RH (RH - Get Report) shares were lower after hours on Tuesday even as the home-furnishings retailer reported stronger-than-expected fiscal-second-quarter net income and raised its outlook for all of fiscal 2020.

The stock was trading down around 3.8% after finishing the regular session up 3.5% at $158.88.

"Despite the increase in tariffs and some negative macro trends, we remain optimistic that our business momentum will continue...," Chief Executive Gary Friedman said in a statement.

For the quarter ended Aug. 3, the Corte Madera, Calif., company formerly known as Restoration Hardware reported net income of $2.86 a share compared with $2.29 in the year-earlier quarter. On an adjusted basis, net income reached $3.20 a share from $2.01.

Shares outstanding declined to 22.3 million from 27.5 million.

Revenue climbed to $706.5 million from $640.8 million.

A survey of analysts by FactSet produced consensus estimates of profit of $2.66 a share, or an adjusted $2.69, on revenue of $697.1 million.

For the full fiscal year, the company now expects adjusted per-share earnings of $10.53 to $10.76. Its previous estimate was $9.08 to $9.52.

Revenue should come in at $2.68 billion to $2.69 billion. The previous estimate was $2.66 billion to $2.67 billion.

FactSet's survey was looking for adjusted earnings of $9.43 a share on revenue of $2.67 billion.

"Our largest and most important new gallery, RH New York, continues to trend comfortably in excess of $100 million in annualized revenue" for the full fiscal year, Friedman said. A number of additional galleries are due to open in the fiscal second half, he said.

"Regarding trade with China," the CEO said, "we do not expect the current tariffs to impair our ability to achieve stated financial goals and the impact from the increased tariffs is embedded in our guidance for the year.

"We continue to receive pricing accommodations from vendors and have implemented price increases where necessary with little to no impact to our business."