06:30 AM EDT, 06/13/2025 (MT Newswires) -- RH (RH) shares spiked early Friday as the home furnishing retailer unexpectedly swung to fiscal first-quarter earnings and reiterated its full-year revenue growth outlook despite macroeconomic and tariff-related uncertainties.

The company continues to project revenue to grow between 10% and 13% for fiscal 2025, assuming current tariffs remain in place, it said late Thursday. The current consensus on FactSet is for sales of $3.53 billion. The retailer's stock jumped 19% in the most recent premarket activity.

"Despite the speculative and uncertain outcome related to tariffs and the macroeconomic environment, we are maintaining our current guidance for fiscal 2025, assuming the existing tariffs remain unchanged," Chief Executive Gary Friedman said in an earnings letter to shareholders.

RH is undertaking several mitigation efforts to offset tariff risks, including postponing the launch of its planned new concept to spring in 2026 from the second half of this year, according to Friedman. The company is also continuing to shift sourcing out of China and expects receipts to decrease to 2% in the fourth quarter from 16% in the first quarter, "with a meaningful portion of the tariff absorbed by our vendor partners," Friedman said.

Earlier in the week, US and Chinese officials agreed on a framework for implementing the pact the two countries reached in Switzerland last month, subject to approval from President Donald Trump and his Chinese counterpart, Xi Jinping. Trump recently said the US will send letters to trading partners in the next one or two weeks about setting unilateral tariff rates.

RH estimates 52% of its upholstered furniture will be produced in the US, while 21% will be made in Italy by the end of the ongoing fiscal year, Friedman said in the letter. "While there remains uncertainty until the reciprocal tariff negotiations are complete, we have proven we are well positioned to compete favorably in any market conditions," the CEO added.

The company reported adjusted earnings of $0.13 a share for the quarter ended May 3, compared with a loss of $0.40 the year before. The Street was looking for a per-share non-GAAP loss of $0.09. Revenue advanced 12% to nearly $814 million, but missed the average analyst forecast for $818.6 million.

For the ongoing quarter, the company anticipates revenue growth of 8% to 10%, while the Street is looking for $912.8 million.

Trump's sweeping new reciprocal tariff announcement at the beginning of April disrupted global shipments and resourcing efforts, which will negatively impact the company's revenues by about 6 points in the second quarter before a recovery in the second half, Friedman said.