RH Stock Soars 17.6% on Earnings Beat

RH's stock surged 17.6% in pre-market trading on June 13, 2025, driven by a strong first-quarter earnings report that exceeded expectations despite ongoing tariff pressures and a challenging housing market.

RH reported a 12% increase in revenue for the first quarter, reaching $814 million. The company's adjusted operating margin reached 7%, and its adjusted EBITDA margin was 13.1%, both at the high end of expectations. Despite these positive financial metrics, RH's sales fell short of analyst estimates, which did not deter investors from bidding up the stock.

RH's earnings per share (EPS) beat expectations by 285.71%, a significant surprise that contributed to the stock's surge. The company's ability to maintain a 10-13% revenue growth outlook for 2025, despite the challenging environment, further bolstered investor confidence. RH's stock had fallen 55% year-to-date through Thursday's close, making the recent surge even more notable.

RH's strong earnings report and positive outlook for the remainder of the year have positioned the company favorably in the eyes of investors, leading to a significant pre-market rally. The company's ability to navigate tariff pressures and housing market challenges while delivering strong financial results has underscored its resilience and strategic acumen.