What happened

Shares of RH (NYSE:RH) jumped on Thursday after the furniture retailer reported its third-quarter results. Despite tariffs on Chinese goods, RH managed to beat expectations for both revenue and earnings. The stock was up 13.4% at market close.

So what

Third-quarter revenue was $677.5 million, up 6.4% year over year and $1 million above the average analyst estimate. Non-GAAP (adjusted) earnings per share came in at $2.79, up from $1.60 in the prior-year period and $0.54 higher than analysts were expecting. A lower tax rate provided a benefit of $0.24 per share.

A rising chart.

Image source: Getty Images.

While tariffs are impacting products sold by RH, the company has been able to sidestep damage, saying, "We continue to receive pricing accommodations from vendors and have implemented price increases where necessary with little to no impact to our business."

Now what

Along with reporting strong third-quarter results, RH raised its long-term outlook. The company sees a clear path to over $5 billion in annual North America revenue, along with operating margins in the high teens to low twenties. Globally, RH sees the potential to build a $20 billion brand.

The company expects to grow revenue by 8% to 12% annually in the long term, with 15% to 20% annual growth in adjusted net income. It's targeting a return on invested capital of at least 50%.

Including Thursday's rally, shares of RH are now up about 95% since the start of the year.