Rh ( (RH) ) has released its Q2 earnings. Here is a breakdown of the information Rh presented to its investors.
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RH, a prominent player in the luxury home furnishings sector, has reported a robust financial performance for the second quarter of 2025, showcasing significant growth in both revenue and net income. The company, known for its high-end furniture and immersive gallery experiences, operates in the retail and hospitality industries with a unique approach that blends residential and commercial spaces.
In the latest earnings report, RH announced an 8.4% increase in net revenues, reaching $899.2 million, and a remarkable 79% rise in net income to $51.7 million. The company also reported a free cash flow of $80.7 million, highlighting its strong cash generation capabilities. Despite challenges such as tariff uncertainties and a sluggish housing market, RH has managed to achieve industry-leading growth.
Key financial metrics from the quarter include a GAAP operating margin of 14.3% and an adjusted operating margin of 15.1%. The EBITDA margin stood at 18.1%, with an adjusted EBITDA margin of 20.6%. RH’s strategic focus on European expansion is evident with the successful opening of RH Paris, which has already surpassed expectations in terms of visitor traffic and design pipeline.
Looking ahead, RH remains cautiously optimistic about its growth prospects, despite ongoing tariff challenges. The company has revised its fiscal 2025 guidance to account for potential tariff impacts, projecting revenue growth of 9% to 11% and adjusted EBITDA margins between 19% and 20%. RH’s strategic investments in global expansion and its innovative approach to retail and hospitality continue to position the company for long-term success.