RH's stock surged 5.02% in pre-market trading on Friday, defying mixed third-quarter results and a lowered fourth-quarter outlook. The company reported revenue of $884 million, in line with estimates, but earnings fell short of expectations.
Despite the earnings miss, RH highlighted its "industry-leading growth" amid a challenging housing market and tariff impacts. However, the company narrowed its annual sales forecast and faced multiple analyst price target cuts, including from Jefferies, Telsey Advisory Group, and Stifel, reflecting concerns about future margins and revenue.
Investors appeared to focus on RH's resilience, driving the pre-market rally even as analysts tempered their expectations. The stock's movement suggests a divergence between short-term trading sentiment and longer-term fundamental concerns.
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