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RH Posts Q1 Profit and Eyes 10%-13% Growth as It Shifts Production Out of China

Its 10% to 13% revenue growth forecast rests on shifting most production out of China to Western manufacturing hubs.

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Overview

  • RH swung to an $8.04 million net profit, or 40 cents per share, in the fiscal first quarter after a $3.63 million loss a year earlier.
  • Quarterly sales rose 12% to $814 million, roughly matching RH’s guidance despite falling short of analyst forecasts.
  • CEO Gary Friedman said Chinese-sourced receipts will drop from 16% to about 2% by end-of-year as production shifts to the U.S. and Italy.
  • RH’s stock climbed more than 15% in after-hours trading on the back of the upbeat earnings and reinforced sales outlook.
  • The company delayed its new gallery concept launch to spring 2026 and will open its Paris location in September ahead of London and Milan expansions next year.