US-based luxury lifestyle and furniture brand RH has posted strong second-quarter results for FY2025, reinforcing its strategy of brand elevation, global expansion, and real estate investment. 

For the quarter ending August 2, RH reported an 8.4 per cent increase in revenue to US$899.2 million, alongside an adjusted EBITDA margin of 20.6 per cent. 

In a letter to shareholders, chairman and CEO Gary Friedman emphasised RH’s resilience, stating the company “continues to generate industry-leading growth in the most challenging housing market in over 50 years,” citing its premium brand positioning and global momentum as key performance drivers.

European expansion gathers momentum 

International growth was a standout in the quarter, with RH England reporting a 76 per cent sales increase, while online demand rose 34 per cent. 

The company also marked a significant milestone with the September opening of RH Paris, a flagship location on the Champs-Élysées, described as the brand’s most immersive and innovative experience to date.

“While RH Paris may not sound like a retail store, it’s not meant to be. It is an authentic expression of the RH vision and design ethos. It is a global destination designed to manifest dreams, generate desire, and inspire an elevated and elegant way to live,” added Friedman. 

Investing in global flagships and innovation 

RH is ramping up its investments in iconic retail locations and next-generation customer experiences. As part of its Platform Elevation and Expansion initiative, the company will open four new Design Galleries by year-end in Manhasset, San Diego, Detroit, and Palm Desert.

“We are investing in the most iconic global locations in retail that will likely never be replicated in our lifetimes. We are building a global hospitality company with multiple concepts across multiple continents,” Friedman noted. 

Looking ahead, RH plans to open seven to nine Galleries per year, along with two or three Design Studios, Outdoor Galleries, or Concept Galleries. The company aims to double the size of its business in Europe and the Middle East within five to seven years.

For Q3, RH expects revenue growth between 8 per cent and 10 per cent, with adjusted EBITDA margins ranging from 18.0 per cent to 19.0 per cent. Full-year revenue growth is projected between 9 per cent and 13 per cent. 

Additionally, to manage tariff uncertainties and supply chain disruptions related to sourcing from China, RH is increasing its production within the US.