Ariana Warden's questions to RH (RH) leadership • Q1 2025
Question
Ariana Warden, on behalf of Steven Zaccone at Citi, questioned the basis for management's confidence in a second-half sales improvement. She also asked about product margin performance in Q1 and the outlook for the full year.
Answer
Chairman & CEO Gary Friedman attributed the confidence in the second-half outlook to internal models, current business momentum, and the pipeline of new gallery openings. CFO Jack Preston stated that core business product margins were up year-over-year in Q1, and Friedman added that they are expected to be up for the remainder of the fiscal year.