Revenue Growth
RH reported a 12% increase in revenue for the first quarter of fiscal 2025, despite challenges such as tariff uncertainty and a struggling housing market.
Strong Performance in Europe
Demand growth in Europe accelerated by 60% in the first quarter across comparable galleries RH Munich and RH Dusseldorf, with RH England showing significant demand increases as well.
Expansion and New Openings
RH plans to open new galleries in Paris, London, and Milan within the next twelve months, with expectations of high demand due to their iconic locations.
Free Cash Flow and Debt Management
The company generated positive free cash flow of $34 million in the first quarter and forecasts $250 million to $350 million in free cash flow for the fiscal year, with plans to reduce debt.
Operating and EBITDA Margins
Adjusted operating margin of 7% and adjusted EBITDA margin of 13.1% were at the high end of expectations, with forecasts for adjusted EBITDA margin between 20% to 21% for fiscal 2025.