Luxury homeware retailer RH has had a successful financial quarter, bolstered further by US tariff refunds, leading it to raise its outlook.

Generating $922.2 million in net revenue and $60.2 million in profit, RH’s chairman and CEO, Gary Friedman, said that momentum is building at the company from “significant growth strategies” that have recently been implemented.

This momentum is accelerating; net revenue grew 2.6 per cent from the same point last year, up from a 1.6 per cent decline between the two previous first quarters.

But the retailer’s biggest boost in the quarter was a $69.2 million tariff refund. 

“We recognized a tariff benefit of $55.1 million in the second quarter and expect to recognize an additional $13.9 million tariff benefit in the second half of the year,” RH told investors. 

It plans to use this refund to offset $50 million of “unplanned cost increases”, which came about after supply chain disruptions and oil price increases after the start of the ongoing Middle East conflict. 

RH’s optimism, however, hasn’t been affected by these external circumstances. It is now telling investors that it expects its full-year revenues to grow 1.5 per cent faster than expected.

“While we’ve been running through the mud for the past four years of the worst housing market in four decades, we have also made some amazing investments, done remarkable work and expect extraordinary results over the next several quarters and years,” Friedman added.