic initiatives and market conditions. Despite this, the company faced challenges related to expenses and margin pressure, which were influenced by ongoing investments and the housing market conditions.