RH(NYSE:RH) reported second-quarter fiscal 2025 earnings on August 6, 2025, posting an 8.4% revenue increase with adjusted operating margin of 15.1% (up 340 basis points year over year) despite significant ongoing tariff headwinds and continued weakness in the U.S. housing market. Robust early results in Europe, especially at RH Paris, and $81 million in free cash flow support a confident outlook even as incremental tariffs and investment drag persist into the second half.
The following analysis highlights critical strategic shifts, risk management, and operational milestones shaping the long-term investment case. (Note: Fiscal 2025 refers to the period ending Jan. 31, 2026.)
The Sept. 5 opening of RH Paris on the Champs Élysées saw the initial design project pipeline in just six days exceed the combined total of the first five European galleries at the same stage. RH England’s second full fiscal year demand is projected at $46 million, and Paris has already outperformed the company’s flagship New York gallery in traffic since launch, signaling step-change potential for European penetration.