RH shares plummeted 6.55% during intraday trading on Tuesday, reflecting investor disappointment with the company's latest financial results and outlook.
The luxury furniture retailer reported fourth-quarter adjusted earnings of $1.53 per share, missing analyst estimates of $2.22, while revenue of $842.62 million also fell short of the $873.32 million consensus. The company cited approximately $30 million in higher-than-expected backorders and special orders related to tariff resourcing, plus an additional $10 million impact from adverse weather.
Looking ahead, RH provided fiscal 2026 revenue guidance of $3.57 billion to $3.72 billion, below Wall Street estimates, with first-quarter projections also coming in well under consensus. The weak outlook is compounded by concerns about the housing market, with RH CEO Gary Friedman recently warning of the "most dire" housing market in decades as elevated mortgage rates continue to weigh on buyers.
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