"RH reports after the close with consensus eyeing a sequential reacceleration as tariff-driven shipment pauses from Q2 are recaptured in H2. The setup follows a volatile Q1 where revenue was -0.6% vs. consensus yet EPS beat, and management kept FY25 guidance while flagging a ~6-point Q2 revenue headwind from April's tariff shock with recovery in H2. This print matters for validation of the demand/ship timing bridge, durability of the new 30% membership discount, and International/Design initiatives' contribution to margin and cash flow."
"Tariffs, sourcing, and the Q2 → H2 bridgeManagement cited an unexpected "Liberation Day" tariff shock that paused shipments, implying ~6 pts of Q2 revenue deferral to H2; look for confirmation of recoverability and lead-time normalization. Permanent shift to 30% membership discountRH lifted the member discount from 25% to 30% (permanent); investors will assess demand elasticity and margin offsets (pricing, mix) within the 20-21% EBITDA guide. Europe and gallery cadenceMomentum at RH England and upcoming Paris (Cannes-timed), London, Milan openings underpin international scale; updates on demand and in-stock/fabric fixes are key."
RH reports after the close with consensus modeling a sequential reacceleration as tariff-driven shipment pauses from Q2 are recaptured in H2. Q1 revenue declined 0.6% versus consensus while EPS beat and FY25 guidance was maintained. Management attributed roughly a six-point Q2 revenue headwind to April's tariff shock and expects recovery later in the year. RH permanently increased the member discount from 25% to 30%, creating uncertainty around demand elasticity and margin offsets. International expansion including momentum at RH England and planned Paris, London, and Milan openings is expected to add scale. Capital allocation includes about $500 million of real-estate equity and sale-leasebacks.
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