RH (formerly Restoration Hardware) reported a strong second quarter, beating earnings expectations despite lowering revenue guidance. The company saw its stock surge by as much as 24% after reporting a 15.9% increase in after-hours trading. RH's revenue for the fiscal year 2025 is projected to be between $3.18 billion and $3.24 billion, slightly above the FactSet consensus of $3.19 billion. The company also noted a significant increase in inventory, up 24% year-over-year, compared to a 4% increase in revenue. Additionally, RH reduced its backlog by 30% and cut its operating margin by 200 basis points. Demand trends remain strong, contributing to the positive market response.