RH (NYSE:RH) shares are soaring after a big second-quarter earnings beat and raised FY2017 outlook. It appears the move to a membership model is paying off.

Formerly known as Restoration Hardware, RH delivered second-quarter adjusted EPS of 65 cents, beating estimates by 18 cents. Sales came in nearly $13 million higher than estimates at $619 million.

The home furnishing marketplace also raised its outlook and now expects FY2017 net income in the $70 million-$77 million range, up from $60 million-$70 million. The company forecasts Q3 adjusted EPS of 68 cents-80 cents, well ahead of the consensus 40-cent estimate.

The stock traded at $67.70, up more than 36 percent in after-hours trading.