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RH’s Surprising Earnings: Worth the Hype?

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 6/18/2025, 2:32 pm ET 6/18/2025, 2:32 pm ET | 6 min 6 min read
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RH stocks have been trading up by 5.9 percent due to strong earnings reports suggesting robust future growth.

  • The company’s Q1 revenue rose to a striking $814M, encouraging investors and pushing share prices up by nearly 15% in after-hours trading.

  • After outperforming expectations with a revenue rise and positive earnings adjustment, RH shares jumped 19%, drawing attention to its strategic shifts and market position.

  • Despite economic bumps, RH firmly maintained its optimistic yearly revenue growth forecast of 10% to 13%, reciprocating well in its share market standing.

  • RH further added momentum with a strategic focus on North American and Italian manufacturing, minimizing far-reaching impacts from evolving trade tensions.

Candlestick Chart

Live Update At 14:32:17 EST: On Wednesday, June 18, 2025 RH stock [NYSE: RH] is trending up by 5.9%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview of RH’s Recent Financial Performance

As a millionaire penny stock trader and teacher Tim Sykes says, “The goal is not to win every trade but to protect your capital and keep moving forward.” This principle emphasizes the importance of risk management in trading, where preserving your resources is crucial for long-term success. By focusing not solely on winning every trade but on the broader objective of advancing steadily, traders can maintain their composure and skillfully navigate the market’s unpredictable nature.

RH, whose shares have been known to twist and turn, lately took a remarkable upward leap in the stock market. They’ve flipped a fiscal switch from loss to gain, remarkably so. Their earnings report lays it plain—revenues surged to $814M in the last quarter, a generous leap from last year’s $727M. That’s not small potatoes!

Profit-wise, they’d been in the negative not so long ago, but now they sport a positive glow. With adjusted earnings of $0.13 per share compared to a prior loss of $0.40, they’ve given investors a hopeful hint. Perhaps the winds of profit have changed direction?

Digging deeper, RH stood steadfast in its growth path. Their gross margin reached a commendable 44.5%, a far cry from the usual retail game where margins are tight like a ship. And speaking of ships, they’ve set sail to diversify sourcing, focusing closer to home—Italy and North America—a clever move for a company heavily weighted in Asia.

Moreover, their stake in market sentiment seems to thrive on steadiness, they reiterated an ever-assertive revenue growth expectation of 10% to 13% for the fiscal year. It’s like watching a high-wire act; the stakes are high, but the balance is well maintained.

RH’s shares reflected this positive turn, escalating nearly by 15% after hours. But don’t be fooled, the market’s a fickle friend—today’s surge might wear different shoes tomorrow. Nevertheless, RH seems poised, with the semblance of steady performance even amidst ever-changing tides.

How The News Shaped RH’s Market Movement

RH Swings to Profits, Share Prices Leap:

Recently, RH caught investors off guard with unexpected numbers—a profit where a loss once stood. This kind of surprise tells a story similar to a dark horse winning a race. When RH popped the bubble of anticipated losses with robust numbers, its shares didn’t just step up; they leapt! In after-hours, the stock climbed nearly 15%, riding the wave created by shifting investor sentiments.

Think of their full-year revenue target—anchoring optimism at 10%-13%. It’s like a lighthouse guiding the investment ships in tumultuous seas. Investors weren’t expecting this gleam amidst gloomy skies, hence the market joyride.

Revenue Windfall Ignites Optimism:

Turning revenue tides aren’t new for RH, but their recent $814M revenue ordeal marked a significant milestone. Rising from $727M of the previous annum, they’ve managed to convince the hard-to-please financial crowd of their bullish trajectory.

When RH counts dollars rather than losses, investors perk their ears. This financial milestone does more than jazz up RH’s report card. It provides additional confidence, a form of insurance for the future excursions in the unpredictable market.

The Shift in Production Grounds:

Then there’s the operational shift—the new production strategy. RH’s pivot towards North American and Italian manufacturing is one for the books. Considering the diplomatic dance around global trade, having a local fallback plan is shrewd.

The transition, while not immediate, reflects the company’s long-term strategies. It’s comparable to preparing for stormy weathers. Investors noticed and, evidently, approved, shown by the rise in their market cap post-announcement. Keeping sourcing local reduces dependency on Asian manufacturing, notably impacted by trade policies.

More Breaking News

Market Trends and Conclusion

RH’s earnings season whirlwind didn’t just whisk away trader worries, it paved newer paths with its growth tale. Positive surprises of the fiscal first-quarter earnings suggest resilience. The leap in RH stocks—nearly 19% by some reports—wasn’t a fluke but a calculated market response.

Furthermore, RH’s sustainability strategy came into sharper focus. By easing international dependencies, they’re playing defensive yet effective. The prospect of less market turbulence afforded by a localized supply chain ushers hope.

In closing, while RH’s fiscal treasure trove and strategic maneuvers leave a shiny impression, a curious eye is crucial. Earning numbers remain key but watching RH’s market voltage is wiser. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” If the tides hold, the course they’ve set might indeed lead to prosperous shores.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”