🔹 Adj EPS: $0.13 (Est. -$0.07) 🟢
🔹 Revenue: $813.95M (Est. $818.57M) 🔴; UP +12% YoY
FY Outlook:
🔹 Revenue Growth: +10% to +13%
🔹 Adjusted Operating Margin: 14%–15%
🔹 Adjusted EBITDA Margin: 20%–21%
🔹 Free Cash Flow: $250M–$350M
Q2 Outlook:
🔹 Revenue Growth: +8% to +10%
🔸 (Includes -6pts impact from tariff disruptions)
Other Q1 Metrics:
🔹 Free Cash Flow: $34M (vs. -$10M YoY
🔹 Adjusted Operating Margin: 7.0% (vs. 6.5% YoY)
🔹 EBITDA Margin: 12.7% (vs. 11.3% YoY)
🔹 Adjusted EBITDA Margin: 13.1% (vs. 12.3% YoY)
🔹 Total Net Debt: $2.56B (4.6x TTM Adj. EBITDA)
Q1 Regional & Channel Performance:
🔹 RH England Gallery Demand: +47% YoY
🔹 RH England Online Demand: +44% YoY
🔹 Europe Gallery Demand (Munich, Düsseldorf): +60% YoY
🔹 Projected RH England FY25 Demand: $46M
– Gallery: $37M–$39M
– Online: $8M
Operational Updates:
🔹 Capital Expenditure Plans:
– FY26: $200M–$250M
– FY27+: $150M–$200M
🔹 RH Membership Discount Increased: 25% → 30%
🔹 Sourcing Shift Out of China:
– Q1: 16% of receipts from China
– Q4 Target: 2%
🔹 FY25 Upholstered Furniture Production Targets:
– 52% USA-produced
– 21% Italy-produced
CEO Gary Friedman Commentary:
🔸 "Our industry leading growth continued into fiscal 2025 as revenue increased 12% in the first quarter despite the polarizing impact of tariff uncertainty and the worst housing market in almost 50 years."
Strategic Developments:
🔹 Lisa Chi rejoined as President & Co-Chief Merchandising & Creative Officer
🔹 RH Paris Gallery Opening Scheduled: Early September 2025
🔹 Brand extension launch delayed to Spring 2026