Skip to content
Subscriber Only
Business

RH Leaps After Profitability Increases on Membership Model Progress

  • Former Restoration Hardware had surprise comparable sales gain
  • Company boosts fiscal 2018 outlook for a second time this year
Home furnishings are displayed in an RH store in New York, U.S., on Monday, Sept. 7, 2015. 

Home furnishings are displayed in an RH store in New York, U.S., on Monday, Sept. 7, 2015. 

Photographer: Michael Nagle

RH, the home furnishings retailer, surged to its highest price in 5 1/2 years after it posted a record first-quarter profit margin and a surprise gain in same-store sales, adding heft to its transformation into a membership business.

The company, previously known as Restoration Hardware, said it sold more goods at full price last quarter and streamlined distribution, helping boost its adjusted operating margin -- a key measure of profitability -- to 38 percent, a gain of 7.5 percentage points. It also raised its outlook for the fiscal year.