RH cuts FY25 revenue growth view to 9%-11% from 10%-13%

RH (RH) also lowered its FY25 adjusted operating margin view to 13%-14% from 14%-15% and its adjusted EBITDA margin view to 19%-20% from 20%-21%. RH narrowed its FY25 free cash flow view to $250M-$300M from $250M-$350M. The company said, “Due to the dislocation and continued uncertainty related to tariffs, we believe it is prudent to revise our guidance for fiscal 2025 due to the following factors: While we continue negotiations with our manufacturing partners, our updated outlook reflects a $30 million cost of incremental tariffs, net of mitigation, in the second half. As communicated, due to the uncertainty related to tariffs, we delayed the launch of the new brand extension that was planned for the second half of 2025 to the Spring of 2026. We have also delayed the introduction of our Fall Interiors Sourcebook by 8 weeks as we awaited tariff announcements needed to finalize pricing. Last year, 100 percent of the Fall Interiors Sourcebooks were in-home by the first week of August. This year the Fall Interiors Sourcebook will be 100 percent in-home by the last week of September, with only 28 percent in-home as of the end of last week. We now expect approximately $40 million in revenues to shift out of Q3 and into Q4 and Q1 2026. Our outlook does not include any new tariffs as a result of the recently announced furniture investigation.”